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HomeMy WebLinkAbout2015 03 23 Regular 600 Fiscal Year 2013-2014 Comprehensive Annual Financial ReportCOMMISSION AGENDA ITEM 600 Informational Consent Public Hearings Regular X March 23, 2015 KS SB Regular Meeting City Manager Department REQUEST: The City Manager is requesting City Commission acceptance of the Comprehensive Annual Financial Report as presented for the Fiscal Year Ended September 30, 2014. SYNOPSIS: The presentation of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014 by the City's auditors, McDirmit Davis & Company, LLC. CONSIDERATIONS: The CAFR is prepared and presented to give the City Commission, citizens, and other users a greater understanding of the City's financial standing. Our 2014 financial statements received an unqualified opinion (best opinion possible) by the auditors. Additionally, the 2014 CAFR will be submitted to the Government Finance Officers Association (GFOA) for consideration for their Certificate of Achievement award as we believe it continues to conform to the program's stringent requirements. The City's CAFR has been awarded the GFOA's Certificate of Achievement award for the past fourteen consecutive years. FISCAL IMPACT: This report has no direct financial impact on the City. However, the information presented in the CAFR is used by investors and citizens to help determine the overall financial health of the City of Winter Springs Regular 600 PAGE 1 OF 2 - March 23, 2015 COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas /Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. Additionally, the 2014 CAFR will be posted to the City's website within one week of acceptance. Additionally, the 2012 CAFR will be posted to the City's website within one week of acceptance. RECOMMENDATION: It is recommended that the Commission accept the Comprehensive Annual Financial Report (CAFR) as presented for the fiscal year ended September 30, 2014. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended September 30, 2014. Regular 600 PAGE 2 OF 2 - March 23, 2015 lip Aw 71-7,11 rpflWRFE 0 K s ns eF-w PA7NTiNG 21 in 0 This page intentionally left blank. G� Incorporated 1959 '000 wE City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2014 �t4 T�R O Z r7 Incarporatcd ' I959 ' coo wF -T ?- Prepared by: Finance and Administrative Services Department This page intentionally left blank. G� Incorporated 1959 '000 wE INTRODUCTORY SECTION This section contains the following subsections: • Table of Contents • Letter of Transmittal • GFOA Certificate of Achievement • List of Principal Officials • Organizational Chart This page intentionally left blank. G� Incorporated 1959 '000 wE CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2014 Paae Introductory Section: Table of Contents i -iii Letter of Transmittal iv -vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x II. Financial Section: Independent Auditor's Report 1 -2 Management's Discussion and Analysis 3 -17 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Balance Sheet - Governmental Funds 20 -21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 -24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 26 -27 Road Improvements Special Revenue Fund 28 Solid Waste /Recycling Special Revenue Fund 29 Statement of Net Position - Proprietary Funds 30 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 31 Statement of Cash Flows - Proprietary Funds 32 -33 Statement of Fiduciary Net Position - Fiduciary Funds 34 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 35 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2014 Paae Financial Section - Continued: Notes to Financial Statements 36 -76 Required Supplementary Information Schedule of Funding Progress - Defined Benefit Pension Plan 77 Schedule of Employer Contributions - Defined Benefit Pension Plan 77 Schedule of Funding Progress - Retiree Continuation Insurance Plan 78 Schedule of Employer Contributions - Retiree Continuation Insurance 117 -118 Plan 78 Schedule of Changes in Net Pension Liability and Related Ratios 79 Schedule of Contributions 80 Schedule of Investment Returns 81 Combining and Individual Fund Statements and Schedules: 123 Major Governmental Funds: 124 Schedule of Revenues and Expenditures and Changes in Fund 125 Balance - Budget and Actual: 126 TLBD Debt Service Fund 82 2003 Debt Service Fund 83 Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 84 -89 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 90 -95 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 96 -107 Debt Service Funds 108 -111 Capital Projects Funds 112 -115 Statistical Section: Financial Trends Net Position by Component 116 Changes in Net Position 117 -118 Governmental Activities Tax Revenues by Source 119 Fund Balances of Governmental Funds 120 Changes in Fund Balances of Governmental Funds 121 -122 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 123 Property Tax Rates, Direct and Overlapping Governments 124 Special Assessment Billings and Collections 125 Principal Property Taxpayers 126 Property Tax Levies and Collections 127 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2014 IV. Other Reports: Independent Auditor's Report on Internal Control over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 140 -141 Management Letter 142 -143 Communication with Those Charged with Governance 144 -146 Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida Statutes 147 Affidavit of Impact Fee Compliance 148 Paae III. Statistical Section - Continued: Debt Capacity Legal Debt Margin 128 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 129 Ratio of Outstanding Debt by Type 130 Direct and Overlapping Governmental Activities Debt 131 Pledged- Revenue Coverage 132 -133 Demographic and Economic Information Demographic and Economic Statistics 134 Principal Employers 135 Operating Information Budgeted Full -time Equivalent City Government Employees by Function 136 Operating Indicators by Function 137 -138 Capital Asset Statistics by Function 139 IV. Other Reports: Independent Auditor's Report on Internal Control over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 140 -141 Management Letter 142 -143 Communication with Those Charged with Governance 144 -146 Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida Statutes 147 Affidavit of Impact Fee Compliance 148 This page intentionally left blank. G� Incorporated 1959 '000 wE +�N7ER O 3A U [nro.poreted 1959 •'��O °wsI�Jy� • March 16, 2015 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 Telephone (407) 327 -1800 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: It is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014. Florida Statutes, Chapter 166.241 and the rules of the Florida Auditor General, Chapter 10.550 requires that all general - purpose local governments publish a complete set of financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP) and that they be audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs' comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of Winter Springs' financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2014 are free of material misstatement. The independent audit involved examination of evidence, on a test basis, supporting the amounts and disclosures in the financial statements; assessment of the accounting principles used and significant estimates made by management; and an evaluation of the overall financial statement presentation. Based upon the audit, the independent auditor concluded that reasonable basis existed to render an unmodified opinion that the City of Winter Springs' financial statements for the fiscal year ended September 30, 2014 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The City of Winter Springs' Management's Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Govemment The City of Winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. This area is one of the fastest growing areas in the country. The City currently has a land area of 14.81 square miles and a population of approximately 34,000. The City operates according to a Council /Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four -year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City's Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day -to -day operations of the government, and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational facilities, activities and cultural events. The City maintains both Water and Sewer Utility Fund, a Stormwater Utility Fund, and a Development Services Fund, which function, in essence, as departments of the City of Winter Springs and therefore have been included as an integral part of the City of Winter Springs' financial statements. The annual budget serves as the foundation for the City of Winter Springs' financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Commission for review on or before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City's fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget -to- actual comparisons are provided in this report for each individual governmental fund. The General Fund, the Road Improvements Fund and the Solid Waste /Recycling Fund, are presented on pages 26 -29 as part of the basic financial statements for the governmental funds. The TLBD Debt Service Fund and 2003 Debt Service Fund comparisons are presented as other financial information on pages 82 -83. The non -major governmental funds budget comparisons are presented in the governmental fund subsection of this report which starts on page 96. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Seminole County has adopted a one -cent local government infrastructure sales tax which will be in effect from January 1, 2015 through December 31, 2024. The intent of this legislation is to improve the infrastructure of the Seminole County public school system and other public infrastructure within the County and its municipalities. Per the interlocal agreement, 2.99% of net revenues are to be distributed to the City of Winter Springs. It is estimated that this distribution will be nearly $2M for the fiscal year 2015- 2016. Local economy. The City of Winter Springs is primarily a residential area with a small amount of retail, office and light industrial developments. Approximately 87% of the City's tax base is comprised of residential properties. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2013 -2014 fiscal year (tax year 2013), the gross taxable value reflects an increase of 4.28% from the prior year and an increase of 10.62% since fiscal year 2005. During fiscal year 2013 -2014 (tax year 2013), through prudent fiscal management, the City was able to maintain operating and voted debt millage rates at 2.43 and 0.1100 mills, respectively. The local real estate market has recovered substantially from the crash of 2007. New construction in Winter Springs is robust. New housing starts for Seven Oaks, Southern Oaks, & the RiZe, upscale apartment living in the Town Center; are contributing to the growth. At the local level, revenues such as review and permit fees, investment income and state sales tax revenues have rebounded and are showing signs of sustainable growth. Winter Springs can boast great neighborhood schools. For the 11th year in a row, Seminole County Public Schools remains an "A" —rated school district. For the 2013/14 school year, 4 of 5 the elementary and middle schools were awarded an "A" on State FCAT score results, and a Keeth Elementary School student received a perfect score on all 3 FCAT tests (Writing, Reading and Math). Winter Springs is also home to Choices in Learning Charter School, Willow School, and The Primrose School (opening soon), offering choices in education. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. Winter Springs continues its partnership with the UCF Incubator to look at ways to make a positive investment into our business community. We have also partnered with Seminole County in the Community Redevelopment Agency to build out neighborhood improvements at Shepard Road as part of the 17 -92 corridor redevelopment. This project is funded through a waiver of ad valorem taxes by way of repayment of ad valorem paid to the county. Winter Springs continues to offer its citizens, the highest quality services and community minded events such as Shop- with -a Cop, and Community Youth Organization for at risk youth. Our therapy pool was awarded the Top Aquatic Program in the United States, selected number 20 in the country, and Top Aquatic Program in the State of Florida awarded by the US Water Fitness Association. Together with the Winter Springs Senior Association, a number of activities and outings are offered to our seniors including yoga, ceramics, the very popular Touch of Class line dancing group and more. Winter Springs has been host to the Central Florida Scottish Highland Games for thirteen consecutive years and has recently signed a 10 -year contract with the Scottish - American Society. The City has been host to the Oviedo - Winter Springs Chamber of Commerce' ARTtoberFEST offering a variety of both art and music. The city partners with a number of sport leagues and clubs such as Babe Ruth & Pop Warner offering a variety of sports activities. We host a spring break and summer camp program offering affordable day camp options and hold a number of holiday events including Father - Daughter Dance, Spring Family Festival, the Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran's Day Ceremony, Winter Wonderland, and. This year Sergeant Keith Hale was recognized as the City's Hometown Hero during the Veterans Day Ceremony. Several of these events are featured on the cover of this report. Highlighted here are some of what makes the City of Winter Springs a top choice for families to choose to live. As a post script, in 2011, Winter Springs was recognized by Money Magazine as one of the top 100 places to live. Long -term financial planning. The City Commission updated and adopted a 5 -year Capital Improvements Plan (CIP) on September 2014 for fiscal years 2015 through 2019. The CIP is currently being evaluated and updated through fiscal year 2019. The CIP is a multi -year prioritized schedule of improvements that lists each capital improvement by the year it is intended to be purchased or commenced; the amount to be spent per year; and the method of financing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation of all necessary capital improvements. It should be noted; however, that the CIP is not a static document but a flexible and dynamic one that may change to reflect changing priorities, opportunities, costs, or financing approach. Relevant Financial Policies. In fiscal year 2014, the City has implemented GASB 67: Financial Reporting for Pension Plans. Major Initiatives. During fiscal year 2014, as approved during the budget process, the City anticipates the continued efforts for improving our City services and amenities by means of the following projects: • Software upgrade or implementation of a new ERP system to allow enhanced customer service capabilities such as e- billing, online customer payments and customer self serve continues on schedule and will be completed in 2015. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its CAFR for the fiscal year ended September 30, 2013. This was the fourteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently- organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement program requirements and will be submitting it to the GFOA to determine its eligibility for another fiscal year. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members the department who assisted and contributed to its preparation. Other City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult. Appreciation must also be expressed to the City's auditors whose suggestions and attention to detail enhanced the quality of this report. In closing, we would also like to support and for maintaining high Springs' finances. Respectfully submitted, Kevin L. Smith City Manager express appreciation to the Mayor and the City Commission for their standards of professionalism in management of the City of Winter Shawn D. Boyle Finance and Administrative Services Director C 0 L Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2013 Executive Director /CEO CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2014 ELECTED OFFICIALS MAYOR COMMISSIONER COMMISSIONER COMMISSIONER DEPUTY MAYOR / COMMISSIONER COMMISSIONER COMMUNITY DEVELOPMENT FINANCE /ADMIN SERVICES INFORMATION SERVICES PARKS AND RECREATION POLICE CHIEF UTILITY /PUBLIC WORKS CITY MANAGER Kevin L. Smith CITY CLERK Andrea Lorenzo - Luaces LEGAL COUNSEL Anthony Garganese Brown, Garganese, Weiss & D'Agresta, P.A. DEPARTMENT DIRECTORS ix Charles Lacey Joanne M. Krebs Cade Resnick Pam Carroll Rick Brown Jean Hovey Randy Stevenson Shawn Boyle Joanne Dalka Chris Caldwell Kevin Brunelle Kipton Lockcuff City of Winter Springs Organizational Chart Civic ... Advisory Boards Organizations Finance and Administrative Services Information Services • Administration • Administration • Accounting • Security • Debt Management • Records Management • Meter Service • IT Maintenance • Budgeting • IT Development • HR • Geographical • Risk management Information System • Purchasing • Treasury Management Citizens of Winter Springs Mayor and City Commissioners .I City Manager fiffiNN • Administration • Stormwater • Transportation • Engineering • Water Management • Water /Wastewater .I City Attorney I . . . .I City Clerk Police Department • Administration • Records • Communication • Patrol • Investigations • Code Enforcement Parks and Recreation • Administration • Civic /Senior Center • Athletics Recreation • Programs • Concession Services • Parks /Field Maintenance Community Development • Administration • Comp Planning • Land Management • Urban Beautification • Permits and Inspections This page intentionally left blank. G� Incorporated 1959 '000 wE FINANCIAL SECTION This page intentionally left blank. G� Incorporated 1959 '000 wE MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of linter Springs, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of and for the year ended September 30, 2014, and the related noted to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements City of Winter Springs' management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Winter Springs, as of September 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund, road improvements special revenue fund, and solid waste /recycling special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407 - 843 -5406 FAX 407 - 649 -9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTIONAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 1 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, budgetary comparison information, pension and other postemployment benefits disclosures on page 3 through 17, 82 through 83, and 77 through 81 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Winter Springs' basic financial statements. The introductory section, combining and individual fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules and statistical section are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 16, 2015 on our consideration of City of Winter Springs' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Winter Springs' internal control over financial reporting and compliance. , rutDav4 & �4 LL0, Orlando, Florida March 16, 2015 2 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Winter Springs we offer readers of the City of Winter Springs' financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal which can be found on pages iv - vii of this report. Financial Highlights • The assets and deferred outflows of the City of Winter Springs exceeded its liabilities at the close of the most recent fiscal year by $96,261,251 (net position). Of this amount, $19,609,407 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net position increased by $2,062,479 or 2 %. • As of the close of the current fiscal year, the City of Winter Springs' governmental funds reported combined ending fund balances of $20,164,660. Approximately 37% of this total amount, $7,474,967, is available for spending at the government's discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the general fund was $7,646,887, or 50% of total general fund expenditures. • The City of Winter Springs' total debt decreased by $2,013,403 (5 %) during the current fiscal year. Overview of the Financial Statements The financial statements focus on both the City as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year -to -year or government -to- government) and enhance the City's accountability. This discussion and analysis are intended to serve as an introduction to the City of Winter Springs' basic financial statements, which are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs' finances, in a manner similar to a private- sector business. The Statement of Net Position presents information on all of the City of Winter Springs' assets, deferred outflows of resources and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining. ,C] MANAGEMENT'S DISCUSSION AND ANALYSIS Overview of the Financial Statements (Continued) Government -wide financial statements. (Continued) The Statement of Activities presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Winter Springs that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Winter Springs include general government, public safety, physical environment and culture and recreation. The business -type activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility and Development Services. The government -wide financial statements include only the City of Winter Springs itself (known as the primary government). The City of Winter Springs had no component units. The Water and Sewer Utility, the Stormwater utility, and Development Services function as departments of the City of Winter Springs, and therefore, have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 18 -19 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. El MANAGEMENT'S DISCUSSION AND ANALYSIS Overview of the Financial Statements (Continued Governmental Funds. (Continued) The City of Winter Springs maintains 25 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Road Improvements Special Revenue Fund, Solid Waste /Recycling Special Revenue Fund, TLBD Debt Service Fund, and 2003 Debt Service Fund all five of which are considered to be major funds. Data from the other 20 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds in provided in the form of combining statements elsewhere in this report. The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Road Improvements Special Revenue Fund, and Solid Waste /Recycling Special Revenue Fund to demonstrate compliance with this budget on pages 26 -29. