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HomeMy WebLinkAbout_2021 04 26 City Commission Regular Meeting AgendaCITY COMMISSION REGULAR MEETING AGENDA MONDAY, APRIL 26, 2021 - 6:30 PM CITY HALL - COMMISSION CHAMBERS 1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA 1 CALL TO ORDER Roll Call Invocation Pledge of Allegiance Agenda Changes AWARDS AND PRESENTATIONS 100. Swearing-In Ceremony for New Police Officers 101. Tree Giveaway Updates & Presentation of Arbor Day Proclamation Arbor Day Proclamation 2021 INFORMATIONAL AGENDA PUBLIC INPUT Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a “Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City Commission. CONSENT AGENDA 300. Tyler Technologies / Energov – Permitting System Winter Springs, FL SaaS Contract City of Winter Springs Florida - Statement of Work Tyler Technologies - EnerGov SaaS Quote 301. Minutes from the Monday, April 12, 2021 City Commission Regular Meeting Minutes PUBLIC HEARINGS AGENDA 400. Waste Pro Contract Addendum and First Reading of Ordinance 2021-03 Waste Pro Sixth Addendum to Solid Waste Agmt Ordinance 2021-03 Adopt Solid Waste Franchise SIXTH Addendum 401. First Reading of Ordinance 2021-04 Amending the City of Winter Springs Code of Ordinances, Section 2-27 regarding City Commission Rules And Procedures; Providing amendments related to agenda items and reports; providing for the repeal of prior inconsistent ordinances and resolutions; incorporation into the Code; severability and an effective date. Ordinance 2021-04 Amending Commission Rules Agenda Items and Reports 2 REGULAR AGENDA 500. Non-Binding Preliminary Review for the Winter Springs Marketplace. Site Plan - Corner Parcel Exhibit Legal Description and Survey Location Map Non-Binding Preliminary Review Application 501. 2020 Comprehensive Annual Financial Report 2020 CITY OF WINTER SPRINGS - ANNUAL REPORT 2020 CITY OF WINTER SPRINGS - GOVERNANCE LETTER 502. Meeting Schedule and Assignments 503. Appointment Opportunities for City Boards and Committees REPORTS 600. City Manager Shawn Boyle 601. City Attorney Anthony A. Garganese 602. City Clerk Christian Gowan 603. Deputy Mayor/Seat Three Commissioner Ted Johnson 604. Seat Four Commissioner TiAnna Hale 605. Seat Five Commissioner Rob Elliott 606. Mayor Kevin McCann 607. Seat One Commissioner Matt Benton 608. Seat Two Commissioner Kevin Cannon PUBLIC INPUT Anyone who wishes to speak during Public Input on any Agenda Item or subject matter will need to fill out a “Public Input” form. Individuals will limit their comments to three (3) minutes, and representatives of groups or homeowners' associations shall limit their comments to five (5) minutes, unless otherwise determined by the City Commission. ADJOURNMENT 3 PUBLIC NOTICE This is a Public Meeting, and the public is invited to attend and this Agenda is subject to change. Please be advised that one (1) or more Members of any of the City's Advisory Boards and Committees may be in attendance at this Meeting, and may participate in discussions. Persons with disabilities needing assistance to participate in any of these proceedings should contact the City of Winter Springs at (407) 327-1800 "at least 48 hours prior to meeting, a written request by a physically handicapped person to attend the meeting, directed to the chairperson or director of such board, commission, agency, or authority" - per Section 286.26 Florida Statutes. "If a person decides to appeal any decision made by the board, agency, or commission with respect to any matter considered at such meeting or hearing, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based" - per Section 286.0105 Florida Statutes. 4 OFFICE OF THE MAYOR WINTER SPRINGS, FLORIDA WHEREAS, in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees, and; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS, Arbor Day is now observed throughout the nation and the world; andWHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen, and provide habitat for wildlife; and WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community. NOW THEREFORE, I, Kevin McCann, Mayor of the City of Winter Springs, Florida do hereby Proclaim April 26, 2021 as “ARBOR DAY” in the City of Winter Springs and encourage all citizens to celebrate Arbor Day and to support efforts to protect our trees and woodlands. Further, I urge all citizens to plant trees and promote the well-being of this and future generations. In witness whereof, I have hereunto set my hand and caused this Seal to be affixed and signed this 26th day of April 2021 _________________________________ KEVIN McCANN, MAYOR ATTEST: __________________ CITY CLERK Kevin McCann Mayor Matt Benton Commissioner Kevin Cannon Commissioner Ted Johnson Commissioner TiAnna Hale Commissioner Rob Elliott Commissioner 5 CONSENT AGENDA ITEM 300 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE Tyler Technologies / Energov – Permitting System SUMMARY Staff requests the authorization to enter into an agreement with Tyler Technologies for three (3) years for software and implementation services for the City's new online permitting system. The current online permitting system, Project Dox, has not provided adequate results for the last several years. The online system contains redundancy and lacks certain online capabilities, such as online inspection scheduling. The current system also suffers from failures on a continuous basis and the City is looking to implement a more stable software system. Staff plans to utilize these services provided by the Energov software to reduce workload, eliminate redundancies, increase system stability, and provide the public more online tools. The City is utilizing a piggybank contract from St. John’s County. The piggybank option allows for the City to move forward without a Request for Proposal (RFP). Energov is utilized by several local municipalities such as; City of Sunrise City of Riviera Beach City of Fernandina Beach Village of Wellington City of Deltona City of Jacksonville City of Pembroke Pines Village of Miami Shores City of Kissimmee City of Coral Springs St. Lucie County Marion County Miami-Dade County City of Miami Gardens City of Marco Island City of Miami Beach City of Hallandale Beach City of Sanibel City of North Miami Beach City of Riviera Beach City of Bonita Springs City of Cape Coral Miami Shores Village City of Melbourne City of Pinellas Park City of Fort Myers North Bay Village 6 The cost of Energov services is $116,000.00 for implementation and $90,540.00 annually. There are also travel expenses of $28,900.00. The contract is for three (3) years with an additional a renewal for two (2) additional one (1) year renewal terms. The funding source is the development services enterprise fund and will require an appropriation from fund balance. Future year’s maintenance costs will be budgeted in the operational expenditures of the development services fund. RECOMMENDATION Staff recommends the City Commission consider the purchase and replacement of the Cities current online permitting system Project Dox. Staff also recommends the City enter into an agreement with Tyler Technologies Inc. for three (3) years, with two (2) single year renewals for software and implementation services of the City's new online permitting system, Energov, in the amount of $116,000.00, plus reimbursement of estimated travel expenses of $28,900.00. Additionally the ongoing software service fee will be $90,540.00 annually. The total overall cost for year one is $206,540. Staff also recommends authorization for the City Manager and City Attorney to prepare and execute any and all applicable contract documents consistent with this agenda item. 7 1 PIGGYBACK RIDER AGREEMENT THIS PIGGYBACK RIDER AGREEMENT (“Agreement”) is made and entered as of the date of last signature as indicated on the signature page below (the “Effective Date”) between the CITY OF WINTER SPRINGS, a Florida municipal corporation (“City” or “Client”) and TYLER TECHNOLOGIES, INC., a Delaware corporation authorized to do business in the State of Florida with offices located at 2160 Satellite Blvd., Ste. 300, Duluth, GA 30097 (“Contractor” or “Tyler”). The City and the Contractor agree as follows: 1. The Purchasing Policies of the City of Winter Springs allow for “piggybacking” contracts. Pursuant to this procedure, the City is allowed to piggyback an existing government contract, and there is no need to obtain formal or informal quotations, proposals or bids. The parties agree that the Contractor has entered into a contract with St. John’s County, Florida, said contract being identified as: Contract Agreement RFP No: 19-10 – St. John’s County Growth Management – Electronic Permitting, Plan Review & Inspection System (EPPRIS) Master Contract # 19-MCC-TYL-11198 (said original contract being referred to as the “Original Government Contract”). 2. The parties agree that the terms and conditions set forth in the Original Government Contract have been incorporated herein and used as the basis for Appendix 1, except to the extent expressly modified herein. All modifications to the Original Government Contract have been summarized in this Piggyback Rider Agreement. 3. Notwithstanding the requirements that the Original Government Contract is fully binding on the parties, the parties have agreed to modify certain provisions of the Original Government Contract as applied to the City of Winter Springs. The agreed upon changes are reflected in the attached Appendix 1 and the Contract Documents enumerated therein in an effort to create a single, comprehensive document representing the Original Government Contract as modified for the City of Winter Springs. For informational purposes, changes were made to the following areas of the Original Government Contract: a) All references in the Original Government Contract to St. John’s County have been revised to refer to the City of Winter Springs. b) Article 3 Duration: Contract Term updated. c) Article 2 – Enumeration and Incorporation of Contract Documents: A new contract exhibit was added and an order of precedence regarding the Original Government Contract was also added. d) Article 4 – Scope of Services: language revised to reflect scope of services to be provided by Contractor. e) Article 5 – Compensation/Billing/Invoices was revised to reflect pricing to the City and invoice payment information. f) Article 8 – Termination was amended to add termination for Force Majeure and a new subsection for Fees for Termination Without Cause during Initial Term. g) Article 15 – Insurance was amended to add additional insured language. h) Article 16 – Indemnification was amended to strike the second paragraph in its entirety. 8 2 i) Article 21 – Excusable Delay was amended to add language regarding diligence and termination. j) Article 32 – Florida Law and Venue was amended to revise the venue for actions arising under this Agreement. k) Article 34 – Notices was amended to add notice information for the City. l) Article 36 – Public Records was amended to add contact information for the City. l m) A new Article 40 - E-Verify Registration and Use was added. n) A new Article 41 – Sovereign Immunity was added. o) Section B, Paragraph 6.7 of the Software as a Service Addendum was amended to add language regarding backups and data retention. p) A new Paragraph 7 was added to Section B of the Software as a Service Addendum to address the Socrata-EnerGov Executive Insights Bundle terms and conditions. q) Section F, Paragraphs 2.1 and 2.2 of the Software as a Service Addendum were deleted in their entirety. r) Exhibit A Investment Summary of the Original Government Contract was stricken in its entirety and replaced with the Investment Summary addressed to the City of Winter Springs. s) Exhibit B Invoicing and Payment Policy of the Original Government Contract was amended to add language regarding the Florida Local Government Prompt Payment Act. t) Exhibit E Statement of Work of the Original Governmental Contract was deleted in its entirety and replaced with the Statement of Work addressed to the City of Winter Springs. u) A new Exhibit F – Socrata Terms and Conditions – was added to govern the Socrata- EnerGov Executive Insights Bundle. SIGNATURE PAGE FOLLOWS REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 9 3 IN WITNESS WHEREOF, authorized representatives of the CITY and the CONTRACTOR have executed this Piggyback Agreement on the day and year below noted: CITY: TYLER TECHNOLOGIES, INC. ___________________________________ _____________________________________ Shawn Boyle, City Manager Printed Name and Title: _____________________________________ Date: __________________________________ ______________________________________ ATTEST: Date: ___________________________________ ____________________________________ Christian Gowan, City Clerk 10 1 APPENDIX 1 AGREEMENT In consideration of the mutual promises contained herein, the Client and the Contractor agree as follows: ARTICLE 1 - PURPOSE Intentionally Omitted. ARTICLE 2 - ENUMERATION AND INCORPORATION OF CONTRACT DOCUMENTS The Agreement shall consist of the Piggyback Rider Agreement, this Appendix 1, the Software as a Service Addendum attached hereto, and the Contract Documents (hereafter collectively referred to as the "Agreement"). The term "Contract Documents" shall include the following: Exhibit A Investment Summary Exhibit B Invoicing and Payment Policy Schedule 1: Business Travel Policy Exhibit C Service Level Agreement Schedule 1: Support Call Process Exhibit D Third Party Terms Exhibit E Statement of Work Exhibit F Socrata Terms and Conditions The Contract Documents shall additionally include any duly executed amendments, addenda, and/or exhibits hereto; and, as applicable, all Change Orders. The Contract Documents are hereby incorporated into the body of this Agreement, and shall constitute the entire agreement between the parties, unless otherwise amended as provided herein. For the avoidance of doubt, in the event of any conflict between the Original Government Contract and this Agreement, this Agreement shall control. ARTICLE 3 - DURATION The initial term of this Agreement is three (3) years from the first day of the first month following the Effective Date, unless earlier terminated as set forth below. Upon expiration of the initial term, this Agreement may be renewed for two (2) additional one (1) year renewal terms at our then-current SaaS Fees but otherwise subject to the same terms and conditions contained herein upon mutual agreement of the parties. While this Agreement may be extended or renewed as stated in this article, it is expressly noted that neither the Client nor Tyler is under any obligation to extend or renew this Agreement. It is expressly noted that the Client’s right to access or use the Tyler Software and the SaaS Services will terminate at the end of the duration of this Agreement. ARTICLE 4 - SCOPE OF SERVICES The Contractor will provide the various implementation-related services itemized in the Investment Summary and described in the Statement of Work. ARTICLE 5 - COMPENSATION/BILLING/INVOICES A. Software and Implementation. As payment for the software and implementation services described in this Agreement, the Client shall pay to the Contractor the amounts set forth in the Investment Summary equal to one hundred sixteen thousand Dollars ($116,000.00), plus reimbursement of estimated 11 2 travel expenses of twenty-eight thousand nine hundred Dollars ($28,900.00). Additional costs beyond one hundred sixteen thousand Dollars ($116,000.00) for software implementation services shall require approval of a written change order as provided further in this Agreement, specifically Article 31 and Section C.3 of the Software as a Service Addendum. B. Ongoing Software-as-a Service (SaaS) Fee. As set forth in the Invoicing and Payment Policy, for the Initial Term of this Agreement, Contractor will invoice the Client the amount of ninety thousand five hundred forty Dollars ($90,540.00) annually as payment for SaaS Fees. C. Additional Products and Services. The Client may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, the Client may purchase additional products and services at mutually agreed upon pricing, by executing a mutually agreed addendum. The terms of this Agreement shall govern any such additional purchase(s), unless otherwise specifically provided in the addendum. D. Invoicing and Payment. Contractor will invoice Client for the software and services to be provided under this Agreement as set forth in the Investment Summary (Exhibit A) in accordance with the Invoicing and Payment Policy (Exhibit B). Unless otherwise notified, bills/invoices should be delivered to: Accounts Payable City of Winter Springs 1126 E State Road 434 Winter Springs, FL 32708 E. Invoice Disputes. To the extent that the Client does not dispute an invoice, the Client will pay invoiced amounts in accordance with the Invoicing and Payment Policy (Exhibit B). The Client may dispute any invoice by written notice if, in its sole discretion, it determines that the software or service(s) described herein does not conform to Contractor's warranties and representations. Such notice shall include a description of the issue(s) in dispute so that Contractor can confirm the issue and respond to the Client’s notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in the Client’s notice. The parties shall work in good faith to develop an action plan that outlines reasonable steps to be taken by each party to resolve the issue(s) of dispute. The Client may withhold payment of actual amounts in dispute until the issues are resolved. Contractor reserves the right to suspend delivery of all services based upon the Client’s failure to timely pay any undisputed amounts due, or for the Client’s failure to complete its agreed upon steps to resolve disputed amounts. ARTICLE 6 - TRUTH-IN-NEGOTIATION CERTIFICATE The signing of this Agreement by the Contractor shall act as the execution of a truth-in-negotiation certificate certifying that wage rates and other factual unit costs supporting the compensation are accurate, complete, and current as of the date of this Agreement. To the extent either party determines that an adjustment to the original contract price is required due to inaccurate, incomplete, or noncurrent wage rates and other factual unit costs, the parties agree to cooperate reasonably with each other to determine what contract adjustments, if any, should be made and to execute a contract amendment to reflect such change(s). If the parties cannot reach agreement, the parties agree to submit the matter to the dispute resolution process in Section G(l) of the Software as a Service Addendum. ARTICLE 7 -ARREARS The Contractor shall not pledge the Client’s credit or make it a guarantor of payment or surety for any contract, debt, obligation, judgement, lien, or any form of indebtedness. The Contractor further warrants and represents that it has no obligation or indebtedness that would impair its ability to fulfill the terms of 12 3 this Agreement. ARTICLE 8 -TERMINATION This Agreement may be terminated as set forth below. In the event of termination, the Client will pay the Contractor for all undisputed fees and expenses related to the software, products, and/or services the Client has received, or the Contractor has incurred or delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than Client’s termination for cause must have been submitted as invoice disputes in accordance with Article 5 (D). A. For Cause. If the Client believes Contractor has materially breached this Agreement, the Client will invoke the Dispute Resolution clause set forth in Section G(l) of the Software as a Service Addendum. The Client may terminate this Agreement for cause in the event Contractor does not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the thirty (30) day window set forth in Section G(l). In the event of termination for cause, the Client shall pay Contractor all undisputed fees and expenses related to the software, products, and services incurred and/or received prior to the effective date of termination. B. Lack of Appropriations. If the Client fails to appropriate or otherwise receive funds sufficient to purchase, lease, operate or maintain the software and/or services described in this Agreement, then the Client may unilaterally terminate this Agreement effective on the final day of the fiscal year through which funding is available. The Client shall take reasonable efforts to provide at least thirty (30) days prior written notice to the Contractor of termination for lack of appropriations. The Client shall pay all undisputed fees and expenses related to services and products received prior to the effective date of termination. The Client will not be entitled to a refund or offset of previously paid, but unused SaaS Fees. C. Failure to Pay SaaS Fees. The Client acknowledges that continued access to the SaaS Services is contingent upon its timely payment of SaaS Fees. If the Client fails to timely pay the undisputed SaaS Fees, the Contractor may discontinue the SaaS Services and deny the Client access to the Tyler Software. Contractor may also terminate this Agreement if the Client does not cure such failure to pay within forty-five (45) days of receiving written notice of Contractor's intent to terminate. D. Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of sixty (60) days or more. E. Fees for Termination without Cause during Initial Term. If the Client terminates this Agreement during the initial term for any reason other than cause, Force Majeure, or lack of appropriations, or if the Contractor terminates this Agreement during the initial term for the Client’s failure to pay SaaS Fees, the Client shall pay the Contractor the following early termination fees: 1. if the Client terminates during the first year of the initial term, 100% of the SaaS Fees through the date of termination plus 25% of the SaaS Fees then due for the remainder of the initial term; 2. if the Client terminates during the second year of the initial term, 100% of the SaaS Fees through the date of termination plus 15% of the SaaS Fees then due for the remainder of the initial term; and 3. if the Client terminates after the second year of the initial term, 100% of the SaaS Fees through the date of termination plus 10% of the SaaS Fees then due for the remainder of the initial term. ARTICLE 9 - NOTICE OF DEFAULT/RIGHT TO CURE Should the Contractor fail to perform (default) under the terms of this Agreement, then the Client shall provide written notice to the Contractor and invoke the Dispute Resolution clause in Section G(l) of the Software as a Service Addendum. Failure to cure the default within the timeframe provided in the Dispute Resolution clause (or any such amount of time as mutually agreed to by the parties in writing), shall constitute cause for termination of this Agreement pursuant to Article 8 (A) above. 13 4 Consistent with other provisions in this Agreement, Contractor shall be paid for all undisputed fees and expenses related to the software, products, and/or services the Client has received, or the Contractor has incurred or delivered, prior to the effective date of termination. Upon receipt of a notice of termination, except as otherwise directed by the Client in writing, the Contractor shall: 1. Stop work on the date to the extent specified. 2. Terminate and settle all orders and subcontracts relating to the performance of the terminated work. ARTICLE 10 - PERSONNEL The Contractor represents that it has, or shall secure at its own expense, all necessary personnel required to perform the services set forth in the Investment Summary. It is expressly understood that such personnel shall not be employees of, or have any contractual relationship with, the Client. All services required hereunder shall be performed by the Contractor, or under its supervision. All personnel engaged in performing the services shall be fully qualified and, if required, authorized or permitted under federal, state and local law to perform such services. ARTICLE 11 - BACKGROUND SCREENINGS Contractor certifies that all employees that it provides to work on-site at any Client-owned facility has undergone a background screening that, at minimum, includes criminal history, drivers' license history, employment history, and sexual offender registry. Upon request and subject to applicable law, Contractor shall make available to the Client all background screening records for any employee working on site at a Client-owned facility. ARTICLE 12 - SUBCONTRACTING The Client reserves the right to approve the use of any subcontractor, or to reject the selection of a particular subcontractor, and to inspect all facilities of any subcontractors in order to make a determination as to the capability of the subcontractor to perform the work described in the Contract Documents. The Contractor is encouraged to seek minority and women business enterprises for participation in subcontracting opportunities. If a subcontractor fails to satisfactorily perform in accordance with the Contract Documents, and it is necessary to replace the subcontractor to complete the work in a timely fashion, the Contractor shall promptly do so, subject to approval by the Client. The Client reserves the right to disqualify any subcontractor, vendor, or material supplier based upon prior unsatisfactory performance. ARTICLE 13-FEDERAL AND STATE TAX In accordance with Local, State, and Federal law, the Client is exempt from the payment of Sales and Use Taxes. The Client shall provide a tax exemption certificate to the Contractor following the Effective Date. The Contractor shall not be exempt from the payment of all applicable taxes in its performance under this Agreement. It is expressly understood by the Client and by the Contractor that the Contractor shall not be authorized to use the Client’s Tax Exemption status in any manner. The Contractor shall be solely responsible for the payment and accounting of any and all applicable taxes and/or withholdings including but not limited to Social Security payroll taxes (FICA), associated with or stemming from Contractor's performance under this Agreement. ARTICLE 14 -AVAILABILITY OF FUNDS 14 5 The Client’s obligations under this Agreement are contingent upon the lawful appropriation of sufficient funds, for that purpose, by the Client. Pursuant to the requirements of Section 129.07, Florida Statutes, payment made under this Agreement shall not exceed the amount appropriate in the Client’s budget for such purpose in that fiscal year. Nothing in this Agreement shall create any obligation on the part of the Board of Client Commissioners to appropriate such funds for the payment of services provided under this Agreement during any given Client fiscal year. Moreover, it is expressly noted that the Contractor cannot demand that the Client provide any such funds in any given Client Fiscal Year. The Client may terminate this Agreement for lack of appropriations in accordance with Article 8(B). ARTICLE 15 - INSURANCE The Contractor shall not commence work under this Agreement until he/she has obtained all insurance required under this section and such insurance has been approved by the Client. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida. The Contractor shall furnish proof of Insurance to the Client following the Effective Date and prior to the commencement of services. The Certificate(s) shall clearly indicate the Contractor has obtained insurance of the type, amount, and classification as required by contract. Contractor will provide the Client with notice of cancellation, non-renewal or reduction in Contractor's insurance coverages below the minimum requirements set forth herein within thirty (30) days thereof. Compliance with the foregoing requirements shall not relieve the Contractor of its liability and obligations under this Agreement. The Client shall be added as an additional insured to Contractor’s Commercial General Liability and Automobile Liability policies, which will automatically add the Client as an additional insured to Contractor’s Excess/Umbrella Liability policy as well. Certificate Holder Address: City of Winter Springs 1126 E State Road 434 Winter Springs, FL 32708 The Contractor shall maintain during the life of this Contract, Comprehensive General Liability Insurance with minimum limits of $1,000,000 per occurrence, $2,000,000 aggregate to protect the Contractor from claims for damages for bodily injury, including wrongful death, as well as from claims of property damages which may arise from any operations under this Agreement. The Contractor shall maintain during the life of this Agreement, Technology Errors & Omissions/Professional Liability with minimum limits of $1,000,000 per occurrence and aggregate. The Technology Errors & Omissions/Professional Liability Insurance shall cover the Contractor and third parties, at a minimum, the following: Liability for Technology Products/Services, Data Breach, Media Content, Privacy Liability, and Network Security. Coverage retro date shall be prior to commencement of job. The Contractor shall maintain during the life of this Agreement, Crime Coverage with minimum limits of $1,000,000 per occurrence. The Contractor shall maintain during the life of this Agreement, Comprehensive Automobile Liability Insurance with minimum limits of $1,000,000 combined single limit for bodily injury and property damage liability to protect the Contractor from claims for damages for bodily injury, including the ownership, use, or maintenance of owned and non-owned automobiles, including rented/hired automobiles The Contractor shall maintain Umbrella or Excess Liability Insurance covering workers compensation, commercial general liability and business auto liability with minimum limits of liability of $5,000,000. The Contractor shall maintain during the life of this Agreement, adequate Workers' Compensation Insurance in at least such amounts as are required by the law for all of its employees per Florida Statute 15 6 440.02. ARTICLE 16 - INDEMNIFICATION Contractor shall indemnify and hold harmless the Client, its officers, agents and employees from and against any third- party claims, losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees and costs) for personal injury or property damage caused by Contractor's negligent or willful misconduct; or violation of PCI-DSS requirements or a law applicable to Contractor's performance under this Agreement. Client shall promptly notify Contractor in writing of any claims and give Contractor sole control over its defense or settlement. The Client shall provide Contractor with reasonable assistance, cooperation, and information in defending the claim at Contractor's expense. ARTICLE 17 - SUCCESSORS AND ASSIGNS The Client and the Contractor each binds itself and its partners, successors, executors, administrators and assigns to the other party of this Agreement and to the partners, successors, executors, administrators and assigns of such other party, in respect to all covenants of this Agreement. Except as above, neither the Client nor the Contractor shall assign, sublet, convey or transfer its interest in this Agreement without the written consent of the other; provided, however, the Client’s consent is not required for an assignment by Contractor as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of Contractor's assets.. Nothing herein shall be construed as creating any personal liability on the part of any officer or agent of the Client which may be a party hereto, nor shall it be construed as giving any rights or benefits hereunder to anyone other than the Client and the Contractor. ARTICLE 18 - NO THIRD-PARTY BENEFICIARIES It is expressly understood by the Client and the Contractor, and this Agreement explicitly states that no third-party beneficiary status or interest is conferred to, or inferred to, any other person or entity. ARTICLE 19 - REMEDIES No remedy herein conferred upon any party is intended to be exclusive, or any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or nor or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by any party or any right, power, or remedy hereunder shall preclude any other or further exercise thereof. The parties acknowledge and agree that this provision shall not apply to the Intellectual Property Indemnification clause in Section F of the Software as a Service Addendum which shall be the Client’s sole remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. ARTICLE 20 - CONFLICT OF INTEREST The Contractor represents that, as of the Effective Date, it has no interest and shall acquire no interest, either directly or indirectly, which would conflict in any manner with the performance of services required hereunder. The Contractor further represents that no person having any interest shall be employed for said performance. ARTICLE 21 - EXCUSABLE DELAYS Neither party will be considered in default by reason of any delay in performance of its obligations under this Agreement to the extent the delay is caused by Force Majeure. Within ten (10) business days of the Force Majeure event, the party whose performance is delayed shall provide the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event. The project schedule shall be adjusted as mutually agreed by the parties. Each of the parties hereunto shall be diligent in attempting to remove such cause or causes of Force Majeure. Further, if any circumstance of Force Majeure remains in effect for a period of sixty (60) days or more, either party may terminate this Agreement 16 7 as set forth in Article 8. ARTICLE 22 - DISCLOSURE Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law. The Client and the Contractor shall comply with the provisions of Chapter 119, Florida Statutes (Public Records Law). All covenants, agreements, representations and warranties made herein, or otherwise made in writing by any party pursuant hereto, including but not limited to, any representations made herein relating to disclosure of documents, shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. ARTICLE 23 - INDEPENDENT CONTRACTOR RELATIONSHIP The Contractor is, and shall be, in the performance of all work services and activities under this Agreement, an independent Contractor, and not an employee, agent, or servant of the Client. All persons engaged in any of the work or services performed pursuant to this Agreement shall at all times and in all places be subject to the Contractor's sole direction, supervision, and control. The Contractor shall exercise control over the means and manner in which it and its employees perform the work, and in all respects the Contractor's relationship and the relationship of its employees to the Client shall be that of an independent Contractor and not as employees or agents of the Client. The Contractor does not have the power or authority to bind the Client in any promise, agreement or representation other than specifically provided for in this Agreement. ARTICLE 24 - CONTINGENT FEES Pursuant to Section 287.055(6), Florida Statutes, the Contractor warrants that, as of the Effective Date, it has not employed or retained any company or person, other than a bona fide employee working solely for the Contractor to solicit or secure this Agreement and that it has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee working solely for the Contractor, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the award or making of this Agreement. Violation of this article shall be cause for termination of this Agreement in accordance with Article 8 (A). ARTICLE 25 - ACCESS AND AUDITS 17 8 The Contractor shall maintain adequate records to pertaining to charges, expenses, and costs incurred in performing the services hereunder for at least three (3) years after completion of this Agreement. The Client shall have access to such books, records, and documents as required in this Article for the purpose of inspection or audit during normal business hours, twice per year at the Client’s cost, upon fifteen (15) days written notice. Additional audits may be scheduled as mutually agreed to by the parties. ARTICLE 26 - NONDISCRIMINATION The Contractor warrants and represents that all of its employees are treated equally during employment without regard to race, color, religion, physical handicap, sex, age or national origin. ARTICLE 27 - ENTIRETY OF CONTRACTUAL AGREEMENT The Client and the Contractor agree that this Agreement, signed by both parties sets forth the entire agreement between the parties, and that there are no promises or understandings other than those stated herein, or are incorporated by reference into this Agreement. None of the provisions, terms, conditions, requirements, or responsibilities noted in this Agreement may be amended, revised, deleted, altered, or otherwise changed, modified, or superseded, except by written instrument, duly executed by authorized representatives of both the Client, and the Contractor. ARTICLE 28 - COMPLIANCE WITH APPLICABLE LAWS Both the Client and the Contractor shall comply with any and all applicable laws, rules, regulations, orders, and policies of the State and Federal Governments. The fees in the Investment Summary are based, in part, on the cost of compliance with applicable laws existing as of the Effective Date. Should laws applicable to Contractor's performance under the Agreement change following the Effective Date, Contractor reserves the right to seek a change order for the· additional work, time and/or cost that may be required to comply with the new law, ordinance or regulation. If a change order is necessary, a request for change order will identify the change, applicable law, and the nature of the increased work, time, and/or costs. ARTICLE 29 - AUTHORITY TO PRACTICE The Contractor hereby represents and warrants that it has and shall continue to maintain all licenses and approvals required to conduct its business, and that it shall at all times, conduct its business activities in a reputable manner. ARTICLE 30 - SEVERABILITY If any term or provision of this Agreement, or the application thereof to any person or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such items or provision, to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected and every other term and provision of this Agreement shall be deemed valid and enforceable to the extent permitted by law. ARTICLE 31 - AMENDMENTS AND MODIFICATIONS No amendments or modifications of this Agreement shall be valid unless in writing and signed by authorized representatives of each of the parties. The Client reserves the right to make changes in the work, including alterations, reductions therein or additions thereto. Upon receipt by the Contractor of the Client’s notification of a contemplated change, the Contractor shall: (1) if requested by the Client, provide an estimate for the increase or decrease in cost due to the contemplated change; (2) notify the Client of any estimated change in the completion date; and (3) advise the Client in writing if the contemplated change shall effect the Contractor's ability to meet any of its obligations under this Agreement. If the Client elects to make the change, the Client shall issue a Change Order for changes, or a contract change order, if the original contract is be changed or amended the 18 9 Contractor shall not commence work on any such change until such written change order has been issued and signed by each of the parties. As noted above, no changes to this Agreement shall be binding unless in writing and signed by an authorized representative of each party. ARTICLE 32 - FLORIDA LAW & VENUE This Agreement shall be governed by the laws of the State of Florida. Any and all legal action necessary to enforce this Agreement shall be held in Seminole County, Florida for state court actions and Orlando, Florida for federal court actions. ARTICLE 33 -ARBITRATION The Client shall not be obligated to arbitrate or permit any arbitration binding on the Client under any of the Contract Documents or in connection with the project in any manner whatsoever. ARTICLE 34 - NOTICES All notices required in this Agreement, including but not limited to notices of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and shall be sent by certified mail, return receipt requested, and if sent to the Client shall be mailed to: City of Winter Springs 1126 E State Road 434 Winter Springs, FL 32708 Attention: City Manager and if sent to the Contractor shall be mailed to: Tyler Technologies, Inc. Attn: Chief Legal Officer One Tyler Drive Yarmouth, ME 04096 Notices will be deemed delivered upon the earlier of the following: (a) actual receipt by the receiving party; (b) upon receipt by sender of a certified mail, return receipt signed by an employee or agent of the receiving party; or (c) if not actually received, five (5) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail, return receipt requested) affixed and addressed to the other party at the address set forth above or such other address as the party may have designated by proper notice. ARTICLE 35 - HEADINGS The heading preceding the articles and sections herein are solely for convenience of reference and shall not constitute a part of this Agreement, or affect its meaning, construction or effect. ARTICLE 36 -PUBLIC RECORDS The cost of reproduction, access to, disclosure, non-disclosure, or exemption of records, data, documents, and/or materials, associated with this Agreement shall be subject to the applicable provisions of the Florida Public Records Law (Chapter 119, Florida Statutes), and other applicable State and Federal provisions. Access to such public records, may not be blocked, thwarted, and/or hindered by placing the public records in the possession of a third party, or an unaffiliated party. In accordance with Florida law, to the extent that Contractor's performance under this Contract constitutes an act on behalf of the Client, Contractor shall comply with all requirements of Florida's public records law. 19 10 Specifically, if Contractor is expressly authorized, and acts on behalf of the Client under this Agreement, Contractor shall: (1) Keep and maintain public records that ordinarily and necessarily would be required by the Client in order to perform the services; (2) Upon request from the Client’s custodian of public records, provide the Client with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost as provided in Chapter 119, Florida Statutes, or as otherwise provided by law; (3) Ensure that public records related to this Agreement that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by applicable law for the duration of this Agreement and following completion of this Agreement if the Contractor does not transfer the records to the Client; and (4) Upon completion of this Agreement, transfer, at no cost, to the Client all public records in possession of the Contractor or keep and maintain public records required by the Client to perform the Services. If the Contractor transfers all public records to the Client upon completion of this Agreement, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of this Agreement, the Contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the Client, upon request from the Client’s custodian of public records, in a format that is compatible with the Client’s information technology systems. Failure by the Contractor to comply with the requirements of this section shall be grounds for immediate, unilateral termination of this Agreement by the Client. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO ITS DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: 1126 East State Road 434, Winter Springs, FL 32708, 407-327-5999, cityclerkdepartment@winterspringsfl.org or (407) 327-6560. ARTICLE 37 - USE OF CLIENT LOGO The Contractor may not manufacture, use, display, or otherwise use any facsimile or reproduction of the City Seal/Logo without express written approval of the Client. ARTICLE 38 - SURVIVAL It is explicitly noted that the following provisions of this Agreement, to the extent necessary, shall survive any suspension, termination, cancellation, revocation, and/or non-renewal of this Agreement, and therefore shall be both applicable and enforceable beyond any suspension, termination, cancellation, revocation, and/or non-renewal: (1) Truth-in-Negotiation; (2) Federal and State Taxes; (3) Insurance; (4) Indemnification; (5) Access and Audits; and (6) Disclosure and (7) Public Records. ARTICLE 39 - MULTIPLE ORIGINALS AND AUTHORITY TO EXECUTE This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature. Each party represents that it has the lawful authority to enter into this Agreement and has authorized the execution of this Agreement by the party's authorized representative shown below. 20 11 ARTICLE 40 – E-VERIFY REGISTRATION AND USE A. Pursuant to section 448.095, Florida Statutes, beginning January 1, 2021, Contractor shall register with and use the U.S. Department of Homeland Security’s E-Verify system, https://e-verify.uscis.gov/emp, to verify the work authorization status of all employees hired on and after January 1, 2021. B. Subcontractors (i) Contractor shall also require all subcontractors performing work under this Agreement to use the E-Verify system for any employees they may hire during the term of this Agreement. (ii) Contractor shall obtain from all such subcontractors an affidavit stating the subcontractor does not employ, contract with, or subcontract with an unauthorized alien, as defined in section 448.095, Florida Statutes. (iii) Contractor shall provide a copy of all subcontractor affidavits to the City upon request and shall maintain a copy for the duration of the Agreement. C. Contractor must provide evidence of compliance with section 448.095, Florida Statutes. Contractor’s signature on this Agreement shall constitute its certification of its compliance with the E-Verify procedures administered by the U.S. Department of Homeland Security for all of our employees assigned to the Client’s project. Upon request, Contractor will provide a copy of their proof of registration in the E-Verify system. D. Failure to comply with this provision shall be considered a material breach of the Agreement, and shall result in termination of the Agreement in accordance with s. 448.095, Florida Statutes. ARTICLE 41 – SOVEREIGN IMMUNITY The City intends to avail itself of the benefits of Section 768.28, Florida Statutes governing sovereign immunity to the fullest extent possible. Neither this provision nor any other provision of this Agreement shall be construed as a waiver of the City’s right to sovereign immunity under Section 768.28, Florida Statutes. Contractor agrees that City shall not be liable under this Agreement for punitive damages or interest for the period before judgment. Further, to the extent required by Section 768.28, City shall not be liable for any claim or judgment, or portion thereof, to any one person for over two hundred thousand dollars ($200,000.00), or any claim or judgment, or portion thereof, which, when totaled with all other claims or judgments paid by the State or its agencies and subdivisions arising out of the same incident or occurrence, exceeds three hundred thousand dollars ($300,000.00). Judgments in excess of such amounts may be permitted as set forth in Section 768.28. Nothing in this Agreement is intended to inure to the benefit of any third party for the purpose of allowing any claim which would otherwise be barred under the doctrine of sovereign immunity or by operation of law. This paragraph shall survive termination of this Agreement. 21 1 SOFTWARE AS A SERVICE ADDENDUM This Software as a Service Addendum is intended to supplement the terms and conditions set forth in the Contract Agreement attached hereto. The Contract Agreement and this Software as a Service Addendum are hereinafter collectively referred to as the “Agreement.” In consideration of the foregoing and of the mutual covenants and promises set forth in this Addendum, Tyler and Client agree as follows: SECTION A – DEFINITIONS • “Agreement” means the Contract Agreement and this Software as a Services Addendum, inclusive of exhibits. • “Business Travel Policy” means our business travel policy. A copy of our current Business Travel Policy is attached as Schedule 1 to Exhibit B. • “Client” means the City of Winter Springs, Florida. • “Data” means your data necessary to utilize the Tyler Software. • “Data Storage Capacity” means the contracted amount of storage capacity for your Data identified in the Investment Summary. • “Defect” means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then-current Documentation. • “Defined Named Users” means the number of named users that are authorized to use the SaaS Services. The Defined Named Users for the Agreement are as identified in the Investment Summary. • “Developer” means a third party who owns the intellectual property rights to Third Party Software. • “Documentation” means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self-help documentation. • “Effective Date” means the date by which both your and our authorized representatives have signed the Agreement. • “Force Majeure” means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us. • “Investment Summary” means the agreed upon cost proposal for the products and services attached as Exhibit A. • “Invoicing and Payment Policy” means the invoicing and payment policy. A copy of our current Invoicing and Payment Policy is attached as Exhibit B. • “SaaS Fees” means the fees for the SaaS Services identified in the Investment Summary. 22 2 • “SaaS Services” means software as a service consisting of system administration, system management, and system monitoring activities that Tyler performs for the Tyler Software, and includes the right to access and use the Tyler Software, receive maintenance and support on the Tyler Software, including Downtime resolution under the terms of the SLA, and Data storage and archiving. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting or other professional services. • “SLA” means the service level agreement. A copy of our current SLA is attached hereto as Exhibit C. • “Statement of Work” means the industry standard implementation plan describing how our professional services will be provided to implement the Tyler Software, and outlining your and our roles and responsibilities in connection with that implementation. The Statement of Work is attached as Exhibit E. • “Support Call Process” means the support call process applicable to all of our customers who have licensed the Tyler Software. A copy of our current Support Call Process is attached as Schedule 1 to Exhibit C. • “Third Party Terms” means, if any, the end user license agreement(s) or similar terms for the Third Party Software, as applicable and attached as Exhibit D. • “Third Party Hardware” means the third party hardware, if any, identified in the Investment Summary. • “Third Party Products” means the Third Party Software and Third Party Hardware. • “Third Party Software” means the third party software, if any, identified in the Investment Summary. • “Third Party Services” means the third party services, if any, identified in the Investment Summary. • “Tyler” means Tyler Technologies, Inc., a Delaware corporation. • “Tyler Software” means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement. • “we”, “us”, “our” and similar terms mean Tyler. • “you” and similar terms mean Client. SECTION B – SAAS SERVICES 1. Rights Granted. We grant to you the non-exclusive, non-assignable limited right to use the SaaS Services solely for your internal business purposes for the number of Defined Named Users only. The Tyler Software will be made available to you according to the terms of the SLA. You acknowledge that we have no delivery obligations and we will not ship copies of the Tyler Software as part of the SaaS Services. You may use the SaaS Services to access updates and enhancements to the Tyler Software, as further described in Section C(8). The foregoing notwithstanding, to the extent we have sold you perpetual licenses for Tyler Software, if and listed in the Investment Summary, for which you are receiving SaaS Services, your rights to use such Tyler Software are perpetual, subject to the terms and conditions of this Agreement including, without limitation, Section B(4). We will make any such software available to you for download. 2. SaaS Fees. You agree to pay us the SaaS Fees. Those amounts are payable in accordance with our Invoicing and Payment Policy. The SaaS Fees are based on the number of Defined Named Users and amount of Data Storage Capacity. You may add additional named users or additional data storage 23 3 capacity on the terms set forth in Article 5 of the Contract Agreement. In the event you regularly and/or meaningfully exceed the Defined Named Users or Data Storage Capacity, we reserve the right to charge you additional fees commensurate with the overage(s). 3. Ownership. 3.1 We retain all ownership and intellectual property rights to the SaaS Services, the Tyler Software, and anything developed by us under this Agreement. You do not acquire under this Agreement any license to use the Tyler Software in excess of the scope and/or duration of the SaaS Services. 3.2 The Documentation is licensed to you and may be used and copied by your employees for internal, non-commercial reference purposes only. 3.3 You retain all ownership and intellectual property rights to the Data. You expressly recognize that except to the extent necessary to carry out our obligations contained in this Agreement, we do not create or endorse any Data used in connection with the SaaS Services. 4. Restrictions. You may not: (a) make the Tyler Software or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party’s business operations; (b) modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services; (c) access or use the SaaS Services in order to build or support, and/or assist a third party in building or supporting, products or services competitive to us; or (d) license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services, Tyler Software, or Documentation available to any third party other than as expressly permitted by this Agreement. 5. Software Warranty. We warrant that the Tyler Software will perform without Defects during the term of this Agreement. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect in accordance with the maintenance and support process set forth in Section C(8), below, the SLA and our then current Support Call Process. 6. SaaS Services. 