HomeMy WebLinkAbout2022 03 28 Regular 500 - 2021 Annual Comprehensive Financial Report + , REGULAR AGENDA ITEM 500
CITY COMMISSION AGENDA I MARCH 28, 2022 REGULAR MEETING
TITLE
2021 Annual Comprehensive Financial Report
SUMMARY
The Annual Comprehensive Financial Report for the Fiscal Year Ended
September 30, 2021 was prepared and presented by the City's external
auditors Purvis, Gray and Company, LLP.
The Annual Comprehensive 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 2021 financial statements received an
unmodified opinion (best possible) by the auditors.
Additionally, the 2021 Annual Comprehensive 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 21 consecutive years.
RECOMMENDATION
Staff recommends the City Commission accept the Annual Comprehensive
Financial Report as presented for the Fiscal Year Ended September 30th 2021 .
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City of Winter Springs, Florida
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended September 30, 2021
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Prepared by:
Finance Department
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INTRODUCTORY SECTION
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CITY OF WINTER SPRINGS, FLORIDA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2021
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Tableof Contents............................................................................................................................. i-iii
Letterof Transmittal ......................................................................................................................iv-vii
Certificateof Achievement ...............................................................................................................viii
Listof Principal Officials......................................................................................................................ix
OrganizationalChart........................................................................................................................... x
II. FINANCIAL SECTION
Independent Auditor's Report........................................................................................................1-3
Management's Discussion and Analysis.......................................................................................4-16
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position..........................................................................................................17
Statementof Activities...............................................................................................................18
Fund Financial Statements:
Balance Sheet—Governmental Funds........................................................................................19
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ............................................................................................20
Statement of Revenues, Expenditures and Changes in
Fund Balances—Governmental Funds....................................................................................21
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities......................................................................................................22
Statement of Revenues, Expenditures and Changes in Fund
Balances—Budget and Actual:
GeneralFund........................................................................................................................23
Road Improvement Special Revenue Fund..........................................................................24
Solid Waste/Recycling Special Revenue Fund......................................................................25
Statement of Net Position—Proprietary Funds ....................................................................26-27
Statement of Revenues, Expenses and Changes in Fund
Net Position— Proprietary Funds............................................................................................28
Statement of Cash Flows—Proprietary Funds ......................................................................29-30
Statement of Fiduciary Net Position—Fiduciary Funds..............................................................31
Statement of Changes in Fiduciary Net Position—Fiduciary Funds...........................................32
Notes to Financial Statements....................................................................................................33-60
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CITY OF WINTER SPRINGS, FLORIDA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2021
TABLE OF CONTENTS
II. FINANCIAL SECTION
Required Supplementary Information
Schedule of Changes in the City's Net OPEB Liability and
Related Ratios—Plan Retiree Continuation Insurance Plan.......................................................61
Schedule of Changes in Net Pension Liability and
RelatedRatios.............................................................................................................................62
Schedule of Contributions ........................................................................................................63-64
Schedule of Investment Returns....................................................................................................65
Other Supplementary Information
Non-Major Governmental Funds:
Combining Balance Sheet—Non-Major Governmental Funds..............................................66-71
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances— Non-Major Governmental Funds..........................................72-77
Schedule of Revenues, Expenditures and Changes in Fund
Balance—Budget and Actual:
PoliceEducation Fund..........................................................................................................78
Special Law Enforcement Trust Fund—Local.......................................................................79
Transportation Improvement Fund .....................................................................................80
Transportation Impact Fee Fund..........................................................................................81
PoliceImpact Fee Fund........................................................................................................82
FireImpact Fee Fund............................................................................................................83
ParksImpact Fee Fund.........................................................................................................84
ArborFund ...........................................................................................................................85
TLBDMaintenance Fund......................................................................................................86
Oak Forest Maintenance Fund.............................................................................................87
Special Law Enforcement Trust Fund—Federal...................................................................88
TuscawillaPhase III ..............................................................................................................89
TLBDDebt Service Fund.......................................................................................................90
1999 Debt Service Fund .......................................................................................................91
1999 Construction Fund.......................................................................................................92
RevolvingRehab Fund..........................................................................................................93
Public Facilities Fund............................................................................................................94
Excellence in Customer Service............................................................................................95
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CITY OF WINTER SPRINGS, FLORIDA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2021
TABLE OF CONTENTS
III. STATISTICAL SECTION
Financial Trends
NetPosition by Component...........................................................................................................96
Changesin 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
TaxableProperty.......................................................................................................................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
Debt Capacity
LegalDebt Margin........................................................................................................................108
Ratio of Net General Obligation - Debt to Assessed
Value and Net General Obligation 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
PrincipalEmployers......................................................................................................................115
Operating Information
Budgeted Full-Time Equivalent City Government
Employeesby 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
AuditingStandards................................................................................................................119-120
ManagementLetter.................................................................................................................121-122
Independent Accountant's Report on Compliance with
the Requirement of Section 218.415, Florida Statutes ...............................................................123
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TCE:R
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~ * M CITY OF WINTER SPRINGS, FLORIDA
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Inrorponted
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1126 EAST STATE ROAD 434
G00)WEZRJ WINTER SPRINGS,FLORIDA 32708-2799
Telephone(407)327-1800
March 18th, 2022
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 Annual Comprehensive
Financial Report for the fiscal year ended September 30, 2021. 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
(GRAS)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 inconformity 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 Purvis Gray, 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, 2021 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, 2021 are fairly presented in conformity with GAAP. The independent auditor's report is
presented as the first component of the financial section of this report.
The City of Winter Springs' Management's Discussion and Analysis (MD&A) can be found immediately
following the report of the independent auditors and provides a narrative introduction,overview,and analysis
of the basic financial statements. The MD&A complements this letter of transmittal and should be read in
conjunction with it.
Profile of the Govemment
The City of Winter Springs,incorporated in 1959,is located in Seminole County,which is a part of the greater
Orlando metropolitan area in East Central Florida. The City currently has a land area of approximately 13.3
square miles and a population of approximately 38,000.
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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 st. 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 23-25 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 78.
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 2021-2022.
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 2020-2021 fiscal year(tax year 2020),the gross taxable value reflects an increase of 7.9%from the prior
year. During fiscal year 2020-2021 (tax year 2020),through prudent fiscal management, the City was able
to maintain the operating millage rate at 2.41. 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. Seminole Crossings
Townhomes(114 units)anticipated completion is the end of 2022.Commercial construction projects started
in 2021 include Winter Springs Marketplace and Chase Bank and should be completed in 2022.
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
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is also home to Choices in Learning Charter School,Willow School,and The Primrose 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. These community seasonal events include Egg-Citing Egg Hunt, Arbor Day with free tree
giveaways, Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran's Day
Ceremony, Winter Wonderland Parade, and the new addition Winter Wonderland of Lights. The City's
Sports Partnerships include traditional sports such as Babe Ruth Baseball/Softball, Florida Kraze Krush
Soccer and Winter Springs and Football League. Our very popular summer camp program offers affordable
day camp options and spectacular field trips.
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 pavilion and deck at Torcaso Park. Sunshine Park received a
pickleball court and shuffleboard.The Trailhead Restroom has been completed at Central Winds Park along
with a paved parking lot at the lower baseball fields. Bear Creek walking trail also received a new built by
hand wood bridge. 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.
Long-term financial planning. The City Commission updated and transmitted a 5-year Capital
Improvements Plan (CIP) in December 2021 for fiscal years 2022 through 2026. 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. 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 2021,the City did not implement any new GASB Statements.
