HomeMy WebLinkAbout2020 04 13 Regular 500 - 2019 Comprehensive Annual Financial Report REGULAR AGENDA ITEM 500
1959 CITY COMMISSION AGENDA I APPILI3, 2020
REGULAR MEETING
TITLE
2019 Comprehensive Annual Financial Report
SUMMARY
Please accept the Comprehensive Annual Financial Report for the Fiscal Year
Ended September 30, 2019 as presented by the City's external auditors McDirmit
Davis &Company, LLC.
The CAM is prepared and presented to give the City Commission, citizens, and
other users a greater understanding of the City's financial standing. Our 2019
financial statements received an unmodified opinion (best possible) by the
auditors.
Additionally, the 2019 CAM will be submitted to the Government Finance Officers
Association (GFOA) for consideration for their Certificate of Achievement award as
we believe it continues to conform to the program's stringent requirements. The
City's CAM has previously been awarded the GFOA's Certificate of Achievement
award for the past 19 consecutive years.
RECOMMENDATION
Staff recommends the City Commission accept the Comprehensive Annual
Financial Report (CAFR) as presented forthe Fiscal Year Ended September 30,2019.
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COMPREHENSIVE ANNUAL FINANCIAL
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City of Winter Springs, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2019
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Prepared by:
Finance and Administrative Services Department
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INTRODUCTORY SECTION
This section contains the following subsections:
■ Table of Contents
■ Letter of Transmittal
■ GFOA Certificate of Achievement
■ List of Principal Officials
■ Organizational Chart
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City of Winter Springs, Florida
Table of Contents
Page
I. Introductory Section:
Table of Contents i-iii
Letter of Transmittal iv-vi
GFOA Certificate of Achievement vii
List of Principal Officials viii
Organizational Chart ix
II. Financial Section:
Independent Auditor's Report 1-2
Management's Discussion and Analysis 3-15
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements:
Balance Sheet-Governmental Funds 18-19
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 21-22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 23
Statement of Revenues, Expenditures and Changes in Fund
Balances-Budget and Actual:
General Fund 24-25
Road Improvements Special Revenue Fund 26
Solid Waste/Recycling Special Revenue Fund 27
Statement of Net Position-Proprietary Funds 28-29
Statement of Revenues, Expenses and Changes in
Fund Net Position-Proprietary Funds 30
Statement of Cash Flows-Proprietary Funds 31-32
Statement of Fiduciary Net Position-Fiduciary Funds 33
Statement of Changes in Fiduciary Net Position-Fiduciary Funds 34
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City of Winter Springs, Florida
Table of Contents
Page
II. Financial Section-Continued:
Notes to Financial Statements 35-64
Required Supplementary Information
Schedule of Changes in the City's Net OPEB Liability and Related Ratios-Plan
Retiree Continuation Insurance Plan 65
Schedule of Changes in Net Pension Liability and Related Ratios 66
Schedule of Contributions 67-68
Schedule of Investment Returns 69
Combining and Individual Fund Statements and Schedules:
Major Governmental Funds:
Schedule of Revenues and Expenditures and Changes in Fund
Balance-Budget and Actual:
TLBD Debt Service Fund 70
Nonmajor Governmental Funds:
Combining Balance Sheet-Nonmajor Governmental Funds 71-76
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances-Nonmajor Governmental Funds 77-82
Schedule of Revenues, Expenditures and Changes in Fund
Balances-Budget and Actual:
Special Revenue Funds 83-94
Debt Service Funds 95-98
Capital Projects Funds 99-102
III. Statistical Section:
Financial Trends
Net Position by Component 103
Changes in Net Position 104-105
Governmental Activities Tax Revenues by Source 106
Fund Balances of Governmental Funds 107
Changes in Fund Balances of Governmental Funds 108-109
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 110
Property Tax Rates, Direct and Overlapping Governments 111
Special Assessment Billings and Collections 112
Principal Property Taxpayers 113
Property Tax Levies and Collections 114
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City of Winter Springs, Florida
Table of Contents
Page
III. Statistical Section-Continued:
Debt Capacity
Legal Debt Margin 115
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita 116
Ratio of Outstanding Debt by Type 117
Direct and Overlapping Governmental Activities Debt 118
Pledged-Revenue Coverage 119-120
Demographic and Economic Information
Demographic and Economic Statistics 121
Principal Employers 122
Operating Information
Budgeted Full-time Equivalent City Government Employees by Function 123
Operating Indicators by Function 124
Capital Asset Statistics by Function 125
IV. Other Reports:
Independent Auditor's Report on Internal Control over Financial Reporting