6.1 Our SaaS Services are audited at least yearly in accordance with the AICPA’s Statement on Standards for Attestation Engagements (“SSAE”) No. 18. We have attained, and will maintain, SOC 1 and SOC 2 compliance, or its equivalent, for so long as you are timely paying for SaaS Services. Upon execution of a mutually agreeable Non-Disclosure Agreement (“NDA”), we will provide you with a summary of our compliance report(s) or its equivalent. Every year thereafter, for so long as the NDA is in effect and in which you make a written request, we will provide that same information. 6.2 You will be hosted on shared hardware in a Tyler data center or in a third-party data center. In either event, databases containing your Data will be dedicated to you and inaccessible to our other customers. 6.3 Our Tyler data centers have fully-redundant telecommunications access, electrical power, and the required hardware to provide access to the Tyler Software in the event of a disaster or 24 4 component failure. In the event any of your Data has been lost or damaged due to an act or omission of Tyler or its subcontractors or due to a Defect in Tyler’s software, we will use best commercial efforts to restore all the Data on servers in accordance with the architectural design’s capabilities and with the goal of minimizing any Data loss as greatly as possible. In no case shall the recovery point objective (“RPO”) exceed a maximum of twenty-four (24) hours from declaration of disaster. For purposes of this subsection, RPO represents the maximum tolerable period during which your Data may be lost, measured in relation to a disaster we declare, said declaration will not be unreasonably withheld. 6.4 In the event we declare a disaster, our Recovery Time Objective (“RTO”) is twenty-four (24) hours. For purposes of this subsection, RTO represents the amount of time, after we declare a disaster, within which your access to the Tyler Software must be restored. 6.5 We conduct annual penetration testing of either the production network and/or web application to be performed. We will maintain industry standard intrusion detection and prevention systems to monitor malicious activity in the network and to log and block any such activity. We will provide you with a written or electronic record of the actions taken by us in the event that any unauthorized access to your database(s) is detected as a result of our security protocols. We will undertake an additional security audit, on terms and timing to be mutually agreed to by the parties, at your written request. You may not attempt to bypass or subvert security restrictions in the SaaS Services or environments related to the Tyler Software. Unauthorized attempts to access files, passwords or other confidential information, and unauthorized vulnerability and penetration test scanning of our network and systems (hosted or otherwise) is prohibited without the prior written approval of our IT Security Officer. 6.6 We test our disaster recovery plan on an annual basis. Our standard test is not client-specific. Should you request a client-specific disaster recovery test, we will work with you to schedule and execute such a test on a mutually agreeable schedule. At your written request, we will provide test results to you within a commercially reasonable timeframe after receipt of the request. 6.7 We will be responsible for importing back-up and verifying that you can log-in. Full server snapshots are performed daily and retained based on Tyler’s established application-specific retention policies. You will be responsible for running reports and testing critical processes to verify the returned Data. 6.8 We provide secure Data transmission paths between each of your workstations and our servers. 6.9 Tyler data centers are accessible only by authorized personnel with a unique key entry. All other visitors to Tyler data centers must be signed in and accompanied by authorized personnel. Entry attempts to the data center are regularly audited by internal staff and external auditors to ensure no unauthorized access. 6.10 Where applicable with respect to our applications that take or process card payment data, we are responsible for the security of cardholder data that we possess, including functions relating to storing, processing, and transmitting of the cardholder data and affirm that, as of the Effective Date, we comply with applicable requirements to be considered PCI DSS compliant and have performed the necessary steps to validate compliance with the PCI DSS. We agree to 25 5 supply the current status of our PCI DSS compliance program in the form of an official Attestation of Compliance, which can be found at https://www.tylertech.com/about- us/compliance, and in the event of any change in our status, will comply with applicable notice requirements. 7. Socrata Terms and Conditions. Tyler and Client agree to perform and be bound by all covenants, terms, and conditions of the Socrata Terms and Conditions, which are attached hereto as Exhibit F (“Socrata Agreement”) with respect to the Socrata-EnerGov Executive Insights Bundle software as more particularly described in the Investment Summary, and all such covenants, terms, and conditions are incorporated by reference as if set forth at length herein. Specific to the Socrata items only, in the event of a conflict between any term or provision in the Socrata Agreement and any term or provision in this Agreement, the terms of the Socrata Agreement shall govern. SECTION C – PROFESSIONAL SERVICES 1. Professional Services. We will provide you the various implementation-related services itemized in the Investment Summary and described in the Statement of Work. 2. Professional Services Fees. You agree to pay us the professional services fees in the amounts set forth in the Investment Summary. Those amounts are based on the scope of the project as of the Effective Date and are payable in accordance with our Invoicing and Payment Policy. We will bill you the actual fees incurred based on the in-scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable hourly rate by the quoted hours. 3. Additional Services. The Investment Summary contains, and the Statement of Work describes, the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote. 4. Cancellation. If travel is required, we will make all reasonable efforts to schedule travel for our personnel, including arranging travel reservations, at least two (2) weeks in advance of commitments. Therefore, if you cancel services less than two (2) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (a) non-refundable expenses incurred by us on your behalf, and (b) daily fees associated with cancelled professional services if we are unable to reassign our personnel. We will make all reasonable efforts to reassign personnel in the event you cancel within two (2) weeks of scheduled commitments. 5. Services Warranty. We will perform the services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we will re-perform such services at no additional cost to you. 6. Site Access and Requirements. At no cost to us, you agree to provide us with full and free access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us. 26 6 7. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with us to schedule the implementation-related services outlined in this Agreement. We will not be liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by your personnel to provide such cooperation and assistance (either through action or omission). 8. Maintenance and Support. For so long as you timely pay your SaaS Fees according to the Invoicing and Payment Policy, then in addition to the terms set forth in the SLA and the Support Call Process, we will: 8.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects in the Tyler Software (subject to any applicable release life cycle policy); 8.2 provide support during our established support hours; 8.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services; 8.4 make available to you all releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 8.5 provide non-Defect resolution support of prior releases of the Tyler Software in accordance with any applicable release life cycle policy. We will use all reasonable efforts to perform support services remotely. Currently, we use a third-party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high-speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain your VPN for backup connectivity purposes. For the avoidance of doubt, SaaS Fees do not include the following services: (a) onsite support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (b) application design; (c) other consulting services; or (d) support outside our normal business hours as listed in our then- current Support Call Process. Requested services such as those outlined in this section will be billed to 27 7 you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks’ advance notice. SECTION D – THIRD PARTY PRODUCTS 1. Third Party Hardware. We will sell, deliver, and install onsite the Third Party Hardware, if you have purchased any, for the price set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 2. Third Party Software. As part of the SaaS Services, you will receive access to the Third Party Software and related documentation for internal business purposes only. Your rights to the Third Party Software will be governed by the Third Party Terms. 3. Third Party Products Warranties. 3.1 We are authorized by each Developer to grant access to the Third Party Software. 3.2 The Third Party Hardware will be new and unused, and upon payment in full, you will receive free and clear title to the Third Party Hardware. 3.3 You acknowledge that we are not the manufacturer of the Third Party Products. We do not warrant or guarantee the performance of the Third Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the Third Party Products. 4. Third Party Services. If you have purchased Third Party Services, those services will be provided independent of Tyler by such third-party at the rates set forth in the Investment Summary and in accordance with our Invoicing and Payment Policy. SECTION E - INVOICE DISPUTES Intentionally omitted. SECTION F – INTELLECTUAL PROPERTY INFRINGEMENT INDEMNIFICATION, AND LIMITATION OF LIABILITY 1. Intellectual Property Infringement Indemnification. 1.1 We will defend you against any third party claim(s) that the Tyler Software or Documentation infringes that third party’s patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 1.2 Our obligations under this Section F(1) will not apply to the extent the claim or adverse final judgment is based on your use of the Tyler Software in contradiction of this Agreement, including with non-licensed third parties, or your willful infringement. 28 8 1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right to continue its use; (b) modify it to make it non-infringing; or (c) replace it with a functional equivalent, in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case you may continue to use the Tyler Software consistent with the terms of this Agreement. 1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non-infringing; or (c) replace it with a functional equivalent. This section provides your exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. 2. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 3. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) DURING THE INITIAL TERM, AS SET FORTH IN SECTION F(1), ONE AND A HALF (1.5) TIMES THE TOTAL FEES PAID AS OF THE TIME OF THE CLAIM; OR (B) DURING ANY RENEWAL TERM, ONE AND A HALF (1.5) TIMES THE THEN-CURRENT ANNUAL SAAS FEES PAYABLE IN THAT RENEWAL TERM. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO ARTICLE 16 AND SECTION F(1). 4. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SECTION G – GENERAL TERMS AND CONDITIONS 1. Dispute Resolution. You agree to provide us with written notice within thirty (30) days of becoming aware of a dispute. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If 29 9 we fail to resolve the dispute, then the parties shall participate in non-binding mediation in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures. 2. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non-enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non-enforcement prevent such party from enforcing each and every term of this Agreement thereafter. 3. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. We reserve the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement. 30 Exhibit A 1 Exhibit A Investment Summary The following Investment Summary details the software and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Tyler sales quotation to be inserted prior to Agreement execution. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 31 Exhibit B 1 Exhibit B Invoicing and Payment Policy We will provide you with the software and services set forth in the Investment Summary of the Agreement. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Invoicing: We will invoice you for the applicable software and services in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement. 1. SaaS Fees. SaaS Fees are invoiced on an annual basis, beginning on the commencement of the initial term as set forth in Section F (1) of this Agreement. Your annual SaaS fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual SaaS fees will be at our then-current rates. 2. Other Tyler Software and Services. 2.1 VPN Device: The fee for the VPN device, if applicable, will be invoiced upon installation of the VPN. 2.2 Implementation and Other Professional Services (including training): Implementation and other professional services (including training) are billed and invoiced as delivered, at the rates set forth in the Investment Summary. 2.3 Consulting Services: If you have purchased any Business Process Consulting services, if they have been quoted as fixed-fee services, they will be invoiced 50% upon your acceptance of the Best Practice Recommendations, by module, and 50% upon your acceptance of custom desktop procedures, by module. If you have purchased any Business Process Consulting services and they are quoted as an estimate, then we will bill you the actual services delivered on a time and materials basis. 2.4 Conversions: Fixed-fee conversions are invoiced 50% upon initial delivery of the converted Data, by conversion option, and 50% upon Client acceptance to load the converted Data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill you the actual services delivered on a time and materials basis. 2.5 Requested Modifications to the Tyler Software: Requested modifications to the Tyler Software are invoiced 50% upon delivery of specifications and 50% upon delivery of the applicable modification. You must report any failure of the modification to conform to the specifications within thirty (30) days of delivery; otherwise, the modification will be deemed to be in compliance with the specifications after the 30-day window has passed. You may still report Defects to us as set forth in this Agreement. 32 Exhibit B 2 2.6 Other Fixed Price Services: Other fixed price services are invoiced upon complete delivery of the service. For the avoidance of doubt, where “Project Planning Services” are provided, payment will be due upon delivery of the Implementation Planning document. 3. Third Party Products. 3.1 Third Party Software License Fees: License fees for Third Party Software, if any, are invoiced when we make it available to you for downloading. 3.2 Third Party Software Maintenance: The first year maintenance for the Third Party Software is invoiced when we make it available to you for downloading. 3.3 Third Party Hardware: Third Party Hardware costs, if any, are invoiced upon delivery. 3.4 Third Party Services: Fees for Third Party Services, if any, are invoiced as delivered, along with applicable expenses, at the rates set forth in the Investment Summary. 4. Expenses. The service rates in the Investment Summary do not include travel expenses. Expenses for Tyler delivered services will be billed as incurred and only in accordance with our then-current Business Travel Policy, plus a 10% travel agency processing fee. Our current Business Travel Policy is attached to this Exhibit B at Schedule 1. Copies of receipts will be provided upon request; we reserve the right to charge you an administrative fee depending on the extent of your requests. Receipts for miscellaneous items less than twenty-five dollars and mileage logs are not available. Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. Unless otherwise required by this Agreement, payments shall be in conformance with the Florida Local Government Prompt Payment Act s.218.70 et. seq., Florida Statutes. We prefer to receive payments electronically. Our electronic payment information is: Bank: Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 ABA: 121000248 Account: 4124302472 Beneficiary: Tyler Technologies, Inc. – Operating 33 Exhibit B Schedule 1 1 Exhibit B Schedule 1 Business Travel Policy 1. Air Travel A. Reservations & Tickets The Travel Management Company (TMC) used by Tyler will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee’s total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee’s total trip duration, the connecting flight should be accepted. Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for “Basic Economy Fares” because these fares are non- refundable and have many restrictions that outweigh the cost-savings. B. Baggage Fees Reimbursement of personal baggage charges are based on trip duration as follows: • Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags Baggage fees for sports equipment are not reimbursable. 2. Ground Transportation A. Private Automobile Mileage Allowance – Business use of an employee’s private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be 34 Exhibit B Schedule 1 2 calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a “mid-size” or “intermediate” car. “Full” size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; except for employees traveling to Alaska and internationally (excluding Canada), additional insurance on the rental agreement should be declined. C. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. 3. Lodging Tyler’s TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. “No shows” or cancellation fees are not reimbursable if the employee does not comply with the hotel’s cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. Employees are not authorized to reserve non-traditional short-term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be reimbursed. 35 Exhibit B Schedule 1 3 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates are available at www.gsa.gov/perdiem. Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of Defense and will be determined as required. A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Lunch and dinner Depart after 12:00 noon Return Day Dinner Return before 12:00 noon Breakfast Return between 12:00 noon & 7:00 p.m. Breakfast and lunch Return after 7:00 p.m.* Breakfast, lunch and dinner *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: Breakfast 15% Lunch 25% Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.* *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. 5. Internet Access – Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee’s hotel charges for internet access it is reimbursable up to $10.00 per 36 Exhibit B Schedule 1 4 day. Charges for internet access at airports are not reimbursable. 6. International Travel All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the “lowest practical coach fare” with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed. When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure taxes are reimbursable. The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable. Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section. 37 Exhibit C 1 Exhibit C SERVICE LEVEL AGREEMENT I. Agreement Overview This SLA operates in conjunction with, and does not supersede or replace any part of, the Agreement. It outlines the information technology service levels that we will provide to you to ensure the availability of the application services that you have requested us to provide. All other support services are documented in the Support Call Process. II. Definitions. Except as defined below, all defined terms have the meaning set forth in the Agreement. Attainment: The percentage of time the Tyler Software is available during a calendar quarter, with percentages rounded to the nearest whole number. Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third-party providers over whom we exercise no control. Downtime: Those minutes during which the Tyler Software is not available for your use. Downtime does not include those instances in which only a Defect is present. Service Availability: The total number of minutes in a calendar quarter that the Tyler Software is capable of receiving, processing, and responding to requests, excluding maintenance windows, Client Error Incidents and Force Majeure. III. Service Availability The Service Availability of the Tyler Software is intended to be 24/7/365. We set Service Availability goals and measures whether we have met those goals by tracking Attainment. a. Your Responsibilities Whenever you experience Downtime, you must make a support call according to the procedures outlined in the Support Call Process. You will receive a support incident number. You must document, in writing, all Downtime that you have experienced during a calendar quarter. You must deliver such documentation to us within 30 days of a quarter’s end. The documentation you provide must evidence the Downtime clearly and convincingly. It must include, for example, the support incident number(s) and the date, time and duration of the Downtime(s). b. Our Responsibilities When our support team receives a call from you that Downtime has occurred or is occurring, we will work with you to identify the cause of the Downtime (including whether it may be the result of a Client Error Incident or Force Majeure). We will also work with you to resume normal operations. 38 Exhibit C 2 Upon timely receipt of your Downtime report, we will compare that report to our own outage logs and support tickets to confirm that Downtime for which we were responsible indeed occurred. We will respond to your Downtime report within 30 day(s) of receipt. To the extent we have confirmed Downtime for which we are responsible, we will provide you with the relief set forth below. c. Client Relief When a Service Availability goal is not met due to confirmed Downtime, we will provide you with relief that corresponds to the percentage amount by which that goal was not achieved, as set forth in the Client Relief Schedule below. Notwithstanding the above, the total amount of all relief that would be due under this SLA per quarter will not exceed 5% of one quarter of the then-current SaaS Fee. The total credits confirmed by us in one or more quarters of a billing cycle will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption. Every quarter, we will compare confirmed Downtime to Service Availability. In the event actual Attainment does not meet the targeted Attainment, the following Client relief will apply, on a quarterly basis: Targeted Attainment Actual Attainment Client Relief 100% 98-99% Remedial action will be taken. 100% 95-97% 4% credit of fee for affected calendar quarter will be posted to next billing cycle 100% <95% 5% credit of fee for affected calendar quarter will be posted to next billing cycle You may request a report from us that documents the preceding quarter’s Service Availability, Downtime, any remedial actions that have been/will be taken, and any credits that may be issued. IV. Applicability The commitments set forth in this SLA do not apply during maintenance windows, Client Error Incidents, and Force Majeure. We perform maintenance during limited windows that are historically known to be reliably low-traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you. V. Force Majeure You will not hold us responsible for not meeting service levels outlined in this SLA to the extent any failure to do so is caused by Force Majeure. In the event of Force Majeure, we will file with you a signed request that said failure be excused. That writing will at least include the essential details and circumstances supporting our request for relief pursuant to this Section. You will not unreasonably withhold its acceptance of such a request. 39 Exhibit C Schedule 1 1 Exhibit C Schedule 1 Support Call Process Support Channels Tyler Technologies, Inc. provides the following channels of software support: (1) Tyler Community – an on-line resource, Tyler Community provides a venue for all Tyler clients with current maintenance agreements to collaborate with one another, share best practices and resources, and access documentation. (2) On-line submission (portal) – for less urgent and functionality-based questions, users may create unlimited support incidents through the customer relationship management portal available at the Tyler Technologies website. (3) Email – for less urgent situations, users may submit unlimited emails directly to the software support group. (4) Telephone – for urgent or complex questions, users receive toll-free, unlimited telephone software support. Support Resources A number of additional resources are available to provide a comprehensive and complete support experience: (1) Tyler Website – www.tylertech.com – for accessing client tools and other information including support contact information. (2) Tyler Community – available through login, Tyler Community provides a venue for clients to support one another and share best practices and resources. (3) Knowledgebase – A fully searchable depository of thousands of documents related to procedures, best practices, release information, and job aides. (4) Program Updates – where development activity is made available for client consumption Support Availability Tyler Technologies support is available during the local business hours of 8 AM to 5 PM (Monday – Friday) across four US time zones (Pacific, Mountain, Central and Eastern). Clients may receive coverage across these time zones. Tyler’s holiday schedule is outlined below. There will be no support coverage on these days. New Year’s Day Thanksgiving Day Memorial Day Day after Thanksgiving Independence Day Christmas Day Labor Day 40 Exhibit C Schedule 1 2 Issue Handling Incident Tracking Every support incident is logged into Tyler’s Customer Relationship Management System and given a unique incident number. This system tracks the history of each incident. The incident tracking number is used to track and reference open issues when clients contact support. Clients may track incidents, using the incident number, through the portal at Tyler’s website or by calling software support directly. Incident Priority Each incident is assigned a priority number, which corresponds to the client’s needs and deadlines. The client is responsible for reasonably setting the priority of the incident per the chart below. This chart is not intended to address every type of support incident, and certain “characteristics” may or may not apply depending on whether the Tyler software has been deployed on customer infrastructure or the Tyler cloud. The goal is to help guide the client towards clearly understanding and communicating the importance of the issue and to describe generally expected responses and resolutions. Priority Level Characteristics of Support Incident Resolution Targets 1 Critical Support incident that causes (a) complete application failure or application unavailability; (b) application failure or unavailability in one or more of the client’s remote location; or (c) systemic loss of multiple essential system functions. Tyler shall provide an initial response to Priority Level 1 incidents within one (1) business hour of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within one (1) business day. For non-hosted customers, Tyler’s responsibility for lost or corrupted Data is limited to assisting the client in restoring its last available database. 2 High Support incident that causes (a) repeated, consistent failure of essential functionality affecting more than one user or (b) loss or corruption of Data. Tyler shall provide an initial response to Priority Level 2 incidents within four (4) business hours of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within ten (10) business days. For non-hosted customers, Tyler’s responsibility for loss or corrupted Data is limited to assisting the client in restoring its last available database. 3 Medium Priority Level 1 incident with an existing circumvention procedure, or a Priority Level 2 incident that affects only one user or for which there is an existing circumvention procedure. Tyler shall provide an initial response to Priority Level 3 incidents within one (1) business day of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents without the need for a circumvention procedure with the next published maintenance update or service pack. For non-hosted customers, Tyler’s responsibility for lost or corrupted Data is limited to assisting the client in restoring its last available database. 41 Exhibit C Schedule 1 3 Priority Level Characteristics of Support Incident Resolution Targets 4 Non- critical Support incident that causes failure of non-essential functionality or a cosmetic or other issue that does not qualify as any other Priority Level. Tyler shall provide an initial response to Priority Level 4 incidents within two (2) business days. Tyler shall use commercially reasonable efforts to resolve such support incidents, as well as cosmetic issues, with a future version release. Incident Escalation Tyler Technology’s software support consists of four levels of personnel: (1) Level 1: front-line representatives (2) Level 2: more senior in their support role, they assist front-line representatives and take on escalated issues (3) Level 3: assist in incident escalations and specialized client issues (4) Level 4: responsible for the management of support teams for either a single product or a product group If a client feels they are not receiving the service needed, they may contact the appropriate Software Support Manager. After receiving the incident tracking number, the manager will follow up on the open issue and determine the necessary action to meet the client’s needs. On occasion, the priority or immediacy of a software support incident may change after initiation. Tyler encourages clients to communicate the level of urgency or priority of software support issues so that we can respond appropriately. A software support incident can be escalated by any of the following methods: (1) Telephone – for immediate response, call toll-free to either escalate an incident’s priority or to escalate an issue through management channels as described above. (2) Email – clients can send an email to software support in order to escalate the priority of an issue (3) On-line Support Incident Portal – clients can also escalate the priority of an issue by logging into the client incident portal and referencing the appropriate incident tracking number. Remote Support Tool Some support calls require further analysis of the client’s database, process or setup to diagnose a problem or to assist with a question. Tyler will, at its discretion, use an industry-standard remote support tool. Support is able to quickly connect to the client’s desktop and view the site’s setup, diagnose problems, or assist with screen navigation. More information about the remote support tool Tyler uses is available upon request. 42 Exhibit D 1 Exhibit D Third Party Terms No Third Party Terms are included in the Agreement as of the Effective Date. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 43 Exhibit E 1 Exhibit E Statement of Work TO BE INSERTED PRIOR TO SIGNATURE 44 Exhibit F 1 Exhibit F Socrata Software as a Service Terms and Conditions SECTION A – DEFINITIONS Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. • “Agreement” means the agreement under which Tyler has licensed and/or provided access to the Tyler Software Products to Client. • “Alert” means a message that is delivered when Client-defined thresholds are exceeded. • “API” means application-programming interface. • “Client” means the City of Winter Springs, Florida. • “Client Data” means data, datasets, files, information, content and links uploaded or provided by Client through the use of the SaaS Services, but excluding Third Party Services. • “Confidential Information” means nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., Social Security numbers) and trade secrets, each as defined by applicable state law. • “Dataset” means physical collection of information, typically modeled as a table of rows and columns of data. • “Data Storage” means the contracted amount of storage capacity for your Data identified in the Investment Summary. • “External API Calls” means any request made by a user that is not logged in against a SaaS Service. If applicable, the number of External API calls that are authorized are identified in the Investment Summary, attached as Exhibit 1. • “Investment Summary” means the agreed upon cost proposal for the products and services attached as Exhibit 1. • “Monthly Active Users” means a user that is logged in and accesses the SaaS Services more than ten times per month. If applicable, the number of Monthly Active Users that are authorized to use the SaaS Services for the Agreement are identified in the Investment Summary. • “SaaS Fees” means the fees for the SaaS Services identified in the Investment Summary. SaaS Fees may be listed or referred to as Recurring Fees in Exhibit 1. • “SaaS Services” means Socrata’s off the shelf, cloud-based software service and related services, including support services, as specified under this Socrata Agreement. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting, or other professional services. • “SLA” means the service level agreement described in Section C of this Socrata Agreement. • “Socrata Agreement” means this Socrata Software as a Service Terms and Conditions. • “Socrata” means Socrata, a wholly owned subsidiary of Tyler Technologies, Inc., a Delaware corporation. • “Third-Party Services” means if any, third-party web-based services or platforms, including but not limited to third party stock photos and third-party map location services which are provided 45 Exhibit F 2 at no additional charge to you through this Socrata Agreement. • “we”, “us”, “our” and similar terms mean Tyler. • “you” and similar terms mean Client. SECTION B – SAAS SERVICES 1. Rights Granted. Tyler grants to Client the non-exclusive, non-assignable limited right to use the Socrata-EnerGov Executive Insights Bundle product on a subscription basis according to the terms of this Socrata Agreement and the SLA. Client may access updates and enhancements to the product, as described in Section C(1). 2. SaaS Fees. Client agrees to pay Tyler the SaaS Fees. Those amounts are payable in accordance with Tyler’s Invoicing and Payment Policy. The SaaS Fees are based on the number of Monthly Active Users, API usage, Alerts, and the amount of Data Storage required. Client acknowledges that continued access to the SaaS Services is contingent upon your timely payment of undisputed SaaS Fees. If you fail to timely pay the SaaS Fees, we may discontinue your access to the SaaS Services. We may also terminate this Socrata Agreement if you don’t cure such failure to pay within forty-five (45) days of receiving written notice of our intent to terminate. 3. Ownership. 3.1 Tyler retains all ownership and intellectual property rights to the SaaS Services. 3.2 When Client uploads or provides Client Data to the Socrata SaaS platform, Client grants to Tyler a perpetual non-exclusive, worldwide, royalty-free, sub-licensable, and transferable license to use, reproduce, publicly display, distribute, modify, create derivative works of, and translate the Client Data as needed in response to a Monthly Active User’s use of the SaaS Services. 3.3 The SaaS Services provide you with functionality to make all or part of Client Data available to the general public through one or more public facing websites. Client determines which Client Data is shared publicly, and Client is solely responsible for determining the online terms of use and licenses relative to the use by public users (“Public User”) of Client Data, and the enforcement thereof. Once an internal user makes Client Data publicly available using the SaaS Services, Tyler has no control over a Public User’s use, distribution, or misuse of Client Data. Tyler has no liability or obligation to indemnify for such usage. Users have the ability within the SaaS Services to remove the public permissions applied to Client Data. 3.4 Tyler reserves the right to develop derivative data assets based on Client’s publicly available data. These uses might include but aren’t necessarily limited to: aggregating and summarizing data; normalizing, standardizing and concatenating data to create new regional or national data assets; and developing key performance indicators and benchmarks. 3.5 While Tyler agrees to never commercially sell data Client makes publicly available, we reserve the right to commercially sell derivative data assets we create based on Client’s public data. 3.6 Tyler may develop derivative data assets and insights based on aggregated, anonymized views of Client’s internally accessible private data for the purposes of the enhancement of the SaaS Services, aggregated statistical analysis, technical support and other internal business purposes. 46 Exhibit F 3 3.7 Client retains all ownership and intellectual property rights to the Client Data. Client expressly recognizes that except to the extent necessary to carry out our obligations contained in this Socrata Agreement, Tyler does not create or endorse any data used in connection with the SaaS Services. During the term of the Socrata Agreement, Client may export Client Data as allowed by the functionality within the SaaS Services. 3.8 If Client provides feedback, information, and/or or suggestions about the SaaS Services, or any other services provided hereunder, then Tyler (and those it allows to use its technology) may use such feedback, information, and/or suggestions under a royalty-free, paid-up, and irrevocable license without obligation to Client. 4. Restrictions. 4.1 You may not: (a) except as explicitly provided for herein, make the SaaS Services or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party’s business operations; (b) modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services; (c) access or use the SaaS Services in order to build or support, and/or assist a third party in building or supporting, products or services competitive to us; (d) license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services or Documentation available to any third party other than as expressly permitted by this Socrata Agreement; (e) use the SaaS Services to store or transmit infringing, unsolicited marketing emails, libelous, or otherwise objectionable, unlawful or tortious material, or to store or transmit material in violation of third party rights; (f) interfere with or disrupt the integrity or performance of the SaaS Services (including without limitation, vulnerability scanning, penetration testing or other manual or automated simulations of adversarial actions, without Tyler’s prior written consent); or (g) attempt to gain unauthorized access to the SaaS Services or its related systems or networks. 4.2 Client acknowledges and understands that the Socrata SaaS Services are not designed to serve as the system of record and shall not be used in a manner where the interruption of the SaaS Services could cause personal injury (including death) or property damage. The SaaS Services are not designed to process or store CJIS, PHI or other sensitive data, and by using the Socrata SaaS Services, you acknowledge and agree that you are using the Socrata SaaS Services at your own risk and that you are solely responsible for use of data with the SaaS Services in any manner that is contrary to the uses for which the Socrata SaaS Services are designed and offered for use in this Agreement. 4.3 Although we have no obligation to screen, edit or monitor the Client Data or Public User content posted on SaaS Services, if, in our reasonable judgment, we discover your use of the SaaS Services threatens the security, integrity, stability, or availability of the SaaS Services, or is otherwise in violation of this Socrata Agreement, we may temporarily suspend the SaaS Services, or Monthly Active Users’ access thereto. Unless Client has conducted penetration testing or unscheduled performance testing, Tyler will use commercially reasonable efforts to provide Client with notice and an opportunity to remedy such violation or threat prior to such suspension. Any penetration testing or unscheduled performance testing conducted by Client will result in immediate suspension of the SaaS Services. 47 Exhibit F 4 5. Reservation of Rights. The SaaS Services, other services, workflow processes, user interface, designs, and other technologies provided by Tyler pursuant to this Socrata Agreement are the proprietary property of Tyler and its licensors. All right, title and interest in and to such items, including all associated intellectual property rights, remain only with Tyler. Client may not remove or modify any proprietary marking or restrictive legends from items or services provided under this Socrata Agreement. Tyler reserves all rights unless otherwise expressly granted in this Socrata Agreement. 6. Access and Usage by Internal Client Users and Contractors. You may allow your internal users and third party contractors to access the SaaS Services and any technical or policy controls, in compliance with the terms of this Socrata Agreement, which access must be for your sole benefit. You are responsible for the compliance with this Socrata Agreement by your internal users and contractors. 7. Your Responsibilities. Client (a) must keep its passwords secure and confidential; (b) is solely responsible for all activity occurring under its account; (c) must use commercially reasonable efforts to prevent unauthorized access to its account and notify Tyler promptly of any such unauthorized access; (d) may use the SaaS Services only in accordance with the Documentation; and (e) shall comply with all federal, state and local laws, regulations and policies of Client, as to its use of the SaaS Services, Client Data, and instructions to Tyler regarding the same. 8. Client Data Backup. Client is providing Socrata a copy of Client Data. Any laws and regulations governing Client for retention of Client Data remains Client’s responsibility. CLIENT IS SOLELY RESPONSIBLE FOR BACKING UP CLIENT DATA unless otherwise specially agreed in writing between Tyler and Client. 9. Return of Client Data. Upon request, Tyler will make the SaaS Services available to Client to export Client Data for a period of sixty (60) days following the termination of this Socrata Agreement. After such sixty (60) day period has expired, we have no obligation to maintain Client Data and may destroy the Client Data. 10. APIs. Tyler will provide access to the applicable application-programming interface (“API”) as part of the SaaS Services under the terms of this Socrata Agreement. Subject to the other terms of this Socrata Agreement, Tyler grants Client a non-exclusive, nontransferable, terminable license to interact only with the SaaS Services as allowed by the current APIs. a. Client may not use the APIs in a manner--as reasonably determined by Tyler--that exceeds the purposes defined in the Investment Summary, constitutes excessive or abusive usage, or fails to comply with any part of the APIs. If any of these occur, Tyler can suspend or terminate Client’s access to the APIs on a temporary or permanent basis. b. Tyler may change or remove existing endpoints or fields in API results upon at least 30 days’ notice to Client, but Tyler will use commercially reasonable efforts to support the previous version of the APIs for at least 6 months from deprecation notice. Tyler may add new endpoints or fields in API results without prior notice to Client. c. The APIs may be used to connect the SaaS Services to certain hosted or on premise software applications not provided by Tyler (“Non-Tyler Applications”). Client is solely responsible for development, license, access to and support of Non-Tyler Applications, and Client’s 48 Exhibit F 5 obligations under this Socrata Agreement are not contingent on access to or availability of any Non-Tyler Application. d. Any open source code provided is provided as a convenience to you. Such open source code is provided AS IS and is governed by the applicable open source license that applies to such code; provided, however, that any such open source licenses will not materially interfere or prohibit Client’s limited right to use the SaaS Services for its internal business purposes. 11. Data Security Measures. In order to protect your Confidential Information, we will: (a) implement and maintain all reasonable security measures appropriate to the nature of the Confidential Information including without limitation, technical, physical, administrative and organizational controls, and will maintain the confidentiality, security and integrity of such Confidential Information; (b) implement and maintain industry standard systems and procedures for detecting, mitigating, and responding to attacks, intrusions, or other systems failures and regularly test or otherwise monitor the effectiveness of the safeguards' key controls, systems, and procedures; (c) designate an employee or employees to coordinate implementation and maintenance of its Security Measures (as defined below); and (d) identify reasonably foreseeable internal and external risks to the security, availability, confidentiality, and integrity of Confidential Information that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of such information, and assess the sufficiency of any safeguards in place to control these risks (collectively, Security Measures). Client acknowledges and agrees that Tyler’s obligations with respect to Security Measures is subject to Section B(4.2) above. 12. Notice of Data Breach. If Tyler knows that Confidential Information has been accessed, disclosed, or acquired without proper authorization and contrary to the terms of this Socrata Agreement, we will alert Client of any such data breach in accordance with applicable law, and take such actions as may be necessary to preserve forensic evidence and return the SaaS Services to standard operability. If so required, Tyler will provide notice in accordance with applicable federal or State data breach notification laws. 13. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Socrata Agreement, may be exposed to Confidential Information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential Information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., Social Security numbers) and trade secrets, each as defined by applicable state law (“Confidential Information”). Each party agrees that it will not disclose any Confidential Information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Socrata Agreement. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Socrata Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar 49 Exhibit F 6 applicable public disclosure laws governing this Socrata Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law. SECTION C – OTHER SERVICES 1. Service Level Agreement (SLA) & Warranty. 1.1 Service Warranty. Tyler warrants to Client that the functionality or features of the SaaS Services will substantially perform as communicated to Client in writing, or their functional equivalent, but Tyler has the right to update functionality. The support policies may change but will not materially degrade during the term. Tyler may deprecate features upon at least 30 days’ notice to Client, but Tyler will use commercially reasonable efforts to support the previous features for at least 6 months following the deprecation notice. The deprecation notice will be posted at https://support.socrata.com. 1.2 Uptime Service Level Warranty. We will use commercially reasonable efforts to maintain the online availability of the SaaS Service for a minimum of availability in any given month as provided in the chart below (excluding maintenance scheduled downtime, outages beyond our reasonable control, and outages that result from any issues caused by you, your technology or your suppliers or contractors, Service is not in the production environment, you are in breach of this Socrata Agreement, or you have not pre-paid for SaaS Fees for the Software as a Service in the month in which the failure occurred). Availability SLA Credit 99.9% 3% of monthly fee for each full hour of an outage that adversely impacted Client's access or use of the SaaS Services (beyond the warranty). Maximum amount of the credit is 100% of the prorated SaaS Service Fees for such month, or $1,800.00, whichever is less, and the minimum credit cannot be less than $100.00. 1.3 Limited Remedy. Your exclusive remedy and our sole obligation for our failure to meet the warranty under Section C(8.2) is the provision by us of the credit for the applicable month, as provided in the chart above (if this Socrata Agreement is not renewed then a refund in the amount of the credit owed); provided that you notify us of such breach of the warranty within thirty (30) days of the end of that month. SECTION D – THIRD-PARTY SERVICES 1. Third -Party Services. Client may be provided with access and usage of Third-Party Services through use of the SaaS Services. Client must agree to such Third-Party Service contracts if Client chooses to use those Third-Party Services. Third-Party Services will be solely governed by such Third-Party Service contracts. 50 Exhibit F 7 2. Disclaimer. You acknowledge that we are not the provider of any Third-Party Services. We do not warrant or guarantee the performance of the Third-Party Services. SECTION E - INVOICING AND PAYMENT; INVOICE DISPUTES 1. Invoicing and Payment. We will invoice you the SaaS Fees and fees for other professional services in the Investment Summary, subject to Section E(2). 2. Invoice Disputes. If you believe any delivered item does not conform to the warranties in this Socrata Agreement, you will provide us with written notice within thirty (30) days of your receipt of the applicable invoice. The written notice must contain reasonable detail of the issues you contend are in dispute so that we can confirm the issue and respond to your notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in your notice. We will work with you as may be necessary to develop an action plan that outlines reasonable steps to be taken by each of us to resolve any issues presented in your notice. You may withhold payment of the amount(s) actually in dispute, and only those amounts, until we complete the action items outlined in the plan. If we are unable to complete the action items outlined in the action plan because of your failure to complete the items agreed to be done by you, then you will remit full payment of the invoice. We reserve the right to suspend delivery of all SaaS Services, including maintenance and support services, if you fail to pay an invoice not disputed as described above within fifteen (15) days of notice of our intent to do so. SECTION F – TERM 1. Term. The initial term of this Socrata Agreement is for three (3) years from the first day of the first month following the Effective Date, unless earlier terminated as set forth below. Upon expiration of the initial term, this Socrata Agreement may be renewed by mutual agreement of the parties for two (2) additional one (1) year renewal terms at our then-current rates but otherwise upon the same terms and conditions herein. Your right to access or use the SaaS Services will terminate at the end of this Socrata Agreement. SECTION G –LIMITATION OF LIABILITY 1. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS SOCRATA AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE. WHILE TYLER TAKES REASONABLE PHYSICAL, TECHNICAL AND ADMINISTRATIVE MEASURES TO SECURE THE SAAS SERVICES, TYLER DOES NOT GUARANTEE THAT THE SAAS SERVICES CANNOT BE COMPROMISED. YOU UNDERSTAND THAT THE SAAS SERVICES MAY NOT BE ERROR FREE, AND USE MAY BE INTERRUPTED. 2. LIMITATION OF LIABILITY. OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS SOCRATA AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED ONE AND A HALF (1.5) TIMES THE THEN-CURRENT ANNUAL SOCRATA SAAS FEES PAYABLE BY YOU. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS SOCRATA 51 Exhibit F 8 AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO THE INDEMNIFICATION OBLIGATIONS UNDER THE AGREEMENT. 3. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 52 City of Winter Springs SOW from Tyler Technologies, Inc. 11/16/2020 Presented to: Christopher Schmidt 1126 East State Road 434 Winter Springs, Florida 32708 Contact: Garth Magness Email: Garth.Magness@TylerTech.com 2160 Satellite Blvd., Suite 300, Duluth, GA 30097 53 City of Winter Springs Tyler Technologies, Inc. Page | i Table of Contents PART 1: EXECUTIVE SUMMARY ............................................................................................................... 1 1.Project Overview ................................................................................................................................. 1 1.1Introduction ............................................................................................................................................... 1 1.2Project Goals .............................................................................................................................................. 1 1.3Methodology .............................................................................................................................................. 1 PART 2: PROJECT FOUNDATION ............................................................................................................. 3 2.Project Governance .............................................................................................................................. 3 3.Project Scope Control ........................................................................................................................... 4 3.1Managing Scope and Project Change ........................................................................................................ 4 3.2Change Control .......................................................................................................................................... 4 3.3Change Request Management................................................................................................................... 4 4.Acceptance Process .............................................................................................................................. 