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 Annual
Comprehensive Financial Report for the fiscal year ended September 30, 2020. This was the twenty first
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.
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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 Donna Bruno
City Manager Interim Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Winter Springs
Florida
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2020
P. 7� nC
Executive Director/CEO
Viii 15
CITY OF WINTER SPRINGS, FLORIDA
LIST OF PRINCIPAL OFFICIALS
September 30, 2021
ELECTED OFFICIALS
MAYOR Kevin McCann
DEPUTY MAYOR/COMMISSIONER Ted Johnson
COMMISSIONER Matt Benton
COMMISSIONER Kevin Cannon
COMMISSIONER TiAnna Hale
COMMISSIONER Rob Elliott
CITY MANAGER
Shawn Boyle
CITY CLERK
Christian Gowan
LEGAL COUNSEL
Anthony Garganese
Garganese, Weiss &
D'Agresta, P.A.
DEPARTMENT
DIRECTORS
DEPUTY CITY MANAGER Casey Howard
COMMUNITY DEVELOPMENT Christopher Schmidt
FINANCE Maria Sonksen
POLICE CHIEF Chris Deisler
UTILITY/PUBLIC WORKS Jason Norberg
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
20
PURVIsGRAY
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, 2021, 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
merica;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.
CERTIFIED PUBLIC ACCOUNTANTS
Gainesville I Ocala I Tallahassee I Sarasota I Orlando I Lakeland I Tampa
pu rvisg ray.com
Members of American and Florida Institutes of Certified Public Accountants
An Independent Member of the BDO Alliance USA
1 21
Honorable Mayor and City Commissioners
City of Winter Springs, Florida
INDEPENDENT AUDITOR'S REPORT
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, 2021, 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, 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 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 non-major 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 non-major 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.
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22
Honorable Mayor and City Commissioners
City of Winter Springs, Florida
INDEPENDENT AUDITOR'S REPORT
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 18, 2022
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.
March 18, 2022
Gainesville, Florida
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MANAGEMENT'S DISCUSSION AND ANALYSIS
24
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
As management of the City of Winter Springs, Florida 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, 2021. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal which can be found on pages iv-vii of this report.
Financial Highlights
■ The assets and deferred outflows of the City of Winter Springs exceeded its liabilities and deferred
inflows at the close of the most recent fiscal year by $139,413,122 (net position). Of this amount,
$35,787,436 (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$6,010,110
or 4.51%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$38,476,471. Approximately 23%of this total amount,$8,777,061,
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$8,811,749,or
57%of total general fund expenditures.
■ As a result of current year's activities, the City of Winter Springs' total debt decreased by$1,453,827
(5%).
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.
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CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
The Statement of Activities presents information showing how the government's net position changed
during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Winter Springs that
are principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City of Winter Springs include
general government, public safety, physical environment and culture and recreation. The business-type
activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility and
Development Services.
The government-wide financial statements include only the City of Winter Springs itself (known as the
primary government). The City of Winter Springs had no component units. The Water and Sewer Utility,
the Stormwater utility, and Development Services function as departments of the City of Winter Springs,
and therefore, have been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 17-18 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.
S
26
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
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 non-major 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 23-25. Budgetary comparison schedules have been provided for the non-major funds on pages
78-95.
The basic governmental fund financial statements can be found on pages 19-22 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 26-30 of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because the resources of
those funds are not available to support the City's own programs. The accounting used for fiduciary funds
is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found
on pages 31-32 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 33-60 of this report.
Required Supplementary Information (RSI)
RSI can be found on pages 61-65 of this report.
Other Information
The combining statements referred to earlier in connection with non-major governmental funds are
presented after this. Combining and individual fund statements and schedules can be found on pages 66-
77 of this report.
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27
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
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$139,413,122 at the close of the most recent fiscal year.
Of the City of Winter Springs' net position, $82,663,405 or 59%, 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 $20,962,281 (15%). The
remaining balance of unrestricted net position$35,787,436 (26%) may be used to meet the government's
ongoing obligations to citizens and creditors.
At September 30, 2021,the City of Winter Springs is able to report positive balances in all three categories
of net position, both for the government as a whole,as well as for its separate governmental and business-
type activities. This was also the case at the close of the prior fiscal year.
The Following table reflects the condensed Statement of Net Position for the current prior year. For more
detail see the Statement of Net Position on page 17.
Statement of Net Position as of September 30
Business-Type
Governmental Activities Activities Total
2021 2020 2021 2020 2021 2020
Assets
Current a nd Other Assets $45,563,825 $41,378,922 $40,554,171 $35,955,685 $ 86,117,996 $ 77,334,607
Restricted Assets 93,318 88,934 746,614 746,540 839,932 835,474
Capital Assets 57,469,856 59,122,076 40,709,592 40,475,153 98,179,448 99,597,229
Total Assets 103,126,999 100,589,932 82,010,377 77,177,378 185,137,376 177,767,310
Deferred Outflows of Resources
Deferred Charge on Refunding 8,361 9,289 35,927 73,829 44,288 83,118
Deferred Outflow of Pension and OPEB 1,049,565 903,153 235,521 247,794 1,285,086 1,150,947
1,057,926 912,442 271,448 321,623 1,329,374 1,234,065
Liabilities
Current Liabilities 2,858,700 1,922,542 2,259,469 970,389 5,118,169 2,892,931
Long-Term Liabilities 11,896,351 18,616,145 20,984,041 23,064,438 32,880,392 41,680,583
Other Liabilities 91,707 86,344 672,332 664,554 764,039 750,898
Total Liabilities 14,846,758 20,625,031 23,915,842 24,699,381 38,762,600 45,324,412
Deferred Inflows of Resources
Deferred Inflow of Pension and OPEB 6,790,380 196,564 1,500,648 77,387 8,291,028 273,951
Net Position
Net Investment in Capital Assets 53,758,196 54,921,943 28,905,209 27,385,374 82,663,405 82,307,317
Restricted 19,629,769 18,010,777 1,332,512 647,207 20,962,281 18,657,984
Unrestricted 9,159,822 7,748,059 26,627,614 24,689,652 35,787,436 32,437,711
Total Net Position $82,547,787 $80,680,779 $56,865,335 $52,722,233 $139,413,122 $133,403,012
7
28
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
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 18.
As a result of the current year's activities,the government's total net position increased by$6,010,110 or
4.51%from the prior year. The previous fiscal year, 2020, net position increased by$12,474,213.
Governmental activities increased net position by$1,867,008 in fiscal year 2021 compared to an increase
of$4,274,796 in 2020. The increase in net position for fiscal year 2021 is less than the prior year's increase
primarily due to contributed assets in the prior year.
Business-type activities increased net position by$4,143,102 in fiscal year 2021 compared to an increase
of$8,199,417 in 2020. The increase in net position in fiscal year 2021 is more than the prior fiscal year's
increase primarily due to contributed assets in the prior year.
Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the
revenues and expenses for each of the governmental and business-type activities as well as the revenue
"source"for each.
Additional information regarding the changes in fund balance of the governmental and business-type
activities can be found in the section entitled Financial Analysis of Government's Funds on page 12.
Note that the first graph depicts governmental program-specific revenues and expenses. For this graph
the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental
revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of
program expenses funded by specific program revenues.