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund, 2003 Debt Service Fund and the nonmajor funds on pages 82 -83 and 96 -115. The basic governmental fund financial statements can be found on pages 20 -25 of this report. Proprietary funds. The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility and Development Services department. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 30 -33 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 34 -35 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 36 -76 of this report. Required Supplementary Information (RSI). RSI can be found on pages 77 -81 of this report. Other information. The budget schedules for the 2 major debt service funds are on pages 82- 83 after the RSI. The combining statements referred to earlier in connection with nonmajor governmental funds are presented after this. Combining and individual fund statements and schedules can be found on pages 84 -115 of this report. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analvsis Statement of Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Winter Springs, assets and deferred outflows of resources exceeded liabilities by $96,261,251 at the close of the most recent fiscal year. Of the City of Winter Springs' net position ($67,367,565 or 70 %) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related outstanding debt used to acquire those assets. The City of Winter Springs uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Winter Springs' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net position subject to external restrictions as to how it may be used total $9,284,279 (10 %). The remaining balance of unrestricted net position ($19,609,407 or 20 %) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2014, the City of Winter Springs is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Position for the current and prior year. For more detail see the Statement of Net Position on page 18. N. MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analysis (Continued) City of Winter Springs Statement of Net Position As of September 30 Deferred Outflows of Resources Deferred charge on refunding $ 92,576 $ 135,945 $ 568,817 $ 653,734 $ 661,393 $ 789,679 Liabilities: Current liabilities Long term liabilities Other liabilities Total liabilities Net Position: Net investment in capital assets Restricted Unrestricted Total net position 820,640 Governmental Activities Business -type Activities Total Primary Government 1,247,663 2014 2013 2014 2013 2014 2013 Assets: 333,414 415,024 757,647 705,366 1,091,061 1,120, 390 Current and other assets $ 26,892,907 $ 27,917,604 $13,657,526 $11,768,260 $ 40,550,433 $ 39,685,864 Restricted assets 333,927 415,024 721,689 732,561 1,055,616 1,147,585 Capital assets 58,048,490 58,531,317 37,860,862 38,334,482 95,909,352 96,865,799 Total assets 85,275,324 86,863,945 52,240,077 50,835,303 137,515,401 137,699,248 Deferred Outflows of Resources Deferred charge on refunding $ 92,576 $ 135,945 $ 568,817 $ 653,734 $ 661,393 $ 789,679 Liabilities: Current liabilities Long term liabilities Other liabilities Total liabilities Net Position: Net investment in capital assets Restricted Unrestricted Total net position 820,640 1,091,424 427,023 488,119 1,247,663 1,579,543 17,848,695 18,963,583 21,728,124 22,626,639 39,576,819 41,590,222 333,414 415,024 757,647 705,366 1,091,061 1,120, 390 19,002,749 20,470,031 22,912,794 23,820,124 41,915,543 44,290,155 45,826,335 44,710,711 21,541,230 20,728,675 67,367,565 65,439,386 8,801,942 8,963,434 482,337 467,655 9,284,279 9,431,089 11,736,874 12,855,714 7,872,533 6,472,583 19,609,407 19,328,297 $ 66,365,151 $ 66,529,859 $ 29,896,100 $ 27,668,913 $ 96,261,251 $ 94,198,772 Statement of Changes in Net Position. The following table reflects the Statement of Changes in Net Position for the current and prior year. For more detailed information see the Statement of Activities on page 19. Note that the government's total net position increased by $2,062,479 or 2% in fiscal year 2014 The previous fiscal year, 2013, net position increased by $2,984,935. Governmental activities decreased net position by $164,708 in fiscal year 2014 compared to an increase of $834,193 in 2013. The 2013 increase in net position is primarily due to realization of 2013 impact fee revenues without a commensurate realization of capital projects. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) Business -type activities increased net position by $2,227,187 in fiscal year 2014 compared to an increase of $2,150,742 in 2013. This is primarily the result of the Water Sewer Utility Fund ($1,751,587) which stems from contributed capital ($548,125), connection fees ($266,653), grant revenues ($76,915) and increased user charges ($699,228). The increase in net position in the Stormwater Utility ($410,352) results from contributed capital ($634,317). Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business -type activities as well as the revenue "source" for each. Additional information regarding the changes in fund balance of the governmental and business - type activities can be found in the section entitled Financial Analysis of Government's Funds on page 12. Note that the first graph depicts governmental program- specific revenues and expenses. For this graph the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. Note that the Development Services Fund shows direct revenues approximately equal to direct expenses excluding the allocation of overhead as transfers out. Increase in water and sewer revenues are due in part to increased consumption and rates and decreases in operational expenditures and the refinancing of debt. �:3 MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analvsis (Continued Statement of Changes in Net Position. (Continued) City of Winter Springs Changes in Net Position For the Year Ended September 30 Governmental Activities Business -type Activities Revenues: Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues: Property taxes Utility taxes Business tax receipts Intergovernmental - unrestricted Investment income and miscellaneous Total revenues Expenses: General government Public safety Physical environment Culture and recreation Interest and other fiscal charges on long -term debt Water and sew er Development services Stormw ater Total expenses Increase (Decrease) In Net Position Before Transfers 2014 2013 2014 2013 Total Primary Government 2014 2013 $ 6,469,268 $ 6,076,393 $11,158,094 $10,634,861 $17,627,362 $16,711,254 22,530 - - - 22,530 - 1,382,211 2,042,887 1,526,010 2,062,483 2,908,221 4,105,370 4,014,680 3,852,812 - - 4,014,680 3,852,812 4,034,667 3,923,336 $66,529,859 $29,896,100 4,034,667 3,923,336 105,558 108,849 105,558 108,849 3,268,732 3,099,562 - - 3,268,732 3,099,562 353,384 487,682 31,537 87,571 384,921 575,253 19,651,030 19,591,521 12,715,641 12,784,915 32,366,671 32,376,436 5,498,396 4,902,507 7,476,644 7,415,423 5,873,522 5,658,075 2,170,169 2,078,389 781,732 772,994 6,944,763 7,039,986 409,295 369,454 1,149,671 1,154,673 5,498,396 4,902,507 7,476,644 7,415,423 5,873,522 5,658,075 2,170,169 2,078,389 781,732 772,994 6,944,763 7,039,986 409,295 369,454 1,149,671 1,154,673 21,800,463 20,827,388 8,503,729 8,564,113 30,304,192 29,391,501 (2,149,433) (1,235,867) 4,211,912 4,220,802 2,062,479 2,984,935 Transfers 1,984,725 2,070,060 (1,984,725) (2,070,060) - - Increase In Net Position (164,708) 834,193 2,227,187 2,150,742 2,062,479 2,984,935 Net Position- October 1 66,529,859 65,768,641 27,668,913 25,656,500 94,198,772 91,425,141 Restatement of Net Position - (72,975) - (138,329) - (211,304) Net Position- September 30 $66,365,151 $66,529,859 $29,896,100 $27,668,913 $96,261,251 $94,198,772 9 MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) 8,000, 000 7,000, 000 6,000, 000 5,000, 000 B @ II @ see fee see see e sesee ] Governmental Program Specific Revenues and Expenses General Public Safety Physical Culture & Government Environment Recreation Interest on Long -Term Debt imental Revenues by Source Investment Income and Miscellaneous 2% Taxes Charges for Services 41°% 33% I ntergovernmenta I Revenues 17% 10 Capital and Operating Grants and Contributions 7°% • Revenues • Expenses MANAGEMENT'S DISCUSSION AND ANALYSIS Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) 12,000,000 10,000,000 8,000,000 6,000, 000 4,000, 000 2,000, 000 0 Business -type Activities Revenues and Expenses Water and Sewer Development Services Capital and Operating Grants. and Contributions 12% Stormwater Business -type Activities Revenues by Source 11 Charges for Services 88°% Investment _Income and Miscellaneous 0% Revenues Expenses MANAGEMENT'S DISCUSSION AND ANALYSIS Financial Analvsis of the Government's Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds. The focus of the City of Winter Springs' governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs' financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2014, the City of Winter Springs' governmental funds reported combined ending fund balances of $20,164,660, a decrease of $716,895 over the prior year. Approximately 37% or $7,474,967 of this total amount constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is restricted, committed or assigned to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, capital projects, inventories and prepaid costs. The general fund is the chief operating fund of the City of Winter Springs. At the end of the current fiscal year, unassigned fund balance of the General Fund was $7,646,887, while total fund balance was $8,495,663. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned and total fund balance represents 50 and 56% respectively, of total General Fund expenditures. The increase in fund balance of $7,908 was less than the budgeted decrease as a result of favorable variances in non - payroll related operations accounts, transfers, and favorable revenue variances in electric taxes and franchise fees. The Road Improvements Fund balance decreased $542,602 due to capital projects expenditures exceeding current year revenues. The 2003 Debt Service fund balance decreased $536,580 due to expenditures related to the current refunding of the outstanding bonds and issuance of a new note payable. Proprietary Funds. The City of Winter Springs' proprietary funds provide the same type of information found in the government -wide financial statements but in more detail. Unrestricted net position of the Water and Sewer Utility Fund at the end of the year amounted to $6,757,528 and total net position increased $1,751,587 to $21,016,975. This increase is primarily due to an increased demand, reduced indirect overhead expenses and contributed capital. The Development Services Fund net position increased $65,248 to $209,510 at the end of the fiscal year. New construction permits have sustained improved levels resulting in net income. The Stormwater Utility Fund net position increased $410,352 to $8,669,615 at the end of the fiscal year. Increased net position is a result of increase in user revenues and greater operating efficiencies resulting in decreased operating expenses. 12 MANAGEMENT'S DISCUSSION AND ANALYSIS General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in $5,902 less in appropriations from fund balance during the year from an appropriation from fund balance of $581,068 in the original budget to appropriations from fund balance of $575,166 in the final budget. The actual results of General Fund for the year show an appropriation to fund balance of $7,908 compared to a final budgeted appropriation from fund balance of $575,166. The favorable variance of $583,074 results from savings in non - payroll related operating accounts per the Department list below: Executive & Legislative $ 6,502 General Government 24,643 Finance & Admin Services 26,811 Information Services 20,658 Community Development 14,083 Police 51,628 Public Works 24,673 Parks & Recreation 33,188 Total $ 202,186 Additionally, there was a favorable transfer variance of $202,000 due to the determination that a portion of the budgeted transfer to the debt service fund would not be necessary. The proactive decision to pay down $300,000 of the unfunded pension liability only resulted in an unfavorable payroll variance of ($84,000). A favorable capital variance of $250,000 resulted from a CRA (Community Redevelopment Agency) District project ($175,000) that did not materialize in FY2014 and a Byrne grant project which fell on the cusp of two fiscal years and necessitated a $54,000 rollover into FY15. Because these capital projects were 100% reimbursable there was a commensurate negative effect of $262,000 on the revenue variance. This, however, was mitigated by electricity taxes and electricity franchise fees which outperformed budgeted estimates by $437,000 and contributed to by Communication Service Taxes which came shy of budget by $146,000. All in all, the general fund ended with a net favorable revenue and transfers in variance of $12,000. The comparison of budgeted results to actual results for the General Fund is shown on pages 26 -27. Capital Asset and Debt Administration Capital assets. The City of Winter Springs' investment in capital assets for its governmental and business -type activities as of September 30, 2014, amounts to $95,909,352 (net of accumulated depreciation), for a decrease of $956,447 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total decrease in the City of Winter Springs' investment in capital assets for the current fiscal year was 0.99% (a 0.82% decrease for governmental activities, and a 1.24% increase for business -type activities). 13 MANAGEMENT'S DISCUSSION AND ANALYSIS Capital Asset and Debt Administration (Continued) Capital assets. (Continued) Major capital asset events during the current fiscal year included the following: • The completion and capitalization of the following projects: • Road reconstruction and resurfacing totaling almost $689,000; • The purchase of new vehicles for the Police Department at a cost of almost $277,000; • Water system pipe relining at a cost of almost $181,000; • Beautification renovation project at a cost of almost $116,000; • Upgrade of Police Department radios and system at a cost of almost $131,000; • Tractor for Public Works Department at a cost of almost $57,000; • New VM Server at a cost of $40,000. • The capitalization of donated assets as a result of new residential and commercial building projects including: • Additions to storm water system infrastructure at a value of almost $634,000; • Additions to sewer system infrastructure at a value of almost $635,000. • Continued construction on the following projects: • Road safety projects including deceleration lanes and realignment of Market Square at a cost of almost $240,000 ($95,000 spent in prior years); • Customer Service initiative to include upgrade software at a cost of almost $85,000 (almost $247,000 spent in prior years); • Improvements at Central Winds Park at a cost of $34,000 (almost $12,000 spent in prior years). • The ongoing construction of new projects: • Police Department Emergency Operations Center at a cost of almost $39,000; • Homeland Security monitoring cameras at the water plants at a cost of almost $30,000. Additional information on the City of Winter Springs' capital assets can be found in Note 6 on pages 54 -56 of this report. Land Buildings Improvements other than buildings Machinery and equipment Intangibles Infrastructure Construction in progress Total City of Winter Springs Capital Assets (Net of Depreciation) As of September 30 Governmental Activities Business -type Activities Total Primary Government 2014 2013 2014 2013 2014 2013 $ 9,946,795 $ 9,946,795 $ 7,170,177 $ 7,170,177 $17,116,972 $17,116,972 7,276,050 7,684,649 163,138 188,153 7,439,188 7,872,802 6,992,645 7,298,722 29,695,026 30,103,312 36,687,671 37,402,034 1,367,719 1,334,506 552,489 571,562 1,920,208 1,906,068 182,182 182,413 84,278 105,524 266,460 287,937 31,310,749 31,541,167 - - 31,310,749 31,541,167 972,350 543,065 195,754 195,754 1,168,104 738,819 $ 58,048,490 $ 58,531,317 $ 37,860,862 $ 38,334,482 $ 95,909,352 $ 96,865,799 14 MANAGEMENT'S DISCUSSION AND ANALYSIS Caaital Asset and Debt Administration (Continued Long -term debt. At September 30, 2014, the City of Winter Springs had total debt outstanding of $39,576,819, a decrease of $2,013,403 from $41,590,222 at September 30, 2013. Total bonded debt of the City at the end of the current fiscal year was $9,168,161 for a decrease of $4,730,000 over the prior year. This amount does not include accreted interest of $8,989,604. The City of Winter Springs' bonded debt represents bonds and notes secured solely by specified revenue sources (i.e., revenue bonds and notes). There are no limitations placed on the amount of debt the City may issue either by the City's charter, code of ordinances or by the Florida State Statutes. Additional information on the City of Winter Springs' long -term debt can be found in Note 7 on pages 56 -61 of this report. City of Winter Springs Long Term Debt As of September 30 15 Governmental Activities Business -type Activities Total Primary Government 2014 2013 2014 2013 2014 2013 Improvement Refunding Revenue Bonds, Series 1999 $ 3,498,970 $ 3,498,970 $ - $ - $ 3,498,970 $ 3,498,970 Water & Sewer Refunding Revenue Bonds, Series 2000 - - 5,669,191 5,669,191 5,669,191 5,669,191 Improvement Refunding Revenue Bonds, Series 2003 - 4,730,000 - - - 4,730,000 Capital Improvement Revenue Note, Series 2006 87,333 114,959 87,333 114,959 Revenue Refunding Note Series 2011 1,043, 285 1,204,160 1,043, 285 1,204,160 Special Assessment Revenue Notes, Series 2011 1,657,310 1,735,122 1,657,310 1,735,122 Limited General Obligation Note, Series 2012 2,533,833 2,638,521 2,533,833 2,638,521 Improvement Refunding Revenue Note, Series 2014 3,494,000 - 3,494,000 - Revenue Refunding Note Series 2011A - 5,900,689 6,778,750 5,900,689 6,778,750 Revenue Refunding Note Series 2011B 641,179 721,065 641,179 721,065 Revenue Refunding Note Series 2011 C 3,058,761 3,397,010 3,058,761 3,397,010 State Revolving Fund Loan - 1,635,498 1,711,448 1,635,498 1,711,448 Accreted Interest Payable 4,432,678 4,003,092 4,556,926 4,081,821 8,989,604 8,084,913 Compensated Absences 766,961 726,850 172,074 194,367 939,035 921,217 Other Post Employment Benefits 334,325 277,090 110,675 90,910 445,000 368,000 Adjustments for Issuance Discounts and Deferred Refunding Costs - 34,819 (16,869) (17,923) (16,869) 16,896 Total $17,848,695 $18,963,583 $ 21,728,124 $ 22,626,639 $ 39,576,819 $ 41,590,222 15 MANAGEMENT'S DISCUSSION AND ANALYSIS Economic Factors and Next Year's Budaets and Rates Winter Springs is primarily a residential community serving more than 34,000 residents and is just 15 miles north of the City of Orlando, one of Florida's largest metropolitan statistical areas. Winter Springs was also recognized by Money Magazine in 2011 as one of our country's "Best Places to Live." Where many municipal and county governments have raised property taxes, through conservative fiscal policies and aggressive management of the budget, the City Manager and City Commission have been able to maintain the property tax rate for the upcoming fiscal year while improving services. Community Development is focused on a strong, strategic economic development plan to attract commercial growth within the city. Particular attention is directed to the area known as Seminole Way. With its close proximity to the University of Central Florida and Research Park, Winter Springs offers excellent opportunities for the development of high technology industries. Situated on the eastern edge of the City, Seminole Way is a strategic economic development initiative focused on attracting high value jobs and businesses to Seminole County. The State Road 417 (Central Florida GreeneWay) corridor defines the boundaries of the Seminole Way district, spanning the length of Seminole County and connecting to both Orange County's "Innovation Way" and the "Medical City" located at Lake Nona. The City has targeted this GreeneWay Interchange District (GID) for technology industry development complemented by commercial and retail establishments. It is expected to become a premier employment center with professional and high -tech office buildings, conference facilities, and hotel rooms. The City's ability to expand and diversify its tax base will be a major factor in providing additional financial resources to fund an increasing demand for services. The city is experiencing new growth and rising property values in both the residential and commercial construction market with projects such as: • The RiZe — 244 luxury apartments • Pollack Shores — 300 apartments with mixed use /commercial buildings • Jesup's Landing — 171 townhomes in the Town Center • Winding Hollow Office Complex • West Side — 5 buildings constructed and occupied, 2 future buildings • East Side — 2 buildings under construction Long Term Financial Planning The total taxable assessed property value in Winter Springs increased 6.6% from for fiscal year 2014 to 2015, $1,639,667,121 to $1,748,258,752. In fiscal year 2015 -2016 property assessed values are anticipated to increase approximately 4.5 -5.0 %. The real estate market has rebounded and the City will continue to benefit from several geographic and competitive advantages. The primary factors are: Significant undeveloped land, both residential and commercial Comparatively low tax rates Current commercial and residential development presently under construction and in planning The national and state economies play a key role in assessing the City's financial future. While economic changes at the state and national level often lead to reduction in tax receipts the City has remained vigilant, flexible and proactive with corresponding changes in expenditures. 