And on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing
Standards 126
Independent Auditor's Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance in Accordance With the
Uniform Guidance 127-128
Schedule of Expenditures of Federal Awards 129
Notes to Schedule of Expenditures of Federal Awards 130
Schedule of Findings and Questioned Costs 131
Management Letter 132-133
Independent Auditor's Report on Compliance with the Requirements of
Section 218.415, Florida Statutes 134
iii
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* rn CITY OF WINTER SPRINGS, FLORIDA
Incorporated
• 1959
1126 EAST STATE ROAD 434
O0)wE"�RJy� WINTER SPRINGS, FLORIDA 32708-2799
Telephone(407)327-1800
March 13th,2020
To the Honorable Mayor,City Commission and Citizens of the City of Winter Springs,Florida:
It is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report(CAFR)for the
fiscal year ended September 30,2019. Florida Statutes, Chapter 166.241 and the rules of the Florida Auditor General, Chapter 10.550
require that all general-purpose local governments publish a complete set of financial statements presented in conformity with Generally
Accepted Accounting Principles(GAAP)and that they be audited in accordance with Generally Accepted Auditing Standards(GAAS)by a
firm of licensed Certified Public Accountants
Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a
reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal
control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City of Winter Springs'financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefit,the City of Winter Springs'comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management,
to the best of our knowledge and belief,we assert that this financial report is complete and reliable in all material respects.
The City of Winter Springs' financial statements have been audited by McDirmit, Davis &Company, a firm of licensed certified public
accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs
for the fiscal year ended September 30,2019 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 30,2019 are fairly presented in conformity with GAAP. The independent auditor's report is
presented as the first component of the financial section of this report.
The City of Winter Springs' Management's Discussion and Analysis (MD&A) can be found immediately following the report of the
independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile of the Government
The City of Winter Springs,incorporated in 1959,is located in Seminole County,which is a part of the greater Orlando metropolitan area in
East Central Florida. The City currently has a land area of approximately 13.3 square miles and a population of approximately 37,000
The City operates according to a Council/Manager form of government,with an appointed City Manager,five elected City Commissioners
and a separately elected Mayor. The Mayor and Commission are elected for four-year terms. The governing body is responsible for,among
other things,passing ordinances,adopting the budget,appointing committees,and hiring the City's Manager,Clerk and Attorney. The City
Manager is responsible for carrying out the policies and ordinances of the governing body,for overseeing the day-to-day operations of the
government and for hiring the directors of the various departments.
The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways,
streets and other infrastructure;and recreational facilities,activities and cultural events. The City maintains both 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.
iv
The annual budget serves as the foundation for the City of Winter Springs'financial planning and control. All departments of the City of
Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting
point for developing a proposed budget. The City Manager then presents the proposed budget to the City Commission for review on or
before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than
September 30,the close of the City'sfiscal year. The appropriated budget is prepared byfund(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 24-27 as part of the basic financial statements for the governmental
funds.The TLBD Debt Service Fund budget-to-actual comparison is presented on page 70.The non-major governmental funds'budget
comparisons are presented in the governmental fund subsection of this report which starts on page 83.
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$2.3M for the fiscal year 2019-2020.
Approximately 87%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 2018-2019 fiscal year(tax year 2018),the gross
taxable value reflects an increase of 7% from the prior year. During fiscal year 2018-2019 (tax year 2018), through prudent fiscal
management,the City was able to maintain the operating millage rate at 2.43 and was able to further reduce voted debt millage to 0.0500
mills. At the local level,revenues such as review and permit fees,investment income and state sales tax revenues continue to show signs
of sustainable growth.