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29
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
Changes in Net Position for the year ended September 30:
Business-Type
Governmental Activities Total
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues:
Charges for Services $ 6,655,442 $ 6,296,917 $13,852,653 $14,857,885 $ 20,508,095 $ 21,154,802
Operating Grants and Contributions 553,370 31,297 25 589,693 553,395 620,990
Capital Grants and Contributions 3,469,655 5,691,969 274,355 4,907,862 3,744,010 10,599,831
General Revenues:
Property Taxes 6,291,085 5,869,671 - - 6,291,085 5,869,671
Utility Taxes 4,692,987 4,510,783 4,692,987 4,510,783
Business Tax Receipts 125,892 112,450 125,892 112,450
Intergovernmental-Unrestricted 4,360,200 3,858,262 4,360,200 3,858,262
Investment Income and
Miscellaneous 584,076 1,046,551 68,347 690,966 652,423 1,737,517
Total Revenues 26,732,707 27,417,900 14,195,380 21,046,406 40,928,087 48,464,306
General Government 5,719,813 6,960,521 - - 5,719,813 6,960,521
Public Safety 5,746,362 5,278,448 5,746,362 5,278,448
Physical Environment 7,898,398 7,380,870 7,898,398 7,380,870
Culture and Recreation 2,625,093 2,826,524 2,625,093 2,826,524
Intereston Long-Term Debt 559,889 603,264 559,889 603,264
Water and Sewer - - 9,737,602 10,051,311 9,737,602 10,051,311
Development Services 1,330,968 1,129,984 1,330,968 1,129,984
Sto rmwa to r 1,299,852 1,759,171 1,299,852 1,759,171
Total Expenses 22,549,555 23,049,627 12,368,422 12,940,466 34,917,977 35,990,093
Excess (Decrease)in Net Position
Before Tra nsfers 4,183,152 4,368,273 1,826,958 8,105,940 6,010,110 12,474,213
Transfers (2,316,144) (93,477) 2,316,144 93,477 - -
Increase(Decrease)in Net Position 1,867,008 4,274,796 4,143,102 8,199,417 6,010,110 12,474,213
Net Position,Beginning, 80,680,779 76,405,983 52,722,233 44,522,816 133,403,012 120,928,799
Net Position,Ending $82,547,787 $80,680,779 $56,865,335 $52,722,233 $139,413,122 $133,403,012
9
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CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
Governmental Program Specific Revenues and Expenses
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
General Public Safety Physical Culture& Interest on long
Govemment Environment Recreation Term Debt
■Revenues ■Expenses
Governmental Revenues by Source
Investment
ncome and
Miscellaneous
Intergovernmental 2%
16%
Charges for
Services
25%
Taxes Capital and
42% Operating
Grants and
Contributions
15%
10
31
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
Business-type Activities Revenues and Expenses
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
Water and Sewer Development Services Stormwater
■Revenues ■Expenses
Business-type Activities Revenues by Source
Capital and Investment
Operating Grants Income and
and Contributions Miscellaneous
2% 0%
Charges for
services
98%
11
32
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
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 30,2021,the City of Winter Springs'governmental funds reported combined ending fund
balances of$38,476,471, an increase of$68,254 over the prior year. Approximately 23%, or$8,777,061,
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 $8,811,749, while total fund balance was
$9,042,987. 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 57% and 58% respectively, of total General Fund expenditures. The increase in fund balance
of$107,593 is primarily the result of increased taxes.
The Road Improvements Fund balance decreased $2,145,567 due to the transfer to the Water and Sewer
Utility Fund for 3rd generation sales tax projects.
The Solid Waste Fund net position increased by $437,451. This increase is primarily due to the transfer
from the General Fund for storm reserve replenishment.
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
$18,560,505 and total net position increased $3,974,526 to $40,725,633. The increase in net position in
fiscal year 2021 is less than the priorfiscal year's increase primarily due to the timing of contributed capital
assets.
The Development Services Fund net position decreased as a result of current year activities by$21,967 to
$6,349,051 at the end of the fiscal year. The decrease in net position is due to a decrease in user charges
and an increase in contracted services.
The Stormwater Utility Fund net position increased as a result of current fiscal year activities by$190,543
to$9,790,651 at the end of the fiscal year. This increase in net position in fiscal year 2021 is less than the
prior fiscal year's increase primarily due to the timing of contributed capital assets.
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33
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
General Fund Budgetary Highlights
Differences between the original General Fund budget and the final amended General Fund budget
resulted in no change in appropriation to fund balance.
The actual results of General Fund for the year show an appropriation to fund balance of $107,593
compared to a final budgeted appropriation to fund balance of$0. The favorable variance of$107,593 is
comprised of a favorable revenues and expenditure variance,as well as an unfavorable transfers variance.
The favorable expenditure variance of$177,396 is displayed in the departmental cost centers below:
Executive $ 10,675
General Government 3,303
Finance&Administrative Services 71,750
Information Services 4,666
Community Development 13,271
Police 10,032
Fire -
Public Works 58,280
Parks and Recreation 5.419
Total S 177,396
This favorable variance is represented by the following expenditure categories as both amounts and
percentage of budget:
Payroll $ 427,553 2.7%
Other Operating 110,396 0.7%
Capital (360,553) -2.3%
Total L177 396
Although capital reflects a negative variance it 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 page 23.
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, 2021, amounts to $98,179,448 (net of accumulated depreciation), for a decrease of
$1,417,781 over the prior year. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total decrease
in the City of Winter Springs' investment in capital assets for the current fiscal year was 1.42% (a 2.79%
decrease for governmental activities, and a 0.58% increase for business-type activities).
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34
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
Major capital asset events during the current fiscal year included the following:
■ The Purchase
• Scale Computing Hardware&Service at a cost of approximately$145,808
• New electric vehicles for the Community Development and Development Services departments at a total
cost of approximately$57,002
• New vehicles for the Police department at a total cost of approximately$415,106
• New equipment for the Police department at a total cost of approximately$183,675
• New Pumps and Security upgrades for the East Waste Treatment Plant at a total cost of approximately
$41,373
• New Pump for the West Waste Treatment Plant at a total cost of approximately$13,071
• New Turbine Pump for Water Plant#3 at a total cost of approximately$14,899
• New equipment for the Public Works/Utilities departments at a cost of approximately$216,403
• New vehicles for the Public Works/Utilities departments at a cost of approximately$145,725
• New land acquisition (120. N Flamingo Ave)at a cost of approximately$131,752
• New land acquisition (310 Wagner Pt)at a cost of approximately$312,278
■ The completion and capitalization of the following projects:
• Paving of Torcaso Parking Lot 2 at a cost of approximately$61,830
• Police Department Parking Lot re-pavement at a cost of approximately$18,401
• City Hall Restroom (West) Remodel at a cost of approximately $25,203 (approximately $16,966 spent in
prior years)
• City Hall Breakroom Conversion at a cost of approximately$11,680
• Trotwood Park upgrades and renovations to the entrance at a total cost of approximately $70,157
(approximately$49,947 spent in prior year)
• Trotwood Park upgrades and renovations to the entrance, splash pad at a total cost of approximately
$54,253
• Trotwood Park upgrades and renovations to site improvements at a total cost of approximately$42,000
• Trotwood Park shoulder paving at a total cost of approximately$26,365
• Central Winds Park Trailhead restroom construction at a cost of approximately $221,110 (approximately
$18,973 spent in prior year)
• Central Winds Park paving of parking lot at soccer field at a cost of approximately$17,755
• Central Winds Park parking lot construction (Hicks Rd)at a cost of approximately$418,199
• Central Winds Park re-pavement of Baseball parking lot at a cost of approximately$26,335
• Public Works storage building construction at a total cost of$94,189
• Sunshine restroom and surrounding area upgrade and renovation at a cost of approximately$8,811
• Town Center Parking lot construction at a total cost of approximately$519,773
• Ranchlands park renovation at a cost of approximately$117,539($28,154 spent in prior year)
• Senior Center renovations/re-pavement of parking lot at a cost of approximately$79,274
• Senior Center shuffle board and horseshoes construction at a cost of approximately$42,944
• TLBD lightning protection for irrigation system at a total cost of approximately$22,534
• TLBD full-scale landscape replacement at fountains entrance at a cost of approximately$33,402
■ The capitalization of donated assets as a result of new residential and commercial building projects including:
• Wendy's additions to the water and sanitary system infrastructure at a value of approximately$81,261
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35
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
■ Beginning and continued construction on the following projects:
• Police Department Restroom renovations at an approximate cost of $60,000(approximately$42,000 spent
in prior years)
• Tuscawilla Crossing Reclaim Extension at an approximate cost of$115,789
• Lake Jessup Overlook Project at an approximate cost of$2,885,000
• Flamingo Ave Restroom construction at an approximate cost of$110,000 (approximately$2,900 spent in
prior year)
Additional information on the City of Winter Springs' capital assets can be found in Note 6 on pages 46-
47 of this report.