16 MANAGEMENT'S DISCUSSION AND ANALYSIS Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance and Administrative Services Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is also available at the City of Winter Springs' website located at www.wintersprin-qsfl.org. 17 This page intentionally left blank. G� Incorporated 1959 '000 wE BASIC FINANCIAL STATEMENTS This page intentionally left blank. G� Incorporated 1959 '000 wE GOVERNMENT -WIDE FINANCIAL STATEMENTS This page intentionally left blank. G� Incorporated 1959 '000 wE CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION September 30, 2014 ASSETS Cash and Cash Equivalents Investments Receivables, net Inventories - at cost Prepaid Costs Restricted Assets: Cash and cash equivalents Investments Pension Assets Receivables, long -term Capital Assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding LIABILITIES Accounts Payable and Accrued Expenses Due to Other Governments Accrued Interest Payable Unearned Revenues Liabilities Payable from Restricted Assets Noncurrent Liabilities: Due within one year Due in more than one year Total Liabilities NET POSITION Net Investment in Capital Assets Restricted for: Capital projects Debt service Renewal and replacement Physical environment Public safety Unrestricted Total Net Position Governmental Activities $ 1,143,320 19,420,890 3,637,113 7,510 210,920 333,927 297,032 2,176,122 10,919,145 Business -type Activities $ 899,021 11,834,367 893,298 23,545 7,295 721,689 7,365,931 Total $ 2,042,341 31,255,257 4,530,411 31,055 218,215 333,927 721,689 297,032 2,176,122 18,285,076 47,129,345 30,494,931 77,624,276 85,275,324 52,240,077 137,515,401 92,576 568,817 661,393 657,053 192,421 849,474 83,399 14,413 97,812 68,468 220,189 288,657 11,720 - 11,720 333,414 757,647 1,091,061 762,942 1,438,060 2,201,002 17,085,753 20,290,064 37,375,817 19,002,749 22,912,794 41,915,543 45,826,335 21,541,230 67,367,565 2,988,442 - 2,988,442 281,171 4,814 285,985 - 477,523 477,523 5,395,107 - 5,395,107 137,222 - 137,222 11,736,874 7,872,533 19,609,407 $ 66,365,151 $ 29,896,100 $ 96,261,251 The accompanying Notes to Financial Statements are an integral part of these statements. 18 This page intentionally left blank. G� Incorporated 1959 '000 wE CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF ACTIVITIES For The Year Ended September 30, 2014 Net (Expense) Revenue and Changes in Net Position Business -type activities Water and sewer 6,944,763 9,239,558 - 891,693 Program Revenue 3,186,488 Primary Government Development services 409,295 821,278 - - - Operating Capital Grants Stormwater 1,149, 671 1,097,258 - 634,317 - Charges for Grants and and Governmental Business -type - 1,526,010 Functions /Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government (9,746,079) General Revenues: Governmental activities Property taxes 4,014,680 - 4,014,680 General government $ 5,498,396 $ 2,058,398 $ - $ - $ (3,439,998) $ - $ (3,439,998) Public safety 7,476,644 457,705 20,030 - (6,998,909) - (6,998,909) Physical environment 5,873,522 3,589,850 - 1,382,211 (901,461) - (901,461) Culture and recreation 2,170,169 363,315 2,500 - (1,804,354) - (1,804,354) Interest on long -term debt 781,732 - - - (781,732) - (781,732) Total governmental activities 21,800,463 6,469,268 22,530 1,382,211 (13,926,454) - (13,926,454) Business -type activities Water and sewer 6,944,763 9,239,558 - 891,693 - 3,186,488 3,186,488 Development services 409,295 821,278 - - - 411,983 411,983 Stormwater 1,149, 671 1,097,258 - 634,317 - 581,904 581,904 Total business -type activities 8,503,729 11,158,094 - 1,526,010 - 4,180,375 4,180,375 Total primary government $ 30,304,192 $ 17,627,362 $ 22,530 $ 2,908,221 (13,926,454) 4,180,375 (9,746,079) General Revenues: Property taxes 4,014,680 - 4,014,680 Utility taxes 4,034,667 - 4,034,667 Business tax receipts 105,558 - 105,558 Intergovernmental - unrestricted 3,268,732 - 3,268,732 Investment income and miscellaneous 336,000 31,537 367,537 Gain on Sale of Asset 17,384 - 17,384 Transfers 1,984,725 (1,984,725) - Total general revenues and transfers 13,761,746 (1,953,188) 11,808,558 Change in net position (164,708) 2,227,187 2,062,479 Net Position - beginning 66,529,859 27,668,913 94,198,772 Net Position - ending $ 66,365,151 $ 29,896,100 $ 96,261,251 The accompanying Notes to Financial Statements are an integral part of these statements. 19 This page intentionally left blank. G� Incorporated 1959 '000 wE FUND FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2014 Assets: Cash and cash equivalents Investments Receivables, net Inventories, at cost Prepaids Special assessments receivable Advances to other funds Restricted assets: Cash and cash equivalents Total assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Retainage payable Due to other funds Due to other governments Payable from restricted assets Total liabilities Deferred Inflows of Resources Unavailable revenue - county taxes Unavailable revenue - special assessments Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances 333,414 $ 9,290,582 $ 152,054 214,332 95,119 333,414 794,919 $ 4,434,767 $ 2,924,935 $ 11,002 $ 191,922 11,002 191,922 3,503,434 - 3,503,434 416,032 - - - 920,331 - - - 981,158 432,744 - 1,751,855 7,646,887 - - 8,495,663 920,331 2,733,013 $ 9,290,582 $ 4,434,767 $ 2,924,935 The accompanying Notes to Financial Statements are an integral part of these statements. 20 Special Revenue Road Improvements Solid General Fund Fund Waste /Recycling $ 285,553 $ 65,744 $ 206,139 8,127,576 865,589 2,714,020 128,007 3,503,434 4,776 7,510 - - 210,920 - - 197,602 - - 333,414 $ 9,290,582 $ 152,054 214,332 95,119 333,414 794,919 $ 4,434,767 $ 2,924,935 $ 11,002 $ 191,922 11,002 191,922 3,503,434 - 3,503,434 416,032 - - - 920,331 - - - 981,158 432,744 - 1,751,855 7,646,887 - - 8,495,663 920,331 2,733,013 $ 9,290,582 $ 4,434,767 $ 2,924,935 The accompanying Notes to Financial Statements are an integral part of these statements. 20 Debt Service $ 3,955 $ 3,500 $ 64,303 $ 426,736 - - - 214,332 15,985 15,985 197,602 197,602 - 95,119 - - - 333,414 3,955 3,500 277,890 1,283,188 1,597,310 1,597,310 - 3,503,434 578,812 2,176,122 578,812 5,679,556 - - - 416,032 226,434 4,151,743 5,298,508 - - 303,509 1,284,667 276,115 3,229,772 5,690,486 - - (171,920) 7,474,967 226,434 276,115 7,513,104 20,164,660 $ 1,827,699 $ 279,615 $ 8,369,806 $ 27,127,404 21 Other Total TLBD Debt 2003 Debt Governmental Governmental Service Service Funds Funds $ 16,264 $ 19,739 $ 549,881 $ 1,143,320 214,125 259,876 7,239,704 19,420,890 - - 896 3,637,113 - - - 7,510 - - - 210,920 1,597,310 - 578,812 2,176,122 - - - 197,602 - - 513 333,927 $ 1,827,699 $ 279,615 $ 8,369,806 $ 27,127,404 $ 3,955 $ 3,500 $ 64,303 $ 426,736 - - - 214,332 15,985 15,985 197,602 197,602 - 95,119 - - - 333,414 3,955 3,500 277,890 1,283,188 1,597,310 1,597,310 - 3,503,434 578,812 2,176,122 578,812 5,679,556 - - - 416,032 226,434 4,151,743 5,298,508 - - 303,509 1,284,667 276,115 3,229,772 5,690,486 - - (171,920) 7,474,967 226,434 276,115 7,513,104 20,164,660 $ 1,827,699 $ 279,615 $ 8,369,806 $ 27,127,404 21 This page intentionally left blank. G� Incorporated 1959 '000 wE CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION September 30, 2014 Total fund balance, governmental funds $ 20,164,660 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Other long -term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. The cumulative net pension contribution which is more than the annual required contribution is presented as an asset on the statement of net position. 58,048,490 5,679,556 (17,824,587) 297,032 Net Position of Governmental Activities in the Statement of Net Position $ 66,365,151 The accompanying Notes to Financial Statements are an integral part of this statement. 22 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2014 23 Special Revenue Road Improvements Solid General Fund Fund Waste /Recycling Revenues: Taxes: Property taxes $ 3,840,804 $ - $ - Utility taxes 4,034,667 - - Business tax receipts 105,558 - - Permits and fees 1,870,175 - 102,625 Intergovernmental revenues 3,196,409 188,132 94,853 Charges for services 618,902 - 2,437,733 Fines and forfeitures 106,875 - - Impact fees /assessments - - - Investment income 30,988 3,195 6,848 Miscellaneous 154,950 - - Total revenues 13,959,328 191,327 2,642,059 Expenditures: Current: General government 4,963,130 - - Public safety 6,947,133 - - Physical environment 1,001,795 - 2,444,356 Culture and recreation 1,786,708 - - Debt Service: Principal - - - Interest and fiscal charges - - - Capital Outlay: General government 108,070 - - Public safety 407,245 - - Physical environment - 755,715 - Culture and recreation 54,193 - - Total expenditures 15,268,274 755,715 2,444,356 Excess (Deficiency) of Revenues Over Expenditures (1,308,946) (564,388) 197,703 Other Financing Sources (Uses) Notes payable - - - Transfers in 2,468,354 21,786 - Transfers out (1,151,500) - (137,339) Total other financing sources(uses) 1,316,854 21,786 (137,339) Net Change in Fund Balances 7,908 (542,602) 60,364 Fund Balances - beginning 8,487,755 1,462,933 2,672,649 Fund Balances -ending $ 8,495,663 $ 920,331 $ 2,733,013 23 Debt Service Other Total TLBD Debt 2003 Debt Governmental Governmental Service Service Funds Funds $ - $ - $ 173,876 $ 4,014,680 - - - 4,034,667 - - - 105,558 - - 20,125 1,992,925 - - 579,900 4,059,294 - - 14,845 3,071,480 - - 174,483 281,358 77,812 - 1,169,406 1,247,218 55,748 885 41,043 138,707 33,466 - 31,036 219,452 167,026 885 2,204,714 19,165,339 - - 3,712 4,966,842 - - 39,569 6,986,702 4,328 - 723,445 4,173,924 - - - 1,786,708 77,812 4,730,000 293,189 5,101,001 55,127 235,465 133,732 424,324 - - 125,672 233,742 - - 118,887 526,132 67,214 - 239,629 1,062,558 - - 48,667 102,860 204,481 4,965,465 1,726,502 25,364,793 (37,455) (4,964,580) 478,212 (6,199,454) - 3,494,000 - 3,494,000 - 934,000 217,500 3,641,640 (500) - (363,742) (1,653,081) (500) 4,428,000 (146,242) 5,482,559 (37,955) (536,580) 331,970 (716,895) 264,389 812,695 7,181,134 20,881,555 $ 226,434 $ 276,115 $ 7,513,104 $ 20,164,660 The accompanying Notes to Financial Statements are an integral part of these statements. 24 This page intentionally left blank. G� Invvrporated 1959 i,�000 wE CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2014 Net change in fund balances - total governmental funds: $ (716,895) Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period (1,079,962) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade -ins and disposals) is to decrease net position (4,775) The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long -term debt and related items 1,607,001 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds 8,435 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year (123,713) Pension expenses recorded in the statement of activities which are in excess of the annual required pension contribution are considered to be assets and not expenses of the period (1,955) Contributions of capital assets are not reported as revenues in the governmental funds 605,744 Transfers of capital assets to proprietary funds (3,834) Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds. (454,754) Change in net position of governmental activities $ (164,708) The accompanying Notes to Financial Statements are an integral part of these statements. 25 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final Revenues: Taxes: Property Taxes $ 3,830,853 $ 3,830,853 $ 3,840,804 $ 9,951 Utility taxes 3,900,000 3,900,000 4,034,667 134,667 Business tax receipts 125,000 125,000 105,558 (19,442) 7,855,853 7,855,853 7,981,029 125,176 Permits and fees: Permits 25,000 25,000 20,335 (4,665) Franchise fees 1,710,000 1,710,000 1,849,840 139,840 1,735,000 1,735,000 1,870,175 135,175 Intergovernmental revenues: Sales tax 2,055,000 2,055,000 2,097,107 42,107 State revenue sharing 990,000 990,000 1,037,638 47,638 Other state shared revenue 35,000 35,000 34,134 (866) Other county shared revenue 180,000 180,000 7,500 (172,500) Federal grants - 86,513 20,030 (66,483) 3,260,000 3,346,513 3,196,409 (150,104) Charges for services: Program activity fees 199,500 199,500 213,034 13,534 Rental and other 385,718 390,394 405,868 15,474 585,218 589,894 618,902 29,008 Fines and forfeitures 100,000 100,000 106,875 6,875 Investment income 85,000 85,000 30,988 (54,012) Miscellaneous 55,002 128,735 154,950 26,215 Total revenues 13,676,073 13,840,995 13,959,328 118,333 Expenditures: Current: General government: Executive General government Finance and administrative services Information services Community development Public Safety: Police Fire Physical environment: Public works Culture and recreation: Parks and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Actual Budgeted Amounts Amounts Original Final Variance with Final Budget - Positive (Negative) $ 701,775 $ 623,505 $ 614,210 $ 9,295 643,400 389,400 364,757 24,643 1,824,059 1,786,882 1,721,764 65,118 1,033,795 934,470 905,169 29,301 1,691,643 1,647,394 1,465,300 182,094 5,894,672 5,381,651 5,071,200 310,451 6,876,838 7,330,636 7,299,131 31,505 65,500 55,500 55,247 253 6,942,338 7,386,136 7,354,378 31,758 1,002,900 1,008,861 1,001,795 7,066 1,896,491 1,860,921 1,840,901 20,020 15,736,401 15,637,569 15,268,274 369,295 (2,060,328) (1,796,574) (1,308,946) 487,628 2,580,760 2,574,408 2,468,354 (106,054) (1,101,500) (1,353,000) (1,151,500) 201,500 1,479,260 1,221,408 1,316,854 95,446 (581,068) (575,166) 7,908 583,074 8,487,755 8,487,755 8,487,755 - $ 7,906,687 $ 7,912,589 $ 8,495,663 $ 583,074 27 CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Intergovernmental revenues Investment income Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Actual Original Final Amounts $ 1,275,000 $ 283,000 $ 188,132 8,400 8,400 3,195 1,283,400 291,400 191,327 Variance with Final Budget - Positive (Negative) $ (94,868) (5,205) (100,073) 1,175,000 821,834 755,715 66,119 1,175,000 821,834 755,715 66,119 108,400 (530,434) (564,388) (33,954) Other Financing Sources (Uses) Transfers in - Transfers out (300,000) Total other financing sources (uses) (300,000) Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending 21,786 21,786 L I, 1 Qu L I, 1 Qu (191,600) (508,648) (542,602) (33,954) 1,462,933 1,462,933 1,462,933 - $ 1,271,333 $ 954,285 $ 920,331 $ (33,954) The accompanying Notes to Financial Statements are an integral part of these statements. 28 CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2014 Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending (25,000) 60,364 85,364 2,672,649 2,672,649 2,672,649 - $ 2,672,649 $ 2,647,649 $ 2,733,013 $ 85,364 The accompanying Notes to Financial Statements are an integral part of these statements. 29 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final Revenues: Permits and fees $ 95,000 $ 95,000 $ 102,625 $ 7,625 Intergovernmental revenues 115,000 115,000 94,853 (20,147) Charges for services 2,387,000 2,387,000 2,437,733 50,733 Investment income 16,500 16,500 6,848 (9,652) Total revenues 2,613,500 2,613,500 2,642,059 28,559 Expenditures: Current: Physical environment 2,428,500 2,453,500 2,444,356 9,144 Total expenditures 2,428,500 2,453,500 2,444,356 9,144 Excess (Deficiency) of Revenues Over Expenditures 185,000 160,000 197,703 37,703 Other Financing Sources (Uses) Transfers out (185,000) (185,000) (137,339) 47,661 Total other financing sources (uses) (185,000) (185,000) (137,339) 47,661 Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending (25,000) 60,364 85,364 2,672,649 2,672,649 2,672,649 - $ 2,672,649 $ 2,647,649 $ 2,733,013 $ 85,364 The accompanying Notes to Financial Statements are an integral part of these statements. 29 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS Assets Current assets: Cash and cash equivalents Investments Receivables, net Inventories Prepaid expenses Total current assets Noncurrent assets: Restricted investments Capital Assets: Land, buildings and equipment Construction in Progress Less Accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Deferred Outflows of Resources Deferred charge on refunding Total deferred outflows of resources Liabilities Current Liabilities: Accounts payable Accrued liabilities Compensated absences - current Customer deposits payable Due to other governments Notes payable - current Accrued interest payable Total current liabilities Noncurrent Liabilities: Notes payable Revenue bonds payable Accreted interest payable Compensated absences Other noncurrent liabilities Total noncurrent liabilities Total liabilities NET POSITION Net investment in capital assets Restricted for debt service Restricted for renewal and replacement Unrestricted Total net position September 30, 2014 Business -type Activities - Enterprise Funds Water and Sewer Utility Development Stormwater Fund Services Fund Utility Fund Total $ 807,031 $ 19,372 $ 72,618 $ 899,021 10, 623, 230 255,054 956,083 11, 834, 367 893,298 - - 893,298 23,545 - - 23,545 6,000 1,295 - 7,295 12, 353,104 275,721 1,028,701 13, 657, 526 721,689 - - 721,689 60, 600, 864 160,092 12, 334, 281 73, 095, 237 127,557 - 68,197 195,754 (30,631,679) (110,267) (4,688,183) (35,430,129) 30,096,742 49,825 7,714,295 37,860,862 30,818,431 49,825 7,714,295 38,582,551 43,171, 535 325,546 8,742,996 52, 240, 077 568,817 - - 568,817 568,817 - - 568,817 99,926 71,833 20,085 191,844 46,412 7,176 12,520 66,108 27,989 2,071 4,355 34,415 692,116 - - 692,116 - 14,413 - 14,413 1,403,645 - - 1,403,645 220,189 - - 220,189 2,490,277 95,493 36,960 2,622,730 9,832,482 - - 9,832,482 5,652,322 - - 5,652,322 4,556,926 - - 4,556,926 111,958 8,283 17,418 137,659 79,412 12,260 19,003 110,675 20,233,100 20,543 36,421 20,290,064 22,723,377 116,036 73,381 22,912,794 13,777,110 49,825 7,714,295 21,541,230 4,814 - - 4,814 477,523 - - 477,523 6,757,528 159,685 955,320 7,872,533 $ 21,016,975 $ 209,510 $ 8,669,615 $ 29,896,100 The accompanying Notes to Financial Statements are an integral part of these statements. 30 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For The Year Ended September 30, 2014 Operating Revenues: User charges Other revenue Total operating revenues Operating Expenses: Salaries and benefits Materials and supplies Depreciation and amortization Other operating expenses Total Operating Expenses Operating income (loss) Nonoperating Revenue (Expenses): Investment income Interest expense Accreted interest expense Proceeds from auction and insurance Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital Contributions: Connection fees Capital contribution Transfers In Transfers Out Change in net position Total Net Position - beginning Total Net Position - ending Business -type Activities - Enterprise Funds 412,148 Water and Sewer Development Stormwater - Utility Fund Services Fund Utility Fund Total 634,317 1,263,191 $ 9,239,558 $ 821,278 $ 1,078,961 $ 11,139, 797 - - 18,297 18,297 9,239,558 821,278 1,097,258 11,158, 094 19,265,388 144,262 8,259,263 2,035,078 279,744 565,268 2,880,090 884,805 7,620 202,723 1,095,148 1,932,103 15,394 343,984 2,291,481 1,078,787 106,537 37,696 1,223,020 5,930,773 409,295 1,149, 671 7,489,739 3,308,785 411,983 (52,413) 3,668,355 22,560 (538,885) (475,105) 6,564 (984,866) 105 2,221 60 27 165 2,248 24,886 (538,885) (475,105) 6,651 (982,453) 2,323,919 412,148 (50,165) 2,685,902 266,653 - - 266,653 628,874 - 634,317 1,263,191 21,696 - - 21,696 (1,489,555) (346,900) (173,800) (2,010,255) 1,751,587 65,248 410,352 2,227,187 19,265,388 144,262 8,259,263 27,668,913 $ 21,016,975 $ 209,510 $ 8,669,615 $ 29,896,100 The accompanying Notes to Financial Statements are an integral part of these statements. 31 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2014 The accompanying Notes to Financial Statements are an integral part of these statements. 32 Business -type Activities - Enterprise Funds Water and Development Sewer Utility Services Stormwater Fund Fund Utility Fund Total Cash Flows from Operating Activities: Receipts from customers $ 9,150,215 $ 821,278 $ 1,097,258 $ 11,068,751 Payments to suppliers (1,969,493) (85,624) (249,185) (2,304,302) Payments to employees (2,059,338) (267,226) (554,207) (2,880,771) Net cash provided by operating activities 5,121,384 468,428 293,866 5,883,678 Cash Flows from Noncapital Financing Activities: Transfers in 21,696 - - 21,696 Transfers out (1,489,555) (346,900) (173,800) (2,010,255) Increase (decrease) in due to other funds (82,459) - 16,861 (65,598) Net cash provided (used) by noncapital financing activities (1,550,318) (346,900) (156,939) (2,054,157) Cash Flows from Capital and Related Financing Activities: Proceeds from insurance 6,564 60 27 6,651 Acquisition of capital assets (612,366) (4,884) (14,335) (631,585) Principal paid on revenue bonds & leases (1,372,146) - - (1,372,146) Interest paid on revenue bonds (469,468) - - (469,468) Grant revenue 76,915 - - 76,915 Connection fees 266,653 - - 266,653 Net cash provided (used) by capital and related financing activities (2,103,848) (4,824) (14,308) (2,122,980) Cash Flows from Investing Activities: Purchase of investments (1,668,442) (105,165) (96,536) (1,870,143) Investment income 22,560 105 2,221 24,886 Net cash provided (used) by investing activities (1,645,882) (105,060) (94,315) (1,845,257) Net Increase (Decrease) in Cash and Cash Equivalents (178,664) 11,644 28,304 (138,716) Cash and Cash Equivalents - beginning 985,695 7,728 44,314 1,037,737 Cash and Cash Equivalents - end $ 807,031 $ 19,372 $ 72,618 $ 899,021 The accompanying Notes to Financial Statements are an integral part of these statements. 32 Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities Operating income(loss) Adjustments Not Affecting Cash: Depreciation and amortization Change in Assets and Liabilities: Decrease in accounts receivable Decrease in inventories Increase in prepaid costs Increase (decrease) in accounts payable Increase in due to other governments Increase (decrease) in accrued liabilities Increase in customer deposits Increase (decrease) in accrued compensated absences Increase in OPEB obligation Total adjustments Net Cash Provided By Operating Activities Noncash Capital and Financing Activities: Contributed capital assets Net transfers of capital assets Business -type Activities - Enterprise Funds water ancl Development Sewer Utility Services Stormwater Fund Fund Utilitv Fund Total $ 3,308,785 $ 411,983 $ (52,413) $ 3,668,355 1,932,103 15,394 343,984 2,291,481 (76,093) - - (76,093) (4,081) - - (4,081) 100 (1,295) - (1,195) (1,920) 50,284 (8,766) 39,598 - (20,456) - (20,456) (3,744) 3,315 2,276 1,847 (13,250) - - (13,250) (34,928) 7,556 5,079 (22,293) 14,412 1,647 3,706 19,765 (119,504) 41,051 2,295 (76,158) $ 5,121,384 $ 468,428 $ 293,866 $ 5,883,678 $ 548,125 $ - $ 634,317 $ 1,182,442 $ 3,834 $ - $ - $ 3,834 33 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2014 Liabilities Net Position: Held in trust for pension benefits $ 36,821,260 The accompanying Notes to Financial Statements are an integral part of these statements. 34 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents $ 4,133,794 Receivables: Employee contributions 12,457 Employer contributions 382,603 Total receivables 395,060 Investments, at fair value: Common funds - equity 22,185,809 Common funds - bonds 7,120,058 Other investments 2,986,539 Total Investments 32,292,406 Total assets 36,821,260 Liabilities Net Position: Held in trust for pension benefits $ 36,821,260 The accompanying Notes to Financial Statements are an integral part of these statements. 