6 5.Roles and Responsibilities .................................................................................................................... 6 5.1Tyler Roles & Responsibilities .................................................................................................................... 6 5.1.1Tyler Executive Sponsor ...................................................................................................................... 7 5.1.2Tyler Implementation Manager .......................................................................................................... 7 5.1.3Tyler Project Manager ........................................................................................................................ 7 5.1.4Tyler Implementation Consultant ....................................................................................................... 8 5.1.5Tyler Sales ........................................................................................................................................... 8 5.1.6Tyler Technical Services ...................................................................................................................... 9 5.2City of Winter Springs Roles & Responsibilities ......................................................................................... 9 5.2.1City of Winter Springs Executive Sponsor ........................................................................................... 9 5.2.2City of Winter Springs Steering Committee ........................................................................................ 9 5.2.3City of Winter Springs Project Manager ........................................................................................... 10 5.2.4City of Winter Springs Functional Leads ........................................................................................... 11 5.2.5City of Winter Springs Power Users .................................................................................................. 12 5.2.6City of Winter Springs End Users ...................................................................................................... 12 5.2.7City of Winter Springs Technical Lead .............................................................................................. 12 5.2.8City of Winter Springs Change Management Lead ........................................................................... 13 PART 3: PROJECT PLAN ........................................................................................................................... 14 6.Project Stages ..................................................................................................................................... 14 6.1Initiate and Plan ....................................................................................................................................... 15 6.1.1Initial Coordination ........................................................................................................................... 15 6.1.2Project/Phase Planning ..................................................................................................................... 16 6.1.3Infrastructure Planning ..................................................................................................................... 17 54 City of Winter Springs Tyler Technologies, Inc. Page | ii 6.1.4Stakeholder Meeting ........................................................................................................................ 18 6.1.5GIS Preparation ................................................................................................................................. 19 6.1.6Control Point 1: Initiate & Plan Stage Acceptance............................................................................ 20 6.2Assess & Define ........................................................................................................................................ 21 6.2.1Solution Orientation ......................................................................................................................... 21 6.2.2Current & Future State Analysis ....................................................................................................... 22 6.2.3Conversion Assessment .................................................................................................................... 23 6.2.4Intentionally left blank. ..................................................................................................................... 24 6.2.5Intentionally left blank. ..................................................................................................................... 24 6.2.6Control Point 2: Assess & Define Stage Acceptance ......................................................................... 24 6.3Prepare Solution ...................................................................................................................................... 25 6.3.1Initial System Deployment ................................................................................................................ 25 6.3.2Configuration .................................................................................................................................... 26 6.3.3Process Refinement .......................................................................................................................... 27 6.3.4Conversion Delivery .......................................................................................................................... 28 6.3.5Intentionally left blank. ..................................................................................................................... 30 6.3.6Intentionally left blank. ..................................................................................................................... 30 6.3.7Control Point 3: Prepare Solution Stage Acceptance ....................................................................... 30 6.4Production Readiness .............................................................................................................................. 31 6.4.1Solution Validation ............................................................................................................................ 31 6.4.2Go-Live Readiness ............................................................................................................................. 32 6.4.3End User Training .............................................................................................................................. 33 6.4.4Control Point 4: Production Readiness Stage Acceptance................................................................ 34 6.5Production................................................................................................................................................ 34 6.5.1Go-Live .............................................................................................................................................. 34 6.5.2Transition to Client Services ............................................................................................................. 36 6.5.3Post Go-Live Activities ....................................................................................................................... 37 6.5.4Control Point 5: Production Stage Acceptance ................................................................................. 38 6.6Close ......................................................................................................................................................... 38 6.6.1Phase Closeout .................................................................................................................................. 38 6.6.2Project Closeout ................................................................................................................................ 39 6.6.3Control Point 6: Close Stage Acceptance .......................................................................................... 40 7.General Assumptions .......................................................................................................................... 40 7.1Project ...................................................................................................................................................... 41 7.2Organizational Change Management ...................................................................................................... 41 7.3Resources and Scheduling ....................................................................................................................... 41 7.4Data .......................................................................................................................................................... 42 7.5Facilities ................................................................................................................................................... 42 8.Glossary .............................................................................................................................................. 43 PART 4: APPENDICES ............................................................................................................................... 46 9.Conversion .......................................................................................................................................... 46 9.1Data Conversion Process for EnerGov Enterprise Server ........................................................................ 46 55 City of Winter Springs Tyler Technologies, Inc. Page | iii 9.1.1Overview: .......................................................................................................................................... 46 9.1.2Modularized Design: ......................................................................................................................... 46 9.1.3Required Fields: ................................................................................................................................ 46 9.1.4Custom Fields (any fields not available in the master table for the module in question): ............... 46 9.1.5Gap Handling (where legacy data doesn’t fit anywhere within EG_Template): .............................. 47 9.1.6Contacts: ........................................................................................................................................... 47 9.1.7Multiple Legacy Data Sources: .......................................................................................................... 47 9.1.8Overall Architecture of Conversion: ................................................................................................. 47 9.1.9Progression of Conversion Development Process: ........................................................................... 49 9.1.10Progression of Final Conversion Cutover Process (Go-Live): .......................................................... 50 9.1.11Data Import Areas: .......................................................................................................................... 50 9.1.12Business Management .................................................................................................................... 50 9.1.13Community Development: Code Cases .......................................................................................... 50 9.1.14Community Development: Permits ................................................................................................ 51 9.1.15Community Development: Plans .................................................................................................... 51 10.Additional Appendices ...................................................................................................................... 53 10.1Intentionally left blank. .......................................................................................................................... 53 11.Project Timeline ................................................................................................................................ 53 11.1EnerGov 12 Month Timeline .................................................................................................................. 53 56 City of Winter Springs Tyler Technologies, Inc. Page | 1 Part 1: Executive Summary 1. Project Overview 1.1 Introduction Tyler Technologies (“Tyler”) is the largest and most established provider of integrated software and technology services focused solely on the public sector. Tyler’s end-to-end solutions empower public sector entities including local, state, provincial and federal government, to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients gain actionable insights that solve problems in their communities. 1.2 Project Goals This Statement of Work (“SOW”) documents the methodology, implementation stages, activities, and roles and responsibilities, and project scope listed in the Investment Summary of the Agreement between Tyler and Client (collectively the “Project”). The overall goals of the project are to:  Successfully implement the contracted scope on time and on budget  Increase operational efficiencies and empower users to be more productive  Improve accessibility and responsiveness to external and internal customer needs  Overcome current challenges and meet future goals  Providing a user-friendly user interface to promote system use and productivity  Streamline business processes through automation, integration, and workflows  Provide a single, comprehensive, and integrated solution to manage business functions  Eliminate redundant data entry 1.3 Methodology This is accomplished by City of Winter Springs and Tyler working as a partnership and Tyler utilizing its depth of implementation experience. While each Project is unique, all will follow Tyler’s six-stage methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix. Tailored specifically for Tyler’s public sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases, and is scaled to meet the Client’s complexity and organizational needs. 57 City of Winter Springs Tyler Technologies, Inc. Page | 2 The methodology adapts to both single-phase and multiple-phase projects. To achieve Project success, it is imperative that both City of Winter Springs and Tyler commit to including the necessary leadership and governance. During each stage of the Project, it is expected that City of Winter Springs and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler’s Implementation process is to employ an iterative model where City of Winter Springs’s business processes are assessed, configured, validated, and refined cyclically in line with the project budget. This approach is used in multiple stages and work packages as illustrated in the graphic below. The delivery approach is systematic, which reduces variability and mitigates risks to ensure Project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to efficiently and effectively complete the Project. 58 City of Winter Springs Tyler Technologies, Inc. Page | 3 Part 2: Project Foundation 2. Project Governance Project governance is the management framework within which Project decisions are made. The role of Project governance is to provide a decision-making approach that is logical, robust, and repeatable. This allows organizations to have a structured approach for conducting its daily business in addition to project related activities. This section outlines the resources required to adequately meet the business needs, objectives, and priorities for the Project, communicate the goals to other Project participants, and provide support and guidance to accomplish these goals. Project governance defines the structure for escalation of issues and risks, Change Control review and authority, and Organizational Change Management activities. Throughout the Statement of Work Tyler has provided RACI Matrices for activities to be completed throughout the implementation which will further outline responsibilities of different roles in each stage. Further refinement of the governance structure, related processes, and specific roles and responsibilities occurs during the Initiate & Plan Stage. The chart below illustrates an overall team perspective where Tyler and City of Winter Springs collaborate to resolve Project challenges according to defined escalation paths. In the event that project managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and City of Winter Springs Steering Committee become the escalation points to triage responses prior to escalation to City of Winter Springs and Tyler executive sponsors. As part of the escalation process, each Project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. City of Winter Springs and Tyler executive sponsors serve as the final escalation point. 59 City of Winter Springs Tyler Technologies, Inc. Page | 4 3. Project Scope Control 3.1 Managing Scope and Project Change Project Management governance principles contend that there are three connected constraints on a Project: budget, timeline, and scope. These constraints, known as the ‘triple constraints’ or Project management triangle, define budget in terms of financial cost, labor costs, and other resource costs. Scope is defined as the work performed to deliver a product, service or result with the specified features and functions, while time is simply defined as the schedule. The Triple Constraint theory states that if you change one side of the triangle, the other two sides must be correspondingly adjusted. For example, if the scope of the Project is increased, cost and time to complete will also need to increase. The Project and executive teams will need to remain cognizant of these constraints when making impactful decisions to the Project. A simple illustration of this triangle is included here, showing the connection of each item and their relational impact to the overall Scope. A pillar of any successful project is the ability to properly manage scope while allowing the appropriate level of flexibility to incorporate approved changes. Scope and changes within the project will be managed using the change control process outlined in the following section. 3.2 Change Control It may become necessary to change the scope of this Project due to unforeseeable circumstances (e.g., new constraints or opportunities are discovered). This Project is being undertaken with the understanding that Project scope, schedule, and/or cost may need to change in order to produce optimal results for stakeholders. Changes to contractual requirements will follow the change control process specified in the final contract, and as described below. 3.3 Change Request Management Should the need for a change to Project scope, schedule, and/or cost be identified during the Project, the change will be brought to the attention of the Steering Committee and an assessment of the change will occur. While such changes may result in additional costs and possible delays relative to the schedule, some changes may result in less cost to City of Winter Springs; for example, City of Winter Springs may decide it no 60 City of Winter Springs Tyler Technologies, Inc. Page | 5 longer needs a deliverable originally defined in the Project. The Change Request will include the following information:  The nature of the change.  A good faith estimate of the additional cost or associated savings to City of Winter Springs, if any.  The timetable for implementing the change.  The effect on and/or risk to the schedule, resource needs or resource responsibilities. City of Winter Springs will use its good faith efforts to either approve or disapprove any Change Request within ten (10) Business Days (or other period as mutually agreeable between Tyler and City of Winter Springs). Any changes to the Project scope, budget, or timeline must be documented and approved in writing using a Change Request form. These changes constitute a formal amendment to the Statement of Work and will supersede any conflicting term in the Statement of Work. 61 City of Winter Springs Tyler Technologies, Inc. Page | 6 4. Acceptance Process The implementation of a Project involves many decisions to be made throughout its lifecycle. Decisions will vary from higher level strategy decisions to smaller, detailed Project level decisions. It is critical to the success of the Project that each City of Winter Springs office or department designates specific individuals for making decisions on behalf of their offices or departments. Both Tyler and the City of Winter Springs will identify representative project managers. These individuals will represent the interests of all stakeholders and serve as the primary contacts between the two organizations. The coordination of gaining client feedback and approval on Project deliverables will be critical to the success of the Project. The City of Winter Springs project manager will strive to gain deliverable and decision approvals from all authorized City of Winter Springs representatives. Given that the designated decision- maker for each department may not always be available, there must be a designated proxy for each decision point in the Project. Assignment of each proxy will be the responsibility of the leadership from each City of Winter Springs department. The proxies will be named individuals that have the authorization to make decisions on behalf of their department. The following process will be used for accepting Deliverables and Control Points:  The City of Winter Springs shall have five (5) business days from the date of delivery, or as otherwise mutually agreed upon by the parties in writing, to accept each Deliverable or Control Point. If the City of Winter Springs does not provide acceptance or acknowledgement within five (5) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.  If the City of Winter Springs does not agree the particular Deliverable or Control Point meets requirements, the City of Winter Springs shall notify Tyler project manager(s), in writing, with reasoning within five (5) business days, or the otherwise agreed-upon timeframe, not to be unreasonably withheld, of receipt of the Deliverable.  Tyler shall address any deficiencies and redeliver the Deliverable or Control Point. The City of Winter Springs shall then have two (2) business days from receipt of the redelivered Deliverable or Control Point to accept or again submit written notification of reasons for rejecting the milestone. If the City of Winter Springs does not provide acceptance within two (2) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted. 5. Roles and Responsibilities The following defines the roles and responsibilities of each Project resource for City of Winter Springs and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at City of Winter Springs, but are roles defined within the Project. It is common for individual resources on both the Tyler and client project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people. 62 City of Winter Springs Tyler Technologies, Inc. Page | 7 5.1 Tyler Roles & Responsibilities Tyler assigns a project manager prior to the start of each Phase of the Project (some Projects may only be one Phase in duration). Additional Tyler resources are assigned as the schedule develops and as needs arise. 5.1.1 Tyler Executive Sponsor Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the Project team and collaborates with other Tyler department managers as needed in order to escalate and facilitate implementation Project tasks and decisions.  Provides clear direction for Tyler staff on executing on the Project Deliverables to align with satisfying City of Winter Springs ’s overall organizational strategy.  Authorizes required Project resources.  Resolves all decisions and/or issues not resolved at the implementation management level as part of the escalation process.  Acts as the counterpart to City of Winter Springs ’s executive sponsor. 5.1.2 Tyler Implementation Manager  Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. The Tyler project managers consult implementation management on issues and outstanding decisions critical to the Project. Implementation management works toward a solution with the Tyler Project Manager or with City of Winter Springs management as appropriate. Tyler executive management is the escalation point for any issues not resolved at this level.  Assigns Tyler Project personnel.  Provides support for the Project team.  Provides management support for the Project to ensure it is staffed appropriately and staff have necessary resources.  Monitors Project progress including progress towards agreed upon goals and objectives. 5.1.3 Tyler Project Manager  The Tyler project manager(s) provides oversight of the Project, coordination of Tyler resources between departments, management of the Project budget and schedule, effective risk and issue management, and is the primary point of contact for all Project related items. As requested by the client, the Tyler Project Manager provides regular updates to the client Steering Committee and other Tyler governance members. Tyler Project Manager’s role includes responsibilities in the following areas: 63 City of Winter Springs Tyler Technologies, Inc. Page | 8 5.1.3.1 Contract Management  Validates contract compliance throughout the Project.  Ensures Deliverables meet contract requirements.  Acts as primary point of contact for all contract and invoicing questions.  Prepares and presents contract milestone sign-offs for acceptance by City of Winter Springs project manager(s).  Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance. 5.1.3.2 Planning  Delivers project planning documents.  Defines Project tasks and resource requirements.  Develops initial Project schedule and Project Management Plan.  Collaborates with City of Winter Springs project manager(s) to plan and schedule Project timelines to achieve on-time implementation. 5.1.3.3 Implementation Management  Tightly manages Scope and budget of Project to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently.  Establishes and manages a schedule and Tyler resources that properly support the Project Schedule and are also in balance with Scope/budget.  Establishes risk/issue tracking/reporting process between City of Winter Springs and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to City of Winter Springs any items that may impact the outcomes of the Project.  Collaborates with City of Winter Springs ’s project manager(s) to establish key business drivers and success indicators that will help to govern Project activities and key decisions to ensure a quality outcome of the project.  Collaborates with City of Winter Springs ’s project manager(s) to set a routine communication plan that will aide all Project team members, of both City of Winter Springs and Tyler, in understanding the goals, objectives, current status, and health of the Project. 5.1.3.4 Resource Management  Acts as liaison between Project team and Tyler manager(s).  Identifies and coordinates all Tyler resources across all applications, Phases, and activities including development, forms, installation, reports, implementation, and billing.  Provides direction and support to Project team. 64 City of Winter Springs Tyler Technologies, Inc. Page | 9  Manages the appropriate assignment and timely completion of tasks as defined in the Project Schedule, task list, and Go-Live Checklist.  Assesses team performance and adjusts as necessary.  Consulted on in Scope 3rd party providers to align activities with ongoing Project tasks. 5.1.4 Tyler Implementation Consultant  Completes tasks as assigned by the Tyler project manager(s).  Documents activities for services performed by Tyler.  Guides City of Winter Springs through software validation process following configuration.  Assists during Go-Live process and provides support until City of Winter Springs transitions to Client Services.  Facilitates training sessions and discussions with City of Winter Springs and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time.  May provide conversion review and error resolution assistance. 5.1.5 Tyler Sales  Supports Sales to Implementation knowledge transfer during Initiate & Plan.  Provides historical information, as needed, throughout implementation.  Participates in pricing activities if additional licensing and/or services are needed. 5.1.6 Tyler Technical Services  Maintains Tyler infrastructure requirements and design document(s).  Involved in system infrastructure planning/review(s).  Provides first installation of licensed software with initial database on servers.  Supports and assists the project team with technical/environmental issues/needs.  Deploys Tyler products.  Provides technical training.  Conducts GIS Planning.  Reviews GIS data and provides feedback to the client.  Loads client provided GIS data into the system. 65 City of Winter Springs Tyler Technologies, Inc. Page | 10 5.2 City of Winter Springs Roles & Responsibilities City of Winter Springs resources will be assigned prior to the start of each Phase of the Project. One person may be assigned to multiple Project roles. 5.2.1 City of Winter Springs Executive Sponsor The City of Winter Springs executive sponsor provides support to the Project by providing strategic direction and communicating key issues about the Project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated Project issues. The executive sponsor engages in the Project, as needed, in order to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the City of Winter Springs steering committee, project manager(s), and functional leads to make critical business decisions for City of Winter Springs.  Champions the project at the executive level to secure buy-in.  Authorizes required project resources.  Actively participates in organizational change communications. 5.2.2 City of Winter Springs Steering Committee The City of Winter Springs steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation for the Project’s value throughout the organization. The steering committee oversees the City of Winter Springs project manager and Project as a whole through participation in regular internal meetings. The City of Winter Springs steering committee remains updated on all Project progress, Project decisions, and achievement of Project milestones. The City of Winter Springs steering committee also serves as primary level of issue resolution for the Project.  Works to resolve all decisions and/or issues not resolved at the project manager level as part of the escalation process.  Attends all scheduled steering committee meetings.  Provides support for the project team.  Assists with communicating key project messages throughout the organization.  Prioritizes the project within the organization.  Ensures the project staffed appropriately and that staff have necessary resources.  Monitors project progress including progress towards agreed upon goals and objectives.  Has the authority to approve or deny changes impacting the following areas: o Cost o Scope 66 City of Winter Springs Tyler Technologies, Inc. Page | 11 o Schedule o Project Goals o City of Winter Springs Policies o Needs of other client projects 5.2.3 City of Winter Springs Project Manager City of Winter Springs shall assign project manager(s) prior to the start of this project with overall responsibility and authority to make decisions related to Project Scope, scheduling, and task assignment. City of Winter Springs Project Manager should communicate decisions and commitments to the Tyler project manager(s) in a timely and efficient manner. When City of Winter Springs project manager(s) do not have the knowledge or authority to make decisions, he or she engages the necessary resources to participate in discussions and make decisions in a timely fashion to avoid Project delays. The client project manager(s) are responsible for reporting to client steering committee and determining appropriate escalation points. 5.2.3.1 Contract Management  Validates contract compliance throughout the project.  Ensures that invoicing and Deliverables meet contract requirements.  Acts as primary point of contact for all contract and invoicing questions. Collaborates on and approves Change Requests, if needed, to ensure proper scope and budgetary compliance. 5.2.3.2 Planning  Reviews and accepts project planning documents.  Defines project tasks and resource requirements for City of Winter Springs project team.  Collaborates in the development and approval of the project schedule.  Collaborates with Tyler project manager(s) to plan and schedule project timelines to achieve on-time implementation. 5.2.3.3 Implementation Management  Tightly manages project budget and scope.  Collaborates with Tyler project manager(s) to establish a process and approval matrix to ensure that scope changes and budget (planned versus actual) are transparent and handled effectively and efficiently.  Collaborates with Tyler project manager to establish and manage a schedule and resource plan that properly supports the project schedule as a whole and is also in balance with scope and budget.  Collaborates with Tyler project manager(s) to establish risk and issue tracking and reporting process between City of Winter Springs and Tyler and takes all necessary steps to proactively mitigate these 67 City of Winter Springs Tyler Technologies, Inc. Page | 12 items or communicate with transparency to Tyler any items that may impact the outcomes of the project.  Collaborates with Tyler project manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project.  Routinely communicates with both City of Winter Springs staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members.  Manages the requirements gathering process and ensure timely and quality business requirements are being provided to Tyler. 5.2.3.4 Resource Management  Acts as liaison between project team and stakeholders.  Identifies and coordinates all City of Winter Springs resources across all modules, phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices.  Provides direction and support to project team.  Builds partnerships among the various stakeholders, negotiating authority to move the project forward.  Manages the appropriate assignment and timely completion of tasks as defined.  Assesses team performance and takes corrective action, if needed.  Provides guidance to City of Winter Springs technical teams to ensure appropriate response and collaboration with Tyler Technical Support Teams in order to ensure timely response and appropriate resolution.  Owns the relationship with in-Scope 3rd party providers and aligns activities with ongoing project tasks.  Ensures that users have appropriate access to Tyler project toolsets as required.  Conducts training on proper use of toolsets.  Validates completion of required assignments using toolsets. 5.2.4 City of Winter Springs Functional Leads  Makes business process change decisions under time sensitive conditions.  Communicates existing business processes and procedures to Tyler consultants.  Assists in identifying business process changes that may require escalation.  Contributes business process expertise for Current & Future State Analysis. 68 City of Winter Springs Tyler Technologies, Inc. Page | 13  Identifies and includes additional subject matter experts to participate in Current & Future State Analysis.  Validates that necessary skills have been retained by end users.  Provides End Users with dedicated time to complete required homework tasks.  Acts as an ambassador/champion of change for the new process and provide business process change support.  Identifies and communicates any additional training needs or scheduling conflicts to City of Winter Springs project manager.  Actively participates in all aspects of the implementation, including, but not limited to, the following key activities: o Task completion o Stakeholder Meeting o Project Management Plan development o Schedule development o Maintenance and monitoring of risk register o Escalation of issues o Communication with Tyler project team o Coordination of City of Winter Springs resources o Attendance at scheduled sessions o Change management activities o Modification specification, demonstrations, testing and approval assistance o Data analysis assistance o Decentralized end user training o Process testing o Solution Validation 5.2.5 City of Winter Springs Power Users  Participate in project activities as required by the project team and project manager(s).  Provide subject matter expertise on City of Winter Springs business processes and requirements.  Act as subject matter experts and attend Current & Future State Analysis sessions as needed. 69 City of Winter Springs Tyler Technologies, Inc. Page | 14  Attend all scheduled training sessions.  Participate in all required post-training processes as needed throughout project.  Test all application configuration to ensure it satisfies business process requirements.  Become application experts.  Participate in Solution Validation.  Adopt and support changed procedures.  Complete all deliverables by the due dates defined in the project schedule.  Demonstrate competency with Tyler products processing prior to Go-live.  Provide knowledge transfer to City of Winter Springs staff during and after implementation.  Participate in conversion review and validation. 5.2.6 City of Winter Springs End Users  Attend all scheduled training sessions.  Become proficient in application functions related to job duties.  Adopt and utilize changed procedures.  Complete all deliverables by the due dates defined in the project schedule.  Utilize software to perform job functions at and beyond Go-live. 5.2.7 City of Winter Springs Technical Lead  Coordinates updates and releases with Tyler as needed.  Coordinates the copying of source databases to training/testing databases as needed for training days.  Coordinates and adds new users, printers and other peripherals as needed.  Validates that all users understand log-on process and have necessary permission for all training sessions.  Coordinates interface development for City of Winter Springs third party interfaces.  Develops or assists in creating reports as needed.  Ensures on-site system meets specifications provided by Tyler.  Assists with software installation as needed.  Extracts and transmits conversion data and control reports from City of Winter Springs’s legacy system per the conversion schedule set forth in the project schedule. 70 City of Winter Springs Tyler Technologies, Inc. Page | 15 5.2.7.1 City of Winter Springs GIS  Participates in GIS planning activities.  Responsible for management and maintenance of City of Winter Springs GIS infrastructure and data.  Ensures GIS data/service endpoints are in alignment with Tyler software requirements.  Provides Tyler implementation team with GIS data/service access information. 5.2.7.2 City of Winter Springs Upgrade Coordination  Becomes familiar with the software upgrade process and required steps.  Becomes familiar with Tyler’s releases and updates.  Utilizes Tyler resources to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage City of Winter Springs’s software upgrade process.  Assists with the software upgrade process during implementation.  Manages software upgrade activities post-implementation.  Manages software upgrade plan activities.  Coordinates software upgrade plan activities with City of Winter Springs and Tyler resources.  Communicates changes affecting users and department stakeholders.  Obtains department stakeholder acceptance to upgrade production environment. 5.2.8 City of Winter Springs Change Management Lead  Validates that users receive timely and thorough communication regarding process changes.  Provides coaching to supervisors to prepare them to support users through the project changes.  Identifies the impact areas resulting from project activities and develops a plan to address them proactively.  Identifies areas of resistance and develops a plan to reinforce the change.  Monitors post-production performance and new process adherence. 71 City of Winter Springs Tyler Technologies, Inc. Page | 16 Part 3: Project Plan 6. Project Stages Work Breakdown Structure The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Phase broken down into smaller, more manageable components. The top-level components are called “Stages” and the second level components are called “Work Packages”. The work packages, shown below each stage, contain the high-level work to be done. The detailed Project Schedule, developed during Project/Phase Planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a “Control Point”, confirming the work performed during that stage of the Project has been accepted by City of Winter Springs. *Items noted with an asterisk in the graphic above relate to specific products and services. If those products and services are not included in the scope of the contract, these specific work packages will be noted as “Intentionally Left Blank” in Section 6 of the Statement of Work. 72 City of Winter Springs Tyler Technologies, Inc. Page | 17 6.1 Initiate and Plan The Initiate and Plan stage involves Project initiation, infrastructure, and planning. This stage creates a foundation for the Project by identifying and establishing sequence and timing for each Phase as well as verifying scope for the Project. This stage will be conducted at the onset of the Project, with a few unique items being repeated for the additional Phases as needed. 6.1.1 Initial Coordination Prior to Project commencement, Tyler management assigns project manager(s). Additional Project resources will be assigned later in the Project as a Project schedule is developed. Tyler provides City of Winter Springs with initial Project documents used to gather names of key personnel, their functional role as it pertains to the Project, as well as any blackout dates to consider for future planning. City of Winter Springs gathers the information requested by the provided deadline ensuring preliminary planning and scheduling can be conducted moving the Project forward in a timely fashion. Internally, the Tyler Project Manager(s) coordinate with sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with City of Winter Springs’s team. During this step, Tyler will work with City of Winter Springs to establish the date(s) for the Project and Phase Planning session. Objectives:  Formally launch the project.  Establish project governance.  Define and communicate governance for Tyler.  Identify client project team. STAGE 1 Initial Coordination Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Tyler project team is assigned A R C I I I I I I Client project team is assigned A I R I I I 73 City of Winter Springs Tyler Technologies, Inc. Page | 18 Provide initial project documents to City of Winter Springs A R C C I I Gather preliminary information requested I A R C C C C Sales to implementation knowledge transfer A R I I I I I Create Project Portal to store project artifacts and facilitate communication A R I Inputs Contract documents Statement of Work Outputs/Deliverables Completed initial project documents Project portal Work package assumptions:  Project activities begin after the agreement has been fully executed. 6.1.2 Project/Phase Planning Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify applications to implement in each Phase (if applicable), and discuss implementation timeframes. During this work package Tyler will work with City of Winter Springs to coordinate and plan a formal Project planning meeting(s). This meeting signifies the start of the Project and should be attended by all City of Winter Springs Project team members and the Tyler Project Manager. The meeting provides an opportunity for Tyler to introduce its implementation methodology, terminology, and Project management best practices to City of Winter Springs’s Project Team. This will also present an opportunity for project managers and Project sponsors to begin to discuss Project communication, metrics, status reporting and tools to be used to measure Project progress and manage change. Tyler will work with the City of Winter Springs Project Team to prepare and deliver the Project Management Plan as an output of the planning meeting. This plan will continue to evolve and grow as the Project progresses and will describe how the project will be executed, monitored, and controlled. During project planning, Tyler will introduce the tools that will be used throughout the implementation. Tyler will familiarize the client with these tools during project planning and make them available for review and maintenance as applicable throughout the project. Some examples are Solution validation plan, issue log, and go-live checklist. STAGE 1 Project/Phase Planning Tyler Client 74 City of Winter Springs Tyler Technologies, Inc. Page | 19 RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Schedule and conduct planning session(s) A R I C C I Develop Project Management Plan A R I C C I Develop initial project schedule A R I I I I I I C C I I C I Inputs Contract documents Statement of Work Guide to Starting Your Project Outputs / Deliverables Acceptance Criteria [only] for Deliverables Project Management Plan Delivery of document Project Operational Plan Delivery of document Initial Project Schedule City of Winter Springs provides acceptance of schedule based on resource availability, project budget, and goals. Work package assumptions:  City of Winter Springs has reviewed and completed the Guide to Starting Your Project document. 6.1.3 Infrastructure Planning Procuring required hardware and setting it up properly is a critical part of a successful implementation. This task is especially important for Tyler-hosted/SaaS deployment models. Tyler will be responsible for building the environments for a hosted/SaaS deployment, unless otherwise identified in the Agreement. Tyler will install Licensed Software on application server(s) or train City of Winter Springs to install License Software. The City of Winter Springs is responsible for the installation and setup of all peripheral devices. Objectives:  Ensure City of Winter Springs’s infrastructure meets Tyler’s application requirements.  Ensure City of Winter Springs’s infrastructure is scheduled to be in place and available for use on time. 75 City of Winter Springs Tyler Technologies, Inc. Page | 20 STAGE 1 Infrastructure Planning Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SME ) Department Heads End Users Technical Leads Provide Infrastructure Requirements and Design Document A R C C I I Initial Infrastructure Meeting A R C C C C *Schedule SaaS Environment Availability A R C I *Schedule Hardware to be Available for Installation I I A R C Schedule Installation of All Licensed Software A R C I I Infrastructure Audit A R C I C Inputs 1. Initial Infrastructure Requirements and Design Document Outputs / Deliverables Acceptance Criteria [only] for Deliverables 1. Completed Infrastructure Requirements and Design Document Delivery of Document 2. Infrastructure Audit System Passes Audit Criteria Work package assumptions:  City of Winter Springs will maintain environment (or virtual environment) for On-Premise deployments. 6.1.4 Stakeholder Meeting Communication of the Project planning outcomes to the City of Winter Springs Project team, executives and other key stakeholders is vital to Project success. The Stakeholder meeting is a strategic activity to inform, engage, gain commitment, and instill confidence in the City of Winter Springs team. During the meeting, the goals and objectives of the Project will be reviewed along with detail on Project scope, implementation methodology, roles and responsibilities, Project timeline and schedule, and keys to Project success. Objectives: 76 City of Winter Springs Tyler Technologies, Inc. Page | 21  Formally present and communicate the project activities and timeline.  Communicate project expectations. STAGE 1 Stakeholder Meeting Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Create Stakeholder Meeting Presentation I A R I I I I C I Review Stakeholder Meeting Presentation I C A R C Perform Stakeholder Meeting Presentation I A R I I I I C I I I I I I Inputs Agreement SOW Project Management Plan Outputs / Deliverables Acceptance Criteria [only] for Deliverables Stakeholder Meeting Presentation Work package assumptions:  None 6.1.5 GIS Preparation GIS data is a core part of many Tyler applications. Other City of Winter Springs offices/products may also use this data and have different GIS requirements. A key focus of this preparation will be the process for developing the GIS data for use with Tyler applications. This can be an iterative process, so it is important to begin preparation early. Objectives:  Identify all City of Winter Springs GIS data sources and formats.  Tyler to understand City of Winter Springs’s GIS needs and practices. 77 City of Winter Springs Tyler Technologies, Inc. Page | 22  Ensure City of Winter Springs’s GIS data meets Tyler product requirements. STAGE 1 GIS Preparation Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Initial GIS Planning Meeting A R C C C Determine all GIS Data Sources I I A R C Provide Source GIS Data I I A R C Review GIS Data and Provide Feedback A R C I C Inputs GIS Requirements Document Outputs / Deliverables Acceptance Criteria [only] for Deliverables Production Ready Map Data Meets Tyler GIS Requirements. Work package assumptions:  GIS data provided to Tyler is accurate and complete.  GIS data provided to Tyler is current.  City of Winter Springs is responsible for maintaining the GIS data. 6.1.6 Control Point 1: Initiate & Plan Stage Acceptance Acceptance criteria for this stage includes completion of all criteria listed below. Note: Advancement to the Assess & Define stage is not dependent upon Tyler’s receipt of this stage acceptance. Initiate & Plan Stage Deliverables:  Project Management Plan  Initial Project Schedule 78 City of Winter Springs Tyler Technologies, Inc. Page | 23 Initiate & Plan stage acceptance criteria:  All stage deliverables accepted based on acceptance criteria previously defined  Project governance defined  Project portal made available to City of Winter Springs  Stakeholder meeting complete  GIS Data Production Ready  Completed Infrastructure Requirements and Design Document  System Passes Infrastructure Audit (as applicable) 6.2 Assess & Define The Assess & Define stage will provide an opportunity to gather information related to current City of Winter Springs business processes. This information will be used to identify and define business processes utilized with Tyler software. City of Winter Springs collaborates with Tyler providing complete and accurate information to Tyler staff and assisting in analysis, understanding current workflows and business processes. 6.2.1 Solution Orientation The Solution Orientation provides the Project stakeholders a high-level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution. Tyler utilizes a variety of tools for the Solution Orientation, focusing on City of Winter Springs team knowledge transfer such as: eLearning, documentation, or walkthroughs. The City of Winter Springs team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler’s solution. Objectives:  Provide a basic understanding of system functionality.  Prepare City of Winter Springs for current and future state analysis. STAGE 2 Solution Orientation Tyler Client 79 City of Winter Springs Tyler Technologies, Inc. Page | 24 RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Provide pre-requisites A R I I I I I Complete pre- requisites A R C C Conduct orientation A R I I I I I Inputs Solution orientation materials Training Plan 6.2.2 Current & Future State Analysis The Current & Future State Analysis provides the Project stakeholders and Tyler an understanding of process changes that will be achieved with the new system. City of Winter Springs and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality. The City of Winter Springs will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the client’s responsibility to verify that in- scope requirements are being met throughout the implementation if functional requirements are defined as part of the contract. The following guidelines will be followed when evaluating if a modification to the product is required:  A reasonable business process change is available.  Functionality exists which satisfies the requirement.  Configuration of the application satisfies the requirement.  An in-scope modification satisfies the requirement. Requirements that are not met will follow the agreed upon change control process and can have impacts on the project schedule, scope, budget and resource availability. STAGE 2 Current & Future State Analysis Tyler Client 80 City of Winter Springs Tyler Technologies, Inc. Page | 25 RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Current State process review A R I I I C C C C C Discuss future-state options A R C C C C C C C C Make future-state decisions (non-COTS) C C C C C A R I C C Document anticipated configuration options required to support future state A R C C C I I I I I Inputs Client current state documentation Solution Orientation completion Outputs / Deliverables Acceptance Criteria [only] for Deliverables Documentation that describes future-state decisions and configuration options to support future-state decisions. Delivery of document Work package assumptions:  City of Winter Springs attendees possess sufficient knowledge and authority to make future state decisions.  City of Winter Springs is responsible for any documentation of current state business processes.  Client is able to effectively communicate current state processes. 6.2.3 Conversion Assessment Data Conversions are a major effort in any software implementation. Tyler’s conversion tools facilitate the predictable, repeatable conversion process that is necessary to support a successful transition to the Tyler system. The first step in this process is to perform an assessment of the existing (“legacy”) system(s), to better understand the source data, risks, and options available. Once the data has been analyzed, the plan for data conversion is completed and communicated to the appropriate stakeholders. Objectives:  Communicate a common understanding of the project goals with respect to data. 81 City of Winter Springs Tyler Technologies, Inc. Page | 26  Ensure complete and accurate source data is available for review/transfer.  Map the data from the source to the Tyler system.  