Business-Type
Governmental Activities Activities Total
2021 2020 2021 2020 2021 2020
Land $10,341,976 $ 9,897,945 $ 7,170,177 $ 7,170,177 $17,512,153 $ 17,068,122
Buildings 7,394,557 7,620,095 1,370,003 1,431,227 8,764,560 9,051,322
Improvements Other Than Buildings 6,712,904 6,897,019 23,498,424 25,458,364 30,211,328 32,355,383
Machineryand Equipment 3,158,515 3,030,911 5,023,609 5,537,738 8,182,124 8,568,649
Intangibles 14,030 114,855 95,548 154,757 109,578 269,612
Infrastructure 27,958,100 30,102,665 - - 27,958,100 30,102,665
Construction in Progress 1,889,774 1,458,586 3,551,831 722,890 5,441,605 2,181,476
Total Net Position $57,469,856 $59,122,076 $40,709,592 $40,475,153 $98,179,448 $ 99,597,229
Long-Term Debt
At September 30, 2021,the City of Winter Springs had total debt outstanding of$30,679,047, a decrease
of$1,453,826 from $32,132,873 at September 30, 2020. Total bonded debt of the City at the end of the
current fiscal year was$6,481,483. This amount does not include accreted interest of$15,118,671.
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.
Additional information on the City's long-term debt can be found in Note 7 on pages 47-50 of this report.
Business-Type
Governmental Activities Activities Total
2021 2020 2021 2020 2021 2020
Improvement Refunding Revenue Bonds,
Series 1999 $ 2,687,292 $ 3,081,089 $ - $ - $ 2,687,292 $ 3,081,089
Waterand Sewer Refund Revenue Bonds,
Series 2000 - - 3,794,191 3,794,191 3,794,191 3,794,191
Special Assessment Revenue Notes,
Series 2011 1,032,729 1,128,333 - - 1,032,729 1,128,333
Revenue Refunding Note Series 2016 - - 194,000 1,167,000 194,000 1,167,000
Revenue Refunding Note Series 2018 - 1,894,000 - 1,894,000
Revenue Refunding Note Series 2020 3,022,000 - 3,022,000 -
State Revolving Fund Loans 4,830,120 6,308,417 4,830,120 6,308,417
Accreted Interest Payable 6,329,177 6,686,253 8,789,494 8,073,590 15,118,671 14,759,843
Total Net Position $10,049,198 $10,895,675 $20,629,805 $21,237,198 $30,679,003 $ 32,132,873
The above information does not include the interfund loan balances related to the repayment of the
general obligation note.
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36
CITY OF WINTER SPRINGS, FLORIDA
Management's Discussion and Analysis
SEPTEMBER 30,2021
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 2.4100 for FY2021 and FY2022. The gross property
tax values in Winter Springs increased in FY2021 by 7.9% and have increased an approximate 6% in
FY2022. In May 2014, a county-wide 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 Fund's FY2021 adopted expenditure budget of$16,883,194 (inclusive of transfers) marked a
decrease of 11.7% from the previous year. For FY2022 the adopted expenditure budget is $18,736,477,
an increase of 11% from FY2021. The total combined expenditure budget of FY2022 of $54,513,045
(inclusive of transfers) is$3,417,055 or 6.7% more than the adopted budget of FY2021.
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 Annual Comprehensive Financial
Report is also available at the City of Winter Springs'website located at www.winterspringsfl.org.
16
37
BASIC FINANCIAL STATEMENTS
38
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
Governmental Business-Type
Activities Activities Total
Assets
Cash and Cash Equivalents $ 2,658,757 $ 2,636,824 $ 5,295,581
Investments 38,121,098 36,561,279 74,682,377
Receivables, Net 348,856 600,600 949,456
Inventories, at Cost 25,343 27,058 52,401
Prepaid Costs 163,478 6,190 169,668
Restricted Assets:
Cash and Cash Equivalents 93,318 746,614 839,932
Receivables, Long-Term 972,730 - 972,730
Net Pension Asset 3,273,563 722,220 3,995,783
Capital Assets:
Capital Assets not Being Depreciated 12,231,750 10,722,008 22,953,758
Capital Assets Being Depreciated, Net
of Accumulated Depreciation 45,238,106 29,987,584 75,225,690
Total Assets 103,126,999 82,010,377 185,137,376
Deferred Outflows of Resources
Deferred Charge on Refunding 8,361 35,927 44,288
Deferred Outflow of Pension and OPEB 780,486 176,156 956,642
Total Deferred Outflows of Resource 788,847 212,083 1,000,930
Liabilities
Accounts Payable and Accrued Expenses 2,622,830 2,222,037 4,844,867
Due to Other Governments 208,014 - 208,014
Unearned Revenue 11,074 - 11,074
Accrued Interest Payable 16,782 37,432 54,214
Liabilities Payable from Restricted Assets 91,707 672,332 764,039
Non-Current Liabilities:
Due Within One Year 1,489,260 627,141 2,116,401
Due in More than One Year 10,407,091 20,356,900 30,763,991
Total Liabilities 14,846,758 23,915,842 38,762,600
Deferred Inflows of Resources
Deferred Inflows of Pension and OPEB 6,521,301 1,441,283 7,962,584
Total Deferred Inflows of Resources 6,521,301 1,441,283 7,962,584
Net Position
Net Investment in Capital Assets 53,758,196 28,905,209 82,663,405
Restricted for:
Capital Projects 6,132,041 - 6,132,041
Debt Service 64,853 - 64,853
Renewal and Replacement - 610,292 610,292
Physical Environment 10,022,823 - 10,022,823
Public Safety 136,489 - 136,489
Pension Assets 3,273,563 722,220 3,995,783
Unrestricted 9,159,822 26,627,614 35,787,436
Total Net Position $ 82,547,787 $ 56,865,335 $ 139,413,122
See accompanying notes.