34 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For The Year Ended September 30, 2014 Defined Benefit Pension Trust Fund Additions: Contributions: Employer $ 2,561,415 Plan Members 335,594 Total contributions 2,897,009 Investment income: Net increase in fair value of investments 3,414,891 Interest 470,452 Net investment income 3,885,343 Total additions 6,782,352 Deductions: Benefits 1,974,208 Administrative expenses 159,425 Total deductions 2,133,633 Change in net position 4,648,719 Net Position - beginning 32,172,541 Net Position - ending $ 36,821,260 The accompanying Notes to Financial Statements are an integral part of these statements. 35 This page intentionally left blank. G� Invvrporated 1959 i,�000 wE NOTES TO FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies: A. Reporting Entity The City of Winter Springs, Florida (the City) is a political subdivision of the state of Florida located in Seminole County, and was established by the Laws of Florida 59 -1614. The legislative branch of the City is comprised of a five - member elected Commission and a separately elected mayor, which is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager appointed by the Commission. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government -Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The government reports the following funds: Major Governmental Funds The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Road Improvements Special Revenue Fund accounts for collected one -cent sales tax revenues restricted for use for transportation - related improvements. The Solid Waste /Recycling Special Revenue Fund accounts for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are committed to pay monthly vendor charges for providing solid waste and recycling services. The TLBD Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable. The 2003 Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue which was refinanced in July 2014 with a private placement note payable. Nonmajor Governmental Fund Types Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects. Debt Service Funds account for the accumulation of resources for and the payment of principal and interest on certain general governmental obligations. Capital Projects Funds account for financial resources segregated for the acquisition or construction of major capital facilities. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Major Proprietary Funds The Water and Sewer Utility Fund is used to account for the operations of the City's water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. The Development Services Fund is used to account for the operations of the City's building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. The Stormwater Utility Fund is used to account for the City's operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. As a general rule the effect of interfund activity has been eliminated from the government - wide financial statements. Exceptions to this general rule are other charges between the City's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short -term investments with original maturities of three months or less from the date of acquisition. Investments of the City are reported at fair value. The City's investments consist of investments authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes. 2. Receivables and Payables Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of interfund loans) or "advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a non - spendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. .s CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance (Continued) 2. Receivables and Payables (Continued) All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. 3. Inventories and Prepaid Items All inventories are valued at cost using the first -in /first -out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when purchased. 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance (Continued) 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 30 Improvements 20 -50 Infrastructure 30 -50 Intangible Assets 3 -10 Equipment 3 -10 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences, other post - employment benefits and net pension obligation are generally liquidated by the General Fund. 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance (Continued) 7. Long -term obligations In the government -wide financial statements, and for proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and discounts (including deep- discount or capital appreciation bonds), are deferred and amortized over the life of the bonds and notes using the effective interest method. Bonds payable and notes payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Deferred outflows /inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until then. The City has only one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the enterprise and government -wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance (Continued) 8. Deferred outflows /inflows of resources (continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: county taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 9. Net position flow assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted- net position in the government -wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted - net position to have been depleted before unrestricted -net position is applied. 10. Fund balance flow assumption Sometimes the city will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted fund balance to have been depleted before using any components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. .. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows /Inflows of Resources and Net Position or Fund Balance (Continued) 11. Fund balance policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision making authority. The City Commission is the highest level of decision making authority for the City that can, by adoption of a Resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The commission may assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. 12. New GASB Statements Implemented In fiscal year 2014, the City implemented GASB Statement No. 67, Financial Reporting for Pension Plans. This statement replaces the requirements of GASB Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and Statement No. 50, Pension Disclosures, as they related to pension plans that are administered through trusts or equivalent arrangements that meet certain criteria. The City has implemented the disclosure requirements in Notes 9 and 10, and the Required Supplementary Information for the City's Defined Benefit and Defined Contribution Retirement Plans. 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that "long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this ($17,824,587) difference are as follows: Bonds Payable $ (3,498,970) Accreted Interest Payable (4,432,678) Notes Payable (8,815,761) Less: Deferred charge on refunding (to be amortized as interest expense) 92,576 Accrued Interest Payable (68,468) Other Post Employment Benefits (334,325) Compensated Absences (766,961) Net Adjustment to Reduce Fund Balance - total governmental funds to arrive at net position - governmental activities $ (17,824,587) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this ($1,079,962) difference are as follows: Capital Outlay $ 1,925,292 Depreciation Expense (3,005,254) Net Adjustment to Decrease Net Changes in Fund Balances - total governmental funds to arrive at changes in net position - governmental activities $ (1,079,962) M. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities (Continued) Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this $1,607,001 difference are as follows: Debt Issued or Incurred: Notes payable Principal repayment $ (3,494,000) 5,101,001 Net Adjustment to Increase Net Changes in Fund Balances - total governmental funds to arrive at changes in net position - governmental activities $ 1,607,001 Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($454,754) difference are as follows: Compensated Absences Amortization of Loss on Refunding Amortization of Bond Discounts Accrued Interest Payable Other Post Employment Benefits Accreted Interest Payable $ (40,111) (15,513) 6,963 80,728 (57,235) (429,586) Net Adjustment to Decrease Net Changes in Fund Balances- total governmental funds to arrive at changes in net position - governmental activities $ (454,754) 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 3 - Stewardship, Compliance, and Accountability: A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. 1. On or before July 1St of each year, the City Manager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1St. The budget includes proposed revenues, expenditures and a description of capital activities for the ensuing fiscal year. 2. The City Commission then holds informal workshops, wherein the public is invited to attend. 3. On or before September 30th of each year, two public hearings are convened and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 4. The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in the accompanying financial statements have been adjusted for any legally authorized revisions of the annual budgets during the year. 5. The City Manager is authorized to transfer budgeted amounts between accounts within a department. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriations among programs within one department. The legal level of budgetary control is the departmental level. B. Appropriations in Excess of Funds Available Appropriations for the Tuscawilla Phase III Special Revenue Fund and Oak Forest Debt Service Fund were in excess of anticipated revenue and prior years' fund balance. C. Deficit Fund Equity The Tuscawilla Phase III Special Revenue Fund has a deficit fund balance of $53,671 at September 30, 2014. The Oak Forest Debt Service Fund has a deficit fund balance of $118,249 at September 30, 2014. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 4 - Deposits and Investments: Deposits At year -end, the carrying amount of the City's deposits was $2,379,270 and the bank balance was $3,697,244. Petty cash funds of $1,810 are not on deposit with a financial institution, and fiduciary fund cash of $4,133,794 held by the pension fund is not in the City's bank. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories ". Investments The City's investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LG I P) 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. Interest bearing time deposit or savings accounts 6. Repurchase agreements 7. Commercial paper 8. Bankers' acceptances 9. State and /or local government taxable and /or tax- exempt debt 10. Registered investment companies (money market mutual funds) 11. Intergovernmental investment pool The City's investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poors (S & P) rating of AAm or AAm -G. Investments in commercial paper and bankers' acceptances must berated, at a minimum, "P -1" by Moody's Investors Services and "A -1" by S & P. Investment in state and /or local government taxable and /or tax- exempt debt must be rated at least "Aa" by Moody's and "AX by S & P for long -term debt, or rated at least "MIG -2" by Moody's and "SP -2" by S & P for short -term debt. i • CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 4 - Deposits and Investments (Continued): Investments (Continued) Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2014, all of the city's bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2014, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year and commercial paper and bankers' acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. Additional Investment Information The SBA is not a registrant with the Securities and Exchange Commission (SEC); however, the State of Florida does provide regulatory oversight. The Board has adopted operating procedures consistent with the requirements for a 2a -7 like fund for the Florida Prime Fund. Therefore, the pool account balance can be used as fair value for financial reporting. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 4 - Deposits and Investments (Continued): Investments held by the City at September 30, 2014 are detailed below. Investments Commercial Paper US Treasury Notes Municipal Obligations Federal Agency Bond Note Fidelity Institutional Money Market Government Portfolio Investments: Pension Funds Weighted The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Equities traded on a national exchange 2. Fixed income investments having a minimum rating of investment grade or higher as determined by at least one major credit rating service 3. Money market fund or STIF provided by the Plan's custodian 4. Real estate limited to commingled funds 5. Alternatives 6. Foreign securities limited to fully and easily negotiable securities or commingled funds with investments in such securities 7. Commingled funds /mutual funds and exchange traded funds The investments held by the City's Pension Trust Fund at September 30, 2014 are detailed below: Average Duration Investments Fair Value (Years) Stocks $ 22,185,809 N/A Bonds 7,120,058 1.49 years Real Estate 2,986,539 N/A Total Investments 32,292,406 Cash and Cash Equivalents 4,133,794 Total Cash and Investments $ 36,426,200 51 Credit Average Fair Value Rating Maturity $ 5,794,413 A -1+ 36 days 14,963,296 TSY 383 days 974,571 AA 457 days 9,522,979 AA+ 480 days 716,875 Not rated $ 31,972,134 The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Equities traded on a national exchange 2. Fixed income investments having a minimum rating of investment grade or higher as determined by at least one major credit rating service 3. Money market fund or STIF provided by the Plan's custodian 4. Real estate limited to commingled funds 5. Alternatives 6. Foreign securities limited to fully and easily negotiable securities or commingled funds with investments in such securities 7. Commingled funds /mutual funds and exchange traded funds The investments held by the City's Pension Trust Fund at September 30, 2014 are detailed below: Average Duration Investments Fair Value (Years) Stocks $ 22,185,809 N/A Bonds 7,120,058 1.49 years Real Estate 2,986,539 N/A Total Investments 32,292,406 Cash and Cash Equivalents 4,133,794 Total Cash and Investments $ 36,426,200 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds (Continued) Credit Risk The City's Trust investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing commercial paper, the long -term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers' acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and /or Revenue Bonds of state or local government taxable or tax - exempt debt be rated A, for long -term debt, by a nationally recognized rating service or rated "MIG -2" or "SP -2 ", for short term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of "Al" by Standard & Poor's (S &P) or "P1" by Moody's Investor Services ( Moody's); fixed income securities be investment grade as measured by S &P or Moody's; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2014, none of the Trust investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's Trust investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. The policy limits an individual issuer of common or capital stock to no more than 5% of the fund's assets; the aggregate investment in any one stock issuing company to no more than 5% of the outstanding capital stock of the company; and the value of bonds issued by any single corporation to no more than 3% of the total fund. The policy limits investments in corporate common stock and convertible bonds to no more than 75% of the fund assets at market value; foreign securities to no more than 20% of fund assets at market value; and alternative investments, such as timber and real estate, to no more than 15% of the fund assets at market value. At September 30, 2014, there were no security investments in the Trust that were over their respective limitations. 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds (Continued) Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, as long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. Note 5 - Receivables: Receivables as of year end for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: There is an amount of $3,503,434 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,176,122 that are not available to liquidate liabilities of the current period. These receivables totaling $5,679,556 are reported as deferred inflows of resources in the governmental funds balance sheet. 53 Allowance for Accounts Uncollectible Fund Receivable Accounts Net Receivable General $ 128,007 $ - $ 128,007 Road Improvements Special Revenue 3,503,434 - 3,503,434 Solid Waste /Recycling Special Revenue 4,776 - 4,776 Water & Sewer Utility 944,919 (51,621) 893,298 Nonmajor Governmental 896 - 896 $ 4,582,032 $ (51,621) $ 4,530,411 There is an amount of $3,503,434 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,176,122 that are not available to liquidate liabilities of the current period. These receivables totaling $5,679,556 are reported as deferred inflows of resources in the governmental funds balance sheet. 53 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2014 was as follows: Governmental Activities: Capital assets, not being depreciated: Land Construction in Progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements Intangible assets Machinery and equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings Improvements Intangible assets Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Balance Increases Decreases Ending Balance $ 9,946,795 $ - 292,209 (5,445,674) $ 9,946,795 543,065 1,233,792 (804,507) 972,350 10,489,860 1,233,792 (804,507) 10,919,145 12,778,646 14,686 - 12,793,332 12,383,008 115,988 - 12,498,996 953,788 77,364 (2,400) 1,028,752 6,518,752 595,459 (300,818) 6,813,393 60,397,531 1,298,254 - 61,695,785 93,031,725 2,101,751 (303,218) 94,830,258 (5,093,997) (423,285) (5,084,286) (422,065) (771,375) (77,595) (5,517,282) - (5,506,351) 2,400 (846,570) (5,184,246) (553,637) 292,209 (5,445,674) (28,856,364) (1,528,672) - (30,385,036) (44,990,268) (3,005,254) 294,609 (47,700,913) 48,041,457 (903,503) (8,609) 47,129,345 $ 58,531,317 $ 330,289 $ (813,116) $ 58,048,490 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 6 - Capital Assets (Continued): Business -type Activities: Capital assets, not being depreciated: Land Construction in Progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements Intangible assets Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for: Buildings Improvements Intangible assets Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net Beginning Ending Balance Increases Decreases Balance $ 7,170,177 $ - $ - $ 7,170,177 195,754 191,345 (191,345) 195,754 7,365,931 191,345 (191,345) 7,365,931 756,435 - 59,702,221 1,681,525 213,563 4,960 3,527,447 131,427 756,435 61,383,746 218,523 (92,518) 3,566,356 64,199,666 1,817,912 (92,518) 65,925,060 (568,282) (25,015) (29,598,909) (2,089,811) (108,039) (26,206) (2,955,885) (150,500) (33,231,115) (2,291,532) 30,968,551 (473,620) (593,297) (31,688,720) (134,245) 92,518 (3,013,867) 92,518 (35,430,129) - 30,494,931 $ 38,334,482 $ (282,275) $ (191,345) $ 37,860,862 Increases in accumulated depreciation for business -type activities include accumulated depreciation on assets transferred from governmental activities, therefore total increases is not the same as depreciation expense. This difference is $51. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 6 - Capital Assets (Continued): Depreciation expense was charged to functions /programs as follows: Governmental Activities: General government Public safety Physical environment Culture and recreation Total Depreciation Expense - governmental activities Business -type Activities: Water and sewer Development services Stormwater Total Depreciation Expense - business -type activities Note 7- Long -Term Debt: Revenue Bonds $ 427,166 449,108 1,754,384 374,596 $ 3,005,254 $ 1,932,103 15,394 343,984 $ 2,291,481 The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business -type activities. The 1999 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $14,025,000. For the fiscal year, there was no principal and interest paid on this series and total pledged revenue was $5,851,234. The 2003 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. These bonds were refunded during the year. For the fiscal year, principal and interest paid on this series was $4,936,994 and total pledged revenue was $5,851,234. The 2000 Water and Sewer Refunding bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $19,865,000. For the fiscal year, principal and interest paid on this series was $103,125 and total pledged net revenue was $4,046,563. Current Refunding The City issued Improvement Refunding Revenue Note, Series 2014 to refund the 2003 Improvement Refunding Bonds. The refunding was undertaken to reduce total future debt service payments. The transaction resulted in an economic gain of $194,686 and a reduction of $199,554 in future debt service payments. 