Document the data conversion/loading approach. STAGE 2 Data Conversion Assessment Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Extract Data from Source Systems I C A R Complete Data Analysis/Mapping A R C C I C C I Review and Scrub Source Data I I I A R C I Build/Update Data Conversion Plan R C C C I I I I Inputs Client Source data Client Source data Documentation (if available) Outputs / Deliverables Acceptance Criteria [only] for Deliverables Data Conversion Plan built/updated Client Acceptance of Data Conversion Plan, if Applicable Work package assumptions:  Tyler will be provided with data from the Legacy system(s) in a mutually agreed upon format.  Tyler will work with City of Winter Springs representatives to identify business rules before writing the conversion.  City of Winter Springs subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort. 82 City of Winter Springs Tyler Technologies, Inc. Page | 27 6.2.4 Intentionally left blank. 6.2.5 Intentionally left blank. 6.2.6 Control Point 2: Assess & Define Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below. Note: Advancement to the Prepare Solution Stage is dependent upon Tyler’s receipt of the Stage Acceptance. Assess & Define Stage Deliverables:  Documentation of future state decisions and configuration options to support future state decisions.  Modification specification document.  Assess & Define Stage Acceptance Criteria:  All stage deliverables accepted based on criteria previously defined.  Solution Orientation is delivered.  Conversion data extracts are received by Tyler. Initiate & Plan stage acceptance criteria:  All stage deliverables accepted based on acceptance criteria previously defined  Project governance defined  Project portal made available to the City  Stakeholder meeting complete  Data conversion plan built. 6.3 Prepare Solution During the Prepare Solution stage, information gathered during the Initiate & Plan and Assess & Define stages will be used to install and configure the Tyler software solution. Software configuration will be validated by the client against future state decisions defined in previous stages and processes refined as needed to ensure business requirements are met. 6.3.1 Initial System Deployment The timely availability of the Tyler Solution is important to a successful Project implementation. The success and timeliness of subsequent work packages are contingent upon the initial system deployment of Tyler Licensed Software on an approved network and infrastructure. Delays in executing this work package can affect the project schedule. Objectives: 83 City of Winter Springs Tyler Technologies, Inc. Page | 28  All licensed software is installed and operational.  City of Winter Springs is able to access the software. STAGE 3 Initial System Deployment (Hosted/SaaS)* Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Prepare hosted environment A R I C Install Licensed Software with Initial Database on Server(s) for Included Environments A R I C Install Licensed Software on Client Devices (if applicable) I C A R Tyler System Administration Training (if applicable) A R I C Outputs / Deliverables Acceptance Criteria [only] for Deliverables Licensed Software is Installed on the Server(s) Software is accessible Licensed Software is Installed on Clients (if applicable) Software is accessible Installation Checklist/System Document System Passes Infrastructure Design Document (C&J – If Applicable) Work package assumptions:  The most current generally available version of the Tyler Licensed Software will be installed.  City of Winter Springs will provide network access for Tyler modules, printers, and Internet access to all applicable City of Winter Springs and Tyler Project staff. 84 City of Winter Springs Tyler Technologies, Inc. Page | 29 6.3.2 Configuration The purpose of Configuration is to prepare the software product for validation. Tyler staff collaborates with City of Winter Springs to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. City of Winter Springs collaborates with Tyler staff iteratively to validate software configuration. Objectives:  Software is ready for validation.  Educate City of Winter Springs SME how to configure and maintain software.  Prepare standard interfaces for process validation (if applicable). STAGE 3 Configuration Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Conduct configuration training A R I C C Complete Tyler configuration tasks (where applicable) A R I I I Complete Client configuration tasks (where applicable) I C A R C Standard interfaces configuration and training (if applicable) A R C I C C C Updates to Solution Validation testing plan C C A R C C Inputs Documentation that describes future state decisions and configuration options to support future state decisions. Outputs / Deliverables Acceptance Criteria [only] for Deliverables Configured System N/A 85 City of Winter Springs Tyler Technologies, Inc. Page | 30 Work package assumptions:  Tyler provides guidance for configuration options available within the Tyler software. City of Winter Springs is responsible for making decisions when multiple options are available. 6.3.3 Process Refinement Tyler will educate the City of Winter Springs users on how to execute processes in the system to prepare them for the validation of the software. City of Winter Springs collaborates with Tyler staff iteratively to validate software configuration options to support future state. Objectives:  Ensure that City of Winter Springs understands future state processes and how to execute the processes in the software.  Refine each process to meet the business requirements.  Validate standard interfaces, where applicable.  Validate forms and reports, where applicable. STAGE 3 Process Refinement Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Conduct process training A R I C I C Confirm process decisions I C A R C I C Test configuration I C A R C Refine configuration (Client Responsible) A R I I I Refine configuration (Tyler Responsible) I C A R C Validate interface process and results I C C A R C C Update client- specific process I C A R C 86 City of Winter Springs Tyler Technologies, Inc. Page | 31 documentation (if applicable) Updates to Solution Validation testing plan C C A R C C Inputs Initial Configuration Documentation that describes future state decisions and configuration options to support future state decisions. Solution validation test plan Outputs / Deliverables Acceptance Criteria [only] for Deliverables Updated solution validation test plan Completed client-specific process documentation (completed by City of Winter Springs) Work package assumptions:  None 6.3.4 Conversion Delivery The purpose of this task is to transition the City of Winter Springs’s data from their source (“legacy”) system(s) to the Tyler system(s). The data will need to be mapped from the legacy system into the new Tyler system format. A well-executed data conversion is key to a successful cutover to the new system(s). With guidance from Tyler, the City of Winter Springs will review specific data elements within the system and identify / report discrepancies. Iteratively, Tyler will collaborate with the City of Winter Springs to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system(s) to the Tyler system(s). Reference Conversion Appendix for additional detail. 87 City of Winter Springs Tyler Technologies, Inc. Page | 32 Objectives:  Data is ready for production (Conversion). STAGE 3 Data Delivery & Conversion Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Provide data crosswalks/code mapping tool A C R I I I Populate data crosswalks/code mapping tool I C C A R C Iterations: Conversion Development A C R I I Iterations: Deliver converted data A R I I I Iterations: Proof/Review data and C C C A R C C 88 City of Winter Springs Tyler Technologies, Inc. Page | 33 reconcile to source system Inputs Data Conversion Plan Configuration Outputs / Deliverables Acceptance Criteria [only] for Deliverables Code Mapping Complete / Validated N/A Conversion Iterations / Reviews Complete Conversion complete, verified and ready for final pass Work package assumptions:  The City of Winter Springs will provide a single file layout per source system as identified in the investment summary.  The City of Winter Springs subject matter experts and resources most familiar with the current data will be involved in the data conversion effort.  The City of Winter Springs project team will be responsible for completing the code mapping activity, with assistance from Tyler. 6.3.5 Intentionally left blank. 6.3.6 Intentionally left blank. 6.3.7 Control Point 3: Prepare Solution Stage Acceptance Acceptance criteria for this Stage includes all criteria listed below in each Work Package. Note: Advancement to the Production Readiness Stage is dependent upon Tyler’s receipt of the Stage Acceptance. Prepare Solution Stage Deliverables:  Licensed software is installed.  Installation checklist/system document.  Conversion iterations and reviews complete. Prepare Solution Stage Acceptance Criteria:  All stage deliverables accepted based on criteria previously defined.  Software is configured.  Solution validation test plan has been reviewed and updated if needed. 89 City of Winter Springs Tyler Technologies, Inc. Page | 34 6.4 Production Readiness Activities in the Production Readiness stage will prepare the client team for go-live through solution validation, the development of a detailed go-live plan and end user training. A readiness assessment will be conducted with the client to review the status of the project and the organizations readiness for go-live. 6.4.1 Solution Validation Solution Validation is the end-to-end software testing activity to ensure that City of Winter Springs verifies all aspects of the Project (hardware, configuration, business processes, etc.) are functioning properly, and validates that all features and functions per the contract have been deployed for system use. Objectives:  Validate that the solution performs as indicated in the solution validation plan.  Ensure City of Winter Springs organization is ready to move forward with go-live and training (if applicable). STAGE 4 Solution Validation Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Update Solution Validation plan A R C C C C Update test scripts (as applicable) C C C A R C Perform testing C C C A R C Document issues from testing C C C A R C Perform required follow-up on issues A R C C C C Inputs Solution Validation plan Completed work product from prior stages (configuration, business process, etc.) Outputs / Deliverables Acceptance Criteria [only] for Deliverables Solution Validation Report City of Winter Springs updates report with testing results 90 City of Winter Springs Tyler Technologies, Inc. Page | 35 Work package assumptions:  Designated testing environment has been established.  Testing includes current phase activities or deliverables only. 6.4.2 Go-Live Readiness Tyler and City of Winter Springs will ensure that all requirements defined in Project planning have been completed and the Go-Live event can occur, as planned. A go-live readiness assessment will be completed identifying risks or actions items to be addressed to ensure the client has considered its ability to successfully Go-Live. Issues and concerns will be discussed and mitigation options documented. Tyler and City of Winter Springs will jointly agree to move forward with transition to production. Expectations for final preparation and critical dates for the weeks leading into and during the Go-Live week will be planned in detail and communicated to Project teams. Objectives:  Action plan for go-live established.  Assess go-live readiness.  Stakeholders informed of go-live activities. STAGE 4 Go-Live Readiness Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Perform Readiness Assessment I A R C C I C I I I I I I Conduct Go-Live planning session A R C C C C C C C Order peripheral hardware (if applicable) I A R C Confirm procedures for Go-Live issue reporting & resolution A R I I I I C C I I I I I Develop Go-Live checklist A R C C C C I C C Final system infrastructure review (where applicable) A R C C 91 City of Winter Springs Tyler Technologies, Inc. Page | 36 Inputs Future state decisions Go-live checklist Outputs / Deliverables Acceptance Criteria [only] for Deliverables Updated go-live checklist Updated Action plan and Checklist for go-live delivered to City of Winter Springs Work package assumptions:  None 6.4.3 End User Training End User Training is a critical part of any successful software implementation. Using a training plan previously reviewed and approved, the Project team will organize and initiate the training activities. Train the Trainer: Tyler provides one occurrence of each scheduled training or implementation topic. City of Winter Springs users who attended the Tyler sessions may train additional users. Additional Tyler led sessions may be contracted at the applicable rates for training. Tyler will provide standard application documentation for the general use of the software. It is not Tyler’s responsibility to develop client specific business process documentation. Client-led training labs using client specific business process documentation if created by the client can be added to the regular training curriculum, enhancing the training experiences of the end users. Objectives:  End users are trained on how to use the software prior to go-live.  City of Winter Springs is prepared for on-going training and support of the application. STAGE 4 End User Training Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Update training plan A R C C I C End User training (Tyler-led) A R C C C I C C C Train-the-trainer A R C C C I C 92 City of Winter Springs Tyler Technologies, Inc. Page | 37 End User training (Client-led) C C A R I C C C Inputs Training Plan List of End Users and their Roles / Job Duties Configured Tyler System Outputs / Deliverables Acceptance Criteria [only] for Deliverables End User Training City of Winter Springs signoff that training was delivered Work package assumptions:  The City of Winter Springs project team will work with Tyler to jointly develop a training curriculum that identifies the size, makeup, and subject-area of each of the training classes.  Tyler will work with City of Winter Springs as much as possible to provide end-user training in a manner that minimizes the impact to the daily operations of City of Winter Springs departments.  City of Winter Springs will be responsible for training new users after go-live (exception—previously planned or regular training offerings by Tyler). 6.4.4 Control Point 4: Production Readiness Stage Acceptance Acceptance criteria for this stage includes all criteria listed below. Advancement to the Production stage is dependent upon Tyler’s receipt of the stage acceptance. Production Readiness stage deliverables:  Solution Validation Report.  Update go-live action plan and checklist.  End user training. Production Readiness stage acceptance criteria:  All stage deliverables accepted based on criteria previously defined.  Go-Live planning session conducted. 6.5 Production Following end user training the production system will be fully enabled and made ready for daily operational use as of the scheduled date. Tyler and City of Winter Springs will follow the comprehensive action plan laid out during Go-Live Readiness to support go-live activities and minimize risk to the Project during go-live. Following go-live, Tyler will work with City of Winter Springs to verify that implementation work is concluded, post go-live activities are scheduled, and the transition to Client Services is complete for long-term operations and maintenance of the Tyler software. 93 City of Winter Springs Tyler Technologies, Inc. Page | 38 6.5.1 Go-Live Following the action plan for Go-Live, defined in the Production Readiness stage, City of Winter Springs and Tyler will complete work assigned to prepare for Go-Live. City of Winter Springs provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final conversion iteration, if applicable. If defined in the action plan, City of Winter Springs manually enters any data added to the Legacy System after final data extract into the Tyler system. Tyler staff collaborates with City of Winter Springs during Go-Live activities. City of Winter Springs transitions to Tyler software for day-to day business processing. Some training topics are better addressed following Go-Live when additional data is available in the system or based on timing of applicable business processes and will be scheduled following Go-Live per the Project Schedule. Objectives:  Execute day to day processing in Tyler software.  Client data available in Production environment. STAGE 5 Go-Live Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Provide final source data extract, if applicable C C A R Final source data pushed into production environment, if applicable A C R I C C C Proof final converted data, if applicable C C C A R C Complete Go-Live activities as defined in the Go-Live action plan C C C A R C I C Provide Go-Live assistance A R C C I C C I C I C 94 City of Winter Springs Tyler Technologies, Inc. Page | 39 Inputs Comprehensive Action Plan for Go-Live Final source data (if applicable) Outputs / Deliverables Acceptance Criteria [only] for Deliverables Data is available in production environment Client confirms data is available in production environment Work package assumptions:  City of Winter Springs will complete activities documented in the action plan for Go-Live as scheduled.  External stakeholders will be available to assist in supporting the interfaces associated with the Go- Live live process.  The Client business processes required for Go-Live are fully documented and tested.  The City of Winter Springs Project team and subject matter experts are the primary point of contact for the end users when reporting issues during Go-Live.  The City of Winter Springs Project Team and SME’s provide business process context to the end users during Go-Live.  The Tyler Go-Live support team is available to consult with the City of Winter Springs teams as necessary.  The Tyler Go-Live support team provides standard functionality responses, which may not be tailored to the local business processes. 6.5.2 Transition to Client Services This work package signals the conclusion of implementation activities for the Phase or Project with the exception of agreed-upon post Go-Live activities. The Tyler project manager(s) schedules a formal transition of City of Winter Springs onto the Tyler Client Services team, who provides City of Winter Springs with assistance following Go-Live, officially transitioning City of Winter Springs to operations and maintenance. Objectives:  Ensure no critical issues remain for the project teams to resolve.  Confirm proper knowledge transfer to City of Winter Springs teams for key processes and subject areas. STAGE 5 Transition to Client Services Tyler Client 95 City of Winter Springs Tyler Technologies, Inc. Page | 40 RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Transfer client to Client Services and review issue reporting and resolution processes I I A I I R I I C C C Review long term maintenance and continuous improvement A R C C C Inputs Open item/issues List Outputs / Deliverables Acceptance Criteria [only] for Deliverables Client Services Support Document Work package assumptions:  No material project issues remain without assignment and plan. 6.5.3 Post Go-Live Activities Some implementation activities are provided post-production due to the timing of business processes, the requirement of actual production data to complete the activities, or the requirement of the system being used in a live production state. Objectives:  Schedule activities that are planned for after Go-Live.  Ensure issues have been resolved or are planned for resolution before phase or project close. STAGE 5 Post Go-Live Activities Tyler Client 96 City of Winter Springs Tyler Technologies, Inc. Page | 41 RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Schedule contracted activities that are planned for delivery after go-live A R C C C C I C C I C C Determine resolution plan in preparation for phase or project close out A R C C C I C C I C Inputs List of post Go-Live activities Outputs / Deliverables Acceptance Criteria [only] for Deliverables Updated issues log Work package assumptions:  System is being used in a live production state. 6.5.4 Control Point 5: Production Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below:  Advancement to the Close stage is not dependent upon Tyler’s receipt of this Stage Acceptance.  Converted data is available in production environment. Production Stage Acceptance Criteria:  All stage deliverables accepted based on criteria previously defined.  Go-Live activities defined in the Go-Live action plan completed.  Client services support document is provided. 6.6 Close The Close stage signifies full implementation of all products purchased and encompassed in the Phase or Project. City of Winter Springs transitions to the next cycle of their relationship with Tyler (next Phase of implementation or long-term relationship with Tyler Client Services). 97 City of Winter Springs Tyler Technologies, Inc. Page | 42 6.6.1 Phase Closeout This work package represents Phase completion and signals the conclusion of implementation activities for the Phase. The Tyler Client Services team will assume ongoing support of City of Winter Springs for systems implemented in the Phase. Objectives:  Agreement from Tyler and City of Winter Springs teams that activities within this phase are complete. STAGE 6 Phase Close Out Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Reconcile project budget and status of contract Deliverables I A R I I C Hold post phase review meeting A R C C C C C C C C C Release phase- dependent Tyler project resources A R I I Participants Tyler Client Project Leadership Project Manager Project Manager Project Sponsor(s) Implementation Consultants Functional Leads, Power Users, Technical Leads Technical Consultants (Conversion, Deployment, Development) Client Services Inputs Contract Statement of Work Project artifacts Outputs / Deliverables Acceptance Criteria [only] for Deliverables Final action plan (for outstanding items) Reconciliation Report Post Phase Review 98 City of Winter Springs Tyler Technologies, Inc. Page | 43 Work package assumptions:  Tyler deliverables for the phase have been completed. 6.6.2 Project Closeout Completion of this work package signifies final acceptance and formal closing of the Project. At this time City of Winter Springs may choose to begin working with Client Services to look at continuous improvement Projects, building on the completed solution. Objectives:  Confirm no critical issues remain for the project teams to resolve.  Determine proper knowledge transfer to City of Winter Springs teams for key processes and subject areas has occurred.  Verify all deliverables included in the Agreement are delivered. STAGE 6 Project Close Out Tyler Client RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed Executive Manager Implementation Manager Project Manager Implementation Consultant Data Experts Modification Services Technical Services Client Services Executive Sponsor Steering Committee Project Manager Functional Leads Change Management Leads Subject Matter Experts (SMEs) Department Heads End Users Technical Leads Conduct post project review A R C C C C C C C C C Deliver post project report to City of Winter Springs and Tyler leadership I A R I I C Release Tyler project resources A R I I Inputs Contract Statement of Work Outputs / Deliverables Acceptance Criteria [only] for Deliverables Post Project Report Client acceptance; Completed report indicating all project Deliverables and milestones have been completed 99 City of Winter Springs Tyler Technologies, Inc. Page | 44 Work package assumptions:  All project implementation activities have been completed and approved.  No critical project issues remain that have not been documented and assigned.  Final project budget has been reconciled and invoiced.  All Tyler deliverables have been completed. 6.6.3 Control Point 6: Close Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below. Note: Advancement to the Close Stage is not dependent upon Tyler’s receipt of this Stage Acceptance. Close Stage Deliverables:  Post Project Report. Close Stage Acceptance Criteria:  Completed report indicating all Project deliverables and milestones have been completed. 7. General Assumptions Tyler and City of Winter Springs will use this SOW as a guide for managing the implementation of the Tyler Project as provided and described in the Agreement. There are a number of assumptions which, when acknowledged and adhered to, will support a successful implementation. Assumptions related to specific work packages are documented throughout the SOW. Included here are general assumptions which should be considered throughout the overall implementation process. 7.1 Project  Project activities will begin after the Agreement has been fully executed.  The City of Winter Springs Project Team will complete their necessary assignments in a mutually agreed upon timeframe in order to meet the scheduled go-live date, as outlined in the Project Schedule.  Sessions will be scheduled and conducted at a mutually agreeable time.  Additional services, software modules and modifications not described in the SOW or Agreement will be considered a change to this Project and will require a Change Request Form as previously referenced in the definition of the Change Control Process.  Tyler will provide a written agenda and notice of any prerequisites to the City of Winter Springs project manager(s) ten (10) business days or as otherwise mutually agreed upon time frame prior to any scheduled on-site or remote sessions, as applicable. 100 City of Winter Springs Tyler Technologies, Inc. Page | 45  Tyler will provide guidance for configuration and processing options available within the Tyler software. If multiple options are presented by Tyler, City of Winter Springs is responsible for making decisions based on the options available.  Implementation of new software may require changes to existing processes, both business and technical, requiring City of Winter Springs to make process changes.  City of Winter Springs is responsible for defining, documenting and implementing their policies that result from any business process changes. 7.2 Organizational Change Management Unless otherwise contracted by Tyler, City of Winter Springs is responsible for managing Organizational Change. Impacted Client resources will need consistent coaching and reassurance from their leadership team to embrace and accept the changes being imposed by the move to new software. An important part of change is ensuring that impacted client resources understand the value of the change, and why they are being asked to change. 7.3 Resources and Scheduling  City of Winter Springs resources will participate in scheduled activities as assigned in the Project Schedule.  The City of Winter Springs team will complete prerequisites prior to applicable scheduled activities. Failure to do so may affect the schedule.  Tyler and City of Winter Springs will provide resources to support the efforts to complete the Project as scheduled and within the constraints of the Project budget.  Abbreviated timelines and overlapped Phases require sufficient resources to complete all required work as scheduled.  Changes to the Project Schedule, availability of resources or changes in Scope will be requested through a Change Request. Impacts to the triple constraints (scope, budget and schedule) will be assessed and documented as part of the change control process.  City of Winter Springs will ensure assigned resources will follow the change control process and possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, change control process buy-in, and knowledge.  City of Winter Springs makes timely Project related decisions in order to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Failure to do so may affect the schedule, as each analysis and implementation session is dependent on the decisions made in prior sessions.  City of Winter Springs will respond to information requests in a comprehensive and timely manner, in accordance with the Project Schedule.  City of Winter Springs will provide adequate meeting space or facilities, including appropriate system connectivity, to the project teams including Tyler team members. 101 City of Winter Springs Tyler Technologies, Inc. Page | 46  For on-site visits, Tyler will identify a travel schedule that balances the needs of the project and the employee. 7.4 Data  Data will be converted as provided and Tyler will not create data that does not exist.  City of Winter Springs is responsible for the quality of legacy data and for cleaning or scrubbing erroneous legacy data.  Tyler will work closely with City of Winter Springs representatives to identify business rules before writing the conversion. City of Winter Springs must confirm that all known data mapping from source to target have been identified and documented before Tyler writes the conversion.  All in-scope source data is in data extract(s).  Each legacy system data file submitted for conversion includes all associated records in a single approved file layout.  The client will provide the legacy system data extract in the same format for each iteration unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget and resource availability may occur and/or data in the new system may be incorrect.  The City of Winter Springs Project Team is responsible for reviewing the converted data and reporting issues during each iteration, with assistance from Tyler.  Client is responsible for providing or entering test data (e.g., data for training, testing interfaces, etc.) 7.5 Facilities  City of Winter Springs will provide dedicated space for Tyler staff to work with City of Winter Springs resources for both on-site and remote sessions. If Phases overlap, City of Winter Springs will provide multiple training facilities to allow for independent sessions scheduling without conflict.  City of Winter Springs will provide staff with a location to practice what they have learned without distraction. 102 City of Winter Springs Tyler Technologies, Inc. Page | 47 8. Glossary Word or Term Definition Acceptance Confirming that the output or deliverable is suitable and conforms to the agreed upon criteria. Accountable The one who ultimately ensures a task or deliverable is completed; the one who ensures the prerequisites of the task are met and who delegates the work to those responsible. [Also see RACI] Application A computer program designed to perform a group of coordinated functions, tasks or activities for the benefit of the user. Application Programming Interface (API) A defined set of tools/methods to pass data to and received data from Tyler software products Agreement This executed legal contract that defines the products and services to be implemented or performed. Business Process The practices, policy, procedure, guidelines, or functionality that the client uses to complete a specific job function. Business Requirements Document A specification document used to describe Client requirements for contracted software modifications. Change Request A form used as part of the Change Control process whereby changes in the scope of work, timeline, resources, and/or budget are documented and agreed upon by participating parties. Change Management Guides how we prepare, equip and support individuals to successfully adopt change in order to drive organizational success & outcomes Code Mapping [where applicable] An activity that occurs during the data conversion process whereby users equate data (field level) values from the old system to the values available in the new system. These may be one to one or many to one. Example: Old System [Field = eye color] [values = BL, Blu, Blue] maps to New Tyler System [Field = Eye Color] [value = Blue]. Consulted Those whose opinions are sought, typically subject matter experts, and with whom there is two-way communication. [Also see RACI] Control Point This activity occurs at the end of each stage and serves as a formal and intentional opportunity to review stage deliverables and required acceptance criteria for the stage have been met. Data Mapping [where applicable] The activity determining and documenting where data from the legacy system will be placed in the new system; this typically involves prior data analysis to understand how the data is currently used in the legacy system and how it will be used in the new system. Deliverable A verifiable document or service produced as part of the Project, as defined in the work packages. Go-Live The point in time when the Client is using the Tyler software to conduct daily operations in Production. Informed Those who are kept up-to-date on progress, often only on completion of the task or deliverable, and with whom there is just one-way communication. [Also see RACI] 103 City of Winter Springs Tyler Technologies, Inc. Page | 48 Infrastructure The composite hardware, network resources and services required for the existence, operation and management of the Tyler software. Interface A connection to and potential exchange of data with an external system or application. Interfaces may be one way, with data leaving the Tyler system to another system or data entering Tyler from another system, or they may be bi-directional with data both leaving and entering Tyler and another system. Integration A standard exchange or sharing of common data within the Tyler system or between Tyler applications Legacy System The software from which a client is converting. Modification Custom enhancement of Tyler’s existing software to provide features or functions to meet individual client requirements documented within the scope of the Agreement. On-site Indicates the work location is at one or more of the client’s physical office or work environments. Organizational Change The process of changing an organization's strategies, processes, procedures, technologies, and culture, as well as the effect of such changes on the organization. Output A product, result or service generated by a process. Peripheral devices An auxiliary device that connects to and works with the computer in some way. Some examples: scanner, digital camera, printer. Phase A portion of the Project in which specific set of related applications are typically implemented. Phases each have an independent start, Go-Live and closure dates but use the same Implementation Plans as other Phases of the Project. Phases may overlap or be sequential and may have different Tyler resources assigned. Project The delivery of the software and services per the agreement and the Statement of Work. A Project may be broken down into multiple Phases. RACI A matrix describing the level of participation by various roles in completing tasks or Deliverables for a Project or process. Individuals or groups are assigned one and only one of the following roles for a given task: Responsible (R), Accountable (A), Consulted (C), or Informed (I). Remote Indicates the work location is at one or more of Tyler’s physical offices or work environments. Responsible Those who ensure a task is completed, either by themselves or delegating to another resource. [Also see RACI] Scope Products and services that are included in the Agreement. 104 City of Winter Springs Tyler Technologies, Inc. Page | 49 Solution The implementation of the contracted software product(s) resulting in the connected system allowing users to meet Project goals and gain anticipated efficiencies. Stage The top-level components of the WBS. Each Stage is repeated for individual Phases of the Project. Standard Software functionality that is included in the base software (off- the-shelf) package; is not customized or modified. Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining Project-specific activities, services and Deliverables. System The collective group of software and hardware that is used by the organization to conduct business. Test Scripts The steps or sequence of steps that will be used to validate or confirm a piece of functionality, configuration, enhancement, or Use Case Scenario. Training Plan Document(s) that indicate how and when users of the system will be trained relevant to their role in the implementation or use of the system. Validation (or to validate) The process of testing and approving that a specific Deliverable, process, program or product is working as expected. Work Breakdown Structure (WBS) A hierarchical representation of a Project or Phase broken down into smaller, more manageable components. Work Package A group of related tasks within a project. 105 City of Winter Springs Tyler Technologies, Inc. Page | 50 Part 4: Appendices 9. Conversion 9.1 Data Conversion Process for EnerGov Enterprise Server 9.1.1 Overview: This document is an introduction to the SQL Server EG_Template database and how to populate it. The Full Conversion is the same process, as the Templated. However, with the Full Conversion option, Tyler is responsible for the data import instead of the client. 9.1.2 Modularized Design: As with the EnerGov software, the EG_Template db is sectioned into modules. Each contains one master table at the top of the chain (ex. ‘permit’ for the Permit module). Within each module, various child tables branch below the master table for the associated module (ex. ‘permit_address’, ‘permit_note’, etc.). Some tables cross multiple modules. The most notable of these involve inspections and payment transactions. The EG_Template database includes database diagrams, which indicate the tables and their relationships to each module. 9.1.3 Required Fields: In the EnerGov software, some fields are “Required Fields,” and the associated columns must be populated for records to be written to the EnerGov db. On occasion, these required fields will not be available in the legacy source data, so a simple default value can be written to the EG_Template db to fulfill any NOT NULL constraint. Dropdown picklist columns restrict the user from entering certain values in the EnerGov db. Conversely, drop- down fields do not have a restriction on values written to the EG_Template db. Therefore, exact spelling or careful matching to the EnerGov configured values is not a requirement for fields intended for EnerGov drop- down fields. Tyler maps the values through a separate table to translate the values to the appropriate EnerGov value during conversion and collaborates with the client to validate the resulting mappings during the development phase of the conversion. 9.1.4 Custom Fields (any fields not available in the master table for the module in question): Most legacy systems have some attribute fields that are not specified in the corresponding master table within EG_Template. Tyler refers to these as custom fields. Within each module exists a child table for such custom fields. Since these fields are specific to the legacy system(s), the client may add columns to these tables in EG_Template to accommodate any needed custom fields in the migration. For example, ‘permit_additional_fields’ is the table for extra fields relating to the ‘permit’ records. 106 City of Winter Springs Tyler Technologies, Inc. Page | 51 9.1.5 Gap Handling (where legacy data doesn’t fit anywhere within EG_Template): On occasion, legacy systems contain special features for which EnerGov does not account in the EG_Template db. As a result, the need may arise to develop a modified solution to address special cases. 9.1.6 Contacts: Contacts generally fall into two categories: 1. Those managed with each person/company having one contact record, kept up to date over time. With this model, there is generally no duplication of contact records (except when created by mistake). 2. Contacts where the user enters the contact attribute info on each permit, case, license, etc. With this model, there is no single master record representing the contact itself and there is likely considerable duplication of contacts. EnerGov stores contacts as in category 1 above. Tyler migrates contacts put into EG_Template without a master ‘contact’ record link (category 2 above) into custom field memo boxes to avoid duplication of contacts within the EnerGov contact repository. For example, when populating the permit contacts, for contacts in category 1, input the record into the ‘permit_contact’ table. Input contacts for category 2 into the ‘permit_contact_no_key’ table. 9.1.7 Multiple Legacy Data Sources: When presenting multiple data sources, ensure population of EG_Template for all data sources. At the main table level, an optional column exists for the legacy data source. Tyler provides this column to easily count or research records originating from a particular legacy data source. 9.1.8 Overall Architecture of Conversion: There are 3 SQL Server databases involved in the conversion process. 1. EG_Template (for legacy data) 3. EnerGov (the production EnerGov db) 4. A database containing all conversion processes and mapping tables; maintained by Tyler’s data conversion team. This db translates the data from EG_Tempate into the EnerGov db. 107 City of Winter Springs Tyler Technologies, Inc. Page | 52 EG_Template •All legacy data sources populated into one db within the templated table structure. Mapping and Conversion Code •Db used to map/translat e data before passing into EnerGov. Stored procedures and functions exist in this db, which becomes the conversion source code EnerGov DB •EnerGov db used by the EnerGov software. 108 City of Winter Springs Tyler Technologies, Inc. Page | 53 9.1.9 Progression of Conversion Development Process: Step Step Name Responsible Party Notes 1 Provide empty EG_Template database to client Tyler Database format will be SQL Server 2 Load legacy data into template database Client If there are multiple legacy data sources, all should be loaded into the one template SQL database. 3 Mapping process Tyler /Client Dependent on completed EnerGov configuration Spreadsheets will be used to communicate mapping values. Mapping questions may arise and both parties may need to discuss these until answers are agreed upon. 4 Import-specific configuration changes to EnerGov Tyler Certain fields or values may need to exist for imported records only. These usually require some minor EnerGov configuration changes. 5 Customize conversion scripts Tyler Minor customization can be expected for many conversions, based on special requests from client. Any special requests would also be added into the conversion scripts at this time. 6 Conversion execution Tyler Resulting EnerGov database will be provided to client team for review. 7 Review and either sign-off or request changes Client Client team will review the data and the interaction with it in the EnerGov software. If it meets the client’s needs, sign-off will occur. If not, certain steps above may need to be repeated until client signs off on the conversion. 109 City of Winter Springs Tyler Technologies, Inc. Page | 54 9.1.10 Progression of Final Conversion Cutover Process (Go-Live): Step Step Name Responsible Party Notes 1 Load legacy data into template database Client This should just be an up-to-date extract of the legacy data into the template db. 2 Conversion execution Tyler Resulting EnerGov database will be provided to client team. This will be the production EnerGov db. 3 Go-Live Tyler /Client Verification of EnerGov db and site functionality - Data Conversion sign-off Move to production phase 9.1.11 Data Import Areas: 9.1.12 Business Management  Business entity (Only for Business Licensing)  License master basic information  License Contacts  Contacts – Unique (keyed) contacts converted to global contacts  Non-keyed contacts converted to a Memo Custom Field or a standard note Parcel and Addresses  Reviews and Approvals – Converted to Activity  Fees  Bonds and Escrow  Activities and Actions  Conditions  Notes  Holds  Initialized Workflows  Attachments  Contractors  Business Types & NAICS codes 110 City of Winter Springs Tyler Technologies, Inc. Page | 55  Payment and Fee History 9.1.13 Community Development: Code Cases  Code Case master basic information  Code Case Contacts and Properties  Contacts – Unique (keyed) contacts converted to global contacts  Non-keyed contacts converted to a Memo Custom Field or a standard note  Parcels and Addresses  Reviews and Approvals – Converted to Activity Active Fees  Activities and Actions  Notes  Holds  Initialized Workflows  Attachments  Violations o Fees o Payments o Notes  Meetings and Hearings  Zones  Requests  Payment and Fee history 9.1.14 Community Development: Permits  Permit master basic information  Permit Contacts  Contacts – Unique (keyed) contacts converted to global contacts  Non-keyed contacts converted to a Memo Custom Field or a standard note  Parcels and Addresses 111 City of Winter Springs Tyler Technologies, Inc. Page | 56  Reviews and Approvals – Converted to Activity  Inspections and Inspection Cases  Sub-Permit Associations – Visible in workflow and attached records section  Fees  Meetings and Hearings  Bonds and Escrow  Activities and Actions  Conditions  Notes  Zones  Holds  Renewals  Initialized Workflows  Attachments  Contractors  Projects  Payment and Fee History 9.1.15 Community Development: Plans  Plan master basic information  Plan Contacts  Contacts – Unique (keyed) contacts converted to global contacts  Non-keyed contacts converted to a Memo Custom Field or a standard note  Parcels and Addresses  Reviews and Approvals – Converted to Activity  Inspections and Inspection Cases  Fees  Meetings and Hearings 112 City of Winter Springs Tyler Technologies, Inc. Page | 57  Bonds and Escrow  Activities and Actions  Conditions  Notes  Zones  Holds  Initialized Workflows  Attachments  Projects  Payment and Fee history  113 City of Winter Springs Tyler Technologies, Inc. Page | 58 10. Additional Appendices 10.1 Intentionally left blank. 11. Project Timeline 11.1 EnerGov 12 Month Timeline 114 Quoted By:Garth Magness Date:2/22/2021 Quote Expiration:4/23/2021 Quote Name:City of Winter Springs-Civic Services-EnerGov Quote Number:2020-116529 Quote Description:EnerGov SaaS Sales Quotation For City of Winter Springs 1126 E State Road 434 Winter Springs, FL 32708-2799 Phone +1 (407) 327-1800 EnerGov SaaS - Silver Description Monthly Fee Users/Units Annual Fee Core Software: EnerGov Business Management Suite $169.00 10 $20,280.00 EnerGov Community Development Suite $147.00 20 $35,280.00 MyCivic Bundle (Limited Use) $250.00 Site License $3,000.00 Extensions: EnerGov Citizen Self Service - Business Management $725.00 Site License $8,700.00 EnerGov Citizen Self Service - Community Development $725.00 Site License $8,700.00 EnerGov Decision Engine $725.00 Site License $8,700.00 EnerGov e-Reviews $833.00 Site License $10,000.00 EnerGov IG Workforce Apps $49.00 5 $2,940.00 EnerGov My GovPay $0.00 1 $0.00 EnerGov Report Toolkit $0.00 1 $0.00 EnerGov Standard Technical Support $0.00 1 $0.00 EnerGov VirtualPay $0.00 1 $0.00 Socrata-EnerGov Executive Insights Bundle $833.00 Site License $10,000.00 Tyler 311 $458.00 Site License $5,500.00 Tyler GIS $0.00 1 $0.00 2020-116529 - EnerGov SaaS CONFIDENTIAL 1 of 5 115 EnerGov SaaS - Silver Description Monthly Fee Users/Units Annual Fee Sub-Total: $113,100.00 Less Discount: $22,560.00 TOTAL: $90,540.00 EnerGov Professional Services Description Hours/Units Unit Price Extended Price Year One Maintenance Data Conversion - New World 1 $0.00 $0.00 $0.00 Professional Implementation Consulting 400 $185.00 $74,000.00 $0.00 Project Management Services 150 $185.00 $27,750.00 $0.00 Training & Production Support Services 80 $175.00 $14,000.00 $0.00 TOTAL: $116,000.00 $0.00 Summary One Time Fees Recurring Fees Total Tyler Software $0.00 $0.00 Total SaaS $0.00 $90,540.00 Total Tyler Services $116,000.00 $0.00 Total 3rd Party Hardware, Software and Services $0.00 $0.00 Summary Total $116,000.00 $90,540.00 Year One Contract Total $206,540.00 Contract Total $206,540.00 Estimated Travel Expenses $28,900.00 Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held for six (6) months from the Quote date or the Effective Date of the contract, whichever is later. 2020-116529 - EnerGov SaaS CONFIDENTIAL 2 of 5 116 Customer Approval: Date: Print Name: P.O. #: All primary values quoted in US Dollars 2020-116529 - EnerGov SaaS CONFIDENTIAL 3 of 5 117 Comments Shared Services: Tyler Technologies' implementation team will offer training and guidance during the implementation. Tyler Technologies' EnerGov implementation team will be primarily responsible for the following implementation tasks: •Training on how to use EnerGov •Training and providing guidance on how to configure and maintain EnerGov •Setup of EnerGov GIS Map •Setup of EnerGov GIS Live Link •Setup of CSS GIS Map (as applicable, based on contract) •Setup of CSS ArcGIS Integration (as applicable, based on contract) •Setup of CSS Payments (as applicable, based on contract and client having secured an appropriate payment gateway) •Setup and testing of Tyler-to-Tyler integrations (Munis, Tyler Cashiering, Tyler Content Management, Tyler Incident Management, as applicable based on contract) •Setup of iG Workforce licenses (as applicable, based on contract) •EnerGov Automation Events (Intelligent Objects, standard Intelligent Queries). This covers standard automation tasks like E-mails, Tasks, Geo Rules, etc. The client subject matter experts (SMEs) should be available approximately 25% of any given week throughout the project in order to perform configuration in addition to scheduled time with Tyler's EnerGov consultant. These client SMEs will be responsible for the following general configuration tasks: •EnerGov Case Type Setup (and all associated items required to configure) •EnerGov System Setup Configuration (Holidays, Zones, Hold Types, Hearing Types, etc.) •EnerGov Report Setup's dynamic custom fields •EnerGov User/User Role Setup •EnerGov Workflow/Workflow Template Setup (WF Actions, Steps, Templates, Submittal Types, Item Reviews etc.) •CSS Experience (CSS Case Types, CSS Geo Rules, CSS Themes, Headers, Menus, Security Settings, etc.) •EnerGov Automation Events (Intelligent Objects, standard Intelligent Queries). This covers automation tasks like E-mails, Tasks, Geo Rules, etc. •Other configuration as desired by client In the event the Client cancels services less than three(3) weeks in advance, Client is liable to Tyler for (i) all non-refundable expenses incurred by Tyler on Client's behalf; and (ii) daily fees associated with the cancelled services if Tyler is unable to re-assign its personnel. Delays in completion, reviews, and/or acceptance of any deliverable by the Client will result in an increase in the duration of the project and will require a Change Order for any additional costs associated with the delay, including but not limited to additional hours for project management, deliverable development and review. Training Policy - The client receives and will be billed for up to 32 hours of direct interaction with Trainers. Note that this time is billed in daily blocks at 8 hours for the day. Totaling 4 days of training time. The client will also be billed for up to 8 hours of setup and prep time. This allows our Trainers to become familiar with individual clients and their 2020-116529 - EnerGov SaaS CONFIDENTIAL 4 of 5 118 Comments needs. Whilee the Training is generic, our Trainers always spend time familiarizing themselves with client environments. It is the client's responsibility to provide and maintain the GIS services to be used by the Tyler EnerGov applications. Tyler will provide guidelines to be followed for such services. Tyler resources will establish connection and verify data exchange between Socrata and EnerGov. Tyler resources will establish connection and verify data exchange between My Civic and Energov for code cases. Tyler 311 is an application for citizens to report code complaints. Tyler resources will configure, train client personnel, and support go-live for 311 functionality utilized by EnerGov. OS. The client is responsible for ensuring the app(s) are downloaded and kept up to date on client utilized hardware. iG Workforce - iG Inspect and iG Enforce provide a mobile solution for field personnel to capture inspection and code data remotely. Tyler will assist to connect IG Apps to the EnerGov suite, and support testing. These applications are available on is for EnerGov API/SDK toolkits. The Client (or a selected third party integrator) will perform all development work against the API/SDK. Decision Engine is a web-based application that utilizes yes/no questions to guide citizens through online applications. Tyler will ensure and troubleshoot the connection and provide application configuration training. The client is responsible to de. Further pricing detail is upon request. eReviews enables electronic review and markup of submitted plans and other documentation by client personnel. eReviews requires Bluebeam Studio Prime, at an estimated yearly subscription cost of $3,000/100 users to be purchased separately by Client. Further pricing detail is upon request. EnerGov monthly fees are rounded, excluding cents. EnerGov SaaS includes up to 500GB of storage. Should additional storage be needed it may be purchased as needed at an annual fee of $3,000 per TB. As a new Tyler client, you are entitled to a 30-day trial of the Tyler Detect cybersecurity service. Please reference https://www.tylertech.com/services/tyler-detect for more information on the service and contact CybersecuritySales@tylertech.com to initiate the trial. EnerGov Implementation: Tyler leads and owns the configuration of 1 unique business transactions, 1 template business transactions, and will build out the standard geo-rules and standard automation events included in the application. Configuration elements beyond this will be owned by the client. 