17
39
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CITY OF WINTER SPRINGS, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30,2021
Special Revenue
Road Other Total
General Improvements Solid Waste/ Governmental Governmental
Fund Fund Recycling Funds Funds
Assets
Cash and Cash Equivalents $ 586,064 $ 613,568 $ 163,024 $ 1,296,101 $ 2,658,757
Investments 9,380,765 8,507,838 2,260,526 17,971,968 38,121,097
Receivable, Net 188,504 754 159,598 - 348,856
Inventories,at Cost 25,343 - - - 25,343
Prepaids 163,478 - - - 163,478
Special Assessments Receivable - - - 972,730 972,730
Advances to Other Funds 42,417 - - - 42,417
Restricted Assets:
Cash and Cash Equivalents 91,707 - - 1,611 93,318
Total Assets 10,478,278 9,122,160 2,583,148 20,242,410 42,425,996
Liabilities and Fund Balances
Liabilities
Accounts Payable 469,675 1,149,880 247,064 101,389 1,968,008
Accrued Liabilities 654,025 - - - 654,025
Unearned Revenue 11,074 - - - 11,074
Retainage Payable 796 - - - 796
Due to Other Funds - - - 42,417 42,417
Due to Other Governments 208,014 - - - 208,014
Payable from Restricted Assets 91,707 - - - 91,707
Total Liabilities 1,435,291 1,149,880 247,064 143,806 2,976,041
Deferred Inflows of Resources
Unavailable Revenue-County Taxes - 754 - - 754
Unavailable Revenue-
Special Assessments - - - 972,730 972,730
Total Deferred Inflows of Resources - 754 - 972,730 973,484
Fund Balances
Non-Spendable 231,238 - - - 231,238
Restricted - 7,971,526 - 8,384,680 16,356,206
Committed - - 691,597 1,924,506 2,616,103
Assigned - - 1,644,487 8,851,376 10,495,863
Unassigned 8,811,749 - - (34,688) 8,777,061
Total Fund Balances 9,042,987 7,971,526 2,336,084 19,125,874 38,476,471
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 10,478,278 $ 9,122,160 $ 2,583,148 $ 20,242,410 $42,425,996
See accompanying notes.
19
41
CITY OF WINTER SPRINGS, FLORIDA
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
Total Fund Balance,Governmental Funds $ 38,476,471
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. 57,469,856
Other long-term assets are not available to pay for current period
expenditures and,therefore,are deferred in the funds. 973,484
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. (5,740,815)
Long-term liabilities, including bonds payable,are not due and payable
in the current period and,therefore, are not reported in the funds. (11,904,772)
Net pension assets are not available in the current period and,
therefore,are not reported in the funds. 3,273,563
Net Position of Governmental Activities in the Statement of Net Position $ 82,547,787
See accompanying notes.
20
42
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Special Revenue
Road Other Total
General Improvements Solid Waste/ Governmental Governmental
Fund Fund Recycling Funds Funds
Revenues
Taxes:
Property Taxes $ 6,291,085 $ - $ - $ - $ 6,291,085
UtiIityTaxes 4,692,987 - - - 4,692,987
Business Tax Receipts 125,892 - - - 125,892
Permits and Fees 2,417,891 - - 1,125 2,419,016
Intergovernmental Revenues 4,866,694 2,511,559 64,988 552,274 7,995,515
Charges for Services 560,924 - 2,630,446 45,332 3,236,702
Fines and Forfeitures 110,135 - - 311,156 421,291
Impact Fees/Assessments - - - 1,020,634 1,020,634
Investment Income 26,821 19,887 3,573 67,764 118,045
Miscellaneous 329,550 - - 136,481 466,031
Total Revenues 19,421,979 2,531,446 2,699,007 2,134,766 26,787,198
Expenditures
Current:
General Government 5,292,842 - - 13,702 5,306,544
Public Safety 6,962,124 - - 70,965 7,033,089
Physical Environment 797,869 27,724 3,061,556 978,206 4,865,355
Culture and Recreation 1,854,098 - - - 1,854,098
Debt Service:
Principal - - - 489,401 489,401
Interest and Fiscal Charges - - - 917,591 917,591
Capital Outlay:
General Government 217,001 - - 62,253 279,254
Public Safety 134,534 - - - 134,534
Physical Environment 161,090 2,649,289 - 376,057 3,186,436
Culture and Recreation 148,684 - - 187,814 336,498
Total Expenditures 15,568,242 2,677,013 3,061,556 3,095,989 24,402,800
Excess(Deficiency)of
Revenues Over Expenditures 3,853,737 (145,567) (362,549) (961,223) 2,384,398
Other Financing Sources(Uses)
Transfers in 533,856 - 800,000 2,630,000 3,963,856
Transfers(out) (4,280,000) (2,000,000) - - (6,280,000)
Total Other Financing
Sources(Uses) (3,746,144) (2,000,000) 800,000 2,630,000 (2,316,144)
Net Change in Fund Balances 107,593 (2,145,567) 437,451 1,668,777 68,254
Fund Balances,
Beginning of Year 8,935,394 10,117,093 1,898,633 17,457,097 38,408,217
Fund Balances,End of Year $ 9,042,987 $ 7,971,526 $ 2,336,084 $ 19,125,874 $ 38,476,471
See accompanying notes.
21
43
CITY OF WINTER SPRINGS, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2021
Net Change in Fund Balances-Total Governmental Funds $ 68,254
Amounts Reported for Governmental Activities in the Statements of
Activities are different because:
Governmental funds report outlays for capital assets as expenditures.
However, in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This is
the amount by which capital outlays exceeded depreciation in the current period. (1,693,335)
Contributions of capital assets are not report as revenues in the governmental funds. 41,116
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 the 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 statements
of activities. This amount is the net effect of these differences in the treatment of
long-term debt and related items. 489,400
The payment of accreted interest that was recognized in a prior year is not reported
as an expense on the statement of activities. 881,203
Special assessment revenue reported in the funds must be eliminated from the
statement of activities since revenue was recognized in a prior year. (95,604)
Cash pension contributions reported in the funds were more than the calculated
pension expense on the statement of activities and,therefore, increased
net position. 2,894,091
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 the
governmental funds. (718,117)
Change in Net Position of Governmental Activities $ 1,867,008
See accompanying notes.
22
44
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
GENERALFUND
YEAR ENDED SEPTEMBER 30, 2021
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes:
Property Taxes $ 6,287,782 $ 6,287,782 $ 6,291,085 $ 3,303
UtiIityTaxes 3,963,000 4,688,770 4,692,987 4,217
Business Tax Receipts 77,000 125,800 125,892 92
Permits and Fees 2,104,258 2,381,258 2,417,891 36,633
Intergovernmental Revenues 2,989,700 4,856,994 4,866,694 9,700
Charges for Services 616,095 682,401 560,924 (121,477)
Fines and Forfeitures 111,400 111,400 110,135 (1,265)
Investment Income 75,000 75,000 26,821 (48,179)
Miscellaneous 55,001 212,275 329,550 117,275
Total Revenues 16,279,236 19,421,680 19,421,979 299
Expenditures
Current:
General Government:
Executive 617,085 593,085 582,410 10,675
General Government 174,361 (17,932) (21,235) 3,303
Finance and Administrative Services 1,221,249 1,221,249 1,149,499 71,750
Information Services 2,161,399 2,472,264 2,467,598 4,666
Community development 1,449,842 1,344,842 1,331,571 13,271
Public Safety:
Police 6,818,796 6,827,996 6,817,964 10,032
Fire 278,694 278,694 278,694 -
Physical Environment:
Public Works 873,004 1,017,239 958,959 58,280
Culture and Recreation:
Parks and recreation 2,058,764 2,008,201 2,002,782 5,419
Total Expenditures 15,653,194 15,745,638 15,568,242 177,396
Excess(Deficiency)of Revenues
Over Expenditures 626,042 3,676,042 3,853,737 177,695
Other Financing Sources(Uses)
Transfers in 603,958 603,958 533,856 (70,102)
Transfers(out) (1,230,000) (4,280,000) (4,280,000) -
Total Other Financing Sources (626,042) (3,676,042) (3,746,144) (70,102)
Net Change in Fund Balances - - 107,593 107,593
Fund Balances,Beginning of Year 8,824,620 8,935,394 8,935,394 -
Fund Balances,End of Year $ 8,824,620 $ 8,935,394 $ 9,042,987 $ 107,593
See accompanying notes.