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 7 - Long -Term Debt (Continued): Revenue Bonds (Continued) The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year end, are as follows: Interest Rates and Dates Maturity Governmental Activities Balance Original September 30, Amount 2014 Improvement Refunding Revenue Bonds- Series 1999 10/1/2020 (excludes $4,432,678 of accreted 3.25-5.25% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2029 $ 7,998,970 $ 3,498,970 10/1/2004 Improvement Refunding 2.0-3.7% to Revenue Bonds- Series 2003 (4/1 & 10/1) 10/1/2018 $ 8,870,000 Total Business -Type Activities Water and Sewer Refunding Revenue Bonds- Series 2000 10/1/2022 (excludes $4,556,926 of accreted 4.5-5.5% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2030 Total $ 3,498,970 $ 6,969,191 $ 5,669,191 $ 5,669,191 Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business -Type Activities September 30, Principal Interest Principal Interest 2015 $ - $ - $ - $ 103,125 2016 - - - 103,125 2017 - - - 103,125 2018 - - - 103,125 2019 - 428,559 - 103,125 2020 -2024 1,865,465 4,562,269 1,411,066 5,608,609 2025 -2029 1,398,548 5,015,181 2,042,981 7,968,450 2030 -2031 234,957 520,021 2,215,144 103,125 $ 3,498,970 $ 10,526,030 $ 5,669,191 $ 14,195,809 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 7 - Long -Term Debt (Continued): Notes Payable The City issued a Special Assessment Revenue Note Series 2006, in the amount of $430,000 to provide financing for the Tuscawilla Lighting and Beautification Project, Phase II. The Special Assessment Revenue Note Series 2006 is secured by a first lien and pledge of assessments levied on the property within the assessed area. The total principal and interest remaining to be paid on this series is $93,942. For the fiscal year, principal and interest paid on this series was $32,134 and total pledged revenue was $32,145. The 2011 Improvement Refunding Revenue Note is secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $1,107,929. For the fiscal year, principal and interest paid on this series was $187,395 and total pledged revenue was $5,851,234. The 2011 Special Assessment Revenue Refunding Note is secured by a first lien and pledge of assessments levied on the property within the assessed area. The total principal and interest remaining to be paid on this series is $2,124,547. For the fiscal year, principal and interest was paid on this series was $132,939 and total pledged revenue was $133,007. The 2012 Limited General Obligation Refunding Note is secured a pledge of the faith, credit and taxing power of the City, provided that the levy of ad valorem taxes by the City in each year for the payment of debt service on the Note shall not exceed one quarter (1/4) of one mil on all of the taxable property in the City. The total principal and interest remaining to be paid on this series is $3,445,590. For the fiscal year, principal and interest paid was $200,994 and total pledged revenue was $173,876. The 2014 Improvement Refunding Revenue Notes are secured by Public Service tax revenue. The total principal and interest remaining to be paid on this series is $3,571,748. For the fiscal year there were no principal and interest payments and total pledged revenue was $4,034,667. The 2011A Water and Sewer Refunding Note is secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $6,499,659. For the fiscal year, principal and interest paid on this series was $1,086,004 and total pledged net revenue was $4,046,563. The 2011 B Water and Sewer Refunding Note is secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $694,171. For the fiscal year, principal and interest paid on this series was $96,877 and total pledged net revenue was $4,046,563. The 2011C Water and Sewer Refunding Note is secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $3,355,195. For the fiscal year, principal and interest paid on this series was $419,792 and total pledged net revenue was $4,046,563. 58 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) In April 2012, the City executed Clean Water State Revolving Fund Loan agreement WW590600 for the Lake Jessup reclaimed water augmentation facility. The agreement provides for total funding of $2,831,985. The loan period is for 20 years with an interest rate of 2.77 percent. The note is secured by gross revenues from the water and sewer utility net of operation and maintenance costs. The total principal and interest remaining to be paid on this series is $2,100,561. For the fiscal year, principal and interest paid on this series was $119,454 and total pledged net revenue was $2,760,557. The City has notes payable for both governmental and business -type activities. Outstanding notes payable at year end are as follows: Governmental Activities Special Assessment Revenue Note, Series 2006 - Principal payable annually beginning July 1, 2007 and interest payable semi - annually on January 1 and July 1. Maturity is July 1, 2021 and interest is 4.10 %. Principal payments of $27,626 were made in fiscal year 2014. $ 87,333 Improvement Refunding Revenue Note, Series 2011 - payable in annual principal installments starting 10/1/11 through 10/1/18 and interest paid semi - annually at 2.36% 1,043,285 Special Assessment Refunding Revenue Note, Series 2011 - payable in annual principal installments starting 10/1/12 through 10/1/29 and interest paid semi - annually at 3.25% 1,657,310 Limited General Obligation Refunding Note, Series 2012 - payable in annual principal installments starting 7/1/13 through 7/1/31 and interest paid semi - annually at 3.65% 2,533,833 Improvement Refunding Revenue Note, Series 2014 - payable in annual principal installments starting 10/1/14 through 10/1/18 and interest paid semi - annually at 0.88% 59 3,494,000 $ 8,815,761 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) Business -Type Activities Water and Sewer System Revenue Refunding Note, Series 2011A - payable in annual principal installments starting 4/1/12 through 4/1/20 and interest paid semi - annually at 3.28% $ 5,900,689 Water and Sewer System Revenue Refunding Note, Series 2011 B - payable in annual principal installments starting 10/1/11 through 10/1/20 and interest paid semi - annually at 2.65% 641,179 Water and Sewer System Revenue Refunding Note, Series 2011C - payable in annual principal installments starting 10/1/12 through 10/1/21 and interest paid semi - annually at 2.66% 3,058,761 SRF loan- payable in semi - annual principal and interest installments starting 4/15/13, with interest paid semi - annually at 2.77% 1,635,498 $ 11,236,127 Annual debt service requirements to maturity for notes payable are as follows: Year Ending September 30. 2015 2016 2017 2018 2019 2020 -2024 2025 -2029 2030 -2033 Governmental Activities Principal Interest $ 609,942 $ 190,529 1,231,859 183,946 1,256,963 164,001 1,262,982 143,576 1,286,593 123,346 1,208,156 463,780 1,449,715 235,786 509,551 23,031 $ 8,815,761 $ 1,527,995 .8 Business -Tvne Activities Principal Interest $ 1,403,645 $ 310,448 1,446,751 266,630 1,497,567 221,366 1,542,909 174,567 1,585,947 126,483 2,905,784 203,995 479,446 89,086 374,078 20,884 $ 11,236,127 $ 1,413,459 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 7 - Long -Term Debt (Continued): Changes in Long -Term Liabilities Long -term liability activity for the year ended September 30, 2014 was as follows: Beginning Ending Governmental Activities: Bonds Payable - Revenue bonds Less deferred amounts: Issuance premiums Total bonds payable Accreted Interest Payable Notes Payable - Capital improvement notes Limited general obligation note Total notes payable Other Post Employment Benefits Compensated Absences Governmental activity long- term liabilities Business -type Activities: Bonds Payable - Revenue bonds Less deferred amounts: Issuance discounts Total bonds payable Accreted Interest Payable Notes Payable - Revenue notes SRF Loan Other Post Employment Benefits Compensated Absences Governmental activity long- term liabilities Due Within $ 8,228,970 $ - $ (4,730,000) $ 3,498,970 $ - 34,819 - (34,819) - - 8,263,789 - (4,764,819) 3,498,970 - 4,003,092 429,586 - 4,432,678 - 3,054,241 3,494,000 (266,313) 6,281,928 501,270 2,638,521 (104,688) 2,533,833 108,672 5,692,762 3,494,000 (371,001) 8,815,761 609,942 277,090 57,235 - 334,325 - 726,850 766,961 (726,850) 766,961 153,000 $ 18,963,583 $ 4,747,782 $ (5,862,670) $ 17,848,695 $ 762,942 Beginning $ 5,669,191 $ (17,923) 5,651,268 4,081,821 Ending Due Within - $ - $ 5,669,191 $ - 1,054 (16,869) - 1,054 5,652,322 475,105 - 4,556,926 10,896,825 - (1,296,196) 9,600,629 1,334,768 1,711,448 - (75,950) 1,635,498 68,877 90,910 19,765 - 110,675 - 194,367 172,074 (194,367) 172,074 34,415 $ 22,626,639 $ 666,944 $ (1,565,459) $ 21,728,124 $ 1,438,060 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 8 - Interfund Receivables, Payables and Transfers: The composition of interfund advances as of September 30, 2014 is as follows: Receivable Fund Payable Fund General Other Governmental Funds Amount $ 197,602 $ 197,602 The advance to other governmental funds represents Resolution 2010 -36 adopted June 2010 formally establishing the interfund loan (original amount $318,464) between the City's General Fund and the Oak Forest Debt Service Fund. The terms of the note are 2.7510% paid quarterly through June 2017. The balance also represents an interfund loan with the Tuscawilla III Special Revenue Fund, which was established with Resolution 2013 -22 in the amount of $80,820 of which $17,100 in prepayments were received for a net interfund loan of $63,720. The terms of the note are 2.875% for 20 years. The interest rate is variable, with maximum increases of 1.25% in years 6 -15, and 1.5% in years 16 -20. Interfund transfers for the year ended September 30, 2014 are summarized below: Transfers In $ 2,468,354 $ 21,786 $ 934,000 $ 217,500 $ 21,696 $ 3,663,336 62 Road Other Water and Improvements 2003 Debt Governmental Sewer Utility Transfers Out General Fund Fund Service Fund Funds Fund Total General Fund $ - $ - $ 934,000 $ 217,500 $ - $ 1,151,500 TLBD Debt Service 500 - - - - 500 Solid Waste /Recycling Special Revenue Fund 137,339 - - - - 137,339 Other Governmental Funds 326,260 21,786 - - 15,696 363,742 Water and Sewer Utility Fund 1,489,555 - - - - 1,489,555 Development Services Fund 346,900 - - - - 346,900 Stormwater Utility Fund 167,800 - - - 6,000 173,800 $ 2,468,354 $ 21,786 $ 934,000 $ 217,500 $ 21,696 $ 3,663,336 62 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 8 - Interfund Receivables, Payables and Transfers (Continued): Interfund transfers for the year ended September 30, 2014 are detailed below: Recipient Fund Amount Purpose General Fund 167,800 Transfer from General Fund to pay Debt Service 1999 Debt Service Fund $ 207,500 expenses on the Improvement Refunding Revenue Bonds, Series 1999. General Fund 500 Transfer from General Fund to pay Debt Service 2003 Debt Service Fund 934,000 expenses on the Improvement Refunding Revenue Bonds, Series 2003. General Fund 500 Transfer from General Fund to pay Debt Service Central Winds GO Debt Service Fund 10,000 expenses on the General Obligation Notes for the acquisition and expansion of Central Winds Park. General Fund 500 Transfer from Water and Sewer Utility Fund for Utility General Fund 1,489,555 Billing division budget, fair share portion of General Fund expenses, such as human resources, purchasing, General Fund 2,540 and finance. Transfer from Development Services Fund for indirect costs, administration, fire prevention, Community General Fund 346,900 Development (crossover costs), Information Services special projects, Kiva project and records management project expenses. Transfer from TLBD Phase I Maintenance Special General Fund 67,429 Revenue Fund for City Clerk, Beautification Coordinator and insurance expenses. Transfer from Oak Forest Maintenance Special General Fund 13,570 Revenue Fund for City Clerk, Beautification Coordinator and insurance expenses. Transfer from Solid Waste /Recycling Special Revenue General Fund 137,339 Fund for administration, franchise fees. General Fund 33,867 Transfer from Arbor Fund for urban forestry services. 63 Transfer from Stormwater Utility Fund for administration General Fund 167,800 and special projects. Transfer from Oak Forest Debt Service fund for General Fund 500 administration fees. Transfer from TLBD Debt Service Fund for General Fund 500 administration fees. Transfer from TLBD Phase II Debt Service Fund for General Fund 500 administration fees. Transfer from Tuscawilla III to reimburse the General General Fund 2,540 Fund for expenses paid on behalf of the special assessment fund 63 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 8 - Interfund Receivables, Payables and Transfers (Continued): Recipient Fund General Fund General Fund Road Improvements Fund Water and Sewer Utility Fund Water and Sewer Utility Fund Note 9 - Defined Benefit Pension Plan: Plan Description Amount Purpose 200,000 Transfer from Transportation Improvement Fund for street lighting. Transfer from Special Law Enforcement Trust Fund - 7,854 Federal for purchase of new canine and new vehicle for the Police Department. 21,786 Transfer from Arbor Fund for rights -of -way median island landscape from revenues for tree mitigation. 15,696 Transfer from Arbor Fund to cover an allocation of salary /benefits for the City Arborist. 6,000 Transfer from Stormwater Utility Fund for administration fees. $ 3,663,336 The City maintains a single - employer defined benefit pension plan that provides retirement benefits to City employees. The pension plan is maintained as a Pension Trust Fund and is included with the fund financial statements. This pension plan does not issue a stand -alone financial report. General employees hired on or after October 1, 2011 are no longer eligible for the defined benefit pension plan, but are eligible for the City's defined contribution plan. Employees hired as sworn police officers or hired as forensic professionals on or after October 1, 2011 will continue to participate in the defined benefit plan. In October 2008, the City consolidated fire services with Seminole County, and firefighters were given the option to either remain in the City's pension plan or enroll in the County's pension plan. As a result, 27 firefighters elected to remain in the City's pension plan of which 11 remain although they are no longer employees of the City. The Board of Trustees of the plan are appointed by the City Commission to make advisory recommendations regarding the plan's investment and portfolio strategies. Any recommendations are then taken back to the Commission for final approval. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Summary of Significant Accounting Principles The Plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The City's contributions are recognized when due and formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. All Plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the government's balance sheet date. Securities without an established market are reported at estimated fair value. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the City Commission. Effective October 1, 2011, the Plan has been amended to require Plan members to contribute 5% of their salary to the Plan, which amounted to $335,594, for the year ended September 30, 2014. The City is required to contribute at an actuarially determined rate; the rate from the most recent actuarial valuation as of October 1, 2013 for the year ended September 30, 2014 is 30% of covered payroll. The City /County's contribution for the year ended September 30, 2014 was $2,561,415, which is 34.5% of covered payroll. Administration costs and fees attributable to the plan are paid out of the plan and amounted to $159,425 in 2014. Membership in the Defined Benefit Plan consisted of the following as of the most recent valuation date, October 1, 2013: Retirees and beneficiaries receiving benefits 79 Terminated plan members entitled to but not receiving benefits 135 Active plan members: Vested 116 Partially vested 24 Non - vested 12 366 65 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation - The annual pension cost, net pension obligation and required contribution for September 30, 2014 were determined as part of the actuarial valuation of the plan dated October 1, 2013. The annual pension cost and net pension obligation based on the most recent valuation is: Annual Required Contribution $ 2,230,908 Interest on Net Pension Obligation (NPO) 2,702 Adjustment to Annual Required Contribution (2,999) Annual Pension Cost 2,230,611 City Contributions Made (2,561,415) Increase /(Decrease) in NPO (330,804) Net Pension Obligation, beginning of year 33,772 Net Pension Asset, end of year $ (297,032) *The beginning balance has been adjusted $332,759 to agree to the most recent actuarial valuation. Three Year Trend Information - Fiscal Year Ending 9/30/2012 9/30/2013 9/30/2014 Annual Pension Cost (APC) $ 1,965,697 1,965,697 2,230,611 Actual Contribution $ 1,913,717 2,298,786 2,561,415 Percentage of APC Contributed 97.4% 116.9% 114.8% Net Pension Obligation (Asset) $ 34,102 33,772 (297,032) As of October 1, 2013, the most recent actuarial valuation date, the Plan was 65.1% funded, and the vested benefit security ratio was 77.4 %. The actuarial accrued liability for benefits was $45,927,000 and the actuarial value of assets was $29,909,000, resulting in an unfunded actuarial liability (UAAL) of $16,018,000. The covered payroll (annual payroll of active employees covered by the plan) was $7,431,000, and the ratio of the UAAL to the covered payroll was 215.6 %. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of employer contributions is also presented and shows the extent to which the city has funded the actuarially determined annual required contribution (ARC) overtime. The amount legally required as of September 30, 2014 to be reserved for the Plan is $36,821,260. M. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Actuarial Methods and Assumptions - The following is a summary of the actuarial methods and significant actuarial assumptions used in the latest actuarial valuation dated October 1, 2013. The plan was amended October 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 of 2.0% by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008 to 3.0 %. Assumptions: Investment Earnings 8% compounded annually Salary Increases /Inflation 3.0% -7.5 %, includes expected inflation at 3.0% RP -2000 Combined Mortality Table with separate rates for Mortality Table males and females and fully generational mortality improvements projected to each future decrement date Normal Form Life annuity with payments for life of participant Retirement Age Age 65 Withdrawal Rates Used withdrawal assumptions used in July 1, 2013 Florida Retirement System (FRS) Actuarial Valuation. Actuarial Valuation: Frequency Annual Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, clsed Amortization Period 23 years Asset Valuation Method 5 year smoothed market The City implemented GASB Statement 67, Financial Reporting for Pension Plans for the year ended September 30, 2014. The required disclosures under GASB Statement 67 are as follows. Summary of Significant Accounting Policies Method used to value investments - Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Plan Description Plan Administration - The Pension Trust Fund is administered by a Board of Trustees appointed by the City Commission. 67 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Plan Membership - At September 30, 2014 plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 79 Inactive Plan Members Entitled to but Not Yet Receiving Benefits 135 Active Plan Members 152 9-Ts" Benefits Provided - For Firefighters, Police Officers and Forensic Professionals, 3% times final average compensation multiplied by accrual service up to a maximum of 30 years. For General Employees, 3% times accrual service earned through September 30, 2011 times final average compensation plus 2.5% times accrual service earned after September 30, 2011 times final average compensation, up to a maximum of 30 years of accrual service. Contributions - contribution requirements of plan members and the City are established and may be amended by the City Commission. The Plan currently requires employees to contribute 5% of their salary. Investments Investment policy - The following was the board's adopted asset allocation policy as of September 30, 2014: Asset Class Large Cap Domestic Stocks Domestic Broad Cap Growth Equity International Fixed Income TIPS Real Estate Total Target Allocation 25% 25% 15% 20% 5% 10% 100% Concentrations - The Plan did not hold investments in any one organization that represents 5 percent or more of the Pension Plan's fiduciary net position. Rate of return - For the year ended September 30, 2014 the annual money- weighted rate of return on pension plan investments, net of pension plan investment expense, was 9.75 percent. The money- weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. .: CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Net Pension Liability of the City The components of the net pension liability of the sponsor on September 30, 2014 were as follows: Total Pension Liability $ 48,505,511 Plan Fiduciary Net Position (36,821,260) Sponsor's Net Pension Liability $ 11,684,251 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 75.91% Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of October 1, 2013 updated to September 30, 2014 using the following actuarial assumptions applied to all measurement periods Inflation Salary Increases Investment Rate of Return 3.00% 3.0%-7.5% 8.00% For healthy General Employee participants, the RP -2000 Combined Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Firefighter and Police Officer participants, the RP -2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP -2000 Combined Disability Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. The long -term expected rate of return on pension plan investments was determined using a building -block method in which best - estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of September 30, 2014 are summarized in the following table: We CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 9 - Defined Benefit Pension Plan (Continued): Asset Class Large Cap Domestic Stocks International Fixed Income Alternative Long Term Expected Real Rate of Return 7.50% 8.50% 2.50% 2.50% Discount rate - The discount rate used to measure the total pension liability was 8 %. The projection of cash flows used to determine the discount rate assumed member contributions will be made at the current contribution rate and employer contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The following presents the net pension liability of the sponsor, calculated using the 8% discount rate, as well as what the City's net pension liability (asset) would be if it were calculated using a discount rate that is 1- percentage -point lower (7.0 %) or 1- percentage- point higher (9.0 %) than the current rate: Current 1 % Decrease Discount Rate 1 % Increase 7.00% 8.00% 9.00% Net Pension Liability $ 17,593,921 $ 11,684,250 $ 6,701,110 U CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 10 - Defined Contribution Plan: In March 2012 the City established the Winter Springs Defined Contribution (General Plan) as a defined contribution plan covering all full time employees of the City hired after October 1, 2011, not eligible to participate in the Defined Benefit Pension Plan. This plan is authorized and may be amended by the City Commission. The City makes employer contributions of 5 %. Employees are eligible to participate in the General Plan after 6 months of employment. Vesting is 0% for the first 3 years, 60% at the end of year 3, 80% at the end of year 4, 100% at the end of year 5. Benefits are available upon termination subject to IRS regulations, regardless of age, based on vested years of service. Normal retirement age has been designated by the employer as age 65. For the fiscal year ending September 30, 2014, payroll for the employees covered by this plan was $1,135,095. Employer contributions required and made were $56,105. As of September 30, 2014, participation in the plan consisted of 29 active members. During the year, the General Plan held no securities issued by the employer. Note 11 - Other Post - Employment Benefits: In accordance with Florida Statutes Section 112.0801, the City makes continued group health insurance through the city's current provider available to retirees and eligible dependents provided certain service requirements and normal age retirement requirements have been met. This plan is a single employer plan. This benefit has no cost to the City, other than the implicit cost of including retirees in the group calculation. All premiums are paid by the retiree. The City has eleven retirees currently receiving benefits. The City has chosen pay -as- you -go funding, but is recording the liability in the government wide financial statements. This plan does not issue stand -alone financial statements. The most recent actuarial report for the City's Retiree Continuation Insurance plan was prepared as of October 1, 2013. At that point in time, the unfunded actuarial accrued liability (UAAL) for benefits was $1,016,000 and funded ratio was 0 %. The covered payroll was $7,665,000 and the ratio of the UAAL to covered payroll was 13.3 percent. The annual required contribution and Net OPEB Obligation for the fiscal year ended September 30, 2014 is as follows: Annual Required Contribution $ 163,000 Interest on Net OPEB Obligation 15,000 Adjustment to Annual Required Contribution (32,000) Annual OPEB Cost 146,000 Employer Contributions (68,000) Interest on Employer Contributions (1,000) Increase in Net OPEB Obligation 77,000 Net OPEB Obligation (beginning of year) 368,000 Net OPEB Obligation (end of year) $ 445,000 71 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 11 -Other Post - Employment Benefits (Continued): Three Year Trend Information - Summary of Actuarial Methods & Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Actuarial Cost Method - The projected unit credit cost method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Amortization Method - The level- dollar payment with a 15 year open period amortization method was used. Decrements - Mortality - Sex - distinct mortality rates set forth in the RP -2000 mortality table to annuitants and non - annuitants, projected to 2012 by Scale AA, as published by the IRS for purposes of I RC section 430. 