2020-116529 - EnerGov SaaS CONFIDENTIAL 5 of 5 119 CITY COMMISSION REGULAR MEETING MINUTES MONDAY, APRIL 12, 2021 AT 6:30 PM CITY HALL - COMMISSION CHAMBERS 1126 EAST STATE ROAD 434, WINTER SPRINGS, FLORIDA 120 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 2 OF 11 CALL TO ORDER Deputy Mayor Ted Johnson called the Regular Meeting of Monday, April 12, 2021 of the City Commission to order at 6:30 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Deputy Mayor Ted Johnson, present Commissioner Matt Benton, present Commissioner Kevin Cannon, present Commissioner TiAnna Hale, present Commissioner Rob Elliott, present City Manager Shawn Boyle, present City Attorney Anthony A. Garganese, present City Clerk Christian Gowan, present AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 100) Update on the Consumptive Use Permit - Drinking Water Cover Page Mr. Dale Smith presented on the Consumptive Use Permit with expanded data and reviewed education and conservation marketing and programs. Discussion followed on the percentage of residents using potable water for irrigation and the timeline for connecting Tuskawilla Crossing to reuse. Mr. Smith estimated that the project at Tuskwailla Crossing would take 12-18 months from start to finish. INFORMATIONAL AGENDA 200) Current Economic and Community Development Projects Summary Cover Page Current Projects Summary 201) Comprehensive Plan Timeline Update Cover Page Comp Plan Gannt Chart_CS 121 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 3 OF 11 PUBLIC INPUT Deputy Mayor Johnson reviewed the procedure for Public Input and asked that those wishing to speak on the appointment of the Mayor wait until Item 500 to provide their input. Deputy Mayor Johnson opened Public Input Ms. Loretta Ames, 150 Third Street, Winter Springs noted her involvement on the City’s Bicycle and Pedestrian Advisory Committee, mentioned a speed study being conducted by the state, asked that the City work to get the speed limit on State Road 419 further reduced and asked for crosswalks to improve access to the bike path. Lastly, Ms. Ames requested that the Bicycle and Pedestrian Advisory Committee meet more frequently. Manager Boyle asked that Ms. Ames bring this up at the next meeting of the Bicycle and Pedestrian Advisory Committee to get a consensus from her fellow Committee Members. The Clerk read an email submitted by Ms. Luanne Parker, 1192 East SR 434, Winter Springs related to the Egg-Citing Egg Hunt and her business. The full email is attached to the end of these Minutes. CONSENT AGENDA 300) Surplus Assets 4.12.21 Surplus List 301) Community Project Funding Requests through Congresswoman Murphy’s Office Cover Page Resolution 2021-04 Supporting Community Project Funding for WTP3 and LS7 generators etc Resolution 2021-05 Supporting Community Project Funding grant for WTP security Funding Requests for WTP3 and LS7 Generators Funding Request for WTP Security Commissioner Cannon asked about potential funding and timelines. Ms. Maria Sonksen, Director, Finance Department noted this item was only authorizing the City to go after funding. 122 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 4 OF 11 302) Cost-Sharing Agreement between the St. John’s River Water Management District and the City of Winter Springs-Tuskawilla Crossings Reclaimed Water Connection Cover Page City of Winter Springs Tuskawilla Agreement03_29_21 Commissioner Cannon asked about timelines for installation, the potential for further expansion, and line sizing. 303) Minutes from the Monday, March 22, 2021 City Commission Regular Meeting Minutes "MOTION TO APPROVE CONSENT AGENDA." MOTION BY COMMISSIONER HALE. SECONDED BY COMMISSIONER BENTON. DISCUSSION. VOTE: DEPUTY MAYOR JOHNSON: AYE COMMISSIONER BENTON: AYE COMMISSIONER ELLIOTT: AYE COMMISSIONER HALE: AYE COMMISSIONER CANNON: AYE MOTION CARRIED. PUBLIC HEARINGS AGENDA 400) Second Reading of Ordinance 2021-02 amending Chapter 20 of the Winter Springs City Code regarding scheduling public hearings before the City Commission on development permit applications; providing for the repeal of prior inconsistent ordinances and resolutions; incorporation into the code; severability and an effective date. Cover Page Ordinance 2021-02 Scheduling Public Hearings on Development Permit Applications Ordinance 2021-02_Orlando Sentinel Ad Attorney Garganese read Ordinance 2021-02 by title only. Attorney Garganese noted this was the second and final reading and reviewed purpose of the proposed ordinance. 123 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 5 OF 11 Deputy Mayor Johnson opened the Public Hearing for Item 400. Nobody spoke. Deputy Mayor Johnson closed the Public Hearing for Item 400. "MOTION TO APPROVE ORDINANCE 2021-02." MOTION BY COMMISSIONER CANNON. SECONDED BY COMMISSIONER BENTON. DISCUSSION. VOTE: COMMISSIONER ELLIOTT: AYE DEPUTY MAYOR JOHNSON: AYE COMMISSIONER BENTON: AYE COMMISSIONER HALE: AYE COMMISSIONER CANNON: AYE MOTION CARRIED. REGULAR AGENDA 500) Consider Applications for Appointment to the Office of the Mayor Cover Page McCann, Kevin - Application for Mayor Morrisey, William - Application for Office of the Mayor Parsons III, Howard - Application for Office of the Mayor Parsons, Sabrina - Application for Office of the Mayor Phillips, Jesse - Application for the Office of the Mayor Spalthoff, Kenneth - Application for Office of the Mayor Wentzell, Christopher Application for Mayor Deputy Mayor Johnson asked if the Commission would agree to extend to 10PM at this time. There Commission agreed. Deputy Mayor Johnson then proposed a process for hearing from Mayoral applicants, allowing Commissioners a chance to ask questions, and a nomination process. “I would like to propose that each candidate, alphabetically by last name, be afforded 3 minutes to introduce themselves at the beginning of this Item and provide any additional information that we should take into consideration for the appointment of Mayor. Then, after each candidate has introduced themselves, each commissioner will have a 5-minute opportunity to engage in a brief question and answer period with 124 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 6 OF 11 each candidate, if the commissioner has any follow-up questions. Once all candidates have introduced themselves, I will then seek public comment from anyone who wishes to speak on this item and has completed a blue form. Each person will be permitted to speak for 3 minutes. Representatives of groups and HOAs will limit their comments to 5 minutes. After public input, I will then proceed with the two-step nomination and appointment process under Robert’s Rules. Step 1. I will first open the floor for each commissioner to be given the opportunity to nominate one of the candidates to be the next Mayor of Winter Springs. Nominations do not require a motion or vote of the commission. Further, a commissioner is not required to make a nomination, and if the commissioner’s chosen nominee has already been nominated by another commissioner, it is not necessary to duplicate the nomination a second time. Once each commissioner has had the opportunity to make a nomination, I will close the nomination process and proceed to Step 2. Step 2. The commission will have an opportunity to discuss the nominations made in Step 1 and appoint one of the nominees to be the next Mayor. Appointment requires a formal motion and a majority vote of the commission. Therefore, once the City Commission completes its discussion on the nominees, I will then present each nominee for consideration by the City Commission, in alphabetical order by last name. The City Commission will then have the right to make a motion or not to appoint that nominee to be the next Mayor. If the nominee is not selected either because of a lack of a motion or majority vote, I will go to the next nominee on the alphabetical list until hopefully one of the nominees receives a majority vote to be appointed the next Mayor. Assuming one of the candidates is appointed this evening, I would recommend that the swearing-in ceremony occur at 6:00 PM immediately preceding the City Commission’s next regularly scheduled meeting on April 26 at 6:30 PM so friends, family, and the public can be invited to attend and enjoy the inauguration ceremony. After the swearing-in ceremony, the new Mayor will take his or her seat at 6:30PM and preside over the regularly scheduled Commission meeting.” Discussion followed on the proposed procedure and the appropriate time to discuss each nomination. The Commission agrees to the process previously laid out by Deputy Mayor Johnson. Deputy Mayor Johnson then asked applicants to limit their comments to three (3) minutes and asked that they remain standing at the podium to answer any 125 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 7 OF 11 questions. Mayoral applicants presented information about themselves and their qualifications in the following order: Mr. Kevin McCann, Mr. William Morrisey, Mr. Howard Parsons III, Mrs. Sabrina Parsons, Mr. Jesse Phillips, Mr. Kenneth Spalthoff, and Mr. Christopher Wentzell. After each applicant’s three (3) minute presentation, Commissioners were given five (5) minutes each to ask questions of the applicant. Mr. Justin York, 645 Regina Lane, Lake Mary noted he was a City Commissioner for the City of Lake Mary and expressed support for Jesse Phillips to become the next Mayor. Mr. Ken Greenberg, 1635 White Dove Drive, Winter Springs spoke in support of Jesse Phillips for Mayor, noted he thought the Mayor was an important position as spokesperson for Winter Springs throughout the community, region, and state. Mr. Greenberg listed what he believed Mr. Phillip's qualifications were and said he thought this was an excellent opportunity to bring the City together. Ms. Gina Shafer, Winter Springs Village, Winter Springs said she thought the question that should have been asked in the application packet was when was the last time you have attended a City Commission meeting. Ms. Shafer expressed support for Mr. Spalthoff. The Clerk read emails submitted by the following individuals related to the appointment of the Mayor into the record. The full emails are attached to the end of these Minutes. Mr. Dominic Commesso, Winter Springs Mr. George Naldjieff, Winter Springs Mr. J. Gary Horner, 1109 Winter Springs Boulevard, Winter Springs Mr. Steve Nelson & Mrs. Michele Nelson, 1107 Shadowbroow Trail, Winter Springs Mr. Stephen Gildea, 346 Twelve Oaks Drive, Winter Springs Ms. Jessica Kingston, 310 Third Street, Winter Springs Ms. Jamiee Jordan-Miller, 708 Briarwood Drive, Winter Springs Ms. Karen Bagwell, 1133 Duncan Drive, Winter Springs Mr. Jeff Crandall, 1239 Stone Harbour Road, Winter Springs Ms. Rebecca Holcomb, Winter Springs Mr. Derek DeGeer, 100 Trace Point, Winter Springs Mr. Robert Pohlad & Mrs. Melissa Pohlad, 50 Sable Court, Winter Springs Mr, Edgar Sanabria, Winter Springs Mr. Tony Bolyard, 1110 Pheasant Circle, Winter Springs Ms. Kim Coburn, Winter Springs. 126 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 8 OF 11 Deputy Mayor Johnson reiterated the nomination and selection process which was previously agreed upon. Deputy Mayor Johnson opened nominations. Commissioner Elliott nominated Kevin McCann Commissioner Hale nominated Sabrina Parsons Commissioner Benton nominated Ken Spalthoff Deputy Mayor Johnson closed nominations. Commissioners then expressed thanks to all applicants, noted their interviews and deliberations in making the difficult choice, and encouraged those not selected to remain engaged and apply for City Boards/Committees. "MOTION TO APPROVE KEVIN MCCANN AS NEXT MAYOR OF WINTER SPRINGS." MOTION BY COMMISSIONER ELLIOTT. SECONDED BY COMMISSIONER CANNON. DISCUSSION. VOTE: COMMISSIONER BENTON: NAY COMMISSIONER CANNON: AYE DEPUTY MAYOR JOHNSON: AYE COMMISSIONER HALE: NAY COMMISSIONER ELLIOTT: AYE MOTION CARRIED. REPORTS 600) City Manager Shawn Boyle • Commended Commissioners and noted that the selection of Mayor was a tough decision. • Informed the Commissioners that a response had been sent, including a request for a meeting, to Mr. Schrimsher. Manager Boyle asked that the response letter be entered into the record. Manager Boyle noted a great deal of communication in the past and said he hoped to continue that communication with Mr. Schrimsher. • Noted giving away over 950 tree with pickup scheduled for Saturday. 601) City Attorney Anthony A. Garganaese • No report 127 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 9 OF 11 602) City Clerk Christian Gowan • Noted inaugural meetings of the Youth Council and Veteran and Veteran Family Advisory Committee had taken place the previous week and had gone well. • Noted June 7, 2021 was date slated for Annual Diversity Workshop. 603) Seat Two Commissioner Kevin Cannon • Thanked City Clerk's Office for their work during this process. • Asked how reopening of Senior Center was going o Ms. Casey Howard, Director, Operations Department noted a phased reopening was occurring and that it had been going well. Ms. Howard also noted new shuffleboard and pickle ball courts, as well as a horseshoe pit had been added to the Senior Center. • Thanked Mr. Smith for the Consumptive Use Permit update and noted the need to continue monitoring. • Inquired about the addition of a standing regular agenda item called “New Business” allowing for the Mayor and Commission to discuss things that may need to be added to future agendas. o Commissioners agreed. Manager Boyle asked for time to research this and Attorney Garganese shared some concerns. Staff agreed to bring this up for discussion at a future meeting. • Thanked Staff for their work 604) Deputy Mayor/Seat Three Commissioner Ted Johnson • Noted attendance at CALNO, the Council of Local Governments in Seminole County, reviewed purpose and noted a warm reception. • Thanked staff for work on Easter Egg Hunt • Recognized WSPD and commended their assistance recently in helping locate a lost dog. o Chief Deisler noted ability to scan for chips allowing officers to return pets home without Animal Control. • Encouraged City to get in contact with Duke to discuss easements, especially due to storm season approaching. • Commended staff for Arbor Day giving away 950 trees. 605) Seat Four Commissioner TiAnna Hale • Thanked City Clerk team for their professional handling of mayoral process. • Noted she was able to drive her wheelchair from her house to Torcaso Park with no issues. • Noted idea of adding canned goods near little free libraries. o Ms. Howard noted that it could be looked into and mentioned the possibility of adding resource lists to little free libraries. 128 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 10 OF 11 • Talked about possibility of expanding community gardens o Ms. Howard noted recently reaching out to determine renewals and looking at the wait list. • Complimented Egg-citing Easter Egg Hunt and Officer Fugate's dancing. • Noted positive feedback on Veterans and Veteran Family Advisory Committee. Invited Ms. Dorothy Pehowic to say a few words o Ms. Dorothy Pehowic, Chairperson, Veteran and Veteran Family Advisory Committee, said it was a privilege to serve the City, provided some background and reviewed involvement and things in the works. • Noted exponential participation in the tree giveaway. • Thanked all involved in reopening of Senior Center. 607) Seat Five Commissioner Rob Elliott • Noted attendance at inaugural meeting of Youth Council. • Noted attendance at inaugural meeting of Veteran & Veteran Family Advisory Committee. • Commissioner Elliott was looking forward to picking up his red maple tree. • Noted stopping by Senior Center, went very well. Got grand tour. Suggested considering this as soft opening to figure out process. Schedule a grand reopening later. Discussion about computer room and classes offered. Possibility of smart phone training with Youth Council/community service opportunities. o Ms. Howard noted looking in to this and discussing with the Senior Center Association • Thanked City Manager, Clerk, Staff, WSPD and noted they are a committed group. Looked forward to working with Commission and new Mayor. 608) Seat One Commissioner Matt Benton • Thanked City Staff for their work • Commended applicants for giving their time Deputy Mayor Johnson commended applicants that stayed Commissioner Cannon said he was honored to serve with fellow Commissioners and was happy to work respectfully with them. PUBLIC INPUT Ms. Loretta Ames, 150 Third Street, Winter Springs thanked City employees and asked about the possibility of expanding the existing dog park or building a second dog park. 129 CITY COMMISSION MINUTES | REGULAR MEETING | MONDAY, APRIL 12, 2021 | PAGE 11 OF 11 Ms. Gina Shafer, Winter Springs Village, Winter Springs offered best wishes to the newly appointed Mayo and asked about possible speed reduction on SR 434. Noted lights out in back of City Hall at last meeting. Mr. Maurice Kaprow, PO Box 195233, Winter Springs commended all members of the Commission in the process of appointing a new Mayor. Noted he was grateful to all that applied and hoped they would continue to work with the City. Offered support to new Mayor and Commission. Mr. Howard Parsons, Address, Winter Springs said he thought the application process was easy, noted he used to attend Commission meetings and felt voice wasn't being heard, encouraged Commissioners to continue listening to residents, and offered support to Mr. McCann Mr. Kevin McCann, 1109 Pheasant Circle, Winter Springs thanked the Commission and reiterated that he trusted the judgment of the Commissioners and was glad to be a part of it. Thanked the Parsons for staying and all those that regularly attend meetings because they care. Commended City Staff. ADJOURNMENT Deputy Mayor Johnson adjourned the meeting at 9:55 PM. RESPECTFULLY SUBMITTED: ____________________________________ CHRISTIAN GOWAN CITY CLERK APPROVED: ____________________________________ DEPUTY MAYOR TED JOHNSON NOTE: These Minutes were approved at the _________________, 2021 City Commission Regular Meeting. 130 This email was read into the record by the City Clerk during the 1st Round of Public Input at the Monday, April 12, 2021 City Commission Regular Meeting 131 From:Rustic Journeys To:_City Clerk Department Subject:Public Input: Rustic Journeys - Luanne Parker City Commission Meeting - April 12, 2021 Date:Monday, April 12, 2021 12:03:36 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Good afternoon, I would like to submit the following two items for this evening's CityCommission Meeting. Unfortunately, I am unable to attend in person. City Commission Meeting - April 12, 2021 – Public Input Luanne Parker, Owner of Rustic Journeys located in the Winter Springs TownCenter 1192 E SR 434. 407-542-3589 Regarding: 1. Minutes from March 22, 2021 City Commission Meeting - Items 606 & 607 Reports of the City Egg Hunt Event Rustic Journeys and I most specifically want to publicly thank the City andthe efforts of Meghan McNeil, Events Coordinator and Ilana Berman,Marketing & Events Manager for creating this first ever event, “The Egg-Citing Egg Hunt” and supporting small businesses like ours. We were veryhonored and proud to be a sponsor and provide Family Gift Baskets fromour store which highlights local artisans and to create the paint kits for allchildren who attended. We look forward to participating in morecommunity events in Winter Springs. 2. April 12, 2021. Agenda Item 200. Current Economic and CommunityDevelopment Projects Summary First and foremost, I am proud to be a small business owner in WinterSprings and thank the City and residents for welcoming us. As a smallbusiness owner, I want to share that we are still struggling amidst thepandemic and would like to implore that the City be open to assistingsmall businesses in any way possible. We moved our business fromOviedo to Winter Springs to grow alongside the local community.Instead, we are now faced with a compounding astronomical lease andwhereas the community is slowly coming back and getting out; we havesuffered the equivalency of 3 years of growth placing us back to wherewe were in 2017. Perhaps a Small Business Advisory Committee could beformed and participate with working alongside other committees as well 132 as provide representation in larger community development forums. Iam willing to be part of a solution as more and more small businesseswill be moving into the City’s growing retail development projects. Regards, Luanne Parker, Owner Rustic Journeys 1192 E State Road 434 Winter Springs, FL 32708407-542-3589www.rustic-journeys.com 133 The following emails were read into the record by the City Clerk during Item 500 - Consider Applications for Appointment to the Office of the Mayor- at the Monday, April 12, 2021 City Commission Regular Meeting 134 From:Dom Commesso To:_City Clerk Department Cc:Ted Johnson Subject:Support for Mayor Date:Thursday, April 8, 2021 3:57:12 AM EXTERNAL EMAIL:[Caution: Do not click on links or open any attachments unless you trust the sender and know the content is safe.] To Whom It May Concern: I would like to see Ken Spalthoff appointed Mayor for his true and heart-felt dedication to the city of Winter Springs. His volunteer work for the school food pantries, his many daysof help with the free hot lunches through Dominick's last summer, forever supporting the business owners of Winter Springs, has been absolutely amazing and so very muchappreciated. I appreciate Mr. Spalthoff and respect his volunteer work and dedication to the community. I can't think of anyone else that would be better suited to lead our city, asMayor, than Ken Spalthoff. The City of Winter Springs Commission would be lucky to have this successful and highlyeducated professional to assist them in representing the great city of Winter Springs. Respectfully, Dominic A. Commesso Proud Winter Springs Resident -- Dom Commesso, TreasurerDominick's To Go & Catering 407-620-3950 "Happiness is not in the mere possession of money;it lies in the joy of achievement, in the thrill of creative effort." Franklin D. Roosevelt 135 From:The Daily Dose To:_City Clerk Department Subject:Ken for Mayor Date:Thursday, April 8, 2021 3:35:03 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Hey there! This is George Naldjieff, one of the owners here at The Daily Dose in Winter Springs towncenter! We wanted to write this letter, due to the fact we could not attend the meeting, to endorse & support Ken in his appointment of Mayor of Winter Springs. I’ve met him, we spoken & I truly respect what he does for the community! We appreciate thesupport he’s given us as well as his leadership in the community. He’s extremely informative, support, & has a great feel for the community. I think he would be an asset to the City ofwinter springs. We are looking forward to seeing this community THRIVE & absolutely think Ken Spalthoff is the man for the job! I’m sorry again that we could not attend! Let’s continue to grow as a community & support one another! Have a blessed day! 136 APRIL 11, 2021 Christian Gowan 1126 E SR 434, Winter Springs, FL 32708 Dear Christian, As I am not a good public speaker, I respectfully request that this be read into the record at the next City Commission meeting on April 12, 2021. I moved to Winter Springs in 1985, We moved away for awhile but when my in-laws past we purchased their home in Tuscawilla to provide our daughter a great school experience and a great place to grow up, she passed in our home at 17 years old, and we have lived there since. My father used to cover the commission and politics of Winter Springs for the Oviedo Voice years ago but I never really paid much attention to things going on in our little city until the out-of-control growth explosion. I started following the politics and activities of the elected officials at that time and was very disappointed, as it seemed developers ran the show. I have heard how the State gutted local Government’s ability to restrict growth, but I believe the right mind set with the right set of zoning and code requirements can limit the growth to quality and community friendly trends. I watched in surprise as a pseudo “Community Association” popped and started to rale against the Commissioners and the direction the voters selected by large majorities, I am fully aware of a “survey “conducted by the afore mentioned “association “stating that 84% of the residents believe the city is going in the wrong direction, as we all know surveys can be swayed by how the question is posed, in my humble opinion the only survey that matters is the ballot box. Our former mayor chose to fight that direction, by vetoing a freeze on certain types of development until a review could be performed. He then resigned claiming he could no longer support the direction the commission. I believe he was a good Mayor and a good man but times and situations have changed. I respectfully request the Commission select a new Mayor that shares the vision that our commission and most important the voters of Winter Springs demanded in recent elections and I believe that man is Ken Spalthoff. Warm regards, J Gary Horner J. Gary Horner 1109 Winter Springs Blvd, Winter Springs, FL 32708 Tel 407.921.3212 137 From:michele nelson To:_City Clerk Department Subject:In support of Ken Spalthoff for mayor of Winter Springs Date:Sunday, April 11, 2021 1:32:09 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Christian please read the below into the public record at Monday 4/12 commission meeting We have known the Spalthoff family for over 7 years as neighbors and have become good friends. Ken is a great family man and has strong leadership skills. He has always beeninvolved in our community, He has hosted multiple charity events and activities in our community. · Coordinated multiple 5K Runs -raising money for local food pantries · Sponsored and hosted numerous outdoor movie nights at his home for local families Ken agrees with a Pro-Smart Growth Agenda, he is also pro local business as long as ourinfrastructure is able to handle it. He opposes the over development of large multi-unitapartment complexes. In closing we believe Ken Spalthoff is not only the right choice he is the only choice formayor of Winter Springs Steve & Michele Nelson 1107 Shadowbrook Trail Winter Springs, Fl 32708 138 From:Steve Gildea To:_City Clerk Department Subject:Mayor Replacement Date:Sunday, April 11, 2021 7:50:19 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Dear City Commissioners,I am reaching out as 14 year resident of Winter Springs and Winding Hollow subdivision. I would like it to be on record that I support Ken Spalthoff as the Interim Mayor of WinterSprings. Having sat back and taking in all of the smear campaigns against Ken and the way he responded has made me quite convinced that Ken is the man for the job. He has shownpatience, and in an extremely non- partisan way, while setting our community straight in how he has explained the construction of housing in Winter Springs as well as other issues. AMayor for the people is what we need and I strongly feel Ken is the man for the job and support him. Respectfully,Stephen Gildea 346 Twelve Oaks DriveWinter Springs, FL 32708 407-454-3592 Sent from the all new AOL app for Android 139 From:Jessica Kingston To:_City Clerk Department Subject:Commissioners please read during first public input section at commission meeting Date:Sunday, April 11, 2021 10:19:39 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Commissioners: Please read this during the first public input section at the commission meeting: I am writing to speak up for Jesse Phillips and say that I think he should be appointed Mayor. Our city faces so many challenges, beginning with the mishandling of the water system, whichmade parts of the Highlands where I live unbearable for months. I know Jesse Phillips and the Winter Springs Community Association had been trying to warn about these issues for a longtime, and I am very grateful our city had people willing to speak up when not accept the status quo. I wish the city had listened to him then, but we have a chance to benefit from his voicenow. Our city needs for you to appoint someone with a different perspective as Mayor. Jesse is the only one who has the experience to do this job right out of the gate. Please appoint him tobe our next Mayor. - Jessica Kingston310 3rd Street Winter springs, fl 32708 140 From:Jamiee Miller To:_City Clerk Department Date:Monday, April 12, 2021 7:57:17 AM EXTERNAL EMAIL:[Caution: Do not click on links or open any attachments unless you trust the sender and know the content is safe.] Jamiee Jordan-Miller 708 Briarwood Dr.Winter Springs, FL 32708 Commissioners: Please read this comment during public input: I ask you to please appoint Jesse Phillips as our next Mayor. Mr. Phillips has faithfully sounded the alarm on our water system, and fought relentlessly for improvements to thequality and safety of our drinking water. When it seemed nobody else was listening, he was there, speaking up for his neighbors and asking the city to fix its problems. He has been atireless advocate and is exactly the person we need to speak up for our city’s residents. The is a time for a new direction and Mr Phillips is the only candidate who can offer that. Thank you for your time and considerationMiller family 141 From:Karen Bagwell To:_City Clerk Department Subject:Candidate for Winter Springs Mayor Date:Monday, April 12, 2021 10:54:33 AM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] Commissioners: To be read during public input: I would like to encourage you to appoint Jesse Phillips as our next Mayor. Mr. Phillips is myneighbor and I have enjoyed seeing his four children brighten our neighborhood for the last 3.5 years. He's also that neighbor that is there to help in any way he can and continues todemonstrate his care for his fellow neighbor. I've also had a chance to work with Mr. Phillips directly to help launch the Business Alliance Council with the Seminole Regional Chamber of Commerce to try to bring attention to ourcity's hard working small business owners. His hard work and resources were invaluable to its success. His advocacy for our community makes him a great candidate to be Mayor and I hope youconsider appointing him. Karen Bagwell 1133 Duncan DriveWinter Springs, FL 32708 -- 142 From:Jeff Crandall To:_City Clerk Department Subject:Request to be read into record at City Council Meeting tonight please confirm receipt Date:Monday, April 12, 2021 1:34:25 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] To our elected Winter Springs Commissioners: I wish that I could attend the meeting this evening, but due to the Covid 19 pandemic, I respectfully ask that my letter be read into record as a public input regarding the appointment of our city Mayor. First and foremost, thank you for your service to our community. The leadership of Winter Springs is vital to our community. I ask that you respectfully consider the appointment of Kenneth Spalthoff to the position of Mayor. Mr. Spalthoff is the only candidate to submit for appointment that received any vote from the citizens of our City. Mr. Spalthoff received 43% of the Mayoral votes for 2018. I think Mr. Spalthoff will work hard for our City and will represent our interests well. Sincerely, Jeff Crandall 1239 Stone Harbour Road Winter Springs, Florida 32708 143 Good Afternoon, My name is Rebecca Holcomb, and I have been a lifelong resident of Winter Springs. Having moved here when I was 5 years old, I have seen this city go through many changes. From 434 going from a 2-lane road to a 4-lane road, the building of Indian Trails Middle School and Winter Springs High School, the expansion of Central Winds Park, to the addition of many neighborhoods. All these changes are good for the progression of our city but there can be too much of a good thing. In the recent years, we have seen our bedroom community, one with a small-town feel, turn into a concrete jungle taking down most of Winter Springs greenways. Our streets and trails are now lined with buildings (some empty) and numerous apartments. Much of Winter Springs charm has been lost through this progressive approach. This is one of many reasons why I think Ken Spalthoff would be a great choice as Winter Springs Mayor. I understand that the Mayor of Winter Springs does not have the ability to vote on issues, but his vision is in line with our current commission; to stop the overdevelopment of our City. This will make the Commissioners work easier because they will finally have the support of our Mayor. Ken truly cares about our City. He always has his ear to the ground listening to peoples’ concerns, needs, and wants. Ken played an instrumental role in helping many of our current Commissioners become elected. He volunteered his time campaigning for himself, but also those Commissioners who felt the same way he did. Ken has been a direct line from the citizens of Winter Springs to the Commission. Through his Facebook page, Ken is able to relay important information to our citizens, but he is also able to help provide the Commissioners insight into how the community is feeling. Ken has been visible throughout our community for several years now. He has been a part of the Mentor Program at Winter Springs High School, sponsored 5K races that raised food for food pantries in our community, held movie nights on his own front lawn to help build the sense of community and the list goes on and on. It would be nice to finally have a Mayor take part in our community and to help make Winter Springs the best that it can be, Thank you for your time, Rebecca Holcomb 144 FCCI Insurance Group More than a policy. A promise.®FCCI Insurance Group companies: Brierfield Insurance Company, FCCI Advantage Insurance Company, FCCI Commercial InsuranceCompany, FCCI Insurance Company, Monroe Guaranty Insurance Company, and National Trust Insurance Company. This communication, along with any documents, files or attachments, is intended only for the use of the addressee and may containlegally privileged and confidential information. If you are not the intended recipient, you are hereby notified that any dissemination,distribution or copying of any information contained in or attached to this communication is strictly prohibited. If you have received thismessage in error, please notify the sender immediately and destroy the original communication and its attachments without reading,printing or saving in any manner. From:Derek DeGeer To:_City Clerk Department Subject:Support for Ken Spalthoff Date:Monday, April 12, 2021 3:58:24 PM EXTERNAL EMAIL: [Caution: Do not click on links or open any attachments unless you trust the sender and knowthe content is safe.] To the residents of Winter Springs, I’d like to take a moment to show my support for the appointment of Ken Spalthoff for mayor of Winter Springs. I met Ken in 2015 shortly after moving to Winter Springs. In that time, Ken has repeatedly shown himself to be hard worker, determined, a family first man and someone that has repeatedly given back to his community. Ken identifies a problem, quickly works to find a solution and then acts before most would think to help. Ken truly is a community steward that cares for the well-being of Winter Springs and its residents for now and the future. Ken’s values are also a reflection of our current elected Winter Springs commission having set a vision of smart growth and smart development that resonated so well with our citizens. Ken’s values, vision and leadership is needed in Winter Springs in these trying times and I hope my support will be considered. Derek DeGeer 100 Trace Point Visit https://www.fcci-group.com/ Like FCCI on Facebook Follow FCCI on InstagramFollow FCCI on Twitter Follow FCCI on LinkedIn Follow FCCI Risk Control on LinkedIn Subscribe to FCCI’s YouTube channel 145 146 147 148 149 The following documents were added to the record by Commissioner Kevin Cannon at the Monday, April 12, 2021 City Commission Regular Meeting during the discussion of Item 500 - Consider Applications for Appointment to the Office of the Mayor - List of Questions - Examples of Meetings to Attend - Letter(s) to Applicants from Commissioner Kevin Cannon 150 151 Examples of Meetings to Attend *** This list is not comprehensive, rather it has been compiled as an example of meetings which the Mayor would attend as representative of the City of Winter Springs. Mayor & Manager Meeting •Monthly lunch meeting (11:30 AM -1:00 PM) with Seminole County Mayors and City Managers. Location rotates. Public Schools Facilities Planning Committee (PSFPC) •Meet as needed to hear recommendations from the Planning Technical Advisory Committee (PTAC) – meets at 9 AM MetroPlan Orlando – Municipal Advisory Committee (MAC) •MAC meets on the Thursday before the MetroPlan Orlando Board meeting (generally the first Thursday of the month). Meetings start at 9:30 a.m., at the MetroPlan Orlando office (250 S. Orange Ave., Suite 200, Orlando, FL 32801). All meetings are open to the public and include opportunities for public comment. In 2021, there are no MAC meetings scheduled for January, April, August or October. CALNO •Council of Local Governments in Seminole County Meets bi-monthly (February, April, June, August, October, & December) at 6 PM. Location rotates through member cities. South Seminole & North Orange County Wastewater Transmission Authority (SSNOCWTA) •Meet bi-monthly (January, March, May, July, Septmeber, November @ 8:30 AM) Oviedo/Winter Springs Chamber of Commerce •Monthly luncheon (11:30 AM - 1:15 PM) held at Oviedo Cultural Center Seminole County Chamber of Commerce •Business Alliance Council (1 PM – 3 PM) – meets monthly at Oviedo Brewing Company Tri-County League of Cities •Monthly lunch meetings in various locations (12PM – 1:30 PM) Florida League of Cities •Annual Conference (August 12-14, 2021 at the World Center Marriott – Orlando) – The Mayor traditionally serves as the City’s Voting Delegate 152 153 154 155 156 157 158 159 The following letter was added to the record by City Manager Boyle during his Report. 160 161 162 163 PUBLIC HEARINGS AGENDA ITEM 400 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE Waste Pro Contract Addendum and First Reading of Ordinance 2021-03 SUMMARY Pursuant to Ordinance No. 2006-01, as amended by Ordinance No. 2010-24, Ordinance 2019-04, Ordinance No. 2020-01 and Ordinance No. 2020-09 Waste Pro of Florida, Inc. (Waste Pro) has been providing Solid Waste Services within the municipal boundaries of the City for Winter Springs since 2006 in accordance with the Solid Waste Agreement adopted by said Ordinances (“Existing Franchise Agreement”). Section 4.14(4) of the City Charter requires the City Commission to renew franchises by ordinance. The Existing Franchise Agreement expires on February 28, 2022. Except for amending the term of the Existing Franchise Agreement; the terms and conditions of the Existing Franchise Agreement with Waste Pro will remain the same and in full force and effect. At the March 22, 2021 commission meeting, staff presented a comparative evaluation of the existing Waste Pro Franchise Agreement with other local solid waste franchises. The recent competitive bidding experiences of other nearby municipalities and counties did not result in favorable outcomes for their residents. As a result of that evaluation, staff recommended that the Commission grant a long term extension to Waste Pro of Florida because such extension will be more economically advantageous to the citizens of Winter Springs than competitively bidding solid waste services in the current market. That long term extension will become effective 3/1/2022 and remain in effect through 2/28/2027 with three 1 year extensions available upon mutual consent. RECOMMENDATION Staff requests the City Commission conduct a First Reading of Ordinance 2021-03 renewing the Existing Franchise Agreement and extending the term of the existing Solid Waste Agreement with Waste Pro of Florida, Inc. through February 28, 2027 effective upon execution. 164 SIXTH Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 1 of 2 SIXTH ADDENDUM TO SOLID WASTE AGREEMENT THIS SIXTH ADDENDUM TO SOLID WASTE AGREEMENT (AAddendum@) is made and entered into this ____ day of _____________, 2021, by and between the CITY OF WINTER SPRINGS, FLORIDA, a Florida Municipal Corporation, located at 1126 E. State Road 434, Winter Springs, Florida 32708 ("City") and WASTE PRO OF FLORIDA, INC., a Florida Corporation, located at 2101 West State Road 434, Suite 301, Longwood, Florida 32779 ("Contractor"). WITNESSETH: WHEREAS, Contractor and City previously entered into that certain Solid Waste Agreement, effective March 1, 2006, adopted by Ordinance No. 2006-01, as amended by the Addendum adopted by Ordinance No. 2010-24 (“Addendum”), further amended to extend the Agreement by a Second Addendum adopted by Ordinance 2019-04 (“Second Addendum”), and further amended by a Third Addendum adopted by Ordinance 2020-01 to incorporate specific contractual provisions required when awards are requested by federal government authorities, and further amended by a Fourth Addendum, dated February 27, 2020, whereby the Parties exercised a one year option to extend the Agreement until February 28, 2021, and further amended by Ordinance No. 2020-09 extending the term for up to additional one year pending negotiations of this extension (hereinafter collectively referred to as “Agreement”); and WHEREAS, Contractor and City desire to extend the term of the Agreement an additional five (5) years and up to three (3) additional one year renewals; and WHEREAS, the parties desire to enter this SIXTH Addendum to modify the Agreement to incorporate an additional five (5) year term and up to three (3) additional one year renewal terms as more specifically provided herein. NOW THEREFORE, in consideration of the mutual covenants, agreements, and consideration contained herein, the City and Contractor agree as hereinafter set forth: 1.0 Recitals. The foregoing recitals are true and accurate and are incorporated herein by this reference. 2.0 Renewal of Term. 2.1 Pursuant to Paragraph 23.3 of the Agreement, the City and Contractor hereby agree that upon the effective date of Ordinance No. 2021-03, the Agreement shall be extended for an additional five (5) year term, commencing on March 1, 2022 and terminating on 165 SIXTH Addendum to Solid Waste Agreement City of Winter Springs / Waste Pro of Florida, Inc. Page 2 of 2 February 28, 2027, unless sooner terminated in accordance with the terms and conditions set forth in the Agreement. 2.2 The parties may mutually agree, in writing, to exercise up to three (3) one (1) year renewal terms after the initial five year term. Renewals shall be based on the same terms and conditions as set forth in the Agreement unless the parties agree, in writing, to modify the terms and conditions. Further, any renewal shall be contingent upon Contractor’s satisfactory performance of the terms and conditions of the Agreement. 3.0 Franchise Costs. Pursuant to Paragraph 29.0 of the Agreement, the parties agree that there shall not be a renewal franchise cost associated with the five (5) year renewal. 4.0 Other Provisions. All other provisions of the Agreement not amended hereunder shall remain in full force and effect. IN WITNESS WHEREOF, the parties cause this SIXTH Addendum to be executed and attested to by their respective authorized officials. ATTEST: CITY OF WINTER SPRINGS, FLORIDA: _____________________________ By: ___________________________ Christian Gowan, City Clerk ______________________, Mayor Date: _____________________ CORPORATE SEAL: CONTRACTOR: WASTE PRO OF FLORIDA, INC. By:___________________________________ Print Name/Title: __________________________ 166 City of Winter Springs Ordinance No. 2021-03 Page 1 of 2 ORDINANCE NO. 2020-03 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, AMENDING THE EXISTING SOLID WASTE FRANCHISE AGREEMENT WITH WASTE PRO OF FLORIDA, INC., A FLORIDA CORPORATION, TO EXTEND THE TERM OF THE AGREEMENT FIVE (5) YEARS WITH UP TO THREE (3) ADDITIONAL ONE YEAR RENEWALS; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, pursuant to Ordinance No. 2006-01, as amended by Ordinance No. 2010-24, Ordinance 2019-04, Ordinance No. 2020-01 and Ordinance No. 2020-09 Waste Pro of Florida, Inc., has been providing Solid Waste Services within the municipal boundaries of the City for Winter Springs since 2006 in accordance with the Solid Waste Agreement adopted by said Ordinances (“Existing Franchise Agreement”); and WHEREAS, based upon a comparative evaluation of the Existing Franchise Agreement with other local solid waste franchises, the recent competitive bidding experiences of other nearby municipalities and counties, City staff has recommended that the City Commission grant a long term extension to Waste Pro of Florida because such extension will be more economically advantageous to the citizens of Winter Springs than competitively bidding solid waste services in the current market; and WHEREAS, the parties desire to renew the Existing Franchise Agreement for an additional five (5) year term with up to three (3) additional one year renewals; and WHEREAS, the City Commission is required by section 4.14(4) of the City Charter to adopt an ordinance granting, renewing or extending a franchise agreement; and WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds this Ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby incorporated herein by this reference. Section 2. Adoption of Solid Waste Agreement. The City Commission of the City 167 City of Winter Springs Ordinance No. 2021-03 Page 2 of 2 of Winter Springs, Florida hereby approves and adopts the Sixth Addendum to Solid Waste Agreement, by and between the City of Winter Springs, Florida and Waste Pro of Florida, Inc., a Florida corporation. A copy of said Sixth Addendum is attached hereto as AAppendix A,@ and fully incorporated herein by this reference, and shall become effective upon execution. Section 3. Not Incorporated Into Code. This Ordinance shall not be incorporated into the Winter Springs City Code. Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this Ordinance. Section 5. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to City Charter. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the ___ day of April, 2021. ____________________________________ _________________________, Mayor ATTEST: ______________________________________ CHRISTIAN GOWAN, City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only: _______________________________________ ANTHONY A. GARGANESE, City Attorney First Reading: Advertisement: _______________ Second Reading: _______________ 168 PUBLIC HEARINGS AGENDA ITEM 401 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE First Reading of Ordinance 2021-04 Amending the City of Winter Springs Code of Ordinances, Section 2-27 regarding City Commission Rules And Procedures; Providing amendments related to agenda items and reports; providing for the repeal of prior inconsistent ordinances and resolutions; incorporation into the Code; severability and an effective date. SUMMARY During the April 12, 2021 City Commission Meeting, the City Commission proposed the inclusion of a standing item on the City Commission's Regular Agenda which would allow for a discussion of "New Business." The City Attorney advised that changes to the Rules and Procedures (Section 2-27 of the City Code) would be necessary and an Ordinance would be drafted and presented to the City Commission. Ordinance 2021-04 establishes a New Business section to be included on all agendas allowing the Mayor, any City Commissioner, the City Manager, or City Attorney an opportunity to raise, if necessary, new issues not on the agenda that require discussion and potential future direction by the City Commission. This Ordinance also makes modifications to the description and purpose of Reports resulting from the New Business section being added to allow new items to be presented for discussion and direction. As such, reports will no longer be the appropriate place to bring up new non-agenda items for discussion and direction by the city commission. This is the First Reading of Ordinance 2021-04. RECOMMENDATION Staff requests the City Commission conduct a First Reading of Ordinance 2021-04 Amending the City of Winter Springs Code of Ordinances, Section 2- 27 regarding City Commission Rules And Procedures; Providing amendments related to agenda items and reports; providing for the repeal of prior inconsistent ordinances and resolutions; incorporation into the Code; severability and an effective date. 169 City of Winter Springs Ordinance No. 2021-04 Page 1 of 5 ORDINANCE NO. 2021-04 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA; AMENDING THE CITY OF WINTER SPRINGS CODE OF ORDINANCES, SECTION 2-27 REGARDING CITY COMMISSION RULES AND PROCEDURES; PROVIDING AMENDMENTS RELATED TO AGENDA ITEMS AND REPORTS; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; INCORPORATION INTO THE CODE; SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State Constitution, to exercise any power for municipal purposes, except when expressly prohibited by law; and WHEREAS, Article IV, Section 4.13 of the City Charter provides that the City Commission shall meet regularly at least once every month at such times and places as the Commission may prescribe by rule; and WHEREAS, pursuant to the requirements of the City Charter, the City Commission has established rules and procedures codified under Section 2-27 of the City Code; and WHEREAS, the City Commission desires to modify Section 2-27 of the City Code related to agenda items and reports. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this reference as legislative findings and the intent and purpose of the City Commission of the City of Winter Springs. Section 2. Code Amendment. Section 2-27 of the City Code is hereby amended as follows (underlined type indicates additions and strikeout type indicates deletions, while asterisks (* * *) indicate a deletion from this Ordinance of text existing in Section 2-27. It is intended that the text in Section 2-27 denoted by the asterisks and set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of this Ordinance): Sec. 2-27. – Rules and procedures of the city commission – Generally. (a) Authority. The rules and procedures established under this article II are adopted in furtherance of subsection 4.13(b) of the City Charter which provides that the city commission shall determine its own rules and order of business. The rules and procedures adopted under this article II are intended to be supplemental and in addition to other applicable provisions of law. To the extent that any provision of these rules and procedures is in conflict with the City Charter, state or federal law, the conflicting provisions of the City Charter, state or federal law shall prevail and apply. The rules and procedures adopted by the city commission shall not be construed or interpreted in any way to limit the broad powers vested in the city commission under the City Charter, article VIII, section 2(b) of the state constitution, the Florida Municipal Home Rule Powers Act, and other applicable law. 170 City of Winter Springs Ordinance No. 2021-04 Page 2 of 5 (b) Agenda packets. The city manager shall have the authority to and be responsible for preparing the city commission agenda for each city commission meeting. The mayor or any city commissioner shall have the right to have a matter placed on the regular agenda for timely consideration and action by the city commission. Upon completion of the agenda packets, the city clerk shall be responsible for distributing agenda packets to the mayor, city commissioners, city manager, city attorney, city staff and the public. Agenda packets shall be made available to the mayor and each commissioner no later than Wednesday (preferably by 5:00 p.m.) prior to the commission meeting; however, when absolutely necessary or in the event of an emergency, the city manager may authorize the distribution of the agenda packets after 5:00 p.m. and may distribute any add-on agenda item(s) after the agenda has been distributed on Wednesday. To the extent that certain agenda items require the review by or distribution of documents to the mayor and city commission that are deemed confidential or exempt from public disclosure by law, the city manager will arrange for such review or distribution in a manner deemed appropriate to protect such exemption or confidentiality. (c) Approval of the agenda; New Business Section. (1) At the commencement of each city commission meeting during the call to order section, the city commission shall approve, by majority vote, the proposed agenda to be considered by the city commission at the meeting. Prior to the approval of the proposed agenda, the city commission may, by majority vote, add or remove agenda items from the proposed agenda or reorder agenda items in terms of placement on the agenda. Upon approval of the agenda, the agenda items will be considered by the city commission in the order presented on the approved agenda. (2) Unless otherwise determined by the city commission, each regular agenda shall have a New Business section, in the order on the agenda approved by the city commission, which allows the mayor, any city commissioner, city manager or city attorney an opportunity to raise, if necessary, new issues not on the agenda that require discussion and potential future direction by the city commission. The New Business section shall not be used to present items requiring prior public notice or hearing, for reports allowed under subsection (m), or be used as a substitute for timely placing items on the agenda prior to the agenda packet being distributed or as an add-on item as required by subsection (b). The city commission will not take final action on any new business item that is considered a major initiative and/or initiative that would ordinarily require significant city staff research. Persons introducing new business items are encouraged to provide background information regarding the item prior to or at the meeting in the same manner as permitted for reports under subsection (m)(4). (d) Robert's Rules of Order. Robert's Rules of Order shall be the "underlying foundation" for the conduct of commission meetings and will be followed to the extent practical and feasible and to the extent not modified by this article or as otherwise required by law. Robert's Rules of Order may be suspended by a majority vote of the city commission. The city clerk shall be responsible for maintaining at least two (2) copies of Robert's Rules of Order on the dais during all city commission meetings. (e) Consent agenda. Any commissioner may request that a consent agenda item be held for separate consideration. (f) Motions. No motion shall be recognized by the chair until all commissioners and the city manager have had an opportunity to address that agenda item. 171 City of Winter Springs Ordinance No. 2021-04 Page 3 of 5 (g) Motions belong to commission. Motions shall only be permitted by members of the commission. Motions, once made, and seconded, belong to the commission, not the individual making the original motion. Motions which have been seconded may be withdrawn by consensus of the city commission without a formal vote. Amendments to pending motions are not required to be accepted by the maker of the pending motion. (h) Parliamentary procedure. All motions shall be considered in accordance with the Chart 1, Ranking Order and Chart II, motions in the "Parliamentary Procedure Basics for Governmental Bodies" (Third Edition, Agenda Associates). The city clerk shall be responsible for maintaining at least two (2) copies of the chart on the dais during all city commission meetings. (i) Time limits on agenda items. Unless otherwise approved by a majority vote of the city commission, each commissioner and the mayor shall be given a maximum of five (5) minutes to initially speak on an agenda item. After each commissioner and the mayor have been afforded the opportunity to initially speak on an agenda item, each commissioner and the mayor shall then be given additional time to speak in five (5) minute increments until discussion on that agenda item has been concluded. (j) Call the question. Motions to "call the question" shall require a second and a minimum two- thirds (⅔) vote of the commission. (k) Starting time of meetings. Regular city commission meetings shall be scheduled to commence at 6:30 p.m. on the second and fourth Monday of every month unless otherwise approved by the city commission. Special and emergency city commission meetings shall be scheduled as needed at a date and time established by the mayor, city commission or city manager, and whenever practicable, upon no less than twelve (12) hour notice provided to the mayor, city manager, city clerk, city attorney and each member of the city commission. (l) Time of adjournment. Unless sooner adjourned by majority vote of the city commission, the mayor shall adjourn the commission meeting at 8:30 p.m. However, by majority vote of the city commission, a commission meeting may be extended beyond 8:30 p.m., but no later than 10:00 p.m., in time increments or to handle any specific agenda item(s). A super-majority vote of the city commission shall be required to similarly extend a commission meeting beyond 10:00 p.m. (m) Reports. At the conclusion of each city commission meeting prior to any additional delegations portion of the city commission meeting In the order on the agenda approved by the city commission, the each agenda will set aside a time period for reports subject to the following protocol: (1) During reports, the mayor and each commissioner shall be afforded an opportunity to report on various committees and groups on which they represent the city, important events of City interest and to make brief comments in general. Each report is intended to be brief and not for purposes of proposing that the city commission take final action or give direction on an item. Such items should be placed elsewhere on the agenda for action or direction. on major initiatives and/or initiatives that would ordinarily require significant city staff research before final action is taken by the city commission. (2) The city commission will not take final action on any major initiatives and/or initiatives that would ordinarily require significant city staff research presented under reports. 