23
45
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
ROAD IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2021
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $ 1,955,000 $ 1,955,000 $ 2,511,559 $ 556,559
Investment Income 70,000 70,000 19,887 (50,113)
Total Revenues 2,025,000 2,025,000 2,531,446 506,446
Expenditures
Current:
Physical Environment 50,000 50,000 27,724 22,276
Capital Outlay: -
Physical Environment 3,979,646 3,504,646 2,649,289 855,357
Total Expenditures 4,029,646 3,554,646 2,677,013 877,633
Excess(Deficiency)of Revenues
Over Expenditures (2,004,646) (1,529,646) (145,567) 1,384,079
Other Financing Sources(Uses)
Transfers(out) (2,000,000) (2,000,000) (2,000,000) -
Net Change in Fund Balances (4,004,646) (3,529,646) (2,145,567) 1,384,079
Fund Balances,Beginning of Year 9,537,802 10,117,093 10,117,093 -
Fund Balances,End of Year $ 5,533,156 $ 6,587,447 $ 7,971,526 $ 1,384,079
See accompanying notes.
24
46
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
SOLID WASTE/RECYCLING SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2021
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental Revenues $ 48,000 $ 48,000 $ 64,988 $ 16,988
Charges for Services 2,580,317 2,628,917 2,630,446 1,529
Investment Income 18,000 18,000 3,573 (14,427)
Total Revenues 2,646,317 2,694,917 2,699,007 4,090
Expenditures
Current:
Physical Environment 2,930,108 3,061,608 3,061,556 52
Total Expenditures 2,930,108 3,061,608 3,061,556 52
Excess(Deficiency)of Revenues
Over Expenditures (283,791) (366,691) (362,549) 4,142
Other Financing Sources(Uses)
Transfers in - 800,000 800,000 -
Net Change in Fund Balances (283,791) 433,309 437,451 4,142
Fund Balances,Beginning of Year 1,923,742 1,898,633 1,898,633 -
Fund Balances,End of Year $ 1,639,951 $ 2,331,942 $ 2,336,084 $ 4,142
See accompanying notes.
25
47
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2021
Business-Type Activities-Enterprise Funds
Water and Sewer Development Stormwater
Utility Fund Services Fund Utility Fund Total
Assets
Current Assets:
Cash and Cash Equivalents $ 2,061,324 $ 425,381 $ 150,119 $ 2,636,824
Investments 28,582,688 5,897,021 2,081,570 36,561,279
Receivables, Net 540,926 - 59,674 600,600
Inventories 27,058 - - 27,058
Prepaid Expenses 5,200 990 - 6,190
Total Current Assets 31,217,196 6,323,392 2,291,363 39,831,951
Non-Current Assets:
Net Pension Asset 573,764 68,148 80,308 722,220
Restricted Investments 746,614 - - 746,614
Capital Assets:
Land, Buildings and Equipment 75,458,831 446,534 14,709,143 90,614,508
Construction in Progress 3,399,174 34,040 118,617 3,551,831
Less Accumulated Depreciation (46,072,549) (236,550) (7,147,648) (53,456,747)
Total Capital Assets(Net of
Accumulated Depreciation 32,785,456 244,024 7,680,112 40,709,592
Total Non-Current Assets 34,105,834 312,172 7,760,420 42,178,426
Total Assets 65,323,030 6,635,564 10,051,783 82,010,377
Deferred Outflows of Resources
Deferred Charge on Refunding 35,927 - - 35,927
Deferred Outflow Pension and OPEB 131,318 19,253 25,585 176,156
Total Deferred Outflows Resources 167,245 19,253 25,585 212,083
See accompanying notes.
26
48
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2021
(Concluded)
Business-Type Activities-Enterprise Funds
Water and Sewer Development Stormwater
Utility Fund Services Fund Utility Fund Total
Liabilities
Current Liabilities:
Accounts Payable $ 1,913,508 $ 106,605 $ 34,396 $ 2,054,509
Accrued Liabilities 133,465 12,773 21,290 167,528
Compensated Absences-Current 7,991 1,796 1,467 11,254
Customer Deposits Payable 672,332 - - 672,332
Notes Payable-Current 615,887 - - 615,887
Accrued Interest Payable 37,432 - - 37,432
Total Current Liabilities 3,380,615 121,174 57,153 3,558,942
Non-Current Liabilities:
Notes Payable 7,430,232 - - 7,430,232
Revenue Bonds Payable 3,794,191 - - 3,794,191
Accreted Interest Payable 8,789,494 - - 8,789,494
Compensated Absences 31,964 7,181 5,866 45,011
Other Non-Current Liabilities 198,648 39,730 59,594 297,972
Total Non-Current Liabilities 20,244,529 46,911 65,460 20,356,900
Total Liabilities 23,625,144 168,085 122,613 23,915,842
Deferred Inflows of Resources
Deferred Inflow of Pension and OPEB 1,139,498 137,681 164,104 1,441,283
Total Deferred Inflows of Resources 1,139,498 137,681 164,104 1,441,283
Net Position
Net Investment in Capital Assets 20,981,072 244,025 7,680,112 28,905,209
Restricted for:
Renewal and Replacement 610,292 - - 610,292
Pension Assets 573,764 68,148 80,308 722,220
Unrestricted 18,560,505 6,036,878 2,030,231 26,627,614
Total Net Position $ 40,725,633 $ 6,349,051 $ 9,790,651 $ 56,865,335
See accompanying notes.
27
49
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Business-Type Activities-Enterprise Funds
Water and Sewer Development Stormwater
Utility Fund Services Fund Utility Fund Total
Operating Revenues
User Charges $ 11,384,502 $ 1,296,600 $ 1,123,167 $ 13,804,269
Other Revenue 34,580 15 13,789 48,384
Total Operating Revenues 11,419,082 1,296,615 1,136,956 13,852,653
Operating Expenses
Salaries and Benefits 848,044 398,568 309,348 1,555,960
Materials and Supplies 885,929 7,741 329,079 1,222,749
Depreciation and Amortization 2,311,800 54,471 419,417 2,785,688
Other Operating Expenses 4,844,056 870,188 242,008 5,956,252
Total Operating Expenses 8,889,829 1,330,968 1,299,852 11,520,649
Operating Income(Loss) 2,529,253 (34,353) (162,896) 2,332,004
Non-Operating Revenue(Expenses)
Investment Income 52,547 12,386 3,414 68,347
Interest Expense (131,870) - - (131,870)
Accreted Interest Expense (715,903) - - (715,903)
Operating Grants - - 25 25
Total Non-Operating Revenue
(Expenses) (795,226) 12,386 3,439 (779,401)
Income(Loss) Before Contributions
and Transfers 1,734,027 (21,967) (159,457) 1,552,603
Other Financing Sources(Uses)
Capital Contributions:
Connection Fees 234,209 - - 234,209
Capital Contribution 40,146 - - 40,146
Transfers in 2,500,000 - 350,000 2,850,000
Transfers(out) (533,856) - - (533,856)
Total Other Financing Sources(Uses) 2,240,499 - 350,000 2,590,499
Change in Net Position 3,974,526 (21,967) 190,543 4,143,102
Net Position,Beginning of Year 36,751,107 6,371,018 9,600,108 52,722,233
Net Position,End of Year $ 40,725,633 $ 6,349,051 $ 9,790,651 $ 56,865,335
See accompanying notes.