72 Annual Required Percentage of Fiscal Year Contribution ARC Net OPEB Ending (ARC) Contributed Obligation 9/30/2011 $ 137,000 43.0% $ 290,000 9/30/2012 160,000 42.0% 368,000 9/30/2013 163,000 42.0% 445,000 Summary of Actuarial Methods & Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. Actuarial Cost Method - The projected unit credit cost method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Amortization Method - The level- dollar payment with a 15 year open period amortization method was used. Decrements - Mortality - Sex - distinct mortality rates set forth in the RP -2000 mortality table to annuitants and non - annuitants, projected to 2012 by Scale AA, as published by the IRS for purposes of I RC section 430. 72 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 11 -Other Post - Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) Disability - Sex - distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4 rates were used for police officers, Class 1 rates were used for all other employees. Permanent Withdrawal from Active Status - Sex - distinct withdrawal rates set forth in the Scale 155 table. Retirement - Retirement was assumed to occur as at age 55 for police officers and at age 60 for all other employees Investment Return (Discount Rate) - 4.0% per annum (includes inflation at 2.75% per annum) Health care Costs Trend Rates - The cost of covered medical services has been assumed to increase in accordance with the following rates, compounded annually: Year Increase Year Increase Year Increase 2014 7.00% 2016 6.00% 2018 2015 6.50% 2017 5.50% and later 5.00% Implied Subsidy (Not Eligible for Medicare) -The implied subsidy for a 60 -year old retiree and his spouse is assumed to be $4,200 per year and $5,700 per year, respectively. Implied Subsidy (Dental Insurance) -There is no implied subsidy for dental insurance since it is assumed that the dental insurance costs for covered individuals do not increase with age. Age- Related Morbidity -The cost of covered medical services has been assumed to increase with age at the rate of 3.5% per annum. Retiree contributions - Retirees electing post - employment healthcare coverage have been assumed to make monthly contributions equal to the premium charged to the active employees and retiree contributions are assumed to increase in accordance with the healthcare cost trend assumption. Medical Plan Choice - Retirees have been assumed to elect coverage under the "United Healthcare Medical Plan 6" plan. Future Participation Rates - 25% of eligible employees are assumed to elect healthcare coverage for themselves until age 65 upon retirement or disability; of the retirees election healthcare coverage, 10% are assumed to elect coverage for their spouses until age 65. 73 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 11 -Other Post - Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) COBRA Assumption - Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience, we assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. Summary of Benefits Other Post - Employment Benefits (OPEBs) - The City of Winter Springs provides optional post - employment healthcare and dental insurance coverage to eligible individuals. Eligible Individuals - Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans - Eligible individuals may choose healthcare coverage under the "United Healthcare Medical Plan 4" plan, or the "United Healthcare Medical Plan 6" plan. Required Monthly Premium for Post - Employment Healthcare Coverage - Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children or family coverage. Note 12 - Deferred Compensation Plan: All employees of the City may voluntarily elect to participate in one of two available deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Nationwide Retirement Solutions and ICMA Retirement Corporation. The plans permit participants to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Because the Plan Assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City's fund financials. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 13 - Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; job - related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance. There has been no significant reduction in insurance coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. Note 14- Commitments and Contingencies: Grants - Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. Litigation - The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments Under Construction Contracts - At September 30, 2014, the City had entered into construction contracts in the amount of $106,323. Transportation Impact Fee Credits - The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2014, credit balances for future impact fees total approximately $263,000. 75 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2014 Note 15 - Fund Balance Minimum Fund Balance Policy - In accordance with Resolution 2002 -36, the City designates an amount equal to 20 percent of the total operating expenses of the General fund to be maintained as a required minimum unreserved fund balance. The purpose of the policy is to provide capacity to (1) provide sufficient cash flow for daily financial needs, (2) secure and maintain investment grade (i.e. A or above) bond ratings, (3) offset significant economic downturns or revenue shortfalls, and (4) provide funds for unforeseen expenditures related to emergencies. By a super majority vote of the Commission, supplemental appropriation from unassigned General Fund fund balance may be authorized by the Commission for a General Fund purpose reducing the unassigned General Fund fund balance below the 20% minimum provided that the assigned General Fund fund balance is restored to the minimum in the following year budget. At September 30, 2014, the City's governmental fund balances were as follows: Road Other Total Improvements Solid Waste/ TLBD Debt 2003 Debt Governmental Governmental Fund Balances General Fund Fund Recycling Service Service Funds Funds Nonspendable Inventory/prepaid Advances Spendable Restricted for: Physical environment Public safety Culture and recreation Debt service Committed to: Solid Waste Arbor Assigned to: Storm reserve Emergency Disaster Relief Debt service Capital projects Subsequent year expenditures Unassigned Total Fund Balance $ 218,430 $ - $ - $ - $ - $ - $ 218,430 197,602 - - - - - 197,602 - 920,331 - - - 2,137,814 3,058,145 - - - - - 1,593,064 1,593,064 - - - - - 366,128 366,128 - - - 226,434 - 54,737 281,171 - - 981,158 - - - 981,158 - - - - - 303,509 303,509 - - 970,157 - - - 970,157 - - 781,698 - - - 781,698 - - - - 276,115 197,043 473,158 - - - - - 3,032,729 3,032,729 432,744 - - - - - 432,744 7,646,887 - - - - (171,920) 7,474,967 $ 8,495,663 $ 920,331 $ 2,733,013 $ 226,434 $ 276,115 $ 7,513,104 $ 20,164,660 Note 16 - Subsequent Events: The City has evaluated subsequent events through the date of the independent auditors' report, the date the financial statements were available to be issued. REQUIRED SUPPLEMENTARY INFORMATION CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2014 Defined Benefit Pension Trust Fund Schedule of Funding Progress (expressed in Thousands) Schedule of Employer Contributions Annual Actuarial Fiscal Required UAAL as a Percentage of Actuarial Accrued Actual ARC Ending % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) ( c) (b -a) / c 10/1/2006 $ 11,951 $ 16,043 $ 4,092 74.5% $ 10,489 39.0% 10/1/2007 15,527 20,114 4,587 77.2% 11,190 41.0% 10/1/2008 18,747 32,414 13,667 57.8% 10,768 126.9% 10/1/2009 20,789 37,651 16,862 55.2% 10,753 156.8% 10/1/2010 23,887 40,331 16,444 59.2% 10,304 159.6% 10/1/2013 29,909 45,927 16,018 65.1% 7,431 215.6% Schedule of Employer Contributions 77 Annual Fiscal Required Percentage of Year Contribution Actual ARC Ending (ARC) Contribution Contributed 9/30/2009 $ 1,781,651 $ 1,781,197 100.0% 9/30/2010 2,311,058 2,311,058 100.0% 9/30/2011 2,627,659 2,660,270 101.2% 9/30/2012 1,965,643 1,913,717 97.4% 9/30/2013 1,965,643 2,298,786 116.9% 9/30/2014 2,230,908 2,561,415 114.8% 77 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2014 Retiree Continuation Insurance Plan Schedule of Funding Progress ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Actuarial Annual Required UAAL as a Net OPEB Actuarial Accrued Contributed Obligation 9/30/2009 % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) ( c) (b -a) / c 7/1/2009 ** $ - $ 505,000 $ 505,000 0.0% $ 9,230,000 5.5% 10/1/2011 - 754,000 754,000 0.0% 7,441,000 10.1% 10/1/2013 - 1,016,000 1,016,000 0.0% 7,665,000 13.3% ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Percentage of Annual Required ARC Net OPEB Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2009 $ 93,000 17.0% $ 77,000 9/30/2010 98,000 16.0% 155,000 9/30/2011 133,000 44.0% 222,000 9/30/2012 137,000 43.0% 290,000 9/30/2013 160,000 42.0% 368,000 9/30/2014 163,000 42.0% 445,000 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS September 30, 2014 9/30/2014 Total Pension Liability Service Cost $ 886,819 Interest 3,666,120 Benefit Changes - Differences Between Expected and Actual Experience (581,481) Changes of Assumptions - Benefit Payments, including refunds of employee contributions (1,974,208) Net Change in Total Pension Liability 1,997,250 Total Pension Liability- beginning 46,508,261 Total Pension Liability- ending (a) $ 48,505,511 Plan Fiduciary Net Position Contributions - employer 2,527,508 Contributions - employee 369,500 Net Investment Income 3,885,344 Benefit Payments, Including Refunds of Employee Contributions (1,974,208) Administrative Expense (159,424) Other - Net Change in Plan Fiduciary Net Position 4,648,720 Plan Fiduciary Net Position- beginning 32,172,541 Plan Fiduciary Net Position- ending (b) $ 36,821,261 Net Pension Liability - ending (a)- (b) $ 11,684,250 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 75.91% Covered - employee Payroll $ 8,084,054 Net Pension Liability as a Percentage of Covered Employee Payroll 144.53% Notes to Schedule: Valuation date- 10/1/2013. Updated procedures were used to roll forward the total pension liability to the measurement date. MW CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Employee Payroll Contributions as a Percentage of Covered Employee Payroll Notes to Schedule September 30, 2014 9/30/2014 $ 2,474,578 2,527,508 $ (52,930) 8,084,054 31.27% Valuation Date 10/1/2013 Update procedures were used to roll forward the total pension liability to the measurement date Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, closed Remaining Amortization Period 30 years Asset Valuation Method 5 -year smoothed market Inflation 3.00% Salary Increases 3.0%-7.5% Investment Rate of Return 8% Retirement Age Experience -based table of rates that are specific to the type of eligibility condition Mortality For health General Employee participants, the RP -2000 Combined Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Firefighter and Police Officer participants, the RP -2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP -2000 Combined Disabled Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. Benefit Changes 2011: Plan closed to future general employees; pensionable earnings to base pay, overtime- maximum 150 hours and accrued leave balance as of July 1, 2011; vesting schedule updated; unreduced early retirement eligibility updated; final average pay updated to five year average and future service benefit accrual rate reduced for general employees. 2008: Benefit accrual rate increased. Assumption Changes 2008: Mortality, salary increase, withdrawal, disability and retirement rates updated; administrative expense assumption introduced and actuarial cost method updated. CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS September 30, 2014 Annual Money - Weighted Rate of Return Net of Investment Expense 81 9/30/2014 9.75% COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. G� Invvrporated 1959 i,�000 wE MAJOR GOVERNMENTAL FUNDS Debt Service Funds TLBD Debt Service Fund - This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable. 2003 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue, which was refinanced in July 2014 with a private placement note payable. CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Debt Service: Principal Interest and other charges Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures 4,600 4,600 Variance with 272 77,850 Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 165,698 $ 165,698 $ 77,812 $ (87,886) 1,500 1,500 55,748 54,248 - - 33,466 33,466 167,198 167,198 167,026 (172) 4,600 4,600 4,328 272 77,850 77,850 77,812 38 55,200 55,200 55,127 73 - 80,000 67,214 12,786 137,650 217,650 204,481 13,169 Fund Balances - ending $ 293,437 29,548 (50,452) (37,455) 12,997 Other Financing Sources (Uses) Transfers out (500) (500) (500) - Total other financing sources and uses (500) (500) (500) - Net Change in Fund Balances 29,048 (50,952) (37,955) 12,997 Fund Balances - beginning 264,389 264,389 264,389 - Fund Balances - ending $ 293,437 $ 213,437 $ 226,434 $ 12,997 E CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Budgeted Amounts Original Actual Final Amounts Variance with Final Budget - Positive (Negative) $ 3,000 $ 3,000 $ 885 $ (2,115) 3,000 3,000 885 (2,115) 934,000 50,000 Total other financing sources and uses 2,500 2,500 - 2,500 725,000 4,730,000 4,730,000 - 150,500 270,005 235,465 34,540 878,000 5,002,505 4,965,465 37,040 $ 191,190 (875,000) (4,999,505) (4,964,580) 34,925 Notes payable - 3,494,000 3,494,000 - Transfers in 884,000 884,000 934,000 50,000 Total other financing sources and uses 884,000 4,378,000 4,428,000 50,000 Net change in fund balances 9,000 (621,505) (536,580) 84,925 Fund balances - beginning 812,695 812,695 812,695 - Fund balances -ending $ 821,695 $ 191,190 $ 276,115 $ 84,925 83 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund - This fund is used to account for the $2.00 additional assessment on each traffic citation that is restricted for criminal justice education and training in accordance with Chapter 938.15, Florida Statutes. Special Law Enforcement - This fund was established to receive revenues from local Trust Fund - Local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Such purposes may include drug education programs such as G.R.E.A.T (Gang Resistance Education and Training). Transportation - Revenues in this fund are derived from Local Option Improvement Fund Gasoline Tax distribution. Proceeds are restricted for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee - This fund is used to account for collected impact fees on Fund new development which are restricted for use in funding road construction directly related to new growth. Police Impact Fee Fund - This fund is used to account for collected impact fees on new development which are restricted for use in funding capital investment needed to maintain the level of police service directly related to new growth. Fire Impact Fee Fund - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future growth. Parks Impact Fee Fund - This fund is used to account for collected impact fees on new development which are restricted for use in funding capital investment needed to develop and improve the parks directly related to new growth. NONMAJOR GOVERNMENTAL FUNDS - Continued Special Revenue Funds - Continued Arbor Fund - This fund is used to account for arbor permit revenues committed to new plantings and maintenance of trees and shrubs within the City. TLBD Maintenance Fund - This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and 11 of project. Phase 11 was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance - This fund is used to account for collected special Fund assessments restricted for maintenance related to the Oak Forest subdivision wall. Special Law Enforcement - This fund was established to receive revenues from Trust Fund - Federal federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Such purposes may include drug /gang related education, Shop with a Cop, movie and other civic events. Tuscawilla Phase III This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Phases III, and repayment of advance from General Fund. NONMAJOR GOVERNMENTAL FUNDS - Continued Debt Service Funds 1999 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue and Improvement Refunding Note Series 2011, which partially refunded the 1999 bond issue. Oak Forest Debt Service - This fund is used to account for the accumulation of Fund resources and payment of principal and interest to the General Fund for the 2010 interfund loan which paid off the Capital Improvement Revenue Note, Series 2004A. TLBD Phase II Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the TLBD Phase II Improvements. Central Winds G.O. Debt This fund is used to account for accumulation of resources Service Fund and payment of principal and interest for the 2002 limited general obligation bond which was refinanced in May 2012 with private placement note payable. NONMAJOR GOVERNMENTAL FUNDS - Continued 1999 Construction Capital Projects Fund Revolving Rehab Capital Projects Fund Utility /Public Works Facility Fund Excellence in Customer Service Capital Projects Funds This fund was established for the acquisition and construction of City - owned Capital Improvements. This fund was established to fund capital improvements and economic development within the City. This fund was established to account for construction of additional public facilities. This fund was established to account for the acquisition of software and equipment to improve the level of customer service performance. CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2014 Assets: Cash and cash equivalents Investments Receivables, net Special assessments receivable Restricted assets: Cash and cash equivalents Total assets Liabilities: Accounts payable Retainage payable Due to other funds Total liabilities Deferred Inflows of Resources Unavailable revenue - special assessments Total deferred inflows of resources Fund Balances: Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Special Revenue $ 14,415 $ 27,723 $ 654,122 $ 1,168,433 Special Law Police Enforcement Transportation Education Trust Fund- Improvement Transportation Fund Local Fund Impact Fee Fund $ 954 $ 1,921 $ 46,176 $ 82,482 12,565 25,289 607,946 1,085,951 896 - - - - 513 - - $ 14,415 $ 27,723 $ 654,122 $ 1,168,433 $ - $ 277 $ 23,526 $ 1,961 - 277 23,526 1,961 14,415 27,446 630,596 1,166,472 14,415 27,446 630,596 1,166,472 $ 14,415 $ 27,723 $ 654,122 $ 1,168,433 Special Revenue 85 TLBD Police Impact Fire Impact Parks Impact Maintenance Fee Fund Fee Fund Fee Fund Arbor Fund Fund $ 4,110 $ 98,712 $ 28,279 $ 21,531 $ 20,931 54,116 1,299,634 372,319 283,478 275,577 $ 58,226 $ 1,398,346 $--400,598 $ 305,009 $ 296,508 $ - $ 730 $ 18,485 $ 1,500 $ 7,328 - - 15,985 - - - 730 34,470 1,500 7,328 58,226 1,397,616 366,128 - 289,180 - - - 303,509 - 58,226 1,397,616 366,128 303,509 289,180 $ 58,226 $ 1,398,346 $ 400,598 $ 305,009 $ 296,508 (Continued) 85 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2014 Assets: Cash and cash equivalents Investments Receivables, net Special assessments receivable Restricted assets: Cash and cash equivalents Total assets Liabilities: Accounts payable Retainage payable Due to other funds Total liabilities Deferred Inflows of Resources Unavailable revenue - special assessments Total deferred inflows of resources Fund Balances: Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Special Revenue Special Law Oak Forest Enforcement Maintenance Trust Fund - Tuscawilla Total Special $ 3,774 $ 6,956 $ 566 $ 316,392 49,682 91,587 7,456 4,165,600 - - - 896 - - - 513 $ 53,456 $ 98,543 $ 8,022 $ 4,483,401 $ 1,890 $ 3,182 $ 375 $ 59,254 - - - 15,985 - - 61,318 61,318 1,890 3,182 61,693 136,557 51,566 95,361 - 4,097,006 - - - 303,509 - - (53,671) (53,671) 51,566 95,361 (53,671) 4,346,844 $ 53,456 $ 98,543 $ 8,022 $ 4,483,401 E-11 . Debt Service Central $ 197,043 $ 441,837 $ 28,806 $ 185,275 $ 852,961 (Continued) 87 Oak Forest Winds GO TLBD Phase 1999 Debt Debt Service Debt Service II Debt Total Debt Service Fund Fund Fund Service Fund Service $ 13,910 $ 1,321 $ 2,033 $ 2,089 $ 19,353 183,133 17,390 26,773 27,500 254,796 - 423,126 - 155,686 578,812 $ 197,043 $ 441,837 $ 