New construction in Winter Springs has been robust for the past several years. Single-family residential construction projects that were
recently completed or are currently under construction include Southern Oaks, Northern Oaks,and Tuskawilla Crossings.The only multi-
family project either under construction or completed in 2019 was The Blake Apartments in the Town Center. Upcoming projects include
the proposed Winter Springs Town Center Townhomes(114 units),The Gatherings(plus 55 community-108 units)and The Hawthorne,
located near the Cross Seminole Trail on SR 434. Commercial construction projects started or completed in 2019 include Starbucks and
Octopus Carwash while Wendy's and Chase Bank are getting started on the permitting phase and should begin construction in 2020.
Seminole County Public School system is the 12th largest in the state and widely recognized as a Premier National School District.It boasts
an above average graduation rate and is ranked#1 in STEM.Winter Springs is home to four elementary schools,one middle and one high
school in the district. Winter Springs is also home to Choices in Learning Charter School,Willow School,The Primrose School,and Creative
Inspiration Journey School which provide diverse educational options.Nearby Seminole State College and University of Central Florida offer
our community an affordable and excellent higher education choice. The City also continues its partnership with the UCF Business
Incubation Program to foster the development of early-stage businesses in Central Florida.
The City of Winter Springs continues to offer its citizens the highest quality services and community-minded events.Winter Springs has
been host to the Central Florida Scottish Highland Games for eighteen consecutive years. The Oviedo-Winter Springs Chamber of
Commerce offers a variety of art and music at the Town Center's ARTtoberFEST event. The City also hosts a number of community
seasonal events including Spring Explore Outdoors,Celebration of Freedom,Hometown Harvest,a salute to our veterans in the Veteran's
Day Ceremony, and Winter Wonderland Parade. The City's Sports Partnerships include traditional sports such as Babe Ruth
Baseball/Softball,Florida Kraze Krush Soccer&Winter Springs Basketball and Football Leagues.Our very popular summer camp program
offers affordable day camp options and spectacular field trips.
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 within our community.
V
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"Field of Dreams"playground at Central Winds Park,another new and impressive playground, "Mount Trotwood" at Trotwood
Park,and a new`Torcaso Cove"which is an ocean,water and pirate themed adventure at Torcaso Park.All playgrounds have top of the
line rubber surfacing for safety and playful comfort.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.Highlighted here are some of what makes the City of
Winter Springs a top choice for families.
Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan(CIP)in September 2017
for fiscal years 2018 through 2022. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement with
the year of intended purchase/commencement, annual expenditure; and method of financing. Each year the CIP 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 2019, the City implemented GASB Statement No.88, Certain Disclosures Related to Debt
Including Direct Borrowings and Direct Placements.This statement requires additional note disclosures for certain debt issues.There was
no effect on beginning balances of the City.
Major Initiatives. Continued improvements in customer service and information reporting are on-going,such as the implementation of the
Parks reservation system and upgrades in several behind the scenes technological systems. Many upgrades and initiatives are still
anticipated relative to urban beautification and our recreational facilities. 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 CAFR for the fiscal year ended September 30,2018. This was the
nineteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the
government must publish an easily readable and efficiently-organized CAFR. This report must satisfy both GAAP and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of
Achievement Program requirements and will be submitting it to the GFOA to determine its eligibility for another fiscal year.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance
Department. We would like to express our appreciation to all members 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,
®i�ic�wr, D �o � laza
Shawn D.Boyle Kelly Balagia
City Manager Finance Director
vi
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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 Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2018
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Executive Director/CEO
vii
City of Winter Springs, Florida
List of Principal Officers
Mayor Charles Lacey
Deputy Mayor/Commissioner Kevin Cannon
Commissioner Jean Hovey
Commissioner Ted Johnson
Commissioner TiAnna Hale
Commissioner Geoff Kendrick
CITY MANAGER
Shawn Boyle
CITY CLERK
Andrea Lorenzo-Luaces
LEGAL COUNSEL
Anthony Garganese
Garganese,Weiss&D'Agresta,
P.A.