28
50
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30,2021
Business-Type Activities-Enterprise Funds
Water and Sewer Development Stormwater
Utility Fund Services Fund Utility Fund Total
Cash Flows from Operating Activities
Receipts from Customers $ 11,372,623 $ 1,296,615 $ 1,127,759 $ 13,796,997
Payments to Suppliers (4,299,248) (949,614) (555,821) (5,804,683)
Payments to Employees (1,520,936) (463,828) (405,899) (2,390,663)
Net Cash Provided(Used)by
Operating Activities 5,552,439 (116,827) 166,039 5,601,651
Cash Flows from Non-Capital
Financing Activities
Transfers in 2,500,000 350,000 2,850,000
Transfers(out) (533,856) - (533,856)
Grants - 25 25
Net Cash Provided(Used)by
Non-Capital Financing Activities 1,966,144 350,025 2,316,169
Cash Flows from Capital and
Related Financing Activities
Acquisition of Capital Assets (2,888,120) (91,860) - (2,979,980)
Principal Paid (1,323,298) - (1,323,298)
Interest Paid (116,059) - (116,059)
Connection Fees 234,209 - 234,209
Net Cash Provided(Used)by
Capital and Related Financing Activities (4,093,268) (91,860) - (4,185,128)
Cash Flows from Investing Activities
Sale(Purchase)of Investments (3,501,961) 121,180 (500,777) (3,881,558)
Investment Income 52,547 12,386 3,414 68,347
Net Cash Provided(Used)by
Investing Activities (3,449,414) 133,566 (497,363) (3,813,211)
Net Increase(Decrease)in Cash
and Cash Equivalents (24,099) (75,121) 18,701 (80,519)
Cash and Cash Equivalents,Beginning of Year 2,085,423 500,502 131,438 2,717,363
Cash and Cash Equivalents,End of Year $ 2,061,324 $ 425,381 $ 150,139 $ 2,636,844
See accompanying notes.
29
51
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30,2021
(Concluded)
Business-Type Activities-Enterprise Funds
Water and Sewer Development Stormwater
Utility Fund Services Fund Utility Fund Total
Reconciliation of Operating Income(Loss)to
Net Cash Provided by Operating Activities
Operating Income(Loss) $ 2,529,253 $ (34,353) $ (162,896) $ 2,332,004
Adjustments not Affecting Cash:
Depreciation and Amortization 2,311,800 54,471 419,417 2,785,688
Change in Assets and Liabilities:
Decrease(Increase)in
Accounts Receivable (54,237) - (9,196) (63,433)
Decrease(increase)in Inventories (11,458) - - (11,458)
Decrease(increase)in Prepaid Expenses 580 (990) - (410)
Decrease(Increase)in Deferred Outflows 14,575 (5,267) 2,965 12,273
Increase(Decrease)in Accounts Payable 1,441,615 (70,695) 15,263 1,386,183
Increase(Decrease)in Accrued Liabilities (45,997) (21,735) (7,279) (75,011)
Increase(Decrease)in Customer Deposits 7,778 - - 7,778
Increase(Decrease)in
Accrued Compensated Absences (6,210) 3,592 (2,929) (5,547)
Increase(Decrease)in Deferred Inflows 1,127,846 138,640 156,775 1,423,261
Increase(Decrease)in Net
Pension Liability/Asset (1,640,779) (194,880) (229,655) (2,065,314)
Increase(Decrease)in net OPEB Liability (122,327) 14,390 (16,426) (124,363)
Total Adjustments 3,023,186 (82,474) 328,935 3,269,647
Net Cash Provided by Operating Activities $ 5,552,439 $ (116,827) $ 166,039 $ 5,601,651
Non-Cash Capital and Financing Activities
Contributed Capital Assets $ 40,146 $ $ - $ 40,146
See accompanying notes.
30
52
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2021
Defined Benefit
Pension Trust
Fund
Assets
Cash and Cash Equivalents $ 2,293,939
Contributions Receivable 560,862
Investments,at Fair Value:
Common Funds, Equity 47,485,780
Common Funds, Bonds 15,039,299
Other Investments 7,144,374
Total Investments 69,669,453
Total Assets 72,524,254
Liabilities
Accounts Payable 70,873
Net Position
Net Position Restricted for Pensions $ 72,453,381
See accompanying notes.
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53
CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED SEPTEMBER 30, 2021
Defined Benefit
Pension Trust
Fund
Additions
Contributions:
Employer $ 3,056,897
Plan Members 204,115
Total Contributions 3,261,012
Investment Income:
Net Increase in Fair Value of Investments 14,117,601
Interest 1,032,183
Investment-Related Expenses (301,136)
Net Investment Income 14,848,648
Total Additions 18,109,660
Deductions
Benefits 4,119,651
Administrative Expenses 46,494
Total Deductions 4,166,145
Change in Net Position 13,943,515
Net Position,Beginning of Year 58,509,866
Net Position,End of Year $ 72,453,381
See accompanying notes.
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NOTES TO FINANCIAL STATEMENTS
56
CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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 non-fiduciary 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
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,
Florida Statutes.
• 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.
■ Non-Major 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
■ 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.
■ 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 non-operating 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 non-operating 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.
35
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Investments for the City are reported at fair value and are categorized within the fair value hierarchy
established in accordance with Governmental Accounting Standards Board (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 non-spendable 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.
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 statement of net position 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 statement of net position.
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$5,000 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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 expensed as incurred.
Property, plant and equipment of the City are depreciated using the straight-line method over the
following estimated useful lives:
Years
Buildings 30
Improvements 20-50
Infrastructure 30-50
Intangible Assets 3-10
Equipment 3-10
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
postemployment benefits(OPEB)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 net 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
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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 net 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.
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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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.
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 $ (2,687,292)
Accreted Interest Payable (6,329,177)
Notes Payable (1,032,729)
Less: Deferred Charge on Refunding
(to Be Amortized as Interest Expense) 8,361
Accrued Interest Payable (16,782)
Other Postemployment Benefits (1,271,349)
Compensated Absences (575,804)
Net Adjustment to Reduce Fund Balance,
Total Governmental Funds to Arrive at Net
Position,Governmental Activities $ (11,904,772)
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:
39
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Capital Outlay $ 3,955,721
Depreciation Expense (5,649,056)
Net Adjustment to Decrease Net Changes in Fund
Balances,Total Governmental Funds to Arrive at
Changes in Net Position,Governmental Activities 5 (1,693,335)
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 $ 489,400
Net Adjustment to Increase Net Changes in Fund
Balances,Total Governmental Funds to Arrive at
Changes in Net Position,Governmental Activities S 489,400
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 $ (15,793)
Amortization of Loss on Refunding (928)
Accrued Interest Payable 1,553
Other Postemployment Benefits (178,822)
Accreted Interest Payable (524,127)
Net Adjustment to Decrease Net Changes in
Fund Balance,Total Governmental Funds to Arrive
at Changes in Net Position,Governmental Activities $ (718,117)
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 1 of each year,the City Manager submits a Proposed Budget to the City Commission
for the fiscal year beginning the following October 1. 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
3. On or before September 30 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.
S. 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
$34,688 at September 30, 2021.