28,806 $ 185,275 $ 852,961 $ - $ 676 $ 3,501 $ 157 $ 4,334 - 136,284 - - 136,284 - 136,960 3,501 157 140,618 - 423,126 - 155,686 578,812 - 423,126 - 155,686 578,812 - - 25,305 29,432 54,737 197,043 - - - 197,043 - (118,249) - - (118,249) 197,043 (118,249) 25,305 29,432 133,531 $ 197,043 $ 441,837 $ 28,806 $ 185,275 $ 852,961 (Continued) 87 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2014 Assets: Cash and cash equivalents Investments Receivables, net Special assessments receivable Restricted assets: Cash and cash equivalents Total assets Liabilities: Accounts payable Retainage payable Due to other funds Total liabilities Deferred Inflows of Resources Unavailable revenue - special assessments Total deferred inflows of resources Fund Balances: Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Capital Projects 1999 Utility /Public Excellence in Construction Revolving Works Customer Fund Rehab Fund Facility Fund Service $ 64,895 $ 76,170 $ 68,667 $ 4,404 854,399 1,002,858 904,064 57,987 $ 919,294 $ 1,079,028 $ 972,731 $ 62,391 $ - $ - $ - $ 715 - - - 715 919,294 1,079,028 972,731 61,676 919,294 1,079,028 972,731 61,676 $ 919,294 $ 1,079,028 $ 972,731 $ 62,391 .1 $ 3,033,444 $ 8,369,806 E-11 F6 Total Nonmajor Total Capital Governmental Projects Funds $ 214,136 $ 549,881 2,819,308 7,239,704 - 896 - 578,812 - 513 $ 3,033,444 $ 8,369,806 $ 715 $ 64,303 - 15,985 - 197,602 715 277,890 - 578,812 - 578,812 - 4,151,743 - 303,509 3,032,729 3,229,772 - (171,920) 3,032,729 7,513,104 $ 3,033,444 $ 8,369,806 E-11 F6 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2014 Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Debt Service: Principal Interest and fiscal charges Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - beginning Fund Balances -ending Special Revenue 12,975 16,139 - - - - 188,429 15,475 - - 222,441 14,488 12,975 16,139 410,870 29,963 (2,504) (1,043) 185,189 283,413 - - (200,000) - - - (200,000) - (2,504) (1,043) (14,811) 283,413 16,919 28,489 645,407 883,059 $ 14,415 $ 27,446 $ 630,596 $ 1,166,472 .l Special Law Enforcement Transportation Police Trust Fund- Improvement Transportation Education Fund Local Fund Impact Fee Fund - - 579,900 - - - 14,845 - 10,084 15,018 - - - - - 311,167 38 78 1,314 2,209 349 - - - 10,471 15,096 596,059 313,376 12,975 16,139 - - - - 188,429 15,475 - - 222,441 14,488 12,975 16,139 410,870 29,963 (2,504) (1,043) 185,189 283,413 - - (200,000) - - - (200,000) - (2,504) (1,043) (14,811) 283,413 16,919 28,489 645,407 883,059 $ 14,415 $ 27,446 $ 630,596 $ 1,166,472 .l Special Revenue - 1,825 - - - - - - 36,730 436,764 115,705 - - - - - - 48,667 - - 115,705 1,825 48,667 36,730 436,764 (70,352) 104,719 39,717 37,348 74,080 - - - (71,349) (67,429) - - - (71,349) (67,429) (70,352) 104,719 39,717 (34,001) 6,651 128,578 1,292,897 326,411 337,510 282,529 $ 58,226 $ 1,397,616 $ 366,128 $ 303,509 $ 289,180 (Continued) 91 TLBD Police Impact F Fire Impact Fee P Parks Impact M Maintenance Fee Fund F Fund F Fee Fund A Arbor Fund F Fund - - - - - 2 20,125 - - - - - - - 5 53,200 - - 45,153 1 103,508 8 87,600 - - 5 509,755 200 3 3,036 7 784 7 753 1 1,089 45,353 1 106,544 8 88,384 7 74,078 5 510,844 1,825 - - - - - - 36,730 436,764 115,705 - - - - - - 48,667 - - 115,705 1,825 48,667 36,730 436,764 (70,352) 104,719 39,717 37,348 74,080 - - - (71,349) (67,429) - - - (71,349) (67,429) (70,352) 104,719 39,717 (34,001) 6,651 128,578 1,292,897 326,411 337,510 282,529 $ 58,226 $ 1,397,616 $ 366,128 $ 303,509 $ 289,180 (Continued) 91 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2014 W, Special Revenue Special Law Oak Forest Enforcement Maintenance Trust Fund - Tuscawilla Fund Federal Phase III Total Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - 20,125 Intergovernmental revenues - - - 579,900 Charges for services - - - 14,845 Fines and forfeitures - 96,181 - 174,483 Impact fees /assessments 53,176 - 13,146 1,123, 505 Investment income 168 73 66 9,808 Miscellaneous - - - 349 Total revenues 53,344 96,254 13,212 1,923,015 Expenditures: Current: General government - - 2,675 2,675 Public safety - 8,630 - 39,569 Physical environment 42,028 - - 719,426 Debt Service: Principal - - - - Interest and fiscal charges - - 1,832 1,832 Capital Outlay: General government - - 36,900 36,900 Public safety - 3,182 - 118,887 Physical environment - - - 236,929 Culture and recreation - - - 48,667 Total expenditures 42,028 11,812 41,407 1,204,885 Excess (Deficiency) of Revenues Over Expenditures 11,316 84,442 (28,195) 718,130 Other Financing Sources (Uses): Transfers in - - - - Transfers out (13,570) (7,854) (2,540) (362,742) Total other financing sources(uses) (13,570) (7,854) (2,540) (362,742) Net Change in Fund Balances (2,254) 76,588 (30,735) 355,388 Fund Balances - Beginning 53,820 18,773 (22,936) 3,991,456 Fund Balances - Ending $ 51,566 $ 95,361 $ (53,671) $ 4,346,844 W, Debt Service Central Winds TLBD Phase II 1999 Debt Oak Forest Debt GO Debt Service Debt Service Total Debt Service Fund Service Fund Fund Fund Service 173,876 $ - $ 173,876 - 18,276 - 27,625 45,901 183 18,756 353 4,604 23,896 - 22,014 - 8,673 30,687 183 59,046 174,229 40,902 274,360 - - - 997 997 - 4,019 - - 4,019 160,875 - 104,688 27,626 293,189 26,520 4,566 96,306 4,508 131,900 187,395 8,585 200,994 33,131 430,105 (187,212) 50,461 (26,765) 7,771 (155,745) 207,500 - 10,000 - 217,500 - (500) - (500) (1,000) 207,500 (500) 10,000 (500) 216,500 20,288 49,961 (16,765) 7,271 60,755 176,755 (168,210) 42,070 22,161 72,776 $ 197,043 $ (118,249) $ 25,305 $ 29,432 $ 133,531 (Continued) 93 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2014 ., Capital Projects 1999 Utility /Public Excellence in Construction Revolving Works Facility Customer Fund Rehab Fund Fund Service Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues - - - - Charges for services - - - - Fines and forfeitures - - - - Impact fees /assessments - - - - Investment income 2,131 2,682 2,273 253 Miscellaneous - - - - Total revenues 2,131 2,682 2,273 253 Expenditures: Current: General government - 40 - - Public safety - - - - Physical environment - - - - Debt Service: Principal - - - - Interest and fiscal charges - - - - Capital Outlay: General government - - - 88,772 Public safety - - - - Physical environment 2,700 - - - Culture and recreation - - - - Total expenditures 2,700 40 - 88,772 Excess (Deficiency) of Revenues Over Expenditures (569) 2,642 2,273 (88,519) Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total other financing sources(uses) - - - - Net Change in Fund Balances (569) 2,642 2,273 (88,519) Fund Balances - Beginning 919,863 1,076,386 970,458 150,195 Fund Balances - Ending $ 919,294 $ 1,079,028 $ 972,731 $ 61,676 ., Total Nonmajor Total Capital Governmental Projects Funds $ - $ 173,876 - 20,125 - 579,900 - 14,845 - 174,483 - 1,169,406 7,339 41,043 - 31,036 7,339 2,204,714 40 3,712 - 39,569 - 723,445 - 293,189 - 133,732 88,772 125,672 - 118,887 2,700 239,629 - 48,667 91,512 1,726,502 (84,173) 478,212 217,500 (363,742) (146,242) (84,173) 331,970 3,116, 902 7,181,134 $ 3,032,729 $ 7,513,104 95 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 8,000 $ 8,000 $ 10,084 $ 2,084 75 75 38 (37) - - 349 349 8,075 8,075 10,471 2,396 15,000 15,000 12,975 2,025 15,000 15,000 12,975 2,025 (6,925) (6,925) (2,504) 4,421 (6,925) (6,925) (2,504) 4,421 16,919 16,919 16,919 - $ 9,994 $ 9,994 $ 14,415 $ 4,421 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Expenditures: Current: Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending 13,400 18,882 16,139 Variance with 13,400 Budgeted Amounts 16,139 Final Budget - (13,350) Actual Positive 3,989 Original Final Amounts (Negative) Revenues: (5,032) (1,043) 3,989 Fines and forfeitures $ - $ 13,800 $ 15,018 $ 1,218 Investment income 50 50 78 28 Total revenues 50 13,850 15,096 1,246 Expenditures: Current: Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending 13,400 18,882 16,139 2,743 13,400 18,882 16,139 2,743 (13,350) (5,032) (1,043) 3,989 (13,350) (5,032) (1,043) 3,989 28,489 28,489 28,489 - $ 15,139 $ 23,457 $ 27,446 $ 3,989 97 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Intergovernmental revenues Charges for services Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Original Actual Final Amounts Variance with Final Budget - Positive (Negative) $ 548,000 $ 548,000 $ 579,900 $ 31,900 14,411 14,411 14,845 434 3,100 3,100 1,314 (1,786) 565,511 565,511 596,059 30,548 210,200 230,200 188,429 41,771 363,600 243,600 222,441 21,159 573,800 473,800 410,870 62,930 (8,289) 91,711 185,189 93,478 Other Financing Sources (Uses) Transfers out (200,000) (200,000) (200,000) Total other financing sources and uses (200,000) (200,000) (200,000) Net change in fund balances Fund Balances - beginning Fund Balances - ending (208,289) (108,289) (14,811) 93,478 645,407 645,407 645,407 - $ 437,118 $ 537,118 $ 630,596 $ 93,478 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Actual Original Final Amounts $ - $ 181,000 $ 311,167 3,200 3,200 2,209 3,200 184,200 313,376 Variance with Final Budget - Positive (Negative) $ 130,167 (991) 129,176 61,000 36,000 15,475 20,525 200,000 15,000 14,488 512 261,000 51,000 29,963 21,037 (257,800) 133,200 283,413 150,213 (257,800) 133,200 283,413 150,213 883,059 883,059 883,059 - $ 625,259 $ 1,016,259 $ 1,166,472 $ 150,213 .. CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Original Actual Final Amounts Variance with Final Budget - Positive (Negative) $ - $ 20,175 $ 45,153 $ 24,978 570 570 200 (370) 570 20,745 45,353 24,608 120,376 120,376 115,705 4,671 120,376 120,376 115,705 4,671 (119,806) (99,631) (70,352) 29,279 (119,806) (99,631) (70,352) 29,279 128,578 128,578 128,578 - $ 8,772 $ 28,947 $ 58,226 $ 29,279 100 CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Expenditures: Current: Public Safety - 15,000 1,825 13,175 Total Expenditures - 15,000 1,825 13,175 Excess (Deficiency) of Revenues Over Expenditures 7,300 64,000 104,719 40,719 Net change in fund balances 7,300 64,000 Variance with Fund Balances - beginning Budgeted Amounts 1,292,897 Final Budget - Fund Balances - ending $ 1,300,197 Actual Positive Original Final Amounts (Negative) Revenues: Impact fees /assessments $ - $ 71,700 $ 103,508 $ 31,808 Investment income 7,300 7,300 3,036 (4,264) Total revenues 7,300 79,000 106,544 27,544 Expenditures: Current: Public Safety - 15,000 1,825 13,175 Total Expenditures - 15,000 1,825 13,175 Excess (Deficiency) of Revenues Over Expenditures 7,300 64,000 104,719 40,719 Net change in fund balances 7,300 64,000 104,719 40,719 Fund Balances - beginning 1,292,897 1,292,897 1,292,897 - Fund Balances - ending $ 1,300,197 $ 1,356,897 $ 1,397,616 $ 40,719 101 CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Culture and recreation Capital Outlay Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Actual Original Final Amounts $ - $ 38,400 $ 87,600 1,600 1,600 784 1,600 40,000 88,384 Variance with Final Budget - Positive (Negative) $ 49,200 (816) 48,384 240,000 242,010 48,667 193,343 240,000 242,010 48,667 193,343 (238,400) (202,010) 39,717 241,727 (238,400) (202,010) 39,717 241,727 326,411 326,411 326,411 - $ 88,011 $ 124,401 $ 366,128 $ 241,727 102 CITY OF WINTER SPRINGS, FLORIDA ARBOR FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Permits and fees Fines and forfeitures Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) 23,750 38,750 36,730 2,020 23,750 38,750 36,730 2,020 (3,150) (18,150) 37,348 Transfers out (49,563) (71,349) Variance with Budgeted Amounts (49,563) Final Budget - (71,349) Net change in fund balances Actual Positive Original Final Amounts (Negative) 337,510 $ 9,000 $ 9,000 $ 20,125 $ 11,125 10,000 10,000 53,200 43,200 1,600 1,600 753 (847) 20,600 20,600 74,078 53,478 23,750 38,750 36,730 2,020 23,750 38,750 36,730 2,020 (3,150) (18,150) 37,348 Transfers out (49,563) (71,349) (71,349) Total other financing sources and uses (49,563) (71,349) (71,349) Net change in fund balances (52,713) (89,499) (34,001) Fund Balances - beginning 337,510 337,510 337,510 Fund Balances - ending $ 284,797 $ 248,011 $ 303,509 103 55,498 55,498 $ 55,498 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures 478,650 456,567 436,764 19,803 478,650 456,567 436,764 19,803 30,444 52,527 74,080 21,553 Other Financing Sources (Uses) Transfers out (77,196) (67,429) (67,429) Total other financing sources and uses (77,196) (67,429) (67,429) Net change in fund balances Fund Balances - beginning Fund Balances - ending (46,752) (14,902) 6,651 21,553 282,529 282,529 282,529 - $ 235,777 $ 267,627 $ 289,180 $ 21,553 104 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 507,894 $ 507,894 $ 509,755 $ 1,861 1,200 1,200 1,089 (111) 509,094 509,094 510,844 1,750 478,650 456,567 436,764 19,803 478,650 456,567 436,764 19,803 30,444 52,527 74,080 21,553 Other Financing Sources (Uses) Transfers out (77,196) (67,429) (67,429) Total other financing sources and uses (77,196) (67,429) (67,429) Net change in fund balances Fund Balances - beginning Fund Balances - ending (46,752) (14,902) 6,651 21,553 282,529 282,529 282,529 - $ 235,777 $ 267,627 $ 289,180 $ 21,553 104 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Actual Original Final Amounts $ 52,940 $ 52,940 $ 53,176 275 275 168 53,215 53,215 53,344 Variance with Final Budget - Positive (Negative) $ 236 (107) 129 49,300 46,625 42,028 4,597 49,300 46,625 42,028 4,597 3,915 6,590 11,316 4,726 Other Financing Sources (Uses) Transfers out (14,845) (13,570) (13,570) - Total other financing sources and uses (14,845) (13,570) (13,570) - Net change in fund balances (10,930) (6,980) (2,254) 4,726 Fund Balances - beginning 53,820 53,820 53,820 - Fund Balances - ending $ 42,890 $ 46,840 $ 51,566 $ 4,726 105 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ - $ 48,500 $ 96,181 $ 47,681 75 75 73 (2) 75 48,575 96,254 47,679 9,000 9,000 8,630 370 4,200 4,200 3,182 1,018 13,200 13,200 11,812 1,388 (13,125) 35,375 84,442 49,067 - (7,854) (7,854) - - (7,854) (7,854) - (13,125) 27,521 76,588 49,067 18,773 18,773 18,773 - $ 5,648 $ 46,294 $ 95,361 $ 49,067 106 CITY OF WINTER SPRINGS, FLORIDA TUSCAWILLA PHASE III SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Capital Outlay General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 12,243 $ 13,109 $ 13,146 $ 37 120 120 66 (54) 12,363 13,229 13,212 (17) 4,925 4,875 2,675 2,200 2,402 2,402 - 2,402 1,832 1,832 1,832 - 37,000 37,000 36,900 100 46,159 46,109 41,407 4,702 (33,796) (32,880) (28,195) 4,685 Other Financing Sources (Uses) Transfers out (2,815) (2,540) (2,540) - Total other financing sources and uses (2,815) (2,540) (2,540) - Net change in fund balances (36,611) (35,420) (30,735) 4,685 Fund Balances - beginning (22,936) (22,936) (22,936) - Fund Balances - ending $ (59,547) $ (58,356) $ (53,671) $ 4,685 107 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 600 $ 600 $ 183 $ (417) 600 600 183 (417) 2,500 2,500 2,500 160,875 160,875 160,875 - 26,600 26,600 26,520 80 189,975 189,975 187,395 2,580 (189,375) (189,375) (187,212) 2,163 Other Financing Sources (Uses) Transfers in 207,500 207,500 207,500 - Total other financing sources and uses 207,500 207,500 207,500 - Net change in fund balances 18,125 18,125 20,288 2,163 Fund Balances - beginning 176,755 176,755 176,755 - Fund Balances - ending $ 194,880 $ 194,880 $ 197,043 $ 2,163 108 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 109 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees /assessments $ 58,648 $ 58,648 $ 18,276 $ (40,372) Investment income 100 100 18,756 18,656 Miscellaneous - - 22,014 22,014 Total revenues 58,748 58,748 59,046 298 Expenditures: Current: Physical environment 4,150 4,150 4,019 131 Debt Service: Principal 47,434 47,434 - 47,434 Interest and other charges 4,566 4,566 4,566 - Total expenditures 56,150 56,150 8,585 47,565 Excess (Deficiency) of Revenues Over Expenditures 2,598 2,598 50,461 47,863 Other Financing Sources (Uses) Transfers out (500) (500) (500) - Total other financing sources and uses (500) (500) (500) - Net change in fund balances 2,098 2,098 49,961 47,863 Fund Balances - beginning (168,210) (168,210) (168,210) - Fund Balances - ending $ (166,112) $ (166,112) $ (118,249) $ 47,863 109 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS GO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Taxes: Property taxes Investment income Total revenues Expenditures: Debt Service: Principal Interest and fiscal charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Actual Budgeted Amounts Amounts Original Final $ 173,413 $ 173,413 $ 173,876 500 500 353 173,913 173,913 174,229 104,700 104,700 104,688 96,500 96,500 96,306 201,200 201,200 200,994 (27,287) (27,287) (26,765) Other Financing Sources (Uses) Transfers in 10,000 10,000 10,000 Total other financing sources (uses) 10,000 10,000 10,000 Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending (17,287) (17,287) (16,765) 42,070 42,070 42,070 $ 24,783 $ 24,783 $ 25,305 110 Variance with Final Budget - Positive (Negative) $ 463 (147) 316 12 194 206 522 522 $ 522 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 111 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees /assessments $ 40,588 $ 40,588 $ 27,625 $ (12,963) Investment income 150 150 4,604 4,454 Miscellaneous - - 8,673 8,673 Total revenues 40,738 40,738 40,902 164 Expenditures: Current: General government 1,050 1,050 997 53 Debt Service: Principal 27,700 27,700 27,626 74 Interest and other charges 4,550 4,550 4,508 42 Total expenditures 33,300 33,300 33,131 169 Excess (Deficiency) of Revenues Over Expenditures 7,438 7,438 7,771 333 Other Financing Sources (Uses) Transfers out (500) (500) (500) - Total other financing sources and uses (500) (500) (500) - Net change in fund balances 6,938 6,938 7,271 333 Fund Balances - beginning 22,161 22,161 22,161 - Fund Balances - ending $ 29,099 $ 29,099 $ 29,432 $ 333 111 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Investment income Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 2,750 $ 2,750 $ 2,131 $ (619) 2,750 2,750 2,131 (619) 1,219,875 5,000 2,700 2,300 1,219,875 5,000 2,700 2,300 (1,217,125) (2,250) (569) 1,681 300,000 300,000 (917,125) (2,250) (569) 1,681 919,863 919,863 919,863 - $ 2,738 $ 917,613 $ 919,294 $ 1,681 112 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Investment income Total revenues Expenditures: Current: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 6,200 $ 6,200 $ 2,682 $ (3,518) 6,200 6,200 2,682 (3,518) 100 40 100 40 .e M 6,200 6,100 2,642 (3,458) 6,200 6,100 2,642 (3,458) 1,076,386 1,076,386 1,076,386 - $ 1,082,586 $ 1,082,486 $ 1,079,028 $ (3,458) 113 CITY OF WINTER SPRINGS, FLORIDA UTILITY /PUBLIC WORKS FACILITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 114 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Investment income $ 2,900 $ 2,900 $ 2,273 $ (627) Total revenues 2,900 2,900 2,273 (627) Expenditures: Capital Outlay Physical environment 965,000 100,000 - 100,000 Total expenditures 965,000 100,000 - 100,000 Excess (Deficiency) of Revenues Over Expenditures (962,100) (97,100) 2,273 99,373 Net change in fund balances (962,100) (97,100) 2,273 99,373 Fund Balances - beginning 970,458 970,458 970,458 - Fund Balances - ending $ 8,358 $ 873,358 $ 972,731 $ 99,373 114 CITY OF WINTER SPRINGS, FLORIDA EXCELLENCE IN CUSTOMER SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2014 Revenues: Investment income Total revenues Expenditures: Capital Outlay General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 750 $ 750 $ 253 $ (497) 750 750 253 (497) 101,650 106,450 88,772 17,678 101,650 106,450 88,772 17,678 (100,900) (105,700) (88,519) 17,181 (100,900) (105,700) (88,519) 17,181 150,195 150,195 150,195 - $ 49,295 $ 44,495 $ 61,676 $ 17,181 115 This page intentionally left blank. G� Invvrporated 1959 i,�000 wE STATISTICAL SECTION This page intentionally left blank. G� Invvrporated 1959 i,�000 wE STATISTICAL SECTION This part of the City of Winter Springs' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall health. Contents Paqe Financial Trends 116 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 123 These schedules contain information to help the reader assess the government's most significant local revenue. Debt Capacity 128 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. There are no limitations placed upon the amount of debt the City of Winter Springs may issue by either the City's Charter or the City's Code or by Florida Statutes. Demographic and Economic Information 134 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 136 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This page intentionally left blank. G� Invvrporated 1959 i,�000 wE Q 0 O J LL C C� z ry 0- of LU z LL O U H z LU Z O CL 2 O U m z O ,� V/ O CL LU z C � � � o 0 0 m m D) O LL n n C � � � � Q � x m 2 J Cj C U Z) m O C I (O Lo N M O r T O N CO O co M (O co V Lo CO V CO O) CO (O co CO N (O (O N V LO CO (O O r O) O) (O O V (O N N (O O) N Efl Efl Efl Efl Efl Efl M o O O) CO N O) O CO O) I� (O O LO co co Lo N r (O T V O (O V V M V N co O) M V (O N (O O (O o O) O) V O V (O N N (O O) N Efl Efl Efl Efl Efl Efl CO o (O O) I� r M r Lo N O O N co O co M (O I� co O O Lo N LO O (O N_ W V co N V N O co I� Lo O V LO (O _ O V (O N N (O N O) N Efl Efl Efl Efl Efl Efl I� O M r V CO CO O (O O) CO N V N CO V I� O) O V N N O (O co O) V I� (O V LO M CO M LO I� co CO V O N O CO O N Efl Efl Efl Efl Efl Efl O) O) O I� O) O V M CO O) M O CO N N V co O M co CO co (O co co LO (Q LO O) (O co N O N (O V LO LO co O CO O) (D O V (O N LO CO N Efl Efl Efl Efl Efl Efl N r U co V co O) O) O) O r co O O O) O O) co V (O LO V V (O LO O I� O N (O M r- N O M Lo N co co O CO M co O I� o o v co Lo co N CO CO I� N T LO co N co CO I� co- r I� O V (O O (O (O M V (O (O O O) LO O (O LO N CO O) (O V N N LO O N O) M O O co (O N LO CO N Efl Efl Efl Efl Efl Efl O V N (O O) LO o O) O) co co LO I� co T I� (O r (O co I� N M O N V V LO CO I o M N N CO V O (O r_ O O co (O N LO N CO N CO (O LO co N o O V O LO O V I� O_ O (O V (O I� O LO Lo co O) (O O) (O N N I� O (O O M V N O) M _ M M CO O O N Efl Efl Efl Efl Efl Efl co O LO CO O LO (O V O O V N LO co r- . 