172 City of Winter Springs Ordinance No. 2021-04 Page 4 of 5 (32) The city manager, city attorney, and city clerk shall also be afforded a brief opportunity to report on information and various matters requiring the city commission's awareness or attention and to also present pending miscellaneous matters requiring expedient direction from the city commission prior to the next regularly scheduled city commission meeting. (43) Unless otherwise approved by a majority vote of the city commission, each commissioner and the mayor shall be given a maximum of five (5) minutes to speak under reports. (54) Reporting individuals may circulate, prior to the meeting, background information that may be reported on during the meeting. Such information shall be provided through the city clerk's or city manager's office for distribution to the mayor and city commission in a manner similar to the distribution of agenda packets, except that the city attorney may distribute attorney-client privileged work product directly to the city manager, mayor and city commissioners to the extent necessary to protect such privilege. Further, to the extent that certain information must be distributed by the city manager that is deemed confidential or exempt from public disclosure by law, such information may be distributed directly to the mayor, city commissioners, and city attorney to the extent necessary to protect such exemption or confidentiality. At the meeting, the reporting individual can present or refer to the background information in support of their report item. (6 5) Reporting individuals may also present their report items in writing to be distributed at the meeting. Section 3. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Commission, or parts or ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 4. Incorporation into Code. This Ordinance shall be incorporated into the Winter Springs City Code and any section or paragraph, number or letter, and any heading may be changed or modified as necessary to effectuate the foregoing. Grammatical, typographical, and like errors may be corrected and additions, alterations, and omissions, not affecting the construction or meaning of this ordinance and the City Code may be freely made. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word, or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this ordinance. Section 6. Effective Date. This Ordinance shall become effective upon adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to City Charter. [Adoption page follows] 173 City of Winter Springs Ordinance No. 2021-04 Page 5 of 5 ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the ____ day of May, 2021. Kevin McCann, Mayor ATTEST: Christian Gowan, City Clerk APPROVED AS TO LEGAL FORM AND SUFFICIENCY FOR THE CITY OF WINTER SPRINGS ONLY: Anthony A. Garganese, City Attorney First Reading: Legal Ad: Second Reading: ________________ 174 REGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE Non-Binding Preliminary Review for the Winter Springs Marketplace. SUMMARY The applicant, Equinox Development is proposing a ±1.32 acre commercial development which includes a convenience store/gas station located at the SW corner of S.R. 434 and Tuskawilla Road (former Pinch A Penny Site). The subject property currently holds a Future Land Use (FLU) Designation of Town Center and a Zoning District of Town Center (T5). The proposed commercial project includes one (1) building approximately 5,411 sq. ft. The commercial project will be designed per Town Center Code. RECOMMENDATION Staff recommends the City Commission review and provide non-binding comments. 175 176 177 178 Date: 5/26/2020 Subject Property - SW Corner of S.R. 434 and Tuskawilla Road This map is for informational purposes only and is not prepared for or suitable for legal, engineering or surveying purposes. No warranties; expressed or implied, are provided for the data herein, its use or interpretation. 0 0.015 0.03 0.045 0.060.0075 miE 179 180 181 182 183 184 185 REGULAR AGENDA ITEM 501 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE 2020 Comprehensive Annual Financial Report SUMMARY The Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2020 was prepared and presented by the City's external auditors McDirmit Davis. The Comprehensive Annual Financial Report is prepared and presented to give the City Commission, citizens, and other users a greater understanding of the City's financial standing. Our 2020 financial statements received an unmodified opinion (best possible) by the auditors. Additionally, the 2020 Comprehensive Annual Financial Report will be submitted to the Government Finance Officers Association for consideration of their Certificate of Achievement award as we believe it continues to conform to the program's stringent requirements. The City's Annual Report has previously been awarded GFOA's Certificate of Achievement award for the past 20 consecutive years. RECOMMENDATION Staff recommends the City Commission accept the Comprehensive Annual Financial Report as presented for the Fiscal Year Ended September 30th 2020. 186 COMPREHENSIVE ANNUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 2020 FINANCIAL REPORT 187                 This page intentionally left blank.     188 City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2020 Prepared by: Finance Department 189                 This page intentionally left blank.     190 INTRODUCTORY SECTION This section contains the following subsections:  Table of Contents  Letter of Transmittal  GFOA Certificate of Achievement  List of Principal Officials  Organizational Chart 191                 This page intentionally left blank.     192 City of Winter Springs, Florida Table of Contents i Page I. 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 3-15 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 16 Statement of Activities 17 Fund Financial Statements: Balance Sheet - Governmental Funds 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 22 Road Improvements Special Revenue Fund 23 Solid Waste/Recycling Special Revenue Fund 24 Statement of Net Position - Proprietary Funds 25-26 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 27 Statement of Cash Flows - Proprietary Funds 28-29 Statement of Fiduciary Net Position - Fiduciary Funds 30 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 31 193 City of Winter Springs, Florida Table of Contents ii Page II. Financial Section - Continued: Notes to Financial Statements 32-59 Required Supplementary Information Schedule of Changes in the City’s Net OPEB Liability and Related Ratios - Plan Retiree Continuation Insurance Plan 60 Schedule of Changes in Net Pension Liability and Related Ratios 61 Schedule of Contributions 62-63 Schedule of Investment Returns 64 Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 65-70 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 71-76 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 77-88 Debt Service Funds 89-91 Capital Projects Funds 92-95 III. Statistical Section: Financial Trends Net Position by Component 96 Changes in Net Position 97-98 Governmental Activities Tax Revenues by Source 99 Fund Balances of Governmental Funds 100 Changes in Fund Balances of Governmental Funds 101-102 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 103 Property Tax Rates, Direct and Overlapping Governments 104 Special Assessment Billings and Collections 105 Principal Property Taxpayers 106 Property Tax Levies and Collections 107 194 City of Winter Springs, Florida Table of Contents iii Page III. Statistical Section - Continued: Debt Capacity Legal Debt Margin 108 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 109 Ratio of Outstanding Debt by Type 110 Direct and Overlapping Governmental Activities Debt 111 Pledged-Revenue Coverage 112-113 Demographic and Economic Information Demographic and Economic Statistics 114 Principal Employers 115 Operating Information Budgeted Full-time Equivalent City Government Employees by Function 116 Operating Indicators by Function 117 Capital Asset Statistics by Function 118 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 119 Management Letter 120-121 Independent Accountant’s Report on Compliance with the Requirements of Section 218.415, Florida Statutes 122 Impact Fee Affidavit 123 195 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 iv March 24th, 2021 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 for the fiscal year ended September 30, 2020. Florida Statutes, Chapter 166.241 and the rules of the Florida Auditor General, Chapter 10.550 require 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, 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, 2020 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, 2020 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 Government 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. The City currently has a land area of approximately 13.3 square miles and a population of approximately 38,000. 196 v 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 a 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 22-24 as part of the basic financial statements for the governmental funds. The non-major governmental funds’ budget comparisons are presented in the governmental fund subsection of this report which starts on page 77. 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 in excess of $2M for the fiscal year 2020-2021. Approximately 84% of the City’s tax base is comprised of residential properties with a small amount of retail office and light industrial developments. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2019-2020 fiscal year (tax year 2019), the gross taxable value reflects an increase of 9.41% from the prior year. During fiscal year 2019-2020 (tax year 2019), through prudent fiscal management, the City was able to maintain the operating millage rate at 2.43 and was able to forgive voted debt millage, therefore reducing total millage by .0500 mils. At the local level, revenues such as review and permit fees, investment income and state sales tax revenues continue to hold steady. New construction in Winter Springs has been robust for the past several years. Tuskawilla crossings is a single-family residential project currently still under construction and set for completion in late 2021. Single- family attached projects include Seminole Crossings Townhomes (114 units) and The Hawthorne, located near the Cross Seminole Trail on SR 434. Commercial construction projects started in 2020 include Wendy’s, while Chau Medical Center, Chase Bank, and Winter Springs Marketplace have started the permitting process and should begin construction in 2021. 197 vi Seminole County Public School system is the 12th largest in the state and widely recognized as a Premier National School District. It boasts an above average graduation rate and is ranked #1 in STEM. Winter Springs is home to four elementary schools, one middle and one high school in the district. Winter Springs is also home to Choices in Learning Charter School, Willow School, The Primrose School, and Creative Inspiration Journey School which provide diverse educational options. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. The City also continues its partnership with the UCF Business Incubation Program to foster the development of early-stage businesses in Central Florida. The City of Winter Springs continues to offer its citizens the highest quality services and community-minded events. Due to the COVID pandemic this year the City had to get creative with revising the structure and layout of community events. Movie in the Park was an added event allowing citizens to come together while keeping their distance. The City also hosts a number of community seasonal events including Spring Explore Outdoors with free tree giveaways, Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran’s Day Ceremony, and Winter Wonderland Parade. The City’s Sports Partnerships include traditional sports such as Babe Ruth Baseball/Softball, Florida Kraze Krush Soccer & Winter Springs Basketball and Football Leagues. Our very popular summer camp program offers affordable day camp options and spectacular field trips. With additional protocols in place we are expecting to bring these back next summer. The Winter Springs Police Department also coordinates events in the community. In the summer months, the department hosts its annual Community Youth Outreach program. This program is designed to engage our youth, in an effort to promote positive interaction and bridge the gap with Law Enforcement. During the holiday season, children and families in need from Winter Springs are nominated to participate in our annual ‘Shop with a Cop’ festivities. Through the school supply drive the Winter Springs Police Department provides school supplies to over 200 children with in our community. The City has a “Perk up Parks” program which is a multi-million dollar Parks initiative with numerous park upgrades including a new and expanded “Torcaso Cove” at Torcaso Park, which is an ocean, water, and pirate themed adventure. “Mount Trotwood” received an entrance facelift, and a Trailhead Restroom is being added at Central Winds Park along with a paved parking lot at the lower baseball fields. Together with the Winter Springs Senior Association, a number of activities and outings are offered to our seniors, such as yoga, ceramics and the ever-popular therapy pool. Due to COVID restrictions several of the senior center activities have been suspended but will reopen in the near future. While being closed the senior center has gone through several upgrades as well. Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) in September 2017 for fiscal years 2018 through 2022. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement with the year of intended purchase/ commencement; annual expenditure; and method of financing. As a part of the update to the City’s Comprehensive Plan, City staff are preparing an updated 5-year plan to present to the City Commission. Each year, the plan is reviewed to ensure that all necessary capital improvements are incorporated into the budget process. 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 2020, the City implemented GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This statement eliminates the requirement to capitalize interest on enterprise fund construction projects. The City also implemented GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This pronouncement provides temporary relief to governments and other stakeholders in light of the COVID-19 pandemic by postponing the effective dates of provisions in certain other statements. There was no effect on the beginning balances of the City for the implementation of either statement. 198 vii Major Initiatives. Continued improvements in customer service and information reporting are on-going, such as upgrades in several behind the scenes technological systems. Upgrades and refurbishment of the City’s Water and Wastewater Plants and recreational facilities. Infrastructure replacement and improvement in transportation such as bridge and roadway replacement. There have also been and will continue to be city-wide safety improvements across parks, sidewalk replacements, and roadway improvements. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2019. This was the twentieth 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 Comprehensive Financial Report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual report 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 of 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 express appreciation to the Mayor and the City Commission for their support and for maintaining high standards of professionalism in the management of the City of Winter Springs’ finances. Respectfully submitted, Shawn D. Boyle Marialaina Sonksen City Manager Finance Director 199 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, 2019 Executive Director/CEO Page | viii 200 City of Winter Springs, Florida List of Principal Officers Page | ix Mayor Charles Lacey Deputy Mayor / Commissioner Ted Johnson Commissioner Jean Hovey Commissioner Kevin Cannon Commissioner TiAnna Hale Commissioner Geoff Kendrick CITY MANAGER Shawn Boyle CITY CLERK Christian Gowan LEGAL COUNSEL Anthony Garganese Garganese, Weiss & D’Agresta, P.A. DEPARTMENT DIRECTORS Community Development Christopher Schmidt Finance Maria Sonksen Operations Casey Howard Police Chief Chris Deisler Utility/Public Works Lena Rivera 201 Citizens of Winter SpringsCivic OrganizationsMayor and City CommissionersFinancePolice DepartmentCommunity DevelopmentCity AttorneyPublic Works and UtilitiesCity ManagerAdvisory BoardsAccountingDebt ManagementBudgetingPurchasingTreasury ManagementContractsSolid WasteSecurityWater ConservationWater/WastewaterMeter ServiceFleet ServicesFacilities MaintenanceRoadways and Stormwater OperationsRecordsCommunicationPatrolInvestigationsCode EnforcementPlanningLand ManagementEngineering/StormwaterPermits and InspectionsCapital ProjectsGeographical Information SystemOperationsHuman ResourcesRisk ManagementMarketing/EventsIT Maintenance/DevelUrban BeautificationRecords ManagementCity ClerkCivic/Senior CenterAthletics/RecreationProgramsParks/Field MaintenancePage | x202 Financial Section 203 934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 Tel. 407-843-5406 www.mcdirmitdavis.com the trusted partner INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of Winter 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, (the “City”) as of and for the year ended September 30, 2020, and the related notes 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 The City’s 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 The City, as of September 30, 2020, 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. 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 as listed in the table of contents, 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 204 Page | 2 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 The City’s 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 are the responsibility of management and were derived from and relates 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 combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 24, 2021 on our consideration of The City’s 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 The City’s internal control over financial reporting and compliance. Orlando, Florida March 24, 2021 205 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 3 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, 2020. 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 - vi of this report. Financial Highlights  The assets and deferred outflows of the City of Winter Springs exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $133,403,012 (net position). Of this amount, $32,437,711 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.  As a result of the current year’s activities, the government’s total net position increased by $12,474,213 or 10.32% from the prior year.  As of the close of the current fiscal year, the City of Winter Springs’ governmental funds reported combined ending fund balances of $38,408,217. Approximately 22% of this total amount, $8,560,892, 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 $8,597,379, or 58% of total general fund expenditures.  As a result of current year’s activities, the City of Winter Springs’ total debt decreased by $2,071,359 (6%). 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, liabilities and deferred inflows of resources, 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. 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. 206 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 4 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 16-17 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. The City of Winter Springs maintains 22 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, and Solid Waste/Recycling Special Revenue Fund, all three of which are considered to be major funds. Data from the other 19 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is 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 22-24. Budgetary comparison schedules have been provided for the nonmajor funds on pages 78-95. The basic governmental fund financial statements can be found on pages 18-21 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 25-29 of this report. 207 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 5 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 30-31 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 32-59 of this report. Required Supplementary Information (RSI) RSI can be found on pages 60-64 of this report. Other Information 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 65-76 of this report. Government-wide Financial Analysis 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 and deferred outflows by $133,403,012 at the close of the most recent fiscal year. Of the City of Winter Springs’ net position, $82,307,317 or 62%, 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 $18,657,984 (14%). The remaining balance of unrestricted net position ($32,437,711 or 24%) may be used to meet the government’s ongoing obligations to citizens and creditors. At September 30, 2020, the City of Winter Springs is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. This was also the case at the close of the prior fiscal year. . THIS SECTION INTENTIONALLY LEFT BLANK 208 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 6 The following table reflects the condensed Statement of Net Position for the current and prior year. For more detail see the Statement of Net Position on page 16. 2020 2019 2020 2019 2020 2019 Assets: Current and other assets 41,378,922$ 39,448,813$ 35,955,685$ 32,374,040$ 77,334,607$ 71,822,853$ Restricted assets 88,934 78,774 746,540 742,089 835,474 820,863 Capital assets 59,122,076 58,397,153 40,475,153 37,650,254 99,597,229 96,047,407 Total assets 100,589,932 97,924,740 77,177,378 70,766,383 177,767,310 168,691,123 Deferred Outflows of Resources: Deferred charge on refunding 9,289$ 10,218$ 73,829$ 164,735$ 83,118$ 174,953$ Deferred outflow of pension and OPEB 903,153 919,865 247,794 235,951 1,150,947 1,155,816 912,442 930,083 321,623 400,686 1,234,065 1,330,769 Liabilities: Current liabilities 1,922,542 1,701,831 970,389 1,310,989 2,892,931 3,012,820 Long term liabilities 18,616,145 20,590,397 23,064,438 24,644,351 41,680,583 45,234,748 Other liabilities 86,344 75,884 664,554 662,169 750,898 738,053 Total liabilities 20,625,031 22,368,112 24,699,381 26,617,509 45,324,412 48,985,621 Deferred Inflows of Resources: Deferred inflow of pension and OPEB 196,564$ 80,728$ 77,387$ 26,744$ 273,951$ 107,472$ Net Position: Net investment in capital assets 54,921,943 53,683,006 27,385,374 22,712,599 82,307,317 76,395,605 Restricted 18,010,777 17,089,058 647,207 612,971 18,657,984 17,702,029 Unrestricted 7,748,059 5,633,919 24,689,652 21,197,246 32,437,711 26,831,165 Total net position 80,680,779$ 76,405,983$ 52,722,233$ 44,522,816$ 133,403,012$ 120,928,799$ Statement of Net Position as of September 30 Governmental Activities Business-type Activities Total Primary Government THIS SECTION INTENTIONALLY LEFT BLANK 209 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 7 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 17. As a result of the current year’s activities, the government’s total net position increased by $12,474,213 or 10.32% from the prior year. The previous fiscal year, 2019, net position increased by $11,309,586. Governmental activities increased net position by $4,274,796 in fiscal year 2020 compared to an increase of $6,325,542 in 2019. The increase in net position for fiscal year 2020 is less than the prior year’s increase primarily due to recognition of FEMA reimbursement in the prior year. Business-type activities increased net position by $8,199,417 in fiscal year 2020 compared to an increase of $4,984,044 in 2019. The increase in net position in fiscal year 2020 is more than the prior fiscal year’s increase primarily due to contributed assets and grant revenues. Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business-type activities as well as the revenue “source” for each. Additional information regarding the changes in fund balance of the governmental and business-type activities can be found in the section entitled Financial Analysis of Government’s Funds on page 11. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. “THIS SECTION INTENTIONALLY LEFT BLANK” 210 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 8 2020 2019 2020 2019 2020 2019 Revenues: Program Revenues: Charges for services 6,296,917$ 6,582,071$ 14,857,885$ 14,983,246$ 21,154,802$ 21,565,317$ Operating grants and contributions 31,297 1,274,449 589,693 926,115 620,990 2,200,564 Capital grants and contributions 5,691,969 5,131,068 4,907,862 1,483,528 10,599,831 6,614,596 General Revenues: Property taxes 5,869,671 5,487,217 - - 5,869,671 5,487,217 Utility taxes 4,510,783 4,212,706 - - 4,510,783 4,212,706 Business tax receipts 112,450 122,362 - - 112,450 122,362 Intergovernmental- unrestricted 3,858,262 4,036,045 - - 3,858,262 4,036,045 Investment income and miscellaneous 1,046,551 1,244,035 690,966 825,339 1,737,517 2,069,374 Total revenues 27,417,900 28,089,953 21,046,406 18,218,228 48,464,306 46,308,181 Expenses: General government 7,663,967 7,052,183 - - 7,663,967 7,052,183 Public safety 5,278,449 6,891,732 - - 5,278,449 6,891,732 Physical environment 6,677,419 6,562,502 - - 6,677,419 6,562,502 Culture and recreation 2,826,528 2,282,091 - - 2,826,528 2,282,091 Interest and other fiscal charges on long-term debt 603,264 673,202 - - 603,264 673,202 Water and sewer - - 10,051,311 8,568,757 10,051,311 8,568,757 Development services - - 1,129,984 647,180 1,129,984 647,180 Stormwater - - 1,759,171 2,320,948 1,759,171 2,320,948 Total expenses 23,049,627 23,461,710 12,940,466 11,536,885 35,990,093 34,998,595 Increase (Decrease) In Net Position Before Transfers 4,368,273 4,628,243 8,105,940 6,681,343 12,474,213 11,309,586 Transfers (93,477) 1,697,299 93,477 (1,697,299) - - Increase In Net Position 4,274,796 6,325,542 8,199,417 4,984,044 12,474,213 11,309,586 Net position, October 1 76,405,983 70,080,441 44,522,816 39,538,772 120,928,799 109,619,213 Net position, September 30 80,680,779$ 76,405,983$ 52,722,233$ 44,522,816$ 133,403,012$ 120,928,799$ Changes in Net Position for the year ended September 30 Governmental Activities Business-type Activities Total Primary Government 211 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 9 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 General Government Public Safety Physical Environment Culture & Recreation Interest on Long-Term Debt Governmental Program Specific Revenues and Expenses Revenues Expenses Investment Income and Miscellaneous 4% Charges for Services 23% Capital and Operating Grants and Contributions 21% Intergovernmental Revenues 14% Taxes 38% Governmental Revenues by Source 212 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 10 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Water and Sewer Development Services Stormwater Business-type Activities Revenues and Expenses Revenues Expenses Investment Income and Miscellaneous 3% Charges for Services 71% Capital and Operating Grants and Contributions 26% Business-type Activities Revenues by Source 213 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 11 Financial Analysis 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, 2020, the City of Winter Springs’ governmental funds reported combined ending fund balances of $38,408,217, an increase of $1,804,582 over the prior year. Approximately 22% or $8,560,892 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 $8,597,379, while total fund balance was $8,935,394. 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 58% and 60% respectively, of total General Fund expenditures. The increase in fund balance of $237,283 is primarily the result of increased taxes and reduced capital outlay. The Road Improvements Fund balance increased $1,074,289 due to the deferral of budgeted capital projects. The Solid Waste Fund net position decreased by $266,454. This decrease is primarily due to increased collection costs. 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 $17,024,692 and total net position increased $5,107,501 to $36,751,107. The increase in net position in fiscal year 2020 is more than the prior fiscal year’s increase primarily due to increased consumption and contributed capital assets. The Development Services Fund net position increased as a result of current year activities by $1,144,058 to $6,371,018 at the end of the fiscal year. The increase in net position is less than the prior fiscal year’s increase due to reduced development activity caused by the COVID-19 pandemic. The Stormwater Utility Fund net position increased as a result of current fiscal year activities by $1,947,858 to $9,600,108 at the end of the fiscal year. This increase in net position is due to capital contributions and a decrease in repair and maintenance costs. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in a minor decrease of $7,240 in appropriation to fund balance. 214 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 12 The actual results of General Fund for the year show an appropriation to fund balance of $237,283 compared to a final budgeted appropriation to fund balance of $129,695. The favorable variance of $107,588 is comprised of a favorable revenues and expenditure variance, as well as an unfavorable transfers variance. The favorable expenditure variance of $149,422 is displayed in the departmental cost centers below: General Government 92,234$ Public Safety 1,314 Physical Environment 5,625 Culture & Recreation 50,249 Total 149,422$ This favorable variance is represented by the following expenditure categories as both amounts and percentage of budget: Payroll (23,796)$ -0.1% Other Operating 213,581 1.4% Capital (40,363) -0.3% Total 149,422$ 1.0% Although payroll reflects a slight negative variance it should be noted that this was due to payroll budget transfers and movement of employees between cost centers. Total payroll costs did not exceed that which was originally budgeted and was more than offset by favorable variances within the respective departmental cost centers as reflected above. The comparison of budgeted results to actual results for the General Fund is shown on pages 22. 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, 2020, amounts to $99,597,229 (net of accumulated depreciation), for an increase of $3,549,822 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 increase in the City of Winter Springs’ investment in capital assets for the current fiscal year was 3.70% (a 1.24% increase for governmental activities, and a 7.5% increase for business-type activities). THIS SECTION INTENTIONALLY LEFT BLANK 215 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 13 Major capital asset events during the current fiscal year included the following:  The purchase of the following capital assets:  Agenda Management Software at a cost of approximately $14,700  Decontamination system at a cost of approximately $15,600  ProjectDox ePlan Solution Software at a cost of approximately $17,800  Police Department fire alarm system upgrade at a cost of approximately $24,500  DocuSign Enterprise Pro Software at a cost of approximately $37,400  New vehicles for the Utility, Community Development and Development Services departments at a total cost of approximately $79,600  New generator and AC upgrades for the Senior Center at a total cost of approximately $140,700  New equipment for the Public Works / Utilities departments at a cost of approximately $569,950  The completion and capitalization of the following projects:  Central Winds Park stage at a cost of approximately $75,200 (approximately $57,270 spent in prior years)  Central Winds Park storage bin design and installation at a cost of approximately $58,400  Community Garden at a cost of approximately $5,200  Torcaso Park upgrades and renovations to the playground, splash pad, basketball court, and restrooms at a total cost of approximately $501,700 (approximately $242,380 spent in prior years)  Police Department breakroom remodel at a cost of approximately $19,600 (spent in prior year)  Trotwood Park upgrades and renovations to the playground and fitness zone at a total cost of $405,300 (approximately $161,450 spent in prior years)  Trotwood Park family pavilion pier design and installation at a cost of approximately $92,860  City Hall breakroom remodel, carpet renovation, and upgrades to the conference room and East restroom at a total cost of approximately $136,140 (approximately $100,700 spent in prior year)  City Hall carpet renovation at a cost of approximately $57,560 (spent in prior year)  Senior Center carpet and front lobby restroom renovations at a cost of approximately $23,720 (approximately $6,650 spent in prior year)  Road reconstruction and resurfacing at a total cost of approximately $1,526,180  East Waste Water Treatment Plan facility improvements and filtration rehabilitation at a total cost of approximately $10,800  Replacement and upgrades to bypass pumps for the Water & Sewer / Utility departments at a cost of approximately $305,300  The capitalization of donated assets as a result of new residential and commercial building projects including:  Northern Oaks Subdivision additions to the water and sanitary system infrastructure at a value of approximately $469,038  Tuskawilla Crossings – Phase 1 additions to the water, sanitary, and storm system infrastructure at a value of approximately $3,141,160  Tuskawilla Crossings – Phase 2 additions to the water, sanitary, and storm system infrastructure at a value of approximately $735,840  Beginning and continued construction on the following projects:  Torcaso park site improvement at an approximate cost of $203,570 (approximately $16,400 spent in prior years)  Ranchland Park site improvements and upgrades at an approximate cost of $28,150  Town Center parking area improvements at an approximate cost of $488,280 (approximately $31,480 spent in prior years)  Water Treatment Plants equipment evaluations, upgrades, and power reliability enhancements at an approximate cost of $276,420 Additional information on the City of Winter Springs’ capital assets can be found in Note 6 on pages 44-45 of this report. 216 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 14 2020 2019 2020 2019 2020 2019 Land 9,897,945$ 9,946,795$ 7,170,177$ 7,170,177$ 17,068,122$ 17,116,972$ Buildings 7,620,095 8,000,031 1,431,227 1,499,724 9,051,322 9,499,755 Improvements Other Than Buildings 6,897,019 7,071,144 25,458,364 23,081,399 32,355,383 30,152,543 Machinery and Equipment 3,030,911 2,529,024 5,537,738 5,483,161 8,568,649 8,012,185 Intangibles 114,855 570,333 154,757 154,499 269,612 724,832 Infrastructure 30,102,665 28,808,753 - - 30,102,665 28,808,753 Construction in Progress 1,458,586 1,471,073 722,890 261,294 2,181,476 1,732,367 Total 59,122,076$ 58,397,153$ 40,475,153$ 37,650,254$ 99,597,229$ 96,047,407$ Capital Assets (Net of Depreciation) as of September 30 Governmental Activities Business-type Activities Total Primary Government Long-term debt At September 30, 2020, the City of Winter Springs had total debt outstanding of $32,132,873, a decrease of $2,071,359 from $34,204,232 at September 30, 2019. Total bonded debt of the City at the end of the current fiscal year was $6,875,280. This amount does not include accreted interest of $14,759,843. The City of Winter Springs’ bonded debt represents bonds and notes are secured solely by specified revenue sources. There are no limitations placed on the amount of debt the City may issue either by the City’s charter, code of ordinances or by the Florida State Statutes. THIS SECTION INTENTIONALLY LEFT BLANK 217 City of Winter Springs, Florida Management’s Discussion and Analysis Page | 15 Additional information on the City of Winter Springs’ long-term debt can be found in Note 7 on pages 46-49 of this report. 2020 2019 2020 2019 2020 2019 Improvement Refunding Revenue Bonds, Series 1999 3,081,089$ 3,498,970$ -$ -$ 3,081,089$ 3,498,970$ Water & Sewer Refunding Revenue Bonds, Series 2000 - - 3,794,191 3,794,191 3,794,191 3,794,191 Special Assessment Revenue Notes, Series 2011 1,128,333 1,225,395 1,128,333 1,225,395 Revenue Refunding Note Series 2016 - - 1,167,000 2,715,000 1,167,000 2,715,000 Revenue Refunding Note Series 2018 - - 1,894,000 1,924,000 1,894,000 1,924,000 State Revolving Fund Loans - - 6,308,417 6,669,199 6,308,417 6,669,199 Accreted Interest Payable 6,686,253 6,979,057 8,073,590 7,398,420 14,759,843 14,377,477 Total 10,895,675$ 11,703,422$ 21,237,198$ 22,500,810$ 32,132,873$ 34,204,232$ Long Term Debt as of September 30 Governmental Activities Business-type Activities Total Primary Government The above information does not include the interfund loan balances related to the repayment of the general obligation note. Economic Factors and Next Year’s Budgets and Rates Through conservative fiscal policies and aggressive budget oversight, the City Manager and City Commission maintained the operating millage rate at 2.4300 for FY2020 and reduced the operating millage for FY2021 to 2.4100. The voted debt millage rate was eliminated for FY2020. The gross property tax values in Winter Springs increased in FY2020 by 9.4% and have increased an approximate 7.9% in FY2021. In May 2014, a countywide precinct referendum resulted in an additional 1% local government infrastructure sales surtax, which will largely be utilized for transportation related to infrastructure improvements. The surtax is expected to result in $2.0 million in additional revenues each year and expires in 2024. The General Funds’s FY2020 adopted expenditure budget of $19,101,792 (inclusive of transfers) marked an increase of 2.8% from the previous year. For FY2021 the adopted expenditure budget is $18,143,551, a slight decrease of 5% from FY2020. The total combined expenditure budget of FY 2021 $51,095,990 (inclusive of transfers) is $374,076 or .8% less than the adopted budget of FY2020. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs’ finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is also available at the City of Winter Springs’ website located at www.winterspringsfl.org. 218 Basic Financial Statements 219                 This page intentionally left blank.     220 Government-Wide Financial Statements 221 City of Winter Springs, Florida Statement of Net Position September 30, 2020 Governmental Activities Business-type Activities Total Assets Cash and cash equivalents 2,979,600$ 2,717,363$ 5,696,963$ Investments 36,858,210 32,679,776 69,537,986 Receivables, net 178,730 537,166 715,896 Inventories, at cost 30,664 15,600 46,264 Prepaid costs 263,384 5,780 269,164 Restricted Assets: Cash and cash equivalents 88,934 746,540 835,474 Receivables, long-term 1,068,334 - 1,068,334 Capital Assets Capital assets not being depreciated 11,356,531 7,893,067 19,249,598 Capital assets being depreciated, net of accumulated depreciation 47,765,545 32,582,086 80,347,631 Total assets 100,589,932 77,177,378 177,767,310 Deferred Outflows of Resources Deferred charge on refunding 9,289 73,829 83,118 Deferred outflow of pension and OPEB 903,153 247,794 1,150,947 912,442 321,623 1,234,065 Liabilities Accounts payable and accrued expenses 1,735,178 910,864 2,646,042 Due to other governments 68,638 - 68,638 Unearned revenue 100,391 - 100,391 Accrued interest payable 18,335 59,525 77,860 Liabilities payable from restricted assets 86,344 664,554 750,898 Noncurrent Liabilities: Due within one year 1,482,606 1,381,381 2,863,987 Due in more than one year 17,133,539 21,683,057 38,816,596 Total liabilities 20,625,031 24,699,381 45,324,412 Deferred Inflows of Resources Deferred inflows of pension and OPEB 196,564 77,387 273,951 196,564 77,387 273,951 Net Position Net investment in capital assets 54,921,943 27,385,374 82,307,317 Restricted for: Capital projects 5,987,779 - 5,987,779 Debt service 60,069 - 60,069 Renewal and replacement - 647,207 647,207 Physical environment 11,888,261 - 11,888,261 Public safety 74,668 - 74,668 Unrestricted 7,748,059 24,689,652 32,437,711 Total net position 80,680,779$ 52,722,233$ 133,403,012$ The accompanying Notes to Financial Statements are an integral part of these statements.Page | 16 222 City of Winter Springs, Florida Statement of Activities For The Year Ended September 30, 2020 Program Revenue Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Primary Government Governmental Activities: General government 7,663,967$ 2,517,972$ -$ -$ (5,145,995)$ -$ (5,145,995)$ Public safety 5,278,449 100,390 - 111,333 (5,066,726) - (5,066,726) Physical environment 6,677,419 3,499,521 31,297 5,257,626 2,111,025 - 2,111,025 Culture and recreation 2,826,528 179,034 - 323,010 (2,324,484) - (2,324,484) Interest on long-term debt 603,264 - - - (603,264) - (603,264) Total governmental activities 23,049,627 6,296,917 31,297 5,691,969 (11,029,444) - (11,029,444) Business-type Activities: Water and sewer 10,051,311 11,574,770 - 3,320,671 - 4,844,130 4,844,130 Development services 1,129,984 2,148,478 - - - 1,018,494 1,018,494 Stormwater 1,759,171 1,134,637 589,693 1,587,191 - 1,552,350 1,552,350 Total business-type activities 12,940,466 14,857,885 589,693 4,907,862 - 7,414,974 7,414,974 Total primary government 35,990,093$ 21,154,802$ 620,990$ 10,599,831$ (11,029,444) 7,414,974 (3,614,470) General Revenues: Property taxes 5,869,671 - 5,869,671 Utility taxes 4,510,783 - 4,510,783 Business tax receipts 112,450 - 112,450 Intergovernmental-unrestricted 3,858,262 - 3,858,262 Investment income and miscellaneous 1,046,551 690,966 1,737,517 Transfers (93,477) 93,477 - Total general revenues and transfers 15,304,240 784,443 16,088,683 Change in net position 4,274,796 8,199,417 12,474,213 Net position, beginning of the year 76,405,983 44,522,816 120,928,799 Net position, ending 80,680,779$ 52,722,233$ 133,403,012$ Net (Expense) Revenue and Changes in Net Position Primary Government The accompanying Notes to Financial Statements are an integral part of these statements.Page | 17 223                 This page intentionally left blank.     224 Fund Financial Statements 225 General Fund Road Improvements Fund Solid Waste / Recycling Other Governmental Funds Total Governmental Funds Assets: Cash and cash equivalents 701,256$ 776,650$ 153,425$ 1,348,269$ 2,979,600$ Investments 9,457,208 9,340,551 1,845,201 16,215,250 36,858,210 Receivables, net 43,144 754 134,832 - 178,730 Inventories, at cost 30,664 - - - 30,664 Prepaids 261,994 - - 1,390 263,384 Special assessments receivable - - - 1,068,334 1,068,334 Advances to other funds 45,357 - - - 45,357 Restricted assets: Cash and cash equivalents 86,344 - - 2,590 88,934 Total assets 10,625,967$ 10,117,955$ 2,133,458$ 18,635,833$ 41,513,213$ Liabilities and Fund Balances: Accounts payable 579,608$ 108$ 234,825$ 65,045$ 879,586$ Accrued liabilities 854,796 - - - 854,796 Unearned revenue 100,391 - - - 100,391 Retainage payable 796 - - - 796 Due to other funds - - - 45,357 45,357 Due to other governments 68,638 - - - 68,638 Payable from restricted assets 86,344 - - - 86,344 Total liabilities 1,690,573 108 234,825 110,402 2,035,908 Deferred Inflows of Resources Unavailable revenue-county taxes - 754 - - 754 Unavailable revenue-special assessments - - - 1,068,334 1,068,334 Total deferred inflows of resources - 754 - 1,068,334 1,069,088 Fund Balances: Nonspendable 338,015 - - 1,390 339,405 Restricted - 10,117,093 - 7,892,930 18,010,023 Committed - - 660,945 1,240,354 1,901,299 Assigned - - 1,237,688 8,358,910 9,596,598 Unassigned 8,597,379 - - (36,487) 8,560,892 Total fund balances 8,935,394 10,117,093 1,898,633 17,457,097 38,408,217 Total liabilities, deferred inflows of resources and fund balances 10,625,967$ 10,117,955$ 2,133,458$ 18,635,833$ 41,513,213$ Special Revenue City of Winter Springs, Florida Balance Sheet Governmental Funds September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements.Page | 18 226 City of Winter Springs, Florida Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2020 Total Fund Balance, governmental funds 38,408,217$ 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.59,122,076 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.1,069,088 Deferred inflows and outflows of resources related to pension earnings are not recognized in the governmental funds, however, they are recorded in net position under full accrual accounting 706,589 Long-term liabilities,including bonds payable,are not due and payable in the current period and therefore are not reported in the funds.(12,537,464) Net pension liabilities are not due and payable in the current period and therefore, are not reported in the funds (6,087,727) Net Position of Governmental Activities in the Statement of Net Position 80,680,779$ The accompanying Notes to Financial Statements are an integral part of these statements.Page | 19 227 General Fund Road Improvements Fund Solid Waste / Recycling Other Governmental Funds Total Governmental Funds Revenues: Taxes: Property taxes 5,869,644$ -$ -$ 27$ 5,869,671$ Utility taxes 4,510,783 - - - 4,510,783 Business tax receipts 112,450 - - - 112,450 Permits and fees 2,395,505 - - 2,320 2,397,825 Intergovernmental revenues 3,826,963 2,271,433 87,211 562,250 6,747,857 Charges for services 594,695 - 2,572,661 44,225 3,211,581 Fines and forfeitures 76,546 - - 32,556 109,102 Impact fees/assessments ---1,348,358 1,348,358 Investment income 276,061 208,395 34,961 393,166 912,583 Miscellaneous 130,143 - - 3,825 133,968 Total revenues 17,792,790 2,479,828 2,694,833 2,386,727 25,354,178 Expenditures: Current: General government 4,699,790 - - 11,028 4,710,818 Public safety 6,493,065 - - 29,954 6,523,019 Physical environment 1,040,078 - 2,961,287 1,250,262 5,251,627 Culture and recreation 1,964,813 - - - 1,964,813 Debt Service: Principal - - - 514,943 514,943 Interest and fiscal charges - - - 896,717 896,717 Capital Outlay: General government 69,410 - - 65,395 134,805 Public safety 68,464 - - - 68,464 Physical environment 127,882 1,405,539 - 828,893 2,362,314 Culture and recreation 408,528 - - 620,071 1,028,599 Total expenditures 14,872,030 1,405,539 2,961,287 4,217,263 23,456,119 Excess (Deficiency) of Revenues Over Expenditures 2,920,760 1,074,289 (266,454) (1,830,536) 1,898,059 Other Financing Sources (Uses) Transfers in 546,523 - - 3,515,201 4,061,724 Transfers out (3,230,000) - - (925,201) (4,155,201) Total other financing sources (uses)(2,683,477) - - 2,590,000 (93,477) Net Change in Fund Balances 237,283 1,074,289 (266,454) 759,464 1,804,582 Fund balances, beginning 8,698,111 9,042,804 2,165,087 16,697,633 36,603,635 Fund balances, ending 8,935,394$ 10,117,093$ 1,898,633$ 17,457,097$ 38,408,217$ Special Revenue City of Winter Springs, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements.Page | 20 228 Net Change in Fund Balances - total governmental funds:1,804,582$ 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.(921,889) The net effect of various miscellaneous transactions involving capital assets (i.e.sales,trade-ins and disposals) is to decrease net position.(513,972) Contributions of capital assets are not reported as revenues in the governmental funds.2,160,784 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.514,943 The payment of accreted interest that was recognized in a prior year is not reported as an expense on the statement of activities.857,119 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year.(97,062) Cash pension contributions reported in the funds were less than the calculated pension expense on the statement of activities, and therefore decreased net position.1,062,862 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.(592,571) Change in net position of governmental activities 4,274,796$ Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities City of Winter Springs, Florida Year Ended September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements.Page | 21 229 Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Taxes: Property Taxes 5,873,221$ 5,873,221$ 5,869,644$ (3,577)$ Utility taxes 4,043,000 4,514,090 4,510,783 (3,307) Business tax receipts 100,000 111,800 112,450 650 Permits and fees 2,303,990 2,395,310 2,395,505 195 Intergovernmental revenues 3,994,992 3,806,172 3,826,963 20,791 Charges for services 676,354 573,304 594,695 21,391 Fines and forfeitures 115,200 75,200 76,546 1,346 Investment income 150,000 273,500 276,061 2,561 Miscellaneous 70,001 131,161 130,143 (1,018) Total revenues 17,326,758 17,753,758 17,792,790 39,032 Expenditures: Current: General government 6,885,435 4,861,434 4,769,200 92,234 Public safety 7,205,604 6,562,843 6,561,529 1,314 Physical environment 1,333,620 1,173,585 1,167,960 5,625 Culture and recreation 2,387,133 2,423,590 2,373,341 50,249 Total expenditures 17,811,792 15,021,452 14,872,030 149,422 Excess (deficiency) of revenues over expenditures (485,034) 2,732,306 2,920,760 188,454 Other Financing Sources (Uses): Transfers in 1,912,149 627,389 546,523 (80,866) Transfers out (1,290,000) (3,230,000) (3,230,000) - Net other financing sources 622,149 (2,602,611) (2,683,477) (80,866) Net change in fund balances 137,115 129,695 237,283 107,588 Fund balances, beginning 8,698,111 8,698,111 8,698,111 - Fund balances, ending 8,835,226$ 8,827,806$ 8,935,394$ 107,588$ City of Winter Springs, Florida Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended September 30, 2020 General Fund The accompanying Notes to Financial Statements are an integral part of these statements. . Page | 22 230 Road Improvements Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Intergovernmental revenues 2,317,500$ 1,950,000$ 2,271,433$ 321,433$ Investment income 115,000 115,000 208,395 93,395 Total revenues 2,432,500 2,065,000 2,479,828 414,828 Expenditures: Current: Physical environment 25,000 14,500 - 14,500 Capital Outlay: Physical environment 775,000 1,555,500 1,405,539 149,961 Total expenditures 800,000 1,570,000 1,405,539 164,461 Excess (deficiency) of revenues over expenditures 1,632,500 495,000 1,074,289 579,289 Other financing sources (uses) Transfers out (3,212,000) - - - Total other financing sources (uses)(3,212,000) - - - Net Change in Fund Balances (1,579,500) 495,000 1,074,289 579,289 Fund balances, beginning 9,042,804 9,042,804 9,042,804 - Fund balances, ending 7,463,304$ 9,537,804$ 10,117,093$ 579,289$ City of Winter Springs, Florida Year Ended September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements. Page | 23 231 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Intergovernmental revenues 48,780$ 87,082$ 87,211$ 129$ Charges for services 2,547,410 2,580,717 2,572,661 (8,056) Investment income 18,500 34,606 34,961 355 Total revenues 2,614,690 2,702,405 2,694,833 (7,572) Expenditures: Current: Physical environment 2,831,721 2,962,111 2,961,287 824 Total expenditures 2,831,721 2,962,111 2,961,287 824 Excess (Deficiency) of Revenues Over Expenditures (217,031) (259,706) (266,454) (6,748) Other Financing Sources (Uses) Transfers out (24,315) - - - Total other financing sources (uses)(24,315) - - - Net Change in Fund Balances (241,346) (259,706) (266,454) (6,748) Fund balances, beginning 2,165,087 2,165,087 2,165,087 - Fund balances, ending 1,923,741$ 1,905,381$ 1,898,633$ (6,748)$ City of Winter Springs, Florida Year Ended September 30, 2020 Solid Waste/Recycling Special Revenue Fund The accompanying Notes to Financial Statements are an integral part of these statements.Page | 24 232                 This page intentionally left blank.     