Appropriations in Excess of Funds Available
Appropriations for the Tuscawilla Phase III Special Revenue Fund were in excess of anticipated revenues
and prior years'fund balance.
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. U.S.Treasury and Government Guaranteed
2. Federal Agency/GSE
3. Supranationals
4. Corporates
5. Municipals
6. Agency Mortgage-Backed Securities
7. Asset-Backed Securities
8. Non-Negotiable Certificate of Deposit and Savings Account
9. Commercial Paper
10. Bankers' Acceptances
11. Repurchase Agreements
12. Money Market Funds
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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 AAAm or Aaamf. 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 "A-"
by Moody's and "A3" by S & P for long-term debt, or rated at least "MIG-1" by Moody's and "SP-1" 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 bythe 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, 2021, 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, 2021, none of the investments listed are exposed to custodial credit risk
because their existence is not evidenced by securities that exist in physical or book entry form.
Concentration of Credit Risk
The City's investment policy requires diversification,and places limits on the percentage of funds that may
be invested with an individual issuer and type of investment.
Interest Rate Risk
The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to
a maximum length to maturity of five and a half years. The maximum length to maturity for an investment
in any state or local government debt security is five and a half years. Certificates of deposit maximum
maturity is two years, and commercial paper and bankers' acceptances are 270 days. The maximum
length to maturity for repurchase agreements is one year.
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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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, 2021:
Quoted Prices in
Active Markets for Significant Other
Identical Assets Observable Inputs
Investments Valued by Fair Value Fair Value (Level 1) (Level 2)
Commercial Paper $ 18,120,400 $ - $ 18,120,400
U.S.Treasury Notes 40,092,279 40,092,279 -
Municipal Credit 1,114,130 - 1,114,130
Federal Agency Bonds 15,355.568 - 15,355,568
S 74,682,377 S 40,092,279 S 34,590,098
Investments held by the City at September 30, 2021 are detailed below.
Weighted Average
Investments Fair Value Credit Rating Maturity
Commercial Paper $ 18,120,400 AA+ 106 days
US Treasury Notes 40,092,279 AA 495 days
Municipal Credit 1,114,130 AA+ 308 days
Federal Agency Bonds 15,355,568 AA 388 days
$ 74.682,377
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
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The investments held by the City's Pension Trust Fund at September 30, 2021 are detailed below:
Quoted Prices in Significant
Active Markets for Significant Other Unobservable
Identical Assets Observable Inputs Inputs
Investments Fair Value (Level 1) (Level 2) (Level 3)
Equity Mutual Funds $ 47,485,780 $ $ 47,485,780 $
Bond Mutual Funds 15,039,299 15,039,299
Real Estate Investment Trusts 5,269,992 - 5,269,992
Other Investments 1,874,382 1,874,382 -
Total Investments 69,669,453 S S 64,399,461 S 5,269,992
Cash and Cash Equivalents 2,293,939
Total Cash and Investments 5 71,963,392
Credit Risk
The City's Trust investment policy limits credit risk by restricting authorized investment to those described
above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full
faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal
Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be
rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing
commercial paper,the long-term debt of the LOC provider be rated A or better by at least two nationally
recognized rating services; bankers' acceptances of the United States Banks or federally chartered
domestic office of a foreign bank,which are eligible for purchase by the Federal Reserve System, be rated
in the highest category by a nationally recognized rating service; General Obligation and/or Revenue
Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a
nationally recognized rating service or rated "MIG-2" or "SP-2", for short-term debt, by a nationally
recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal
Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange;
money market mutual funds have a rating of"Al" by Standard& Poor's(S&P)or"P1" by Moody's Investor
Services(Moody's);fixed income securities be investment grade as measured by S&P or Moody's;and any
bonds or notes that fall below investment quality must be liquidated immediately.
Custodial Credit Risk
Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. At September 30, 2021, 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
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, 2021, 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 non-major funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
Allowance for
Accounts Uncollectible
Fund Receivable Accounts Net Receivable
General $ 188,645 (141) 188,504
Road Improvements Special Revenue 754 - 754
Solid Waste/Recycling Special Revenue 166,376 (6,778) 159,598
Water&Sewer Utility 585,156 (44,230) 540,926
Stormwater Utility 62,309 (2,635) 59,674
S
1003-240 S (53,784) S 949 456
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 $972,730 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.
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CITY OF WINTER SPRINGS, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Note 6-Capital Assets
Capital asset activity for the year ended September 30, 2021 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets,not Being Depreciated:
Land $ 9,897,945 $ 444,031 $ $ 10,341,976
Construction in Progress 1,458,586 2,342,869 (1,911,681) 1,889,774
Total Capital Assets,not Being Depreciated 11,356,531 2,786,900 (1,911,681) 12,231,750
Capital Assets,Being Depreciated:
Buildings 15,554,578 315,300 15,869,878
Improvements 15,138,021 436,050 15,574,071
Intangible Assets 1,167,384 80 1,167,464
Machinery and Equipment 10,005,217 1,154,227 (58,664) 11,100,780
Infrastructure 73,235,764 1,215,960 - 74,451,724
Total Capital Assets,Being Depreciated 115,100,964 3,121,617 (58,664) 118,163,917
Less Accumulated Depreciation for:
Buildings (7,934,483) (540,838) (8,475,321)
Improvements (8,241,002) (620,165) (8,861,167)
Intangible Assets (1,052,529) (100,905) - (1,153,434)
Machinery and Equipment (6,974,306) (1,026,623) 58,664 (7,942,265)
Infrastructure (43,133,099) (3,360,525) - (46,493,624)
Total Accumulated Depreciation (67,335,419) (5,649,056) 58,664 (72,925,811)
Total Capital Assets,Being Depreciated,Net 47,765,545 (2,527,439) - 45,238,106
Governmental Activities Capital Assets,Net $ 59,122,076 $ 259,461 $ (1,911,681) $ 57,469,856
Beginning Ending
Balance Increases Decreases Balance
Business-Type Activities
Capital Assets,not Being Depreciated:
Land $ 7,170,177 $ - $ $ 7,170,177
Construction in Progress 722,890 2,828,941 3,551,831
Total Capital Assets,not Being Depreciated 7,893,067 2,828,941 10,722,008
Capital Assets,Being Depreciated:
Buildings 2,281,497 - 2,281,497
Improvements 70,480,183 66,197 70,546,380
I nta ngi bl e Assets 393,919 - 393,919
Machinery and Equipment 10,276,256 124,989 (178,706) 10,222,539
Total Capital Assets,Being Depreciated 83,431,855 191,186 (178,706) 83,444,335
Less Accumulated Depreciation for:
Buildings (850,270) (61,224) (911,494)
Improvements (45,021,819) (2,026,137) (47,047,956)
IntangibleAssets (239,162) (59,209) (298,371)
Machinery and Equipment (4,738,518) (639,118) 178,706 (5,198,930)
Total Accumulated Depreciation (50,849,769) (2,785,688) 178,706 (53,456,751)
Total Capital Assets,Being Depreciated,Net 32,582,086 (2,594,502) - 29,987,584
Business-Type Activities Capital Assets,Net $ 40,475,153 $ 234,439 $ $ 40,709,592
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