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Q O O Q O O N N E d C U') N C U > ED CU .y U C O U 03 -0 U 03 O C O O C 0 CU t 03 w U (J 0) 0 O 0 O 0 O N 0 0) 0) Q 'T C 0 y N 0 0) 3 t 7 N y > N 0 O 0) N y N > i C (p LL LL U N 0_ p) 0 0 (n 0) 0_ Q 0 0) -C 0_ cu t 0_ Cu p O o U U m .N U O U m m ac9 �m �� r V O N M O N N O N W O N O (6 0 m O } N m U N_ LL 0 O O N 00 O O N r- O O N (0 O O N LOI O O N (O O (O In In In m M r In (\I N 63 M d) V I- M N OD V M O � 0 M - 00 0 M 00 In O M N (0 N N DO N (O M M m O V V O M O0 O N In O In O I� M � I- In In W N d) O O In V M r V O In 00 ' I- 00 O O) (O In M O0 W - O) N V W M M M N M N N N In M& 3 M M V M I- V r- r O V d) M In In M r O) r M O O) M O) O V I- O In ' V M O (C (O ' V O0 O O) In (O r (\I d) r O) N M In r M M M N M N M V M N O) O) O) In N N (D d) N M M M O0 W O L M_ O N (O M O In ' (O O W d) W ' 0 I- W (O M N d) N N O0 d) M N V V M M N O O0 (0 V I- (0 N M (O M O) M- O CF) r N M M O m M d) O O d) d) O O r O0 O In In In In N W I� ' r r ' r M O M W V r — ) I M M O O r O M V IV n d) - O n In O O0 N `-' M O d) M ' M V ' (O (O W (O In _ _ V V In V (\I V N N In r O (D O In In d) In O0 V M (O M V V d) M r V V I- W In d) W d) (0 V M r, N V d) V (O ' In ' d) In W r, d) M DO (O N d) M In M W M O In In (O d) M M V In d) N CO O M O M N W ' I� (O ' W L In N r N N O 00 In M N N N N O d) W I- M W N In O N N M r In N V M co In r O In M O In LO LO (0 co V In d) r In M M N M N d) 00 N O I� O r co V I- r r N r In N O In In In V d) co W co (O I- (0 m N (0 In O N r, In O) ' (O (0 ' O) In N ' d) M W N d) M A N N (O V M M d) M M V m .y O a Y z C .y N 'o R i i 3 N O N 3 O L g y N N ++ N N U N Cu E O E > C N '> N N N N O E O O N O U N N U) U N a) 3 y y y i 0) E N `° y O E O `° y lEj O N m d > > > N (6 G1 (6 ` E O N (6 (6 X N N E o EO 0 E z m E O i E N i N E S7 d E N > L > E > 0 - X m O 0) m O 0- N O E O 0) 0N ) 0 6 0 .y > O 3 O O O > O 0 z 0 m 0 m� 00 r Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) 2005 2,447 1,076 Business Tax 3,681 Property Tax Franchise Tax Utility Tax Receipts 2 Total 2007 2,443 1,108 6,198 1,480 3,504 2,261 11,182 7,383 1,919 3,832 1,944 13,134 8,265 1,921 3,920 - 14,106 7,130 - 3,976 140 11,246 5,013 3,015 4,106 70 9,189 4,538 3,044 4,536 204 9,278 4,209 3,100 4,169 119 8,497 3,901 3,269 3,963 106 7,970 3,853 3,923 109 7,885 4,015 4,035 105 8,155 Taxes included in Unrestricted Intergovernmental Revenues State Revenue Sales Tax Sharing Other Total 2005 2,447 1,076 158 3,681 2006 2,701 1,123 147 3,971 2007 2,443 1,108 201 3,752 2008 2,261 1,021 163 3,445 2009 1,944 907 109 2,960 2010 1,852 893 152 2,897 2011 1,873 916 226 3,015 2012 1,918 962 164 3,044 2013 1,994 972 134 3,100 2014 2,097 1,038 134 3,269 Note Franchise fees were classified as taxes prior to fiscal year 2008 2 Business tax receipts (formerly known as Occupational licenses) were classified as licenses and permits prior to fiscal year 2008 119 Q 0 FY 0 J LL C V z FY n CO ry LU H z LL 0 U (4 a) T (4 N O N LOa) L O V m Q (7 0 E CL E U 0 z O O N M O N N (O V V3 01 � 6% O N (O M It pp M r (O V 0) (O V r 00 V3 M M N N I- 00 6% m N co M 00 00 I- 00 o0 C\ N LO V3 00 V LO 6% O r V V N 00 N — 00 N — r CO (O o0 N N LO w N LO m O N LO N r .-. r N d) (O (O_ V3 m M N V3 m V V O N O N p O N co LO N It V Ln 00 � r 00 V N r (O N 00 N r O V3 V3 O (00 V3 V 0 O 00 I- 00 6% V3 N 00 V V3 (o (O - V (O N V3 r— M 00 O 6% C � C N � (6 N N V 0) V V d) (U) 0 L N LO r r 00 r- (6 Q 0) ON 00 00 (O N O _0 U) O N LL n (6 Q O O O_ N t N N Q Q Cl) 00 (O 00 (O U X N o0 00 0) (o Cl) U � (6 U) o N J -0 C O 6 E O m O O N (p O O N V U) N LO V V3 (MO 00 N 0 00 r O 0) U) r N 00 V3 O V3 00 O V3 ((O (O O r (O N Cl) O Cl) 00 N M_ V3 00 QZ M V3 O N N O r Cl) V3 r V N N 00 N V3 r- 0) V3 o Q 0)) r- V w aa)) > ((O (O N a" o co N V3 a E a E P a) a a a) a O Z Z o N Sc a`) > O Z L a) N o Q (� .Q os U r Q a .N a) > O w '� L .N a) L w o o o a) o o o w w o a) w o 0 o a) w o � aa)) o a) aa)) — w o w — (7 H Q H (9 H Q H (4 a) T (4 N O N LOa) L O V m Q (7 0 E CL E U 0 z O Q 0 ry 0 J LL C V z F' n CO ry LU >z LL 0 U (4 (�! 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IT v v v v v v v v v O O O O Lfl O V O LO LO O l.C) 00 00 00 V Ln I� V M Ln 0 0 Ln Ln 0 V V V M N N N N N N O O N O O O O O O r N m O O O O O O O O O O O O O O O N co O V X) M M M CO N N V V V V V V V V V M N N N N N N O O O 0 O O N M V O O O 0 O O N N N N N O C Q M 0) C O U 0) L C N 0) C O a) Q 0 Q O Q Q m m rn O N X � (6 0) N E E o T c 3 0 U O � C a�i m O U U o X o H a) T N � O 7 O N U a) N O a) c � E a) � M .� Q N O' U � U O 0) O Z N U) z `O r U W 0 O FY U O J � LL Z /C a V v/ z z C J_ Tf m LU z >z LU LL U) O w U) U) U J a U LL CL U) 0 U LD LL U) m J N � U C � N N 0 O C N � 0 N r rn Q LL O- m U O U _ U O O N T O 0] N O E U C O a � U N � C C 0 T Z E 0 N N LC) N CO CO O_ O O O co O O N '-D 4) p] U C N M co r LO N M O M V (O O V d' C J N V O - - -- -- - - - 0 ~ N O O N _ O p O 0 C 2 C U C a O LL w N E N lw LL _ N 0 w C w O 07 a I� M O CO CO CO 0 V O N O co M O r to T O O O O O O O 9 O — O C) (D U N ° a M M W W W W Q N L L m CO N N N N N N N O 07 N V V V V V V V LL N 07 07 n 0 O N M LO O O V �^ U O O (D M V V V O) V I� m C O O co m M M M N V 0 M J H � N N N N N N O U C w N E Ln M Ln Ln co Ln v Ln Ln C m N COO M O O D CO LO CO 0) -O a) 0 (O M O LO V LO V LO (p m cC C Q N I� r r O O O O LO O r M M M O O O O O O (O L d Q m O C) C) (D 9 m a� a o � U LO ' O O I� co N co co O V M V N V V O N C U a N O O O O O O V V O O O co co O O co O C C ?� t/1 � m M M M O O O O r (D E r .Q a) co O O LO CO V C (6 U N O I� N O C O N O V O O N M M M V M V V V V O N � E a � N = a a C � co CO N (O M O(D � N U t/1 _ a L0 0 — N C M O M N M 0 0 - - - - - - — 0) 0) cC Q N 0) — — — — — — — L d C_ U Q 6 m n LL J m m 0 LO LO LO LO O O O Ln O Ln Ln 0 M M M M M M N N N N N N (p C O N (O (O (O (O (O (O (O 0 E O O O m a C T N 75 W T U O C C 0 Q O p C n E O N M V .0 E ow 4) O O O O O 0 0 0 0 0 0 0 0 0 0 -O C N p N O O` 07 U Q N X O O O O O O z O O O O O O O O O O O N CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2014 (amounts expressed in thousands) 2014 2005 Source: Seminole County Property Appraiser (www.scpafl.org) 126 Rank 1 3 2 5 9 4 6 7 8 10 Percentage of Total Taxable Assessed Value 1.63% 0.82% 0.91% 0.50% 0.00% 0.22% 0.00% 0.00% 0.00% 0.00% 0.51% 0.36% 0.32% 0.27% 0.18% 5.72% Percentage of Total Taxable Taxable Taxable Assessed Assessed Assessed Taxpayer Value Rank Value Value Laurel Oaks LLC $ 24,104 1 1.47% $ 24,106 Duke Energy (formerly Progress Energy) 23,812 2 1.45% 12,142 Courtney Springs LLC 20,088 3 1.23% 13,423 United Dominion Realty Trust 7,917 4 0.48% 7,375 Summer Falls LLC 7,721 5 0.47% - Bright House Networks LLC 6,397 6 0.39% 3,331 Moss Park 5,270 7 0.32% - Winter Springs Holdings, Inc 4,762 8 0.29% Baxley Robert & Annmarie TRS 4,233 9 0.26% Pathfinder Landology Isis 4,213 10 0.26% - Capital Green I LLC - - 0.00% 7,622 Tuscawilla Cay LLC & Tusc 54th LLC 0.00% 5,370 Hacienda Village Co -Op Inc. 0.00% 4,786 Bell South Communication 0.00% 4,036 Engle Homes /Orlando Inc. - 0.00% 2,600 Totals $ 108,517 6.62% $ 84,791 Source: Seminole County Property Appraiser (www.scpafl.org) 126 Rank 1 3 2 5 9 4 6 7 8 10 Percentage of Total Taxable Assessed Value 1.63% 0.82% 0.91% 0.50% 0.00% 0.22% 0.00% 0.00% 0.00% 0.00% 0.51% 0.36% 0.32% 0.27% 0.18% 5.72% CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years 127 Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Collections in Ended Total Tax Levy for Percentage of Subsequent Percentage of September 30, Fiscal Year 1 Amount 2 Levy Years Amount Levy 2005 6,748,179 3 6,546,002 97.00% 11,385 6,557,387 97.17% 2006 7,890,100 3 7,591,158 96.21% 12,189 7,603,347 96.37% 2007 8,820,491 3 8,475,408 96.09% 2,214 8,477,622 96.11% 2008 7,442,693 3 7,145,070 96.00% 11,318 7,156,388 96.15% 2009 5,186,450 3 5,028,524 96.96% 14,586 5,043,110 97.24% 2010 4,671,821 3 4,503,950 96.41% 34,324 4,538,274 97.14% 2011 4,355,923 4,203,079 96.49% 6,242 4,209,321 96.63% 2012 4,080,271 3,933,840 96.41% 3,969 3,937,809 96.51% 2013 3,993,624 3,850,616 96.42% 2,196 3,852,812 96.47% 2014 4,164,738 4,014,098 96.38% 582 4,014,680 96.40% Note Gross taxes before discount of 1% - 4 %, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) 3 Includes voted debt service not to exceed 0.2500 mills for Central Winds General Obligation Debt 127 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2014 Neither the City of Winter Springs Charter or Code, nor the Florida State Statutes limits the amount of debt the City of Winter Springs can issue. 128 CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Debt to Net Fiscal Assessed Gross Less Debt Net Assessed Debt per Year Population' Value 2 Debt 3 Service Fund 4 Debt Value Capita 2004 32,955 1,365,985,000 3,270,000 53,373 3,216,627 0.235% 98 2005 33,321 1,483,116,250 3,205,000 46,967 3,158,033 0.213% 95 2006 34,621 1,661,074,000 3,140,000 51,743 3,088,257 0.186% 89 2007 34,899 2,003,805,968 3,070,000 47,572 3,022,428 0.151% 87 2008 34,639 2,220,522,082 3,000,000 46,254 2,953,746 0.133% 85 2009 34,340 2,009,169,114 2,925,000 36,610 2,888,390 0.144% 84 2010 34,149 1,809,808,024 2,850,000 38,879 2,811,121 0.155% 82 2011 33,282 1,687,434,206 2,770,000 40,388 2,729,612 0.162% 82 2012 33,599 1,593,864,153 2,739,107 50,549 2,688,558 0.169% 80 2013 33,540 1,572,300,619 2,638,521 42,070 2,596,451 0.165% 77 2014 33,871 1,639,667,121 2,533,833 25,305 2,508,528 0.153% 74 ►C.1i' Source: Synergos Technologies Inc.: PopStats at June 2008; Previous years statistics may have come from multiple sources including East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bonds and revenue bonds 4 Amount available for repayment of limited general obligation note which in fiscal year 2012 served to refinance the 2002 general obligation bonds. 129 Q Q' 0 LL ui Z a m W H Z_ LL O H U (4 Q U N Q (4 Q N � p 4 N a C � N � H � w o m w J � (4 a a o o v v v I I o ry � a _ a E E a` m > F � v � K � 3 to =o wm in in in in �m � o � a � p M M M M a "v v m M M M M N N N `o � p M M mo oo > av Nw w ry ry ry ry ry ry ry ry ry ry LL z o o m v n � E o o K m v N m° E >> EE E w E a E 0 w E 5 0 O CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2014 (amounts expressed in thousands) Governmental Unit Overlapping Debt: Seminole County General Obligation Debt Subtotal, overlapping debt Direct Debt: City of Winter Springs General Obligation Debt 2 Total direct and overlapping debt Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board Estimated Percentage Debt Outstanding Applicable 1 2,533,833 y L,JJJ,VJJ Estimated Share of Overlapping Debt 100% 2,533,833 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 The City of Winter Springs has a 'limited" general obligation note that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. 131 y L,JJJ,VJJ Q N w O 0 J LL W c6 > O Z U w (� N cn z LU LL N > c LU w >Z 0 N LV J LL 0 O W } J CL U c d d ,0 V L d Id V - 0 o m o � U Q C a N o E O N ow O m m rn CD O Co C O N > E N v CEO N V V W W W m m a Q � Q U N o Q z N W U O o � Q N N O CEO W O U E w w N N N N E o o ❑ U rn rn co rn rn v Q Cl) O O O O O O O j COO COO COO COO COO COO COO N (n M I� O O O V CNO O O) m � Q ❑ � a o o6 � o mU QC7 - 0 o m o � U Q C a N o E O N ow O m m rn CD O Co C O N > E N v CEO N V V W W W m m a Q � Q U N o Q z c0 O- W U O o � Q N N O CEO W O) E w w N N N N m E d LL N E 6 U W Q Q I c0 O- W O O N W CNO M M CEO W O) M N N N N N - 9 Cl) O O O O O O O "' � COO COO COO COO COO COO COO U ~ m S 0 LU U !6 LL N O M � � O M CEO Cm0 N M fn x 9 d O � C7 > N N M V O O O O O U a U) N N N N N N N N N N N a w I Q N� LL 0 J LL c V Z FY a_ U) Q' LU Z LL 0 U to U to LL C N J N O Lb d C d R M N N O U N O c0 V O I� CO V c0 V O 0 0 0 0 0 0 0 o co 0 O O O O O O O V N M a O LO N N Z � W O O) c0 CO CO N V CO (n zQ'o N N c0 M O) O c0 0 w N O � M > ) O O O O O � O O O O O O O O O O U) N a LT w 0 z � O N l0 O O 0 o r N O N N - o X _ N N O o l0 O a 10 Q � o N - N m o `m m dN U Q l0 T N N N N N 3 O N N O 0 N X N N 0 0 o o o � N l0 N o E N m N O_ N O N o o o O o m E O O 3 N N O E O o N o Ol 0 m 3 N o o E a� a � O O L N d - `- 0 O U` o o w o w r CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Note Data not available ' Source: American Fact Finder; US Census per 7.1.12; DemographicsNow.com 2 Source: American Fact Finder; Seminole County Public Schools 3 Source: Bureau of Labor Statistics (may or may not reflect regionally - specific rate) 134 Personal Education Income Level in (amounts Years of expressed in Per Capita Personal Median Formal School Unemploy- Fiscal Year Population thousands) Income' Age' Schooling' Enrollment 2 ment Rate 3 2005 33,321 7,492 3.8% 2006 34,621 979,428 28,290 39.3 13.97 7,342 3.2% 2007 34,899 971,623 27,841 39.8 13.93 7,115 3.6% 2008 34,639 1,028,951 29,705 40 13.72 6,804 5.0% 2009 34,340 1,053,173 30,669 40.3 13.72 6,754 9.7% 2010 34,149 1,047,589 30,677 41 13.82 6,454 11.8% 2011 33,282 1,161,675 34,904 39.3 14.71 6,316 9.5% 2012 33,599 1,183,558 35,226 36 13.81 6,341 6.8% 2013 33,540 1,104,540 32,932 41.8 6,496 5.4% 2014 33,871 1,084,989 32,033 39 6,461 5.4% Note Data not available ' Source: American Fact Finder; US Census per 7.1.12; DemographicsNow.com 2 Source: American Fact Finder; Seminole County Public Schools 3 Source: Bureau of Labor Statistics (may or may not reflect regionally - specific rate) 134 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Ten Years Ago 20141 2005 Employer Employees Total City Seminole County School Board 1,403 City of Winter Springs 212 Dearborn Electronics 170 Publix (Winter Springs Town Center) 150 Modern Plumbing 85 Tuscawilla Country Club 80 United States Post Office 48 Longwood Kia / Mitsubishi 42 Dittmer Architectural Aluminum 36 McDonald's 30 Total 2,256 Percentage of Percentage of Total City Total City Rank Employment 2 Employees Rank Employment 21.50% 3.25% 281 2.60% 2.30% 1.30% 1.23% 0.74% 0.64% 0.55% n Acoi 34.Z) / %o Note * Data Not Available Per telephone survey of major local businesses and /or e-mail correspondence 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 6,526 FTEs as of 2014. 135 CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full -time Equivalent Employees as of September 30, Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Development Services 10 10 10 10 5 5 4 4.46 5.46 5.46 General Government 41 44 44 44 45 42 41 36.79 37.23 36.67 Public Safety: Police Sworn Officers 64 70 70 70 70 70 70 65 65 65 Civilians 20.75 20.75 20.75 20.75 20.75 20.75 20.75 18.45 16.45 16.88 Fire 2 Firefighters and officers 50 51 51 51 0 0 0 0 0 0 Civilians 2 2 2 2 0 0 0 0 0 0 Public Works 23 21 21 21 21 20.73 18.73 18 16 16 Culture and Recreation 32.34 33.67 35.78 36.63 34.07 31.86 29.10 25.68 24.07 24.06 Utilities 42 42 43 45 45 45 42 37 35 35.73 Stormwater 7 9 9 9 9 9 9 9 9 9 Total 292.09 303.42 306.53 309.38 249.82 244.34 234.58 214.38 208.21 208.8 Part -time Employees Part -time FTEs 3 11.09 12.42 14.53 15.38 16.33 16.34 17.58 18.38 22.36 21.95 Note Data not available 1 Police civilians include emergency communications center operations personnel. 2 Municipal Fire Department was consolidated with Seminole County Fire Department on 10/02/08. 3 FTEs - Full -time Equivalent Units; this statistic replaces part -time employee count starting in Fiscal Year 2005 and these units are reflected thereafter. 136 0 LL .Q 0 A U L LL J of N of of (O O N of I� Z Z Z O r N V 0 (O V N M m OI � N m N of N of O O O M O M M r r O Z Z Z 2 0 N rn r r co co u� r o ro u� ro v N o m o m r co Z Z Z ro o o N m N v m (O M N � V O � � N N V LL� M r N Z Z Z M (O Lo N O N W M M LLo M N r LL� O � � N m m v LL� O r Z Z Z N O O O V N of O V N o� m co m o �2 m N V of V I� r Q Q Q o W O V O V O N Z Z Z 15 N M O O V LL� M N O M N OI M V V O m O o o E o N= 0 - � a g o 0 ° a o n °' a > ° m o °� > m m m o o o oz N V V a Q N E m o m m 3 m m m m m o U o 0 o .T m -o n E U 10 m m m m E E E E - °m 3 2 2 a m m m m m> o .o ¢ a U rn w' �� a z min in U) U) U a a ii = U r } \ ) \ ) \ \ k`oclE - _ ) \ _!# § \ }, \ {)) § } f §! »� >w42 - E )) {) i����\ \�j) \ \ \\\ ° ƒ} ®\\ \ \\ ) } } }i) ° / ! / C) .� Co �L LL ( 0) C �L Q U) L (V C) U p co Co U N LL CV Co J W N (O O O (O (O 0 O n C-4 00 0 N r- 0 �p N O (O (O M O to L O N (O 0 V N N N C O W M (O O (O I- r 00 N N M O 1 I- O V V N M N O N (O d) V N N N DMD M (M0 O 0 0 (O I- 0 C-4 00 00 r- ON V N d) O 11 I- O N N O CF) N (O (D — 0 N N N N V N M O NO O O0 (O I- 00 N � 00 (O LQ N I� O N W O N (O d) V N N N N 0O0 M C-4 0 O O O 0 0 (O I- 0 0 C-4 00 r( N 00 O In _ CF) N (O d) V N N N r C-4 CF) M C-4 0 O O O O 0 (O I- 0 O 00 � I- (D N V 00 Lo (O N O In _ d) N (O y U O) V N N N N Q N r r M ' O m O - (O I- 0 0 00 O N 00 d) (O (O O In _ M 0 V N N N N r M N O r (O I- r n C14 00 O) O N 00 d) (O C O d) _ N N (O N N E '0) N 6 O) V N N -O N N w N O _ N 0 LO (`') �� 0 O O0 In r � � V 0� 00 O N m a) U N E -p = O O N N 0 00 1041 V I� O d) r (O (O d) MO Y) V N N N E _ N N E O � U 0 n r * M V 0 O0 In r O) V � r- r N O) LO 00 V 0 d) r W N N MO N d) M N V N (A N C p C O —_ N y N 01 C 01 0 0 O y N N C C 01 O O — O N E C O N N E O N N Q O > y U C O �. O t N N a) Q N N U — ! N a) N N O N d E t U .=� a) i U N C N N Q 7 i N E '0) N C y N C C .O -O N N w N O _ N O p 01 O U Z a) U N E -p = N C N E O U _ _ N ( LL O E 'E E t E _ N N E O � U 0 n N rn i U 6 LL U °? LL a U) z (A OTHER REPORTS MCDIRMIT %f% DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited, in accordance with auditing standards generally accepted in the United states of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 16, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Winter Springs, Florida's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Wnter Springs' internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407 - 843 -5406 FAX 407 - 649 -9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTIONAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 140 Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Winter Springs' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The result of our tests disclosed no instances of noncompliance, or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida March 16, 2015 141 MCDIRMIT %f% DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS MANAGEMENT LETTER Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on the Financial Statements We have audited the financial statements of the City of Winter Springs, Florida, as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated March 16, 2015. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards, and Independent Auditor's Report on an examination conducted in accordance with A /CPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 16, 2015, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the noted to the financial statements. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407 - 843 -5406 FAX 407 - 649 -9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 142 Financial Condition Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the City of Winter Springs, Florida has met one or more of the conditions described in Section 218.503(1), Florida Statues, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Winter Springs, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statues. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the City of Winter Springs, Florida's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for the City of Wnter Springs, Florida for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statues, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2014. In connection with our audit, we determined that these two reports were in agreement. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, City Commission and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. ��ZLt L1 v4z & �� L L0, Orlando, Florida March 16, 2015 143 MCDIRMIT %f% DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements of City of Winter Springs as of and for the year ended September 30, 2014, and have issued our report thereon dated March 16, 2015. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 19, 2013, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Winter Springs solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, have complied with all relevant ethical requirements regarding independence. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407 - 843 -5406 FAX 407 - 649 -9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 144 Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by City of Winter Springs is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, City of Winter Springs changed accounting policies related to the adoption of Statement of Governmental Accounting Standards (GASB Statement) No. 67. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are Management's estimate for the allowance for doubtful accounts is based on historical loss levels, and an analysis of the individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimation for the allowance for depreciation is based on the estimated useful lives of the capital assets. We evaluated the reasonableness of the useful lives as well as the depreciation methods in determining that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Winter Springs's financial statements relate to revenue recognition as described in Note 1. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 145 Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to City of Winter Springs's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated March 16, 2015. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with City of Winter Springs , we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City of Winter Springs's auditors This report is intended solely for the use of management, the City Council and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Orlando, Florida March 16, 2015 146 MCDIRMIT %f% DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES The Honorable Mayor and City Commission City of Winter Springs, Florida We have examined City of Winter Springs's (the City) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2014. Management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on the City's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, City of Winter Springs complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. Orlando, Florida March 16, 2015 MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407 - 843 -5406 FAX 407 - 649 -9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTIONAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 147 This page intentionally left blank. G� Invvrporated 1959 i,�000 wE E Incorporated 1959 yc `6D W E if1J February 20, 2015 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 Telephone (407) 327 -1804 AFFIDAVIT OF IMPACT FEE COMPLIANCE Impact Fees are assessed in accordance with Chapter 9: Land Development, Article VIII Impact Fees, of the City of Winter Springs Code of Ordinances. Impact fee collections, expenditures and accounting are provided for in separate accounting funds and comply with Florida Statue 163.31841. 0� Shawn Boyle Finance and Administrative Services Director STATE OF FLORIDA COUNTY OF SEMINOLE The fon g instrument was acknowledged before me thisAV (Notary Seal) day of �� , 20 E-, by (Name of Notary Typed, Printed, or Stamped) Personally Known V OR Produced Identification ,4Y A II tl� ►" °Br•+ CASEY HOWARD Is Notary Public - State of Florida My Comm. Expires Nov 5, 2011 l;�;; �, Camm"sssinn # FF 068515 0 V RV 1W k..