233 Business-type Activities - Enterprise Funds Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund Total Assets Current Assets: Cash and cash equivalents 2,085,423$ 500,502$ 131,438$ 2,717,363$ Investments 25,080,804 6,018,201 1,580,771 32,679,776 Receivables, net 486,688 - 50,478 537,166 Inventories 15,600 - - 15,600 Prepaid expense 5,780 - - 5,780 Total current assets 27,674,295 6,518,703 1,762,687 35,955,685 Noncurrent Assets: Restricted investments 746,540 - - 746,540 Capital Assets: Land, buildings and equipment 75,504,172 388,715 14,709,145 90,602,032 Construction in progress 604,273 - 118,617 722,890 Less Accumulated depreciation (43,939,458) (182,080) (6,728,231) (50,849,769) Total capital assets (net of accumulated depreciation) 32,168,987 206,635 8,099,531 40,475,153 Total noncurrent assets 32,915,527 206,635 8,099,531 41,221,693 Total assets 60,589,822 6,725,338 9,862,218 77,177,378 Deferred Outflows of Resources Deferred charge on refunding 73,829 - - 73,829 Deferred outflow pension and OPEB 193,055 19,588 35,151 247,794 Total deferred outflows of resources 266,884 19,588 35,151 321,623 City of Winter Springs, Florida Statement of Net Position Proprietary Funds September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements.Page | 25 234 Business-type Activities - Enterprise Funds Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund Total Liabilities Current Liabilities: Accounts payable 471,893 177,300 19,133 668,326 Accrued liabilities 179,462 34,508 28,568 242,538 Compensated absences - current 9,233 1,077 2,053 12,363 Customer deposits payable 664,554 - - 664,554 Notes payable - current 1,369,018 - - 1,369,018 Accrued interest payable 59,525 - - 59,525 Total current liabilities 2,753,685 212,885 49,754 3,016,324 Noncurrent Liabilities: Notes payable 8,000,399 - - 8,000,399 Revenue bonds payable 3,794,191 - - 3,794,191 Accreted interest payable 8,073,590 - - 8,073,590 Compensated absences 36,932 4,308 8,210 49,450 Other noncurrent liabilities 320,975 25,340 76,020 422,335 Net pension liability 1,067,013 126,732 149,347 1,343,092 Total noncurrent liabilities 21,293,100 156,380 233,577 21,683,057 Total liabilities 24,046,785 369,265 283,331 24,699,381 Deferred Inflows of Resources Deferred inflow pension and OPEB 58,814 4,643 13,930 77,387 Total deferred outflows of resources 58,814 4,643 13,930 77,387 Net Position Net investment in capital assets 19,079,208 206,635 8,099,531 27,385,374 Restricted for renewal and replacement 647,207 - - 647,207 Unrestricted 17,024,692 6,164,383 1,500,577 24,689,652 Total net position 36,751,107$ 6,371,018$ 9,600,108$ 52,722,233$ The accompanying Notes to Financial Statements are an integral part of these statements.Page | 26 235                 This page intentionally left blank.     236 Business-type Activities - Enterprise Funds Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund Total Operating Revenues: User charges 11,574,770$ 2,148,478$ 1,105,303$ 14,828,551$ Other revenue - - 29,334 29,334 Total operating revenues 11,574,770 2,148,478 1,134,637 14,857,885 Operating Expenses: Salaries and benefits 1,445,959 437,740 433,234 2,316,933 Materials and supplies 671,679 14,331 724,835 1,410,845 Depreciation and amortization 2,628,144 42,406 354,408 3,024,958 Other operating expenses 4,395,120 635,507 246,694 5,277,321 Total Operating Expenses 9,140,902 1,129,984 1,759,171 12,030,057 Operating income (loss)2,433,868 1,018,494 (624,534) 2,827,828 Nonoperating Revenue (Expenses): Investment income 559,894 125,564 5,508 690,966 Interest expense (235,238) - - (235,238) Accreted interest expense (675,171) - - (675,171) Operating grants - - 589,693 589,693 Total nonoperating revenue (expenses)(350,515) 125,564 595,201 370,250 Income (loss) before contributions and transfers 2,083,353 1,144,058 (29,333) 3,198,078 Capital Contributions: Connection fees 559,321 - - 559,321 Capital contribution 2,761,350 - 1,587,191 4,348,541 Transfers In 250,000 - 390,000 640,000 Transfers Out (546,523) - - (546,523) Change in net position 5,107,501 1,144,058 1,947,858 8,199,417 Net position, beginning 31,643,606 5,226,960 7,652,250 44,522,816 Net position, ending 36,751,107$ 6,371,018$ 9,600,108$ 52,722,233$ City of Winter Springs, Florida Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds Year Ended September 30, 2020 The accompanying Notes to Financial Statements are an integral part of these statements.Page | 27 237 Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund Total Cash Flows from Operating Activities: Receipts from customers 11,455,881$ 2,148,478$ 1,003,289$ 14,607,648$ Payments to suppliers (4,854,231) (540,524) (1,502,619) (6,897,374) Payments to employees (1,682,569) (448,941) (457,693) (2,589,203) Net cash provided (used) by operating activities 4,919,081 1,159,013 (957,023) 5,121,071 Cash Flows from Noncapital Financing Activities: Transfers in 250,000 - 390,000 640,000 Transfers out (546,523) - - (546,523) Grants - - 1,334,661 1,334,661 Net cash provided (used) by noncapital financing activities (296,523) - 1,724,661 1,428,138 Cash Flows from Capital and Related Financing Activities: Acquisition of capital assets (1,410,489) (84,842) (5,985) (1,501,316) Principal paid (1,938,782) - - (1,938,782) Interest paid (156,803) - - (156,803) Connection fees 559,321 - - 559,321 Net cash provided (used) by capital and related financing activities (2,946,753) (84,842) (5,985) (3,037,580) Cash Flows from Investing Activities: Sale (purchase) of investments (1,941,427) (1,081,403) (703,609) (3,726,439) Investment income 559,894 125,564 5,508 690,966 Net cash provided (used) by investing activities (1,381,533) (955,839) (698,101) (3,035,473) Net Increase (Decrease) in Cash and Cash Equivalents 294,272 118,332 63,552 476,156 Cash and cash equivalents, beginning 1,791,151 382,170 67,886 2,241,207 Cash and cash equivalents, end 2,085,423$ 500,502$ 131,438$ 2,717,363$ City of Winter Springs, Florida Statement of Cash Flows Proprietary Funds Year Ended September 30, 2020 Business-type Activities - Enterprise Funds The accompanying Notes to Financial Statements are an integral part of these statements.Page | 28238 Water and Sewer Utility Fund Development Services Fund Stormwater Utility Fund Total Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)2,433,868$ 1,018,494$ (624,534)$ 2,827,828$ Adjustments Not Affecting Cash: Depreciation and amortization 2,628,144 42,406 354,408 3,024,958 Change in Assets and Liabilities: Decrease (increase) in accounts receivable (121,274) - (5,453) (126,727) Decrease (increase) in inventories (1,742) - - (1,742) Decrease (increase) in deferred outflows (6,825) (463) (4,555) (11,843) Increase (decrease) in accounts payable 214,310 109,314 (531,090) (207,466) Increase (decrease) in accrued liabilities (9,519) 13,336 1,414 5,231 Increase (decrease) in customer deposits 2,385 - - 2,385 Increase (decrease) in unearned revenue - - (125,895) (125,895) Increase (decrease) in accrued compensated absences (17,613) (7,939) (205) (25,757) Increase (decrease) in deferred inflows 38,213 2,840 9,590 50,643 Increase (decrease) in net pension liability (248,742) (19,597) (32,568) (300,907) Increase (decrease) in net OPEB liability 7,876 622 1,865 10,363 Total adjustments (142,931) 98,113 (686,897) (731,715) Net Cash Provided By Operating Activities 4,919,081$ 1,159,013$ (957,023)$ 5,121,071$ Noncash Capital and Financing Activities: Contributed capital assets 2,761,350$ -$ 1,587,191$ 4,348,541$ Business-type Activities - Enterprise Funds The accompanying Notes to Financial Statements are an integral part of these statements.Page | 29239 September 30, 2020 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents 515,192$ Receivables: Employee contributions 24,638 Employer contributions 611,054 Total receivables 635,692 Investments, at fair value: Common funds, equity 38,703,802 Common funds, bonds 10,198,150 Other investments 8,492,153 Total Investments 57,394,105 Total assets 58,544,989 Liabilities: Accounts payable 35,123 Net Position: Net position restricted for pensions 58,509,866$ City of Winter Springs, Florida Statement of Fiduciary Net Position Fiduciary Fund The accompanying Notes to Financial Statements are an integral part of these statements.Page | 30 240 Statement of Changes in Fiduciary Net Position Year Ended September 30, 2020 Defined Benefit Pension Trust Fund Additions: Contributions: Employer 3,223,305$ Plan Members 208,596 Total contributions 3,431,901 Investment Income: Net increase in fair value of investments 3,741,524 Interest 793,551 Investment-related expenses (316,197) Net investment income 4,218,878 Total additions 7,650,779 Deductions: Benefits 3,821,626 Administrative expenses 32,984 Total deductions 3,854,610 Change in net position 3,796,169 Net position, beginning 54,713,697 Net position, ending 58,509,866$ City of Winter Springs, Florida Fiduciary Fund The accompanying Notes to Financial Statements are an integral part of these statements.Page | 31 241                 This page intentionally left blank.     242 Notes to Financial Statements 243 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 32 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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. 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. 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. 244 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 33 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. The government reports the following funds: Major Governmental Funds 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. Road Improvements Special Revenue Fund - accounts for collected one-cent sales tax revenues restricted for use for transportation, safety, capacity and infrastructure consistent with 212.055, F.S. 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. 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. Major Proprietary Funds Water and Sewer Utility Fund - 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. 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. Stormwater Utility Fund - 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. 245 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 34 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance 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 less than 2 years from the date of acquisition. Investments for the City are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. 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 nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 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. 246 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 35 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. Restricted Assets Certain proceeds of the City’s enterprise fund revenue bonds and notes, 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. 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 acquisition 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 3-10 247 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 36 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. 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 two items that qualify for reporting in this category. The deferred charge on refunding and deferred outflows of pension and OPEB 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. 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 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. The City also has deferred inflows of pension and OPEB reported in the enterprise and government-wide statement of net position. 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. 248 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 37 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. The General Fund is the only fund that reports a positive unassigned fund balance. However, in other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. New GASB Statement Implemented In fiscal year 2020, the City implemented Government Accounting Standards Board (GASB) Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This statement eliminates the requirement to capitalize interest on enterprise fund construction projects. The City also implemented GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This pronouncement provides temporary relief to governments and other stakeholder in light of the COVID-19 pandemic by postponing the effective dates of provisions in certain other statements. There was no effect on beginning balances of the City for the implementation of either statement. THIS SECTION INTENTIONALLY LEFT BLANK 249 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 38 NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 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 difference are as follows: Bonds payable (3,081,089)$ Accreted interest payable (6,686,253) Notes payable (1,128,333) Less: deferred charge on refunding (to be amortized as interest expense)9,289 Accrued interest payable (18,335) Other post employment benefits (1,072,732) Compensated absences (560,011) Net Adjustment to Reduce Fund Balance, total governmental funds to arrive at net position, governmental activities (12,537,464)$ 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 difference are as follows: Capital Outlay 3,738,360$ Depreciation Expense (4,660,249) Net Adjustment to Decrease Net Changes in Fund Balances, total governmental funds to arrive at changes in net position, governmental activities (921,889)$ 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 difference are as follows: Principal repayment 514,943$ Net Adjustment to Increase Net Changes in Fund Balances, total governmental funds to arrive at changes in net position, governmental activities 514,943$ 250 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 39 NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) 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 difference are as follows: Compensated Absences 27,349$ Amortization of Loss on Refunding (929) Accrued Interest Payable 1,578 Other Post Employment Benefits (56,254) Accreted Interest Payable (564,315) Net Adjustment to Decrease Net Changes in Fund Balance, total governmental funds to arrive at changes in net position, governmental activities (592,571)$ NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY 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. Deficit Fund Balance As a result of the internal loan, the Tuscawilla Phase III Special Revenue Fund has a deficit fund balance of $36,487 at September 30, 2020. Appropriations in Excess of Funds Available Appropriations for the Tuscawilla Phase III Special Revenue Fund and Central Winds GO Debt Service Fund were in excess of anticipated revenues and prior years’ fund balance. Transfers Out in Excess of Appropriations Transfers out in the Excellence in Customer Service Capital Projects Fund were in excess of appropriations. 251 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 40 NOTE 4 DEPOSITS AND INVESTMENTS Deposits 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 LGIP) 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 & Poor’s (S & P) rating of AAm or AAm-G. Investments in commercial paper and bankers’ acceptances must be rated, 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 “AA” 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. 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, 2020, 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, 2020, 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. 252 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 41 NOTE 4 DEPOSITS AND INVESTMENTS (CONTINUED) 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. Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant unobservable inputs that uses the best information available under the circumstances, which may include the City’s own data in measuring unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2020: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Investments Valued by Fair Value Level Fair Value (Level 1)(Level 2) Commercial Paper 11,395,991$ -$ 11,395,991$ US Treasury Notes 43,259,757 43,259,757 - Municipal Credit 1,300,992 - 1,300,992 Municipal Bonds 460,814 - 460,814 Federal Agency Bonds 13,120,432 - 13,120,432 69,537,986$ 43,259,757$ 26,278,229$ Investments held by the City at September 30, 2020 are detailed below. Investments Fair Value Credit Rating Weighted Average Maturity Commercial Paper 11,395,991$ A-1 94 days US Treasury Notes 43,259,757 AA+291 days Municipal Credit 1,300,992 AA 600 days Municipal Bonds 460,814 SP-1+182 days Federal Agency Bonds 13,120,432 AA+650 days 69,537,986$ 253 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 42 NOTE 4 DEPOSITS AND INVESTMENTS (CONTINUED) Investments: Pension Funds 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, 2020 are detailed below: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Investments Fair Value (Level 1)(Level 2)(Level 3) Equity Mutual Funds 38,703,802$ -$ 38,703,802$ -$ Bond Mutual Funds 10,198,150 - 10,198,150 - Real Estate Investment Trusts 5,574,338 - - 5,574,338 Other Investments 2,917,815 - 2,917,815 - Total Investments 57,394,105 - 51,819,767 5,574,338 Cash and Cash Equivalents 515,192 - - - Total Cash and Investments 57,909,297$ -$ 51,819,767$ 5,574,338$ 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 “A1” 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. 254 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 43 NOTE 4 DEPOSITS AND INVESTMENTS (CONTINUED) 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, 2020, 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, 2020, there were no security investments in the Trust that were over their respective limitations. 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: Fund Accounts Receivable Allowance for Uncollectible Accounts Net Receivable General 43,945$ (801)$ 43,144$ Road Improvements Special Revenue 754 - 754 Solid Waste/Recycling Special Revenue 145,396 (10,564) 134,832 Water & Sewer Utility 553,914 (67,226) 486,688 Stormwater Utility 55,938 (5,460) 50,478 799,947$ (84,051)$ 715,896$ There is an amount of $754 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 $1,068,334 that are not available to liquidate liabilities of the current period. These receivables are reported as deferred inflows of resources in the governmental funds balance sheet. 255 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 44 NOTE 6 CAPITAL ASSETS Capital asset activity for the year ended September 30, 2020 was as follows: Beginning Balance Increases Decreases Ending Balance Governmental Activities: Capital assets, not being depreciated: Land 9,946,795$ -$ (48,850)$ 9,897,945$ Construction in Progress 1,471,073 3,234,112 (3,246,599) 1,458,586 Total capital assets, not being depreciated 11,417,868 3,234,112 (3,295,449) 11,356,531 Capital assets, being depreciated: Buildings 15,564,862 119,397 (129,681) 15,554,578 Improvements 14,795,596 357,806 (15,381) 15,138,021 Intangible assets 1,152,646 14,738 - 1,167,384 Machinery and equipment 9,401,892 1,324,503 (721,178) 10,005,217 Infrastructure 69,539,925 3,695,839 - 73,235,764 Total capital assets, being depreciated 110,454,921 5,512,283 (866,240) 115,100,964 Less accumulated depreciation for: Buildings (7,564,831) (462,453) 92,801 (7,934,483) Improvements (7,724,452) (524,698) 8,148 (8,241,002) Intangible assets (582,313) (470,216) - (1,052,529) Machinery and equipment (6,872,868) (800,955) 699,517 (6,974,306) Infrastructure (40,731,172) (2,401,927) - (43,133,099) Total accumulated depreciation (63,475,636) (4,660,249) 800,466 (67,335,419) Total capital assets, being depreciated, net 46,979,285 852,034 (65,774) 47,765,545 Governmental activities capital assets, net 58,397,153$ 4,086,146$ (3,361,223)$ 59,122,076$ THIS SECTIONAL INTENTIONALLY LEFT BLANK 256 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 45 NOTE 6 CAPITAL ASSETS (CONTINUED) Beginning Balance Increases Decreases Ending Balance Business-type Activities: Capital assets, not being depreciated: Land 7,170,177$ -$ -$ 7,170,177$ Construction in Progress 261,294 777,718 (316,122) 722,890 Total capital assets, not being depreciated 7,431,471 777,718 (316,122) 7,893,067 Capital assets, being depreciated: Buildings 2,281,497 - - 2,281,497 Improvements 66,098,226 4,381,957 - 70,480,183 Intangible assets 336,770 57,149 - 393,919 Machinery and equipment 9,292,769 989,571 (6,084) 10,276,256 Total capital assets, being depreciated 78,009,262 5,428,677 (6,084) 83,431,855 Less accumulated depreciation for: Buildings (781,773) (68,497) - (850,270) Improvements (43,016,827) (2,004,992) - (45,021,819) Intangible assets (182,271) (56,891) - (239,162) Machinery and equipment (3,809,608) (934,994) 6,084 (4,738,518) Total accumulated depreciation (47,790,479) (3,065,374) 6,084 (50,849,769) Total capital assets, being depreciated, net 30,218,783 2,363,303 - 32,582,086 Business-type activities capital assets, net 37,650,254$ 3,141,021$ (316,122)$ 40,475,153$ Depreciation expense was charged to functions/programs as follows: Governmental Activities: General government 2,310,736$ Public safety 263,177 Physical environment 1,509,782 Culture and recreation 576,554 Total depreciation expense, governmental activities 4,660,249$ Business-type Activities: Water and sewer 2,628,144$ Development services 42,406 Stormwater 354,408 Total depreciation expense, business-type activities 3,024,958$ Depreciation increases for business-type activities do not agree to depreciation expense due to transfers of fully depreciated assets from governmental activities. 257 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 46 NOTE 7 LONG-TERM DEBT Revenue Bonds - Public Offering 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 $12,750,000. For the fiscal year, principal and interest paid (including accreted interest) on this series was $1,275,000 and total pledged revenue was $6,648,466. 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 $16,340,000. For the fiscal year, no principal and interest was paid this series and total pledged net revenue was $5,884,704. 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 Original Amount Balance September 30, 2020 Governmental Activities Improvement Refunding Revenue Bonds-10/1/2020 Series 1999 (excludes $6,686,253 of 3.25 - 5.25%to accreted interest on capital appreciation bonds)(4/1 & 10/1)10/1/2029 7,998,970$ 3,081,089$ Total 3,081,089$ Business-Type Activities Water and Sewer Refunding Revenue Bonds 10/1/2022 Series 2000 (excludes $8,073,590 of 4.5 - 5.5%to accreted interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2030 6,969,191$ 3,794,191$ Total 3,794,191$ THIS SECTION INTENTIONALLY LEFT BLANK 258 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 47 NOTE 7 LONG-TERM DEBT (CONTINUED) Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending September 30,Principal Interest Principal Interest 2021 393,797$ 881,203$ -$ -$ 2022 371,765 903,235 397,498 942,502 2023 350,893 924,107 522,638 1,352,363 2024 331,130 943,870 490,931 1,384,069 2025 312,413 962,587 460,950 1,414,050 2026-2030 1,321,091 5,053,909 1,922,174 7,452,825 3,081,089$ 9,668,911$ 3,794,191$ 12,545,809$ Business-Type ActivitiesGovernmental Activities Notes Payable - Direct Borrowing 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 $1,322,103. For the fiscal year, principal and interest paid on this series was $135,310 and total pledged revenue was $136,883. The 2016 Water and Sewer System Revenue Refunding Note Payable is secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $1,170,899. For the fiscal year, principal and interest paid was $1,579,229 and total pledged revenue was $5,884,704. The 2018 Water and Sewer System Revenue Refunding Note Payable is secured by net revenue from the water and sewer system. The agreement provides for total funding of $1,924,000. The loan period is for 12 years with an interest rate of 2.75 percent. The note is secured by gross revenues from the water and sewer utility net of operations and maintenance costs. Total principal and interest remaining to be paid on this series is $2,390,238. For the fiscal year, principal and interest paid was $82,498 and total pledged revenue was $5,884,704. In October 2020, this Note was fully refunded (see Note 16). In the event of default, the note holders may make the outstanding amounts due and payable immediately. In April 2012, the City executed Clean Water State Revolving Fund (SRF) 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 $1,404,472. For the fiscal year, principal and interest paid on this series was $113,706 and total pledged net revenue was $5,884,704. In October 2020, this note was fully refunded (see Note 16). In 2017, the City executed the Drinking Water State Revolving Fund Construction Loan agreement DW590610 for Water Treatment Plant Water Quality Improvements. The agreement provides for total funding of $5,862,732. The loan period is for 20 years with an interest rate of .72 percent. The note is secured by gross revenues from the water and sewer utility net of operations and maintenance costs. The principal and interest remaining to be paid on this series is $5,442,552. For the fiscal year, principal and interest paid on this series was $320,150 and total pledged net revenue was $5,884,704. 259 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 48 NOTE 7 LONG-TERM DEBT (CONTINUED) In the event of default on the State Revolving Fund Loans, the Florida Department of Environmental Protection may cause to establish rates and collect fees, require the City to account for all moneys received and used, appoint a receiver to manage the Water and Sewer Systems, intercept delinquent amounts plus a penalty due to the City under State Revenue Sharing, recover all amounts due including costs of collection and attorney fees, and accelerate the repayment schedule or increase the interest rate by a factor of up to 1.667. The City has notes payable for both governmental and business-type activities. Outstanding notes payable at year end are as follows: Governmental Activities Special Assessment Refunding Revenue Note,Series 2011 -payable in annual principal installments starting 10/1/12 through 10/1/29 and interest paid semi-annually at 3.25%1,128,333$ Business-Type Activities Water and Sewer System Revenue Refunding Note, Series 2016 - payable in annual principal installments starting 4/1/17 through 10/1/2021 and interest paid semi-annually at 1.34%1,167,000$ SRF loan-payable in semi-annual principal and interest installments starting 4/15/13,with interest paid semi-annually at 2.77%1,194,414 2017 SRF loan-payable in semi-annual principal and interest installments starting 12/15/17,with interest paid semi-annually at .72%5,114,003 Water and Sewer System Revenue Refunding Note, Series 2018 - payable in annual principal installments starting 10/1/19 through 10/1/2030 and interest paid semi-annually at 2.75%1,894,000 9,369,417$ Annual debt service requirements to maturity for notes payable are as follows: Year Ending September 30,Principal Interest Principal Interest 2021 95,604$ 35,117$ 1,369,018$ 123,273$ 2022 99,099 31,953 595,329 114,164 2023 102,332 28,680 406,718 108,849 2024 105,408 25,304 411,188 103,439 2025 113,321 21,750 416,739 97,933 2026-2030 612,569 50,965 2,169,959 403,073 2031-2035 - - 3,365,888 82,563 2036-2037 - - 634,578 5,722 1,128,333$ 193,769$ 9,369,417$ 1,039,016$ Governmental Activities Business-Type Activities 260 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 49 NOTE 7 LONG-TERM DEBT (CONTINUED) Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2020 was as follows: Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental Activities: Bonds Payable- Revenue bonds 3,498,970$ -$ (417,881)$ 3,081,089$ 393,797$ Accreted Interest Payable 6,979,057 564,315 (857,119) 6,686,253 881,203 Notes Payable - Direct Borrowing Capital improvement notes 1,225,395 - (97,062) 1,128,333 95,604 Other Post Employment Benefits 1,046,410 26,322 - 1,072,732 - Net Pension Obligation 7,253,205 - (1,165,478) 6,087,727 - Compensated Absences 587,360 486,799 (514,148) 560,011 112,002 Governmental activity long-term liabilities 20,590,397$ 1,077,436$ (3,051,688)$ 18,616,145$ 1,482,606$ Beginning Balance Additions Reductions Ending Balance Due Within One Year Business-type Activities: Bonds Payable- Revenue bonds 3,794,191$ -$ -$ 3,794,191$ -$ Accreted Interest Payable 7,398,420 675,170 - 8,073,590 - Notes Payable - Direct Borrowing Revenue notes 4,639,000 - (1,578,000) 3,061,000 1,004,000 SRF Loans 6,669,199 - (360,782) 6,308,417 365,018 Other Post Employment Benefits 411,972 10,363 - 422,335 - Net Pension Obligation 1,643,999 - (300,907) 1,343,092 - Compensated Absences 87,570 152,124 (177,881) 61,813 12,363 Business-type activity long-term liabilities 24,644,351$ 837,657$ (2,417,570)$ 23,064,438$ 1,381,381$ NOTE 8 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The composition of interfund advances as of September 30, 2020 is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds 45,357$ The balance due to the General Fund 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 cumulative $17,100 in prepayments were received for a net interfund loan of $63,720. The terms of the note are an initial interest rate of 2.875% for 20 years. The interest rate is variable, with maximum increases of 1.25% in years 6-15, and 1.5% in years 16-20. 261 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 50 NOTE 8 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED) Interfund transfers for the year ended September 30, 2020 are summarized below: Transfers Out General Fund Stormwater Utility Fund Other Governmental Funds Water and Sewer Utility Fund Total General Fund -$ 390,000$ 2,590,000$ 250,000$ 3,230,000$ Other Governmental Funds - - 925,201 - 925,201 Water and Sewer Utility Fund 546,523 - - - 546,523 546,523$ 390,000$ 3,515,201$ 250,000$ 4,701,724$ Transfers In Interfund transfers for the year ended September 30, 2020 are detailed below: Recipient Fund Amount Purpose 1999/2011 Debt Service Fund 1,290,000$ Transfer from General Fund annual debt service requirements on the Improvement Refunding Revenue Note Series 2011 Public Facilities 500,000 Transfer from General Fund for recreational capital initiatives Parks Impact Fees 90,255 Transfer from Public Facilities for Parks Playground Expansion Excellence in Customer Service 300,000 Transfer from General Fund for City Facility end of life assets Arbor Fund 500,000 Transfer from General Fund for urban beautification initiatives General Fund 546,523 Transfer from Water and Sewer Utility Fund for utility billing Central Winds GO 834,946 Transfer from Excellence in Customer Service to close the Central Winds debt service fund Stormwater Utility 390,000 Transfer from General Fund for capital needs Water and Sewer Utility Fund 250,000 Transfer from General Fund for Water Quality Capital Initiatives 4,701,724$ 262 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 51 NOTE 9 DEFINED BENEFIT PENSION PLAN Plan Description 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 3 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. Plan Membership At September 30, 2020 plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 125 Inactive Plan Members Entitled to but Not Yet Receiving Benefits 167 Active Plan Members 73 365 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. Net Pension Liability The City’s net pension liability was measured as of September 30, 2020, and the pension liability was determined by an actuarial valuation as of October 1, 2019 updated to September 30, 2020. The components of the net pension liability of the sponsor on September 30, 2020 were as follows: Total Pension Liability 65,975,808$ Plan Fiduciary Net Position (58,544,989) Sponsor's Net Pension Liability 7,430,819$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 88.74% 263 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 52 NOTE 9 DEFINED BENEFIT PENSION PLAN (CONTINUED) Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2019 updated to September 30, 2020 using the following actuarial assumptions: Inflation 2.75% Salary Increases 3.0% - 4.5% Investment Rate of Return 7.75% 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 BB. 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 BB. For disabled participants, the RP-2000 Combined Disability Mortality Table was used with separate rates for males and females, without projected mortality improvements. 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, 2020 are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Domestic Equity 50%10.00% International Equity 15%11.00% Domestic Bonds 20%5.00% International Bonds 5%6.00% Real Estate 10%7.00% Total 100% Discount rate The discount rate used to measure the total pension liability was 7.50%. 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. 264 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 53 NOTE 9 DEFINED BENEFIT PENSION PLAN (CONTINUED) Changes in Net Pension Liability Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (a)(b)(a)-(b) Balances at September 30, 2019 63,610,901$ 54,713,697$ 8,897,204$ Changes for a Year: Service Cost 401,950 - 401,950 Interest 4,736,276 - 4,736,276 Differences between expected and actual experience 569,125 - 569,125 Changes of assumptions 479,182 - 479,182 Contributions-employer - 3,213,927 (3,213,927) Contributions-employee - 217,975 (217,975) Net investment income - 4,254,000 (4,254,000) Benefit payments, including refunds of employee contributions (3,821,626) (3,821,626) - Administrative Expense - (32,984) 32,984 Net Changes 2,364,907 3,831,292 (1,466,385) Balances at September 30, 2020 65,975,808$ 58,544,989$ 7,430,819$ Increase (Decrease) Sensitivity of the Net Pension Liability to changes in the Discount Rate 1% Decrease Current Discount Rate 1% Increase 6.50%7.50%8.50% Net Pension Liability 14,896,257$ 7,430,819$ 1,152,490$ Deferred outflows and inflows of resources For the year ended September 30, 2020, the City recognized pension expense of $1,877,174. At September 30, 2020, the city reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Experience $ 234,346 $ - Changes of Assumptions 197,310 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 328,445 - 760,101$ -$ 265 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 54 NOTE 9 DEFINED BENEFIT PENSION PLAN (CONTINUED) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended September 30: 2021 125,299$ 2022 189,801 2023 492,272 2024 (47,271) 2025 - Thereafter - 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. The plan is administered by the City. 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, 2020, employer contributions required and made were $152,199 As of September 30, 2020, participation in the plan consisted of 80 active members. During the year, the General Plan held no securities issued by the employer. THIS SECTION INTENTIONALLY LEFT BLANK 266 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 55 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 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. As of October 1, 2019, the valuation date, there were 133 active employees and 35 inactive employees or beneficiaries currently receiving benefits. The OPEB liability of $1,495,067 was measured as of October 1, 2019 and was determined by the actuarial valuation. The covered payroll was $6,870,391, and the ratio of net OPEB liability as a percentage of covered payroll was 21.76%. 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 OPEB Liability and Related Ratios Schedule, 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. 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. The Total OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Healthcare cost trend rates Based on the Getzen Model starting at 6.0% gradually decreasing to an ultimate rate of 4.1% in 2040 Valuation Date October 1, 2019 Measurement Date October 1, 2019 Actuarial Cost Method Entry Age Normal Discount Rate 2.74% Inflation Rate 2.50% Salary Rate Increase 3.00% - 4.50% Retiree's share of benefit related costs 100% of blended health insurance premium rates except by law 0% for certain conditions for police officers death and disability benefits 267 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 56 NOTE 11 OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Below are the details regarding the total OPEB liability for the measurement period from October 1, 2019 to September 30, 2020: Total OPEB Liability Balance as of September 30, 2019 1,458,382$ Changes for the year: Service Cost 60,410 Interest 57,351 Difference Between Expected & Actual Experience (249,780) Changes of Assumptions and Other Inputs 211,887 Benefit Payments (43,183) Net Changes 36,685 Balance as of September 30, 2020 1,495,067$ The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: Decrease Discount Rate Increase 1.74%2.74%3.74% Total OPEB Liability 1,750,121$ 1,495,067$ 1,289,981$ The following presents the total OPEB liability of the City using the 2020 healthcare cost trend rate of 6.0% to 4.1%, as well as what the City’s OPEB liability would be if it were calculated using healthcare trend rates that were 1 percentage point lower and 1 percentage point higher than the current healthcare cost trend rates: 1% Decrease Current Trend 1% Increase 5.0% to 3.1%6.0% to 4.1%7.0% to 5.1% Total OPEB Liability 1,343,361$ 1,495,067$ 1,686,542$ 268 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 57 NOTE 11 OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) For the fiscal year ended September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience -$ 222,083$ Changes of assumptions or other inputs 345,549 51,868 Contributions subsequent to the measurement date 45,297 - Total 390,846$ 273,951$ The deferred outflows of resources related to OPEB, totaling $45,297 resulting from City contributions to the OPEB plan subsequent to the measurement date, will be recognized as a reduction of the OPEB liability in the fiscal year ended September 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ending September 30, 2021 (263)$ 2022 (263) 2023 (263) 2024 (263) 2025 (261) Thereafter 72,911 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 5 or 6 plans. 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. 269 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 58 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 financial statements. 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, 2020, the City had entered into construction contracts in the amount of $2,178,189. Transportation Impact Fee Credits The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2020, there are no remaining impact fee credits. NOTE 15 FUND BALANCE Minimum Fund Balance Policy In accordance with Resolution 2002-36, the City designates an amount equal to 20 percent of the total operating expenses of the General fund to be maintained as a required minimum unreserved fund balance. The purpose of the policy is to provide capacity to (1) provide sufficient cash flow for daily financial needs, (2) secure and maintain investment grade (i.e. A or above) bond ratings, (3) offset significant economic downturns or revenue shortfalls, and (4) provide funds for unforeseen expenditures related to emergencies. 270 City of Winter Springs, Florida Notes to Financial Statements September 30, 2020 Page | 59 NOTE 15 FUND BALANCE (CONTINUED) By a super majority vote of the Commission, supplemental appropriation from unassigned General Fund balance may be authorized by the Commission for a General Fund purpose reducing the unassigned General Fund’s fund balance below the 20% minimum provided that the assigned General Fund’s fund balance is restored to the minimum in the following year budget. At September 30, 2020, the City’s governmental fund balances were as follows: Fund Balances General Fund Road Improvements Fund Solid Waste/ Recycling Other Governmental Funds Total Governmental Funds Nonspendable Inventory/prepaid 292,658$ -$ -$ 1,390$ 294,048$ Advances 45,357 - - - 45,357 Spendable Restricted for: Physical environment - 10,117,093 - 330,788 10,447,881 Transportation improvements - - - 3,223,133 3,223,133 Public safety - - - 807,067 807,067 Fire impact fees - - - 2,667,009 2,667,009 Parks Improvements - - - 804,864 804,864 Debt service - - - 60,069 60,069 Committed to: Solid Waste - - 660,945 - 660,945 Arbor - - - 1,240,354 1,240,354 Assigned to: Storm reserve - - 1,237,688 - 1,237,688 Emergency Disaster Relief - - - - - Debt service - - - 1,324,230 1,324,230 Capital projects - - - 7,034,680 7,034,680 Unassigned 8,597,379 - - (36,487) 8,560,892 Total Fund Balance 8,935,394$ 10,117,093$ 1,898,633$ 17,457,097$ 38,408,217$ NOTE 16 SUBSEQUENT EVENTS In October 2020, the City issued Water and Sewer Revenue Refunding Note, Series 2020, in the amount of $3,063,000. The Note bears interest at 1.72%. The Note was issued to refund the Water and Sewer Revenue Refunding Note, Series 2018 and the State Revolving Fund Note WW590600 to take advantage of lower interest rates to reduce future payments. Future debt service payments are reduced by $217,506 due to the debt refunding. 271                 This page intentionally left blank.     272 Required Supplementary Information 273 City of Winter Springs, Florida Required Supplementary Information September 30, 2020 Page | 60 Retiree Continuation Insurance Plan Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Last Ten Fiscal Years* 9/30/2018 9/30/2019 9/30/2020 Total OPEB Liability Service Cost 105,694$ 62,209$ 60,410$ Interest 38,973 52,706 57,351 Differences Between Expected and Actual Experience (9,706) - (249,780) Changes of Assumptions 212,072 (72,616) 211,887 Benefit Payments (55,000) (54,750) (43,183) Net Change in Total OPEB Liability 292,033 (12,451) 36,685 Total OPEB Liability, beginning 1,178,800 1,470,833 1,458,382 Total OPEB Liability, ending (a)1,470,833$ 1,458,382$ 1,495,067$ Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%0.00%0.00% Covered Payroll*7,049,660$ 7,190,589$ 6,870,391$ Net OPEB Liability as a Percentage of Covered Payroll 20.86%20.28%21.76% *Only 3 years of data available; additional years’ information will be displayed as it becomes available. 274 City of Winter Springs, Florida Required Supplementary Information September 30, 2020 Page | 61 Schedule of Changes in the City’s Net Pension Liability and Related Ratios Last Ten Fiscal Years** 9/30/2014 9/30/2015 9/30/2016 9/30/2017 9/30/2018 9/30/2019 9/30/2020 Total Pension Liability Service Cost 886,819$ 834,402$ 808,281$ 697,459$ 502,667$ 472,736$ 401,950$ Interest 3,666,120 3,851,130 4,059,813 4,229,901 4,452,760 4,693,091 4,736,276 Benefit Changes - - - - - - - Differences Between Expected and Actual Experience (581,481) (107,513) 275,994 (592,087) 124,345 1,281,355 569,125 Changes of Assumptions - 8,107 - 526,115 2,531,601 - 479,182 Benefit Payments, including refunds of employee contributions (1,974,208) (2,202,769) (2,450,972) (2,679,408) (2,935,206) (3,276,412) (3,821,626) Net Change in Total Pension Liability 1,997,250 2,383,357 2,693,116 2,181,980 4,676,167 3,170,770 2,364,907 Total Pension Liability, beginning 46,508,261 48,505,511 50,888,868 53,581,984 55,763,964 60,440,131 63,610,901 Total Pension Liability, ending (a)48,505,511$ 50,888,868$ 53,581,984$ 55,763,964$ 60,440,131$ 63,610,901$ 65,975,808$ Plan Fiduciary Net Position Contributions-employer 2,527,508 2,392,948 2,586,936 2,605,753 2,635,968 2,924,706 3,213,927 Contributions-employee 369,500 358,106 479,257 342,209 460,745 265,688 217,975 Net Investment Income 3,885,344 5,160 4,077,452 5,851,493 5,243,193 1,437,224 4,254,000 Benefit Payments, Including Refunds of Employee Contributions (1,974,208) (2,202,769) (2,450,972) (2,679,408) (2,935,206) (3,276,412) (3,821,626) Administrative Expense (159,424) (11,937) (28,208) (55,697) (64,770) (69,023) (32,984) Other - - - - - - - Net Change in Plan Fiduciary Net Position 4,648,720 541,508 4,664,465 6,064,350 5,339,930 1,282,183 3,831,292 Plan Fiduciary Net Position, beginning 32,172,541 36,821,261 37,362,769 42,027,234 48,091,584 53,431,514 54,713,697 Plan Fiduciary Net Position, ending (b)36,821,261$ 37,362,769$ 42,027,234$ 48,091,584$ 53,431,514$ 54,713,697$ 58,544,989$ Net Pension Liability, ending (a)-(b)11,684,250$ 13,526,099$ 11,554,750$ 7,672,380$ 7,008,617$ 8,897,204$ 7,430,819$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 75.91% 73.42% 78.44% 86.24% 88.40% 86.01% 88.74% Covered Payroll*7,369,943$ 7,070,355$ 6,671,503$ 5,846,735$ 5,342,971$ 4,800,755$ 4,334,163$ Net Pension Liability as a Percentage of Covered Payroll 158.54% 191.31% 173.20% 131.23% 131.17% 185.33% 171.45% Valuation Date 10/1/2013 10/1/2014 10/1/2015 10/1/2016 10/1/2017 10/1/2018 10/1/2019 Notes to Schedule: Update procedures were used to roll forward the total pension liability to the measurement date. No method or benefit changes during the year. Investment return, mortality assumption and disability rates were updated during the year. * Reported payroll on which contributions to the Plan are based as provided under GASB Statement Number 82. ** Only 7 years of data available. 275 City of Winter Springs, Florida Required Supplementary Information September 30, 2020 Page | 62 Schedule of Contributions Last Ten Fiscal Years** Fiscal Year End September 30, Actuarially Determined Contribution Actual Contribution Contribution Deficiency / (Excess) Covered Payroll Actual Contribution as a % of payroll 2014 2,474,578$ 2,527,508$ (52,930)$ 7,369,943$ 34.29% 2015 2,230,908 2,392,948 (162,040) 7,070,355 33.84% 2016 2,067,445 2,586,936 (519,491) 6,671,503 38.78% 2017 1,831,495 2,605,753 (774,258) 5,846,435 44.57% 2018 1,613,548 2,635,968 (1,022,420) 5,342,971 49.34% 2019 1,484,498 2,924,706 (1,440,208) 4,800,755 60.92% 2020 1,389,125 3,213,927 (1,824,802) 4,334,163 74.15% Notes to Schedule Valuation 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 2.75% Salary Increases Investment Rate of Return 7.75% Retirement Age Mortality Update procedures were used to roll forward the total pension liability to the measurement date Actuarially determined contributions are calculated as of October 1,two years prior to the fiscal year end in which contributions are reported. For healthy male General Employee participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female General Employee participants post employment, RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy Firefighter and Police Officer participants during employment, RP 2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. 3.0% - 4.5% Experience-based table of rates that are specific to the type of eligibility condition For healthy male General Employee participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female General Employee participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. 276 City of Winter Springs, Florida Required Supplementary Information September 30, 2020 Page | 63 Mortality (continued) Benefit Changes Assumption Changes For healthy Firefighter and Police Officer participants post employment, RP 2000 Annuitant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment /10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male Firefighter and Police Officer participants, 60% RP 2000 Disabled Male Mortality Table setback four years / 40% RP 2000 Annuitant Male Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. For disabled female Firefighter and Police Officer participants, 60% RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. 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. 2017: Investment return, salary increase, withdrawal and retirement rates updated. 2016: Mortality updated. 2014: Disability rates updated. For disabled male General Employee participants, RP 2000 Disabled Male Mortality Table, set back four years, without projected mortality improvements. For disabled female General employee participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements. ** Only 7 years of data available . 277 City of Winter Springs, Florida Required Supplementary Information September 30, 2020 Page | 64 Schedule of Investment Returns Last Ten Fiscal Years** Fiscal Year Ended September 30, Annual Money-Weighted Rate of Return Net of Investment Expense 2014 9.75% 2015 0.28% 2016 10.75% 2017 10.75% 2018 13.90% 2019 10.89% 2020 2.69% ** Only 7 years of data available. 278 Combining and Individual Fund Statements and Schedules 279 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 Trust Fund - Local - This fund was established to receive revenues from local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Transportation Improvement Fund - Revenues in this fund are derived from Local Option 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 Fund - This fund is used to account for collected impact fees on 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. 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 II of project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance Fund - This fund is used to account for collected special assessments restricted for maintenance related to the Oak Forest subdivision wall. Special Law Enforcement Trust Fund - Federal - This fund was established to receive revenues from 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. 280 Nonmajor Governmental Funds - Continued Debt Service Funds TLBD Debt Service Fund - This fund is used 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. 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. Central Winds GO Debt Service Fund - This fund is used to account for accumulation of resources and payment of principal and interest for the 2002 limited general obligation bond which was refinanced in May 2012 with private placement note payable. 281 Nonmajor Governmental Funds - Continued Capital Projects Funds 1999 Construction Capital Projects Fund - This fund was established for the acquisition and construction of City - owned Capital Improvements. Revolving Rehab Capital Projects Fund - This fund was established to fund capital improvements and economic development within the City. Utility/Public Works Facility Fund - This fund was established to account for construction of additional public facilities. Excellence in Customer Service - This fund was established to account for the acquisition of software and equipment to improve the level of customer service performance. 282                 This page intentionally left blank.     283 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2020 Police Education Fund Special Law Enforcement Trust Fund- Local Transportation Improvement Fund Transportation Impact Fee Fund Assets: Cash and cash equivalents 1,524$ 841$ 111,484$ 136,911$ Investments 18,323 10,117 1,340,789 1,646,596 Prepaids - - 1,390 - Special assessments receivable - - - - Restricted assets: Cash and cash equivalents - 2,590 - - Total assets 19,847$ 13,548$ 1,453,663$ 1,783,507$ Liabilities: Accounts payable 4,438$ -$ 12,647$ -$ Due to other funds - - - - Total liabilities 4,438 - 12,647 - Deferred Inflows of Resources Unavailable revenue-special assessments - - - - Total deferred inflows of resources - - - - Fund Balances: Nonspendable - - 1,390 - Restricted 15,409 13,548 1,439,626 1,783,507 Committed - - - Assigned - - - - Unassigned - - - - Total fund balances 15,409 13,548 1,441,016 1,783,507 Total liabilities, deferred inflows of resources and fund balances 19,847$ 13,548$ 1,453,663$ 1,783,507$ Special Revenue City of Winter Springs, Florida Page | 65 284 Police Impact Fee Fund Fire Impact Fee Fund Parks Impact Fee Fund Arbor Fund TLBD Maintenance Fund 56,223$ 204,734$ 62,006$ 95,216$ 19,918$ 676,176 2,462,275 745,733 1,145,138 239,549 - - - - - - - - - - - - - - - 732,399$ 2,667,009$ 807,739$ 1,240,354$ 259,467$ -$ -$ 2,875$ -$ 26,022$ - - - - - - - 2,875 - 26,022 - - - - - - - - - - - - - - - 732,399 2,667,009 804,864 - 233,445 - - - 1,240,354 - - - - - - - - - - - 732,399 2,667,009 804,864 1,240,354 233,445 732,399$ 2,667,009$ 807,739$ 1,240,354$ 259,467$ (Continued) Special Revenue Page | 66 285 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2020 Oak Forest Maintenance Fund Special Law Enforcement Trust Fund - Federal Tuscawilla Phase III Total Special Revenue Assets: Cash and cash equivalents 7,494$ 3,594$ 681$ 700,626$ Investments 90,129 43,222 8,189 8,426,236 Prepaids - - - 1,390 Special assessments receivable - - - - Restricted assets: Cash and cash equivalents - - - 2,590 Total assets 97,623$ 46,816$ 8,870$ 9,130,842$ Liabilities: Accounts payable 280$ 1,105$ -$ 47,367$ Due to other funds - - 45,357 45,357 Total liabilities 280 1,105 45,357 92,724 Deferred Inflows of Resources Unavailable revenue-special assessments - - - - Total deferred inflows of resources - - - - Fund Balances: Nonspendable - - - 1,390 Restricted 97,343 45,711 - 7,832,861 Committed - - - 1,240,354 Assigned - - - - Unassigned - - (36,487) (36,487) Total fund balances 97,343 45,711 (36,487) 9,038,118 Total liabilities, deferred inflows of resources and fund balances 97,623$ 46,816$ 8,870$ 9,130,842$ Special Revenue City of Winter Springs, Florida Page | 67 286 TLBD Debt Service 1999 Debt Service Fund Central Winds GO Debt Service Fund Total Debt Service 4,611$ 101,655$ -$ 106,266$ 55,458 1,222,575 - 1,278,033 - - - - 1,068,334 - - 1,068,334 - - - - 1,128,403$ 1,324,230$ -$ 2,452,633$ -$ -$ -$ -$ - - - - - - - - 1,068,334 - - 1,068,334 1,068,334 - - 1,068,334 - - - - 60,069 - - 60,069 - - - - - 1,324,230 - 1,324,230 - - - - 60,069 1,324,230 - 1,384,299 1,128,403$ 1,324,230$ -$ 2,452,633$ (Continued) Debt Service Page | 68 287 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2020 1999 Construction Fund Revolving Rehab Fund Public Facilities Assets: Cash and cash equivalents 67,948$ 89,943$ 316,764$ Investments 817,190 1,081,721 3,809,627 Prepaids - - - Special assessments receivable - - - Restricted assets: Cash and cash equivalents - - - Total assets 885,138$ 1,171,664$ 4,126,391$ Liabilities: Accounts payable -$ -$ 9,176$ Due to other funds - - - Total liabilities - - 9,176 Deferred Inflows of Resources Unavailable revenue-special assessments - - - Total deferred inflows of resources - - - Fund Balances: Nonspendable - - - Restricted - - - Committed - - - Assigned 885,138 1,171,664 4,117,215 Unassigned - - - Total fund balances 885,138 1,171,664 4,117,215 Total liabilities, deferred inflows of resources and fund balances 885,138$ 1,171,664$ 4,126,391$ Capital Projects City of Winter Springs, Florida Page | 69 288 Excellence in Customer Service Total Capital Projects Total Nonmajor Governmental Funds 66,722$ 541,377$ 1,348,269$ 802,443 6,510,981 16,215,250 - - 1,390 - - 1,068,334 - - 2,590 869,165$ 7,052,358$ 18,635,833$ 8,502$ 17,678$ 65,045$ - - 45,357 8,502 17,678 110,402 - - 1,068,334 - - 1,068,334 - - 1,390 - - 7,892,930 - - 1,240,354 860,663 7,034,680 8,358,910 - - (36,487) 860,663 7,034,680 17,457,097 869,165$ 7,052,358$ 18,635,833$ Capital Projects Page | 70 289 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended September 30, 2020 Police Education Fund Special Law Enforcement Trust Fund- Local Transportation Improvement Fund Transportation Impact Fee Fund Revenues: Taxes: Property taxes -$ -$ -$ -$ Permits and fees - - - - Intergovernmental revenues - - 562,250 - Charges for services - - 44,225 - Fines and forfeitures 2,163 3,560 - - Impact fees/assessments - - - 263,159 Investment income 455 254 41,505 34,897 Miscellaneous - - - - Total revenues 2,618 3,814 647,980 298,056 Expenditures: Current: General government - - - - Public safety 7,083 1,897 - - Physical environment - - 518,713 - Debt Service: Principal - - - - Interest and fiscal charges - - - - Capital Outlay: General government - - - - Public safety - - - - Physical environment - - 546,790 - Culture and recreation - - - - Total expenditures 7,083 1,897 1,065,503 - Excess (Deficiency) of Revenues Over Expenditures (4,465) 1,917 (417,523) 298,056 Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Total other financing sources(uses)- - - - Net change in fund balances (4,465) 1,917 (417,523) 298,056 Fund balances, beginning 19,874 11,631 1,858,539 1,485,451 Fund balances, ending 15,409$ 13,548$ 1,441,016$ 1,783,507$ City of Winter Springs, Florida Special Revenue Page | 71 290 Police Impact Fee Fund Fire Impact Fee Fund Parks Impact Fee Fund Arbor Fund TLBD Maintenance Fund -$ -$ -$ -$ -$ - - - 2,320 - - - - - - - - - - - - - - 9,150 - 53,350 33,368 323,010 - 509,265 15,023 56,733 22,394 18,283 9,697 - - - - - 68,373 90,101 345,404 29,753 518,962 - - - - - - - - - - - - - 168,714 503,957 - - - - - - - - - - - - - - - - - - - - - - - - - - - 620,071 - - - - 620,071 168,714 503,957 68,373 90,101 (274,667) (138,961) 15,005 - - 90,255 500,000 - - - - - - - - 90,255 500,000 - 68,373 90,101 (184,412) 361,039 15,005 664,026 2,576,908 989,276 879,315 218,440 732,399$ 2,667,009$ 804,864$ 1,240,354$ 233,445$ (Continued) Special Revenue Page | 72 291 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended September 30, 2020 Oak Forest Maintenance Fund Special Law Enforcement Trust Fund - Federal Tuscawilla Phase III Total Special Revenue Revenues: Taxes: Property taxes -$ -$ -$ -$ Permits and fees - - - 2,320 Intergovernmental revenues - - - 562,250 Charges for services - - - 44,225 Fines and forfeitures - 17,683 - 32,556 Impact fees/assessments 55,914 - 13,230 1,251,296 Investment income 2,577 1,193 394 203,405 Miscellaneous - - - - Total revenues 58,491 18,876 13,624 2,096,052 Expenditures: Current: General government - - 11,028 11,028 Public safety - 20,974 - 29,954 Physical environment 55,247 - - 1,246,631 Debt Service: Principal - - - - Interest and fiscal charges - - 1,350 1,350 Capital Outlay: General government - - - - Public safety - - - - Physical environment - - - 546,790 Culture and recreation - - - 620,071 Total expenditures 55,247 20,974 12,378 2,455,824 Excess (Deficiency) of Revenues Over Expenditures 3,244 (2,098) 1,246 (359,772) Other Financing Sources (Uses): Transfers in - - - 590,255 Transfers out - - - - Total other financing sources(uses)- - - 590,255 Net change in fund balances 3,244 (2,098) 1,246 230,483 Fund balances, beginning 94,099 47,809 (37,733) 8,807,635 Fund balances, ending 97,343$ 45,711$ (36,487)$ 9,038,118$ City of Winter Springs, Florida Special Revenue Page | 73 292 TLBD Debt Service 1999 Debt Service Fund Central Winds GO Debt Service Fund Total Debt Service -$ -$ 27$ 27$ - - - - - - - - - - - - - - - - 97,062 - - 97,062 39,821 12,223 485 52,529 3,825 - - 3,825 140,708 12,223 512 153,443 - - - - - - - - 3,631 - - 3,631 - 97,062 417,881 - 514,943 38,248 857,119 - 895,367 - - - - - - - - 22,535 - - 22,535 - - - - 161,476 1,275,000 - 1,436,476 (20,768) (1,262,777) 512 (1,283,033) - 1,290,000 834,946 2,124,946 - - - - - 1,290,000 834,946 2,124,946 (20,768) 27,223 835,458 841,913 80,837 1,297,007 (835,458) 542,386 60,069$ 1,324,230$ -$ 1,384,299$ (Continued) Debt Service Page | 74 293 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended September 30, 2020 1999 Construction Fund Revolving Rehab Fund Public Facilities Revenues: Taxes: Property taxes -$ -$ -$ Permits and fees - - - Intergovernmental revenues - - - Charges for services - - - Fines and forfeitures - - - Impact fees/assessments - - - Investment income 18,968 25,109 80,686 Miscellaneous - - - Total revenues 18,968 25,109 80,686 Expenditures: Current: General government - - - Public safety - - - Physical environment - - - Debt Service: Principal - - - Interest and fiscal charges - - - Capital Outlay: General government - - - Public safety - - - Physical environment - - 259,568 Culture and recreation - - - Total expenditures - - 259,568 Excess (Deficiency) of Revenues Over Expenditures 18,968 25,109 (178,882) Other Financing Sources (Uses): Transfers in - - 500,000 Transfers out - - (90,255) Total other financing sources(uses)- - 409,745 Net change in fund balances 18,968 25,109 230,863 Fund balances, beginning 866,170 1,146,555 3,886,352 Fund balances, ending 885,138$ 1,171,664$ 4,117,215$ City of Winter Springs, Florida Capital Projects Page | 75 294 Excellence in Customer Service Total Capital Projects Total Nonmajor Governmental Funds -$ -$ 27$ - - 2,320 - - 562,250 - - 44,225 - - 32,556 - - 1,348,358 12,469 137,232 393,166 - - 3,825 12,469 137,232 2,386,727 - - 11,028 - - 29,954 - - 1,250,262 - - 514,943 - - 896,717 65,395 65,395 65,395 - - - - 259,568 828,893 - - 620,071 65,395 324,963 4,217,263 (52,926) (187,731) (1,830,536) 300,000 800,000 3,515,201 (834,946) (925,201) (925,201) (534,946) (125,201) 2,590,000 (587,872) (312,932) 759,464 1,448,535 7,347,612 16,697,633 860,663$ 7,034,680$ 17,457,097$ Capital Projects Page | 76 295 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Fines and forfeitures 4,800$ 2,163$ 2,163$ -$ Investment income 275 451 455 4 Total revenues 5,075 2,614 2,618 4 Expenditures: Current: Public safety 5,400 7,084 7,083 1 Total expenditures 5,400 7,084 7,083 1 Excess (Deficiency) of Revenues Over Expenditures (325) (4,470) (4,465) 5 Net change in fund balances (325) (4,470) (4,465) 5 Fund balances, beginning 19,874 19,874 19,874 - Fund balances, ending 19,549$ 15,404$ 15,409$ 5$ City of Winter Springs, Florida Police Education Fund Year Ended September 30, 2020 Page | 77 296 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Fines and forfeitures -$ 3,500$ 3,560$ 60$ Investment income 75 75 254 179 Total revenues 75 3,575 3,814 239 Expenditures: Current: Public safety 7,600 5,600 1,897 3,703 Total expenditures 7,600 5,600 1,897 3,703 Excess (Deficiency) of Revenues Over Expenditures (7,525) (2,025) 1,917 3,942 Net change in fund balances (7,525) (2,025) 1,917 3,942 Fund balances, beginning 11,631 11,631 11,631 - Fund balances, ending 4,106$ 9,606$ 13,548$ 3,942$ City of Winter Springs, Florida Special Law Enforcement Trust Fund- Local Year Ended September 30, 2020 Page | 78 297 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Intergovernmental revenues 625,000$ 625,000$ 562,250$ (62,750)$ Charges for services 42,000 42,000 44,225 2,225 Investment income 24,000 24,000 41,505 17,505 Total revenues 691,000 691,000 647,980 (43,020) Expenditures: Current: Physical environment 619,062 646,062 518,713 127,349 Capital Outlay: Physical environment 651,500 624,500 546,790 77,710 Total expenditures 1,270,562 1,270,562 1,065,503 205,059 Excess (Deficiency) of Revenues Over Expenditures (579,562) (579,562) (417,523) 162,039 Net change in fund balances (579,562) (579,562) (417,523) 162,039 Fund balances, beginning 1,858,539 1,858,539 1,858,539 - Fund balances, ending 1,278,977$ 1,278,977$ 1,441,016$ 162,039$ City of Winter Springs, Florida Transportation Improvement Fund Year Ended September 30, 2020 Page | 79 298 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments -$ 163,000$ 263,159$ 100,159$ Investment income 14,000 14,000 34,897 20,897 Total revenues 14,000 177,000 298,056 121,056 Expenditures: Current: Physical environment 1,000 1,000 - 1,000 Capital Outlay: Physical environment 850,000 - - - Total expenditures 851,000 1,000 - 1,000 Excess (Deficiency) of Revenues Over Expenditures (837,000) 176,000 298,056 122,056 Net change in fund balances (837,000) 176,000 298,056 122,056 Fund balances, beginning 1,485,451 1,485,451 1,485,451 - Fund balances, ending 648,451$ 1,661,451$ 1,783,507$ 122,056$ City of Winter Springs, Florida Transportation Impact Fee Fund Year Ended September 30, 2020 Page | 80 299 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments -$ 33,000$ 53,350$ 20,350$ Investment income 10,000 10,000 15,023 5,023 Total revenues 10,000 43,000 68,373 25,373 Expenditures: Current: Public safety - - - - Total expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures 10,000 43,000 68,373 25,373 Net change in fund balances 10,000 43,000 68,373 25,373 Fund balances, beginning 664,026 664,026 664,026 - Fund balances, ending 674,026$ 707,026$ 732,399$ 25,373$ City of Winter Springs, Florida Police Impact Fee Fund Year Ended September 30, 2020 Page | 81 300 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments -$ 20,800$ 33,368$ 12,568$ Investment income 40,000 40,000 56,733 16,733 Total revenues 40,000 60,800 90,101 29,301 Expenditures: Current: Public safety - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures 40,000 60,800 90,101 29,301 Net change in fund balances 40,000 60,800 90,101 29,301 Fund balances, beginning 2,576,908 2,576,908 2,576,908 - Fund balances, ending 2,616,908$ 2,637,708$ 2,667,009$ 29,301$ City of Winter Springs, Florida Fire Impact Fee Fund Year Ended September 30, 2020 Page | 82 301 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments -$ 201,000$ 323,010$ 122,010$ Investment income 18,000 18,000 22,394 4,394 Total revenues 18,000 219,000 345,404 126,404 Expenditures: Capital Outlay: Culture and recreation 400,000 733,923 620,071 113,852 Total expenditures 400,000 733,923 620,071 113,852 Excess (Deficiency) of Revenues Over Expenditures (382,000) (514,923) (274,667) 240,256 Other Financing Sources (Uses) Transfers in - 90,256 90,255 (1) Total other financing sources and uses - 90,256 90,255 (1) Net change in fund balances (382,000) (424,667) (184,412) 240,255 Fund balances, beginning 989,276 989,276 989,276 - Fund balances, ending 607,276$ 564,609$ 804,864$ 240,255$ City of Winter Springs, Florida Parks Impact Fee Fund Year Ended September 30, 2020 Page | 83 302 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Permits and fees 18,000$ 2,000$ 2,320$ 320$ Fines and forfeitures - 1,700 9,150 7,450 Investment income 6,000 6,000 18,283 12,283 Total revenues 24,000 9,700 29,753 20,053 Expenditures: Current: Physical environment 193,065 218,100 168,714 49,386 Total expenditures 193,065 218,100 168,714 49,386 Excess (Deficiency) of Revenues Over Expenditures (169,065) (208,400) (138,961) 69,439 Other Financing Sources (Uses) Transfers in - 500,000 500,000 - Transfers out (25,035) - - - Total other financing sources and uses (25,035) 500,000 500,000 - Net change in fund balances (194,100) 291,600 361,039 69,439 Fund balances, beginning 879,315 879,315 879,315 - Fund balances, ending 685,215$ 1,170,915$ 1,240,354$ 69,439$ City of Winter Springs, Florida Arbor Fund Year Ended September 30, 2020 Page | 84 303 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments 507,548$ 507,548$ 509,265$ 1,717$ Investment income 3,000 3,000 9,697 6,697 Total revenues 510,548 510,548 518,962 8,414 Expenditures: Current: Physical environment 507,200 559,411 503,957 55,454 Total expenditures 507,200 559,411 503,957 55,454 Excess (Deficiency) of Revenues Over Expenditures 3,348 (48,863) 15,005 63,868 Other Financing Sources (Uses) Transfers out (52,211) - - - Total other financing sources and uses (52,211) - - - Net change in fund balances (48,863) (48,863) 15,005 63,868 Fund balances, beginning 218,440 218,440 218,440 - Fund balances, ending 169,577$ 169,577$ 233,445$ 63,868$ City of Winter Springs, Florida TLBD Maintenance Fund Year Ended September 30, 2020 Page | 85 304 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments 55,726$ 55,726$ 55,914$ 188$ Investment income 1,500 1,500 2,577 1,077 Total revenues 57,226 57,226 58,491 1,265 Expenditures: Current: Physical environment 52,220 69,753 55,247 14,506 Total expenditures 52,220 69,753 55,247 14,506 Excess (Deficiency) of Revenues Over Expenditures 5,006 (12,527) 3,244 15,771 Other Financing Sources (Uses) Transfers out (8,533) - - - Total other financing sources and uses (8,533) - - - Net change in fund balances (3,527) (12,527) 3,244 15,771 Fund balances, beginning 94,099 94,099 94,099 - Fund balances, ending 90,572$ 81,572$ 97,343$ 15,771$ City of Winter Springs, Florida Oak Forest Maintenance Fund Year Ended September 30, 2020 Page | 86 305 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Fines and forfeitures -$ 17,600$ 17,683$ 83$ Investment income 175 175 1,193 1,018 Total revenues 175 17,775 18,876 1,101 Expenditures: Current: Public Safety 20,984 20,984 20,974 10 Total expenditures 20,984 20,984 20,974 10 Excess (Deficiency) of Revenues Over Expenditures (20,809) (3,209) (2,098) 1,111 Net change in fund balances (20,809) (3,209) (2,098) 1,111 Fund balances, beginning 47,809 47,809 47,809 - Fund balances, ending 27,000$ 44,600$ 45,711$ 1,111$ City of Winter Springs, Florida Special Law Enforcement Trust Fund - Federal Year Ended September 30, 2020 Page | 87 306 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments 13,197$ 13,197$ 13,230$ 33$ Investment income 100 100 394 294 Total revenues 13,297 13,297 13,624 327 Expenditures: Current: General government 6,610 12,021 11,028 993 Debt Service: Principal 2,865 2,865 - 2,865 Interest and other charges 1,355 1,355 1,350 5 Total expenditures 10,830 16,241 12,378 3,863 Excess (Deficiency) of Revenues Over Expenditures 2,467 (2,944) 1,246 4,190 Other Financing Sources (Uses) Transfers out (1,431) - - - Total other financing sources and uses (1,431) - - - Net change in fund balances 1,036 (2,944) 1,246 4,190 Fund balances, beginning (37,733) (37,733) (37,733) - Fund balances, ending (36,697)$ (40,677)$ (36,487)$ 4,190$ City of Winter Springs, Florida Tuscawilla Phase III Year Ended September 30, 2020 Page | 88 307 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Impact fees/assessments 138,655$ 138,655$ 97,062$ (41,593)$ Investment income 2,000 2,000 39,821 37,821 Miscellaneous - - 3,825 3,825 Total revenues 140,655 140,655 140,708 53 Expenditures: Physical environment 4,370 4,870 3,631 1,239 Debt Service: Principal 97,062 97,062 97,062 - Interest and other charges 38,260 38,260 38,248 12 Capital Outlay: Physical environment 40,000 22,600 22,535 65 Total expenditures 179,692 162,792 161,476 1,316 Excess (Deficiency) of Revenues Over Expenditures (39,037) (22,137) (20,768) 1,369 Other Financing Sources (Uses) Transfers out (500) - - - Total other financing sources and uses (500) - - - Net change in fund balances (39,537) (22,137) (20,768) 1,369 Fund balances, beginning 80,837 80,837 80,837 - Fund balances, ending 41,300$ 58,700$ 60,069$ 1,369$ City of Winter Springs, Florida TLBD Debt Service Year Ended September 30, 2020 Page | 89 308 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Investment income 10,500$ 10,500$ 12,223$ 1,723$ Total revenues 10,500 10,500 12,223 1,723 Expenditures: Current: General government 5,000 5,000 - 5,000 Debt Service: Principal 417,890 417,890 417,881 9 Interest and other charges 857,120 857,120 857,119 1 Total expenditures 1,280,010 1,280,010 1,275,000 5,010 Excess (Deficiency) of Revenues Over Expenditures (1,269,510) (1,269,510) (1,262,777) 6,733 Other Financing Sources (Uses) Transfers in 1,290,000 1,290,000 1,290,000 - Total other financing sources and uses 1,290,000 1,290,000 1,290,000 - Net change in fund balances 20,490 20,490 27,223 6,733 Fund balances, beginning 1,297,007 1,297,007 1,297,007 - Fund balances, ending 1,317,497$ 1,317,497$ 1,324,230$ 6,733$ City of Winter Springs, Florida 1999 Debt Service Fund Year Ended September 30, 2020 Page | 90 309 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Taxes: Property taxes -$ -$ 27$ 27$ Investment income - - 485 485 Total revenues - - 512 512 Expenditures: Debt Service: Principal 21,718 21,718 - 21,718 Total expenditures 21,718 21,718 - 21,718 Excess (Deficiency) of Revenues Over Expenditures (21,718) (21,718) 512 22,230 Other Financing Sources (Uses) Transfers in - - 834,946 834,946 Total other financing sources (uses)- - 834,946 834,946 Net Change in Fund Balances (21,718) (21,718) 835,458 857,176 Fund balances, beginning (835,458) (835,458) (835,458) - Fund balances, ending (857,176)$ (857,176)$ -$ 857,176$ City of Winter Springs, Florida Year Ended September 30, 2020 Central Winds GO Debt Service Fund Page | 91 310 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Investment income 7,000$ 7,000$ 18,968$ 11,968$ Total revenues 7,000 7,000 18,968 11,968 Expenditures: Capital Outlay: Physical environment 950,000 - - - Total expenditures 950,000 - - - Excess (Deficiency) of Revenues Over Expenditures (943,000) 7,000 18,968 11,968 Other Financing Sources (Uses) Transfers in 212,000 - - - Total other financing sources and uses 212,000 - - - Net change in fund balances (731,000) 7,000 18,968 11,968 Fund balances, beginning 866,170 866,170 866,170 - Fund balances, ending 135,170$ 873,170$ 885,138$ 11,968$ City of Winter Springs, Florida 1999 Construction Fund Year Ended September 30, 2020 Page | 92 311 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Investment income 17,500$ 17,500$ 25,109$ 7,609$ Total revenues 17,500 17,500 25,109 7,609 Expenditures: Current: General government - - - - Total expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures 17,500 17,500 25,109 7,609 Net change in fund balances 17,500 17,500 25,109 7,609 Fund balances, beginning 1,146,555 1,146,555 1,146,555 - Fund balances, ending 1,164,055$ 1,164,055$ 1,171,664$ 7,609$ City of Winter Springs, Florida Revolving Rehab Fund Year Ended September 30, 2020 Page | 93 312 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Investment income 20,000$ 80,000$ 80,686$ 686$ Total revenues 20,000 80,000 80,686 686 Expenditures: Capital Outlay: Physical environment 3,900,000 580,104 259,568 320,536 Total expenditures 3,900,000 580,104 259,568 320,536 Excess (Deficiency) of Revenues Over Expenditures (3,880,000) (500,104) (178,882) 321,222 Other Financing Sources (Uses) Transfers in 3,000,000 500,000 500,000 - Transfers out - (90,256) (90,255) 1 Total other financing sources and uses 3,000,000 409,744 409,745 1 Net change in fund balances (880,000) (90,360) 230,863 321,223 Fund balances, beginning 3,886,352 3,886,352 3,886,352 - Fund balances, ending 3,006,352$ 3,795,992$ 4,117,215$ 321,223$ City of Winter Springs, Florida Public Facilities Fund Year Ended September 30, 2020 Page | 94 313 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Budgeted Amounts Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Investment income 4,500$ 4,500$ 12,469$ 7,969$ Total revenues 4,500 4,500 12,469 7,969 Expenditures: Capital Outlay: General government 100,000 100,000 65,395 34,605 Total expenditures 100,000 100,000 65,395 34,605 Excess (Deficiency) of Revenues Over Expenditures (95,500) (95,500) (52,926) 42,574 Other Financing Sources (Uses) Transfers in 21,718 321,718 300,000 (21,718) Transfers out - - (834,946) (834,946) Total other financing sources and uses 21,718 321,718 (534,946) (856,664) Net change in fund balances (73,782) 226,218 (587,872) (814,090) Fund balances, beginning 1,448,535 1,448,535 1,448,535 - Fund balances, ending 1,374,753$ 1,674,753$ 860,663$ (814,090)$ City of Winter Springs, Florida Excellence in Customer Service Year Ended September 30, 2020 Page | 95 314 Statistical Section 315                 This page intentionally left blank.     316 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 Page Financial Trends 96 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 103 These schedules contain information to help the reader assess the government’s most significant local revenue. Debt Capacity 108 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 114 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 116 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. 317                 This page intentionally left blank.     318 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets 43,961$ 40,328$ 44,711$ 45,826$ 45,650$ 48,555$ 52,573$ 52,292$ 53,683$ 54,922$ Restricted 8,287 8,305 8,963 8,802 12,336 12,027 12,755 14,736 17,089 18,011 Unrestricted 13,241 17,136 12,856 11,737 768 (1)1,746 1,594 3,052 5,634 7,748 Total governmental activities net position 65,489$ 65,769$ 66,530$ 66,365$ 58,754$ 62,328$ 66,922$ 70,080$ 76,406$ 80,681$ Business-type activities Net investment in capital assets 17,973$ 20,937$ 20,729$ 21,541$ 21,426$ 21,802$ 23,922$ 23,079$ 22,713$ 27,385$ Restricted 461 507 468 482 567 561 560 515 613 647 Unrestricted 3,227 4,213 6,472 7,873 9,112 11,427 13,003 15,945 21,197 24,690 Total business-type activities net position 21,661$ 25,657$ 27,669$ 29,896$ 31,105$ 33,790$ 37,485$ 39,539$ 44,523$ 52,722$ Primary government Net investment in capital assets 61,934$ 61,265$ 65,440$ 67,367$ 67,076$ 70,357$ 76,495$ 75,371$ 76,396$ 82,307$ Restricted 8,748 8,812 9,431 9,284 12,903 12,588 13,315 15,251 17,702 18,658 Unrestricted 16,468 21,349 19,328 19,610 9,880 13,173 14,597 18,997 26,831 32,438 Total primary government net position 87,150$ 91,426$ 94,199$ 96,261$ 89,859$ 96,118$ 104,407$ 109,619$ 120,929$ 133,403$ (1) decrease in unrestricted net position due to implementation of GASB 68 in FY2015 Fiscal Year NET POSITION BY COMPONENT CITY OF WINTER SPRINGS, FLORIDA Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Page | 96 319 Expenses 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental Activities: General government 5,381$ 5,069$ 4,903$ 5,498$ 5,708$ 6,131$ 6,298$ 6,233$ 7,052$ 7,664$ Public safety 7,671 7,102 7,415 7,476 7,101 6,764 6,228 5,791 6,892 5,279 Physical environment 5,610 5,589 5,658 5,874 5,924 5,798 6,625 6,933 6,563 6,677 Culture and recreation 2,161 2,043 2,078 2,170 2,109 2,163 2,045 2,301 2,282 2,827 Interest and other fiscal charges on long-term debt 907 833 773 782 657 668 635 589 673 603 Total Governmental Activities Expenses 21,730 20,636 20,827 21,800 21,499 21,524 21,831 21,847 23,462 23,050 Business-type Activities: Water and Sewer 7,186 6,512 7,040 6,945 6,943 7,295 7,881 7,985 8,569 10,051 Development Services 333 342 369 409 501 510 665 574 647 1,130 Stormwater 979 976 1,155 1,150 1,162 1,223 941 1,043 2,321 1,759 Total Business-type Activities Expenses 8,498$ 7,830$ 8,564$ 8,504$ 8,606$ 9,028$ 9,487$ 9,602$ 11,537$ 12,940$ Program Revenues Governmental Activities: Charges for services: General government 2,075$ 2,021$ 1,838$ 2,058$ 2,218$ 2,150$ 2,061$ 2,206$ 2,404$ 2,518$ Public safety 369 424 461 458 731 418 1,075 232 180 100 Physical environment 3,139 3,168 3,347 3,590 4,177 3,605 4,315 3,181 3,583 3,500 Culture and recreation 260 391 430 363 846 418 1,079 378 321 179 Operating grants and contributions 89 221 - 23 16 2 87 74 1,284 31 Capital grants and contributions 1,985 1,056 2,043 1,382 2,756 3,583 2,781 2,897 5,122 5,692 Total Governmental Activities Program Revenues 7,917 7,281 8,119 7,874 10,744 10,176 11,398 8,968 12,894 12,020 Business-type Activities: Charges for services: Water and Sewer 8,837 9,363 8,540 9,240 9,691 9,877 10,267 9,893 10,802 11,575 Development Services 339 1,100 1,099 821 2,075 1,315 1,968 1,055 3,031 2,148 Stormwater 1,068 1,117 995 1,097 871 1,117 1,167 1,120 1,150 1,135 Operating grants and contributions 46 - - - - - - 8 926 590 Capital grants and contributions 709 2,226 2,062 1,526 1,452 1,311 1,617 1,248 1,484 4,908 Total Business-type Activities Program Revenues 10,999 13,806 12,696 12,684 14,089 13,620 15,019 13,324 17,393 20,356 Total Government Program Revenues 18,916$ 21,087$ 20,815$ 20,558$ 24,833$ 23,796$ 26,417$ 22,292$ 30,287$ 32,376$ Fiscal Year CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Page | 97 320 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net (Expense)/Revenue) Governmental Activities (13,813)$ (13,355)$ (12,708)$ (13,926)$ (10,755)$ (11,348)$ (10,433)$ (12,879)$ (10,568)$ (11,030)$ Business-type Activities 2,501 5,976 4,132 4,180 5,483 4,592 5,532 3,722 5,856 7,416 Total Government Net Expense (11,312)$ (7,379)$ (8,576)$ (9,746)$ (5,272)$ (6,756)$ (4,901)$ (9,157)$ (4,712)$ (3,614)$ General Revenues and Other Changes in Net Position Governmental Activities: Taxes Property taxes 4,209$ 3,901$ 3,853$ 4,015$ 4,284$ 4,516$ 4,727$ 5,150$ 5,487$ 5,870$ Utility taxes 4,169 3,963 3,923 4,035 3,887 3,976 3,879 4,003 4,213 4,511 Business tax receipts 119 106 109 105 120 122 123 126 122 112 Intergovernmental revenues - unrestricted 3,015 3,044 3,100 3,269 3,481 3,557 3,706 3,967 4,036 3,858 Investment income and miscellaneous 532 573 454 336 424 711 616 1,246 1,338 1,047 Gain (Loss) on disposal of capital assets - - 34 17 26 - - - - - Transfers 1,862 2,047 2,070 1,985 2,064 2,041 1,975 1,873 1,697 (93) Total Governmental Activities 13,906 13,634 13,543 13,762 14,286 14,923 15,026 16,365 16,893 15,305 Business-type Activities: Investment income and miscellaneous 189 67 88 32 108 135 138 323 825 691 Loss on disposal of capital assets - - - - - - - - - - Transfers (1,862) (2,047) (2,070) (1,985) (2,064) (2,041) (1,975) (1,873) (1,697) 93 Total Business-type Activities (1,673) (1,980) (1,982) (1,953) (1,956) (1,906) (1,837) (1,550) (872) 784 Total Government 12,233$ 11,654$ 11,561$ 11,809$ 12,330$ 13,017$ 13,189$ 14,815$ 16,021$ 16,089$ Change in Net Position Governmental Activities 93$ 279$ 835$ (164)$ 3,531$ 3,575$ 4,593$ 3,486$ 6,325$ 4,275$ Business-type Activities 828 3,996 2,150 2,227 3,527 2,686 3,695 2,172 4,984 8,200 Total Government 921$ 4,275$ 2,985$ 2,063$ 7,058$ 6,261$ 8,288$ 5,658$ 11,309$ 12,475$ Fiscal Year Page | 98 321 Fiscal Year Property Tax Franchise Tax Utility Tax Business Tax Receipts Total 2011 4,209 - 4,169 119 8,497 2012 3,901 - 3,963 106 7,970 2013 3,853 - 3,923 109 7,885 2014 4,015 - 4,035 105 8,155 2015 4,284 - 3,887 120 8,291 2016 4,516 - 3,976 122 8,614 2017 4,727 - 3,879 122 8,728 2018 5,150 - 4,003 126 9,279 2019 5,487 - 4,213 122 9,822 2020 5,870 - 4,511 112 10,493 Fiscal Year Sales Tax State Revenue Sharing Other Total 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 2015 2,249 1,128 104 3,481 2016 2,305 1,168 84 3,557 2017 2,366 1,245 95 3,706 2018 2,552 1,313 101 3,966 2019 2,559 1,376 101 4,036 2020 2,475 1,279 104 3,858 Taxes included in Unrestricted Intergovernmental Revenues (amounts expressed in thousands) CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) Page | 99 322 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund Nonspendable 1,179$ 650$ 409$ 416$ 333$ 275$ 256$ 226$ 287$ 338$ Assigned 607 343 581 433 - - - - - - Unassigned 7,044 7,839 7,498 7,647 8,163 8,226 8,250 8,289 8,411 8,597 Total General Fund 8,830$ 8,832$ 8,488$ 8,496$ 8,496$ 8,501$ 8,506$ 8,515$ 8,698$ 8,935$ All Other Governmental Funds Nonspendable -$ -$ -$ -$ -$ 1$ 3$ 1$ 1$ 1$ Restricted 4,825 4,470 5,468 5,298 11,304 12,025 12,751 14,736 17,088 18,010 Committed 1,616 1,687 1,528 1,285 1,032 799 1,292 972 1,830 1,901 Assigned 4,710 5,509 5,589 5,258 5,506 6,240 5,938 7,578 9,859 9,597 Unassigned (264) (217) (191) (172) (129) (81) (1,120) (990) (873) (36) Total All Other Governmental Funds 10,887$ 11,449$ 12,394$ 11,669$ 17,713$ 18,984$ 18,864$ 22,297$ 27,905$ 29,473$ Fiscal Year CITY OF WINTER SPRINGS, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Page | 100 323 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues Taxes Property 4,030$ 3,733$ 3,686$ 3,841$ 4,098$ 4,320$ 4,595$ 5,026$ 5,377$ 5,870$ Utility 4,169 3,963 3,923 4,035 3,887 3,976 3,879 4,003 4,213 4,511 General Obligation 179 168 167 174 186 196 132 124 111 - Business Tax 119 105 109 106 120 122 123 126 122 112 Licenses and Permits Franchise Fees 1,999 1,868 1,672 1,953 2,024 2,042 1,986 2,166 2,331 2,363 Other 44 63 75 40 47 62 91 44 39 34 Intergovernmental 5,447 3,948 4,684 4,059 8,727 8,144 6,575 6,972 8,660 6,748 Charges for Services 2,922 2,979 2,858 3,071 3,231 3,302 3,341 3,342 3,351 3,212 Fines and Forfeitures 289 211 165 281 168 178 175 256 283 109 Impact Fees/Assessments 685 1,000 1,380 1,247 2,627 1,232 3,162 819 1,764 1,348 Investment Income 308 280 195 139 226 275 247 428 1,067 913 Miscellaneous 224 293 328 219 225 364 281 690 177 134 Total revenues 20,415 18,611 19,242 19,165 25,566 24,213 24,587 23,996 27,495 25,354 Expenditures General Government 5,441 4,842 4,995 5,012 5,051 5,187 5,161 5,057 5,407 4,711 Public Safety 7,156 6,584 6,918 6,987 7,151 6,916 6,739 6,574 6,503 6,523 Physical Environment 3,939 3,873 3,927 4,128 4,225 4,303 5,057 5,296 4,907 5,252 Culture and Recreation 1,737 1,644 1,702 1,787 1,784 1,785 1,865 1,891 1,866 1,965 Capital Outlay 2,681 1,814 1,834 1,925 2,571 5,370 4,251 2,410 3,509 3,593 Debt Service Principal 2,387 5,342 1,007 5,101 610 1,232 3,453 1,138 1,158 515 Interest 584 485 373 424 192 188 149 65 49 897 Other charges 15 - - - - - - - - - Total expenditures 23,940 24,584 20,756 25,364 21,584 24,981 26,675 22,431 23,399 23,456 Excess of Revenues Over (Under) expenditures (3,525) (5,973) (1,514) (6,199) 3,982 (768) (2,088) 1,565 4,096 1,898 Fiscal Year CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS CITY OF WINTER SPRINGS, FLORIDA Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Page | 101 324 Other Financing Sources (Uses) Transfers In 3,836 3,911 3,422 3,642 7,043 4,659 4,494 5,763 5,744 4,062 Transfers Out (1,965) (1,879) (1,350) (1,653) (4,977) (2,617) (2,520) (3,889) (4,047) (4,155) Notes Issued 1,377 4,504 - 3,494 - - - - - - Sale of Capital Assets - - 40 - - - - - - - Total Other Financing Sources (Uses)3,248 6,536 2,112 5,483 2,066 2,042 1,974 1,874 1,697 (93) Prior Period Fund Balance Adjustment - - - - - - - - - - Net Change in Fund Balances (277)$ 563$ 598$ (716)$ 6,048$ 1,274$ (114)$ 3,439$ 5,793$ 1,805$ Debt Service as a Percentage of Noncapital 13.98%25.60%7.29% 23.57%4.22%7.24% 16.06%5.99% 6.07% 7.16% expenditures Page | 102 325 Fiscal Year Ended September 30, Total Residential and Commercial Real Property 1 Residential Property 1 % Residential Commercial Property 1 Personal Property 1 Centrally Assessed 1 Tax Exempt Real Property 1 Total Taxable Assessed Value 1 Total Direct Tax Rate 2 Estimated Actual Taxable Value 1 2011 2,399,728 2,099,825 87.50% 299,903 66,659 43 778,996 1,687,434 2.5814 2,577,252 2012 2,174,531 1,890,388 86.93% 284,143 68,075 47 648,788 1,593,865 2.5600 2,251,660 2013 2,086,990 1,826,517 87.52% 260,473 67,121 47 581,857 1,572,301 2.5400 2,173,721 2014 2,199,733 1,931,766 87.82% 267,967 65,664 50 625,780 1,639,667 2.5400 2,330,707 2015 2,442,043 2,162,934 88.57% 279,109 66,887 52 760,723 1,748,259 2.5400 2,649,400 2016 2,670,315 2,322,345 86.97% 347,970 71,576 53 898,230 1,843,714 2.5400 2,865,145 2017 2,847,989 2,488,346 87.37% 359,643 73,137 56 959,840 1,961,342 2.5000 3,091,198 2018 3,128,578 2,716,013 86.81% 412,565 78,213 56 1,059,572 2,147,275 2.4900 3,389,902 2019 3,370,872 2,923,507 86.73% 447,365 82,498 58 1,159,460 2,293,968 2.4800 3,650,558 2020 3,647,697 3,118,225 85.48% 529,472 89,028 56 1,145,903 2,590,878 2.4300 4,151,979 Note 1 Source: Seminole County Property Appraiser (www.scpafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) Real Property CITY OF WINTER SPRINGS, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Page | 103 326 Fiscal Year Operating Millage Debt Service Millage Total City Millage Operating Millage Debt Service Millage Total County Millage Operating Millage Debt Service Millage Total School Millage 2011 2.4714 0.1100 2.5814 4.8751 0.1700 5.0451 7.8010 0.0000 7.8010 0.4158 2.3299 18.1732 2012 2.4500 0.1100 2.5600 4.8751 0.1700 5.0451 7.7220 0.0000 7.7220 0.3313 2.3299 17.9883 2013 2.4300 0.1100 2.5400 4.8751 0.1700 5.0451 7.5530 0.0000 7.5530 0.3313 2.3299 17.7993 2014 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.3610 1.0000 8.3610 0.3283 2.3299 18.4343 2015 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.1970 0.7000 7.8970 0.3164 2.3299 17.9584 2016 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.1490 0.7000 7.8490 0.3023 2.3299 17.8963 2017 2.4300 0.0700 2.5000 4.8751 0.0000 4.8751 6.8570 0.7000 7.5570 0.2885 2.3299 17.5505 2018 2.4300 0.0600 2.4900 4.8751 0.0000 4.8751 6.5690 0.0000 6.5690 0.2724 2.7649 16.9714 2019 2.4300 0.0500 2.4800 4.8751 0.0000 4.8751 6.3130 0.0000 6.3130 0.2562 2.7649 16.6892 2020 2.4300 0.0000 2.4300 4.8751 0.0000 4.8751 6.1330 0.0000 6.1330 0.2414 2.7649 16.4444 Note Source: Seminole County Tax Collector (www.seminoletax.org) 1 Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. 2 Taxes levied for the fiscal year are based on the prior calendar year taxable value. Winter Springs CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING1 GOVERNMENTS Last Ten Fiscal Years 2 St. John's Water Manage- ment District Total Direct & Overlap- ping Rates School District Overlapping Rates 1 Seminole County County Fire Protection (MSTU) Page | 104 327 Cap/Maint Cap/Maint Capital Only Cap/Maint Tax Year Fiscal Year Billed Collected 1 Difference Billed 2 Collected 1 Difference Billed Collected 1 Difference Billed Collected 1 Difference 2010 2011 116,237 112,116 4,121 688,227 664,815 23,412 42,279 40,869 1,410 - - - 2011 2012 116,237 112,095 4,142 688,482 655,504 32,978 42,280 40,381 1,899 - - - 2012 2013 116,237 112,019 4,218 688,482 664,035 24,447 42,280 40,670 1,610 - - - 2013 2014 116,237 111,963 4,274 701,658 675,955 25,703 42,280 40,784 1,496 12,753 12,279 474 2014 2015 112,351 108,253 4,098 673,320 648,971 24,349 27,357 26,380 977 12,668 12,219 449 2015 2016 112,351 108,286 4,065 673,164 648,823 24,341 27,346 26,369 977 12,668 12,204 464 2016 2017 112,351 108,213 4,138 673,128 648,645 24,483 27,335 23,363 3,972 12,668 12,193 475 2017 2018 58,047 55,872 2,175 673,128 648,946 24,182 - 8 (8) 12,668 12,217 451 2018 2019 58,047 55,916 2,131 673,128 648,654 24,474 - - - 12,668 12,212 456 2019 2020 58,047 55,914 2,133 673,128 648,400 24,728 - - - 13,746 13,230 516 Note Special Assessment Debt Issued: 1 Includes prepayments Oak Forest June 2000 (Refinanced internally June of 2010) 2 TLBD Phase I May 2001 (Refinanced October of 2011) TLBD Phase II February 2006; No assessment levied until Fiscal Year 2007. Tuscawilla III Financed internally TLBD Maintenance and Phase I Capital are shown in the TLBD Phase I program amounts. Last Ten Fiscal Years Tuscawilla III Assessments CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Tuscawilla Lighting and Beautification (TLBD) - Phase II AssessmentsOak Forest Assessments Tuscawilla Lighting and Beautification (TLBD) - Phase I Assessments Page | 105 328 Taxpayer Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total Taxable Assessed Value CIP 2014/Winter Springs 360 56,204$ 1 2.24% WE Park at Laurel Oaks LLC 50,047$ 2 1.99% KMF XI Winter Springs LLC 40,212$ 3 1.60% Standard Pacific of Florida 34,627$ 4 1.38% Courtney Springs LLC 32,194$ 5 1.28%15,120$ 3 0.90% Duke Energy (formerly Progress Energy)30,577$ 6 1.22%19,798$ 2 1.17% Winter Springs Station LLC 20,618$ 7 0.82% Vistawilla ALF LLC 14,772$ 8 0.59% United Dominion Realty Trust Inc.16,540$ 9 0.66% MSC Dovera LLC 7,004$ 10 0.28% Laurel Oaks LLC 21,634$ 1 1.28% Summer Falls LLC 9,961$ 4 0.59% United Dominion Realty Trust Inc.6,687$ 5 0.40% Winter Springs Holdings, Inc 6,559$ 6 0.39% Bright House Networks LLC 6,551$ 7 0.39% Hacienda Village Co-op Inc.5,018$ 8 0.30% Baxley Robert & Annmarie TRS 3,998$ 9 0.24% BRI 1813 Villagio Co-op Inc.3,763$ 10 0.22% Totals 302,795$ 9.82%99,089$ 5.88% Source: Seminole County Property Appraiser (www.scpafl.org) 2011 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS 2020 September 30, 2020 (amounts expressed in thousands) Page | 106 329 Fiscal Year Ended September 30, Total Tax Levy for Fiscal Year 1 Amount 2 Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 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% 2015 4,440,561 4,281,737 96.42%2,392 4,284,129 96.48% 2016 4,683,015 4,515,547 96.42%485 4,516,032 96.43% 2017 4,903,354 4,730,295 96.47%984 4,731,279 96.49% 2018 5,346,715 5,145,529 96.24%4,436 5,149,965 96.32% 2019 5,574,343 5,481,310 98.33%4,763 5,486,073 98.42% 2020 6,099,004 5,869,644 96.24%260 5,869,904 96.24% Note 1 2 3 Source: Seminole County Tax Collector (www.seminoletax.org) Includes voted debt service not to exceed 0.2500 mills for Central Winds General Obligation Debt (voted debt eliminated in fiscal year 2020) Collected within the Fiscal Year of the Levy Total Collections to Date CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS 3 Last Ten Fiscal Years Gross taxes before discount of 1% - 4%, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org) Page | 107 330 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. LEGAL DEBT MARGIN September 30, 2020 CITY OF WINTER SPRINGS, FLORIDA Page | 108 331 Ratio of Net Gen Obligation Net Debt to Gen Obligation Fiscal Assessed Gross Less Debt Gen Obligation Assessed Debt per Year Population 1 Value 2 Debt 3 Service Fund 4 Debt Value Capita 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 2015 34,901 1,748,258,752 2,425,161 1,167,015 1,258,146 0.072%36 2016 35,266 1,843,713,578 2,312,629 1,176,903 1,135,726 0.062%32 2017 35,599 1,961,341,503 - - 1,074,143 0.055%30 2018 36,635 2,147,274,968 - - 949,131 0.044%26 2019 37,321 2,293,968,241 - - 835,458 0.036%22 2020 38,764 2,509,878,198 - - - 0.000%- Note 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bonds and revenue bonds CITY OF WINTER SPRINGS, FLORIDA 4 Amount available for repayment of limited general obligation note. During fiscal year 2017, the external loan was retired and replaced with an internal interest-free loan from the City's General Fund which was forgiven at the beginning of fiscal year 2020. 1 Source: American Fact Finder; previous statistics from multiple sources DEBT PER CAPITA RATIO OF NET GENERAL OBLIGATION DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION Last Ten Fiscal Years Page | 109 332 Fiscal Year Ended September 30, Refunding Revenue Bonds2 Limited General Obligation Bonds Special Assessment Revenue Bonds Refunding Notes Limited General Obligation Notes Water and Sewer Revenue Notes Water and Sewer Refunding Revenue Bonds State Revolving Loan Total Primary Government Percentage of Personal Income Per Capita 2011 12,826 2,770 2,005 1,377 - 13,066 8,880 - 40,924 3.52%$1,230 2012 12,526 - - 3,260 2,739 12,152 9,302 - 39,979 3.38%$1,190 2013 12,232 - - 3,054 2,639 10,897 9,751 2,853 41,426 3.75%$1,235 2014 7,931 - - 6,282 2,534 9,601 10,226 1,635 38,209 3.52%$1,128 2015 8,386 - - 5,781 2,425 8,266 10,730 1,568 37,156 3.41%$1,065 2016 8,866 - - 4,661 2,313 6,497 11,264 1,498 35,099 3.07%$995 2017 9,374 - - 3,521 - 5,747 11,830 4,307 34,779 2.97%$977 2018 9,850 - - 2,383 - 6,165 10,555 6,272 35,225 2.92%$962 2019 10,478 - - 1,225 - 4,639 11,192 6,669 34,203 2.49%$916 2020 9,767 1,128 - 3,061 11,867 6,308 32,131 2.14%$829 Note: Details regarding the city's outstanding debt can be found in the notes to the Financial Statements: Note 7: Long-Term Debt. CITY OF WINTER SPRINGS, FLORIDA RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (dollars in thousands, except per capita) Governmental Activities Business-Type Activities Page | 110 333 Debt Outstanding Estimated Percentage Applicable 1 Estimated Share of Overlapping Debt Overlapping Debt: Seminole County General Obligation Debt -$ -$ Subtotal, overlapping debt Direct Debt: Series 1999 Improvement Revenue Bonds 3,081,089 100%3,081,089 Accreted Interest 6,686,253 100%6,686,253 City of Winter Springs General Obligation Debt 2 - - City of Winter Springs Capital Improvement Notes 1,128,333 100%1,128,333 Total direct and overlapping debt 10,895,675$ 10,895,675$ Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs 2 Through fiscal year 2019, the City of Winter Springs had a "limited" general obligation note being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. Fiscal year 2019 was the last year of the levy as the internal loan was forgiven effective October 1, 2019. Governmental Unit CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2020 (amounts expressed in thousands) Page | 111 334                 This page intentionally left blank.     335 Fiscal Year Ended Sept 30, Public Service Taxes Electric Franchise Fees Half-Cent Sales Tax General Obligation Federal Emergency Management Agency Public Assistance Grants Impact Fees (Fire, Police, Recreation and Public Facilities) Non-Ad Valorem Special Assessments Total Revenue Available for Debt Service Maximum Annual Debt Service Coverage 2011 4,168,867 1,873,785 160,000 179,408 - - 180,787 6,562,847 1,912,847 3.43 2012 3,963,093 1,748,214 - 167,640 - - 185,336 6,064,283 1,669,984 3.63 2013 3,923,336 1,541,741 - 166,863 - - 119,299 5,751,239 1,669,984 3.44 2014 4,034,667 1,816,567 - 173,876 - - 165,152 6,190,262 1,838,498 3.37 2015 3,887,124 1,941,840 - 185,527 - - 162,442 6,176,933 1,838,498 3.36 2016 3,975,578 1,874,893 - 195,560 - - 159,347 6,205,378 1,838,498 3.38 2017 3,879,197 1,812,388 - 132,374 - - 160,024 5,983,983 1,838,498 3.25 2018 4,003,425 1,960,722 - 124,109 - - 135,163 6,223,419 1,633,823 3.81 2019 4,212,706 2,124,125 - 110,662 - - 138,063 6,585,556 1,633,823 4.03 2020 4,510,783 2,137,683 - 27 - - 136,883 6,785,376 1,410,310 4.81 PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years CITY OF WINTER SPRINGS, FLORIDA General Government Page | 112 336 Fiscal Year Ended Sept 30, Gross Revenues 1 Operating Expenses 2 Net Revenue Available for Debt Service Principal Interest Total Coverage 2011 8,896,172 5,769,194 3,126,978 945,000 3 749,320 1,694,320 1.85 2012 9,833,455 5,331,369 4,502,086 913,470 487,292 1,400,762 3.21 2013 9,014,167 5,420,125 3,594,042 1,255,278 448,890 1,704,168 2.11 2014 9,534,771 5,488,225 4,046,546 1,296,376 409,422 1,705,798 2.37 2015 11,189,753 5,493,666 5,696,087 1,401,786 412,670 1,814,456 3.14 2016 11,189,465 5,765,435 5,424,030 1,446,699 3 368,458 1,815,157 2.99 2017 11,154,709 6,235,351 4,919,358 822,719 187,884 1,010,603 4.87 2018 10,260,680 6,140,468 4,120,212 1,875,000 99,668 1,974,668 2.09 2019 12,259,418 6,450,421 5,808,997 1,888,696 159,542 2,048,238 2.84 2020 12,943,985 7,059,281 5,884,704 1,938,782 156,801 2,095,583 2.81 Note 1 2 3 Debt Service Requirements Water Revenue Bonds Gross revenue is computed per bond resolution requirements, and is equivalent to revenue recognized under generally accepted accounting principles (GAAP). Revenues include investment income and other income. "Direct operating expense" is computed per bond resolution requirements, and is equal to expenses recognized under GAAP (less interest, depreciation, and amortization expense) losses on disposal of fixed assets, and non-recurring transfers out. Excludes principal paid on refunding CITY OF WINTER SPRINGS, FLORIDA PLEDGED-REVENUE COVERAGE - CONTINUED Last Ten Fiscal Years Page | 113 337 Fiscal Year Population 1 Personal Income (amounts expressed in thousands)1 Per Capita Personal Income 1 Median Age 1 Education Level in Years of Formal Schooling 1 School Enrollment 2 Unemploy- ment Rate 3 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% 2015 34,901 1,090,935 31,258 40.2 14 6,072 5.0% 2016 35,266 1,144,523 32,454 40.7 13.98 5,565 4.6% 2017 35,599 1,170,887 32,891 42.2 14.18 5,708 4.0% 2018 36,635 1,204,962 32,891 43.4 14.31 5,366 3.3% 2019 37,321 1,375,615 36,859 43.4 14.36 5,258 3.0% 2020 38,764 1,502,038 39,290 43.9 14.42 6,370 4.6% Note 1 Source: American Fact Finder; US Census; previous statistics from multiple sources 2 Source: American Fact Finder; Seminole County Public Schools 3 Source: https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml?src=bkmk CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Source: Bureau of Economic and Business Research (BEBR) Page | 114 338 Employees Rank Percentage of Total City Employment Employees Rank Percentage of Total City Employment Seminole County School Board 1,254 1 18.43% 1,420 1 20.87% Publix (Winter Springs Town Center)175 2 2.57%129 3 1.90% City of Winter Springs 169 3 2.48%216 2 3.17% Dearborn Electronics 153 4 2.25%135 4 1.98% Modern Plumbing 150 5 2.20%61 6 0.90% Tuscawilla Country Club 77 6 1.13%91 5 1.34% Greenway North 65 7 0.96%0.00% Watermark at Vistawilla 61 8 0.90%0.00% United States Post Office 55 9 0.81%47 7 0.69% Budget Tree 51 10 0.75%0.00% McDonald's 46 11 0.68%38 10 0.56% Dittmer Architechtural Aluminum 44 8 The Grove Counseling Center 32 9 Total 2,256 33.16% 2,213 31.41% 2011 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Ten Years Ago Employer 2020 Page | 115 339 Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Development Services 4 4.46 5.46 5.46 5.46 4.73 5.46 3.46 3.73 5.19 General Government 41 36.79 37.23 36.67 36.38 36.95 36.08 33.13 33.05 36.8 Public Safety: Police Sworn Officers 70 65 65 65 65 65.70 65.00 65 55 55 Civilians 2 20.75 18.45 16.45 16.88 17.13 17.13 17.13 15.07 15.5 15.5 Fire 3 - - - - - - - - - - Public Works 18.73 18 16 16 16 16 16 16 14 15 Culture and Recreation 29.10 25.68 24.07 24.06 21.84 21.11 21.76 20.84 20.79 20.79 Utilities 42 37 35 35.73 36.17 36.45 38.45 38.45 38.73 38 Stormwater 9 9 9 9 9 9 10 9 8 9 Total 234.58 214.38 208.21 208.8 206.98 207.07 209.88 200.95 188.8 195.28 Part-time FTEs (included above)17.58 18.38 22.36 21.95 20.98 23.07 22.88 19.95 17.8 18.28 Note 1 City of Winter Springs Annual Budget Documents 2 Police civilians include emergency communications center personnel. 3 Municipal Fire Department was consolidated with Seminole County Fire Department on 10/02/08. Full-time Equivalent Employees as of September 30, Last Ten Fiscal Years BUDGETED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 1 CITY OF WINTER SPRINGS, FLORIDA Page | 116 340 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function Police Auto accidents 277 327 396 423 399 560 479 526 489 420 Physical arrests 1,401 1,098 1,141 1,106 1,456 1,220 1,034 824 704 534 Criminal investigations conducted 544 374 386 522 408 533 419 388 1,384 1,249 Total calls for service 125,392 116,773 143,763 152,357 111,943 106,477 102,146 101,086 101,356 94,933 911 calls received 3,720 3,665 3,771 3,691 3,573 3,539 3,607 4,175 4,338 4,982 Evidence processed (pieces)2,215 2,160 1,900 2,327 2,240 2,606 2,509 1,814 1,603 1,394 Fire1 Public education programs N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Number of emergency calls answered N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Medical transports N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Highways and streets Streets paved (miles)3 2 2 1 4 0 - - 108 - Streets resurfaced (sq yards)47,622 41,850 39,958 39,958 46,114 63,674 70,324 53,925 51,783 116,528 Sidewalks/bike paths built or repaired (sq feet)5,575 4,677 5,622 5,122 4,329 11,344 7,384 6,428 15,127 31,248 Culture and recreation Games - Baseball/Softball 1,259 1,104 998 978 842 879 939 646 715 535 Games - Basketball 606 683 689 738 608 578 749 749 734 - Games - Football 271 257 209 256 103 22 61 61 39 145 Games - Soccer 856 880 650 1,140 1,176 879 882 1,130 950 679 Senior Activities 1,162 1,246 1,523 1,102 1,363 1,573 1,906 2,632 3,477 530 Civic Center & Pavilion Rentals 383 428 429 438 463 400 461 474 553 433 Water New connections 24 100 180 112 176 165 32 61 227 230 Number of customers 12,806 12,847 13,254 13,383 13,496 13,727 13,822 13,597 13,967 13,817 Water main breaks 10 16 18 9 4 2 10 6 5 8 Average daily consumption (gallons/per capita)114 109 106 98 103 104 97 103 119 252 Meter reads 176,001 176,531 177,752 181,145 183,256 187,468 188,358 192,930 189,072 234,842 Community Development Total permits issued 3,132 3,243 2,564 3,466 2,923 2,956 3,275 3,741 3,627 4,259 Building inspections 6,032 8,108 9,540 5,921 8,189 8,885 6,194 7,154 7,690 6,662 Business tax receipts issued 1,384 1,470 891 968 1,007 897 1,227 984 1,182 890 Land use amendments & rezonings - - 7 11 13 3 8 1 - 1 Permit files created/reviews initiated 2,190 2,427 3,764 3,869 3,201 3,111 3,436 3,868 3,829 4,690 General Government Personnel actions processed 227 375 106 309 182 283 426 201 288 150 Worker's Comp Injuries 44 33 44 32 30 30 37 35 25 21 Legal notices published 16 18 21 40 40 18 26 25 22 12 Payroll - Checks 229 210 380 499 425 352 334 335 296 266 Payroll - Direct Deposit 5,942 5,767 5,821 6,858 6,468 7,209 6,034 5,695 5,555 4,384 Receipts deposited 153,687 153,762 266,563 266,630 247,363 134,565 130,754 127,820 129,349 130,541 A/P checks issued 6,111 5,651 6,936 5,285 5,442 5,364 4,974 3,659 4,537 4,018 Purchase orders processed 3,160 2,720 2,787 2,968 3,262 2,262 2,319 2,138 1,905 2,040 Source: Summary of Departmental Reports Note * Information not available 1 Department was consolidated with Seminole County Fire Department effective 10/02/08 OPERATING INDICATORS BY FUNCTION City of Winter Springs, Florida Last Ten Fiscal Years Page | 117 341 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function Public safety Police: Stations 2 1 1 1 1 1 1 1 1 1 Fleet 91 83 82 85 82 82 80 73 68 68 Fire stations 2 3 3 3 2 2 2 2 2 2 2 Highways and streets Streets - paved (miles)100.70 99.63 101.16 102.69 102.69 103.25 103.25 103.40 107.52 107.52 Streets - unpaved (miles)1.02 0.51 0.51 0.51 0.51 0.00 0.00 0.00 0.00 0.00 Street lights 2311 2431 2471 2616 3404 3432 3432 3452 3638 3638 Traffic signals 10 10 10 10 10 10 10 10 10 10 Culture and recreation Park acreage 267.70 267.70 267.70 266.70 266.70 266.70 266.70 266.70 266.70 266.70 Parks - Community 6 6 6 6 6 6 6 6 6 6 Parks - Neighborhood 7 7 7 6 6 6 6 6 6 6 Senior Center 1 1 1 1 1 1 1 1 1 1 Community Center 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles)167.8 169.1 171 173.0 173.1 173.2 173.6 175.2 243.9 243.9 Fire hydrants 1,002 1,019 1,037 1,055 1,057 1,060 1,064 1,080 1,092 1,092 Maximum daily capacity (millions of gallons)12 12 12 12 12 12 12 12 12 12 Deep Wells 8 8 8 8 8 8 8 8 8 8 Sewer Sanitary sewers (miles)111.6 112.8 114.30 115.75 115.75 115.76 116.31 117.95 199.09 199.09 Storm sewers (miles)91.59 92.78 94.27 95.76 95.76 95.79 95.79 95.87 187.71 187.71 Treatment facility capacity (millions of gallons)4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 Current average flow (millions of gallons)1.866 2.043 2.358 2.067 2.097 2.080 2.140 2.280 2.124 2.520 Note * Information not available 1 City of Winter Springs Departmental Reports 2 Seminole County is leasing stations per Consolidation Agreement CAPITAL ASSET STATISTICS BY FUNCTION 1 Last Ten Fiscal Years City of Winter Springs, Florida Page | 118 342 Other Reports 343                 This page intentionally left blank.     344 934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 Tel. 407-843-5406 www.mcdirmitdavis.com Page | 119 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, 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, 2020, 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 24, 2021. 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 as a basis for designing 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 Winter Springs’ internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. 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 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. 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 24, 2021 345 934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 Tel. 407-843-5406 www.mcdirmitdavis.com the trusted partner Page | 120 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, 2020, and have issued our report thereon dated March 24, 2021. 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 Reporting Requirements 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 AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 24, 2021, 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 notes to the financial statements. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate 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 Statutes, 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 Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the City. 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. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. 346 Page | 121 Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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. Orlando, Florida March 24, 2021 347 934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 Tel. 407-843-5406 www.mcdirmitdavis.com the trusted partner Page | 122 INDEPENDENT ACCOUNTANT’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, 2020. 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, 2020. Orlando, Florida March 24, 2021 348 349 934 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 Tel. 407-843-5406 www.mcdirmitdavis.com the trusted partner Page | 1 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, 2020, and have issued our report thereon dated March 24, 2021. 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 August 11, 2020, 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. 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 significant accounting policies adopted by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period and GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. 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. 350 Page | 2 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. Management’s allocation of the net pension liability, deferred inflows/outflows and pension expense is based on the participating employees’ contributions made. We evaluated the reasonableness of the allocation methods in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s allocation of the net OPEB liability, deferred inflows/outflows and OPEB expense is based on the participating eligible employee headcounts in each department. We evaluated the reasonableness of the allocation 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 the recording of investments at fair value. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 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 24, 2021. 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 Commission 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 24, 2021 351 352 353 354 355 REGULAR AGENDA ITEM 502 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE Meeting Schedule and Assignments SUMMARY RECOMMENDATION Staff recommends Mayor and Commission enter into a discussion and assign committee responsibilities for a variety of boards that require City representation. 356 REGULAR AGENDA ITEM 503 CITY COMMISSION AGENDA | APRIL 26, 2021 REGULAR MEETING TITLE Appointment Opportunities for City Boards and Committees SUMMARY The City Clerk Department wishes to inform the City Commission of the following vacancies: Per Section 2-41(e) of the City Code, "If any commissioner fails to appoint a member within thirty (30) days after a vacancy occurs or a term expires, that seat shall be filled by a majority vote of the commission." CURRENT VACANCIES: Bicycle and Pedestrian Advisory Committee (Vacancy arose 2/17/2021 after resignation) Seat Four - OPEN TO FULL COMMISSION Term Expires: February 1, 2023 Planning and Zoning Board/LPA (Vacancy arose April 16, 2021 after resignation as a result of Mayoral appointment) Seat Two - Commissioner Cannon Term Expires: July 2022 Youth Council Mayor - Two (2) appointments remaining Seat One - One (1) appointment remaining Seat Five - One (1) appointment remaining RECOMMENDATION Staff recommends the City Commission make any appointments they deem pertinent. 357