DEPARTMENT DIRECTORS
Community Development Christopher Schmidt
Finance Kelly Balagia
IT/Admin Services Casey Howard
Parks and Recreation Chris Caldwell
Police Chief Chris Deisler
Utility/Public Works Lena Rivera
Page I viii
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1959
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Financial Section
934 North Magnolia Avenue,Suite 100
McDi rm it Davis Orlando,Florida 32803
Tel.407-843-5406
www.mcdirmitdavis.cavis.com
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, 2019, and the related noted to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
The City's management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America;this includes the design, implementation, and maintenance
of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements,whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of The City, as
of September 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the
respective budgetary comparison for the general fund, road improvements special revenue fund, and solid waste/recycling special
revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis,
budgetary comparison information, pension and other postemployment benefits disclosures as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States
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, statistical section,
and the Schedule of Expenditures of Federal Awards, as required by the audit requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance),are presented for purposes of additional analysis and are not a required part of the financial statements.
The combining and individual nonmajor fund financial statements and schedules and the Schedule of Expenditures of Federal
Awards is the responsibility of management and were derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion,the combining and individual nonmajor fund financial statements and schedules and the Schedule
of Expenditures of Federal Awards is fairly stated,in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and,accordingly,we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued a report dated March 13,2020 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.
ftQirt Dmid
Orlando, Florida
March 13,2020
Page 12
City of Winter Springs, Florida
Management's Discussion and Analysis
As management of the City of Winter Springs we offer readers of the City of Winter Springs' financial statements this narrative
overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2019. We
encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our
letter of transmittal which can be found on pages iv-vi of this report.
Financial Highlights
• The assets and deferred outflows of the City of Winter Springs exceeded its liabilities and deferred inflows at the close of
the most recent fiscal year by$120,928,799(net position). Of this amount, $26,831,165(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$11,309,586 or 10.32%from the
prior year
• As of the close of the current fiscal year,the City of Winter Springs'governmental funds reported combined ending fund balances
of$36,603,635. Approximately 21%of this total amount, $7,537,629, 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$8,410,820,or 54%of total general fund
expenditures.
• As a result of current year's activities,the City of Winter Springs'total debt decreased by$1,022,090(2.9%).
Overview of the Financial Statements
The financial statements focus on both the City as a whole (government-wide)and on the major individual funds. Both perspectives
(government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or
government-to-government)and enhance the City's accountability.
This discussion and analysis are intended to serve as an introduction to the City of Winter Springs' basic financial statements,which
are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs'
finances,in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City of Winter Springs' assets, deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining.
The Statement of Activities presents information showing how the government's net position changed during the fiscal year. All
changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods(e.g.,uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Winter Springs that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant
portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Winter
Springs include general government, public safety, physical environment and culture and recreation. The business-type activities of
the City of Winter Springs include a Water and Sewer Utility,Stormwater Utility and Development Services.
Page 13
City of Winter Springs, Florida
Management's Discussion and Analysis
The government-wide financial statements include only the City of Winter Springs itself(known as the primary government). The City
of Winter Springs had no component units. The Water and Sewer Utility,the Stormwater utility,and Development Services function as
departments of the City of Winter Springs,and therefore,have been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 16-17 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific
activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City of Winter Springs can be divided into
three categories:governmental funds,proprietary funds,and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-
wide financial statements. However, unlike the government-wide financial statements,governmental fund financial statements focus
on near-term inflows and outflows of spendable resources,as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare
the information presented for governmental funds with similar information presented for governmental activities in the government-
wide financial statements. By doing so,readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City of Winter Springs maintains 24 individual governmental funds. Information is presented separately in the governmental fund
Balance Sheet and in the governmental fund Statement of Revenues, Expenditures,and Changes in Fund Balances for the General
Fund, Road Improvements Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and TLBD Debt Service Fund all
four of which are considered to be major funds. Data from the other 20 governmental funds are combined into a single,aggregated
presentation. Individual fund data for each of these nonmajor governmental funds in provided in the form of combining statements
elsewhere in this report.
The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have
been provided for the General Fund, Road Improvements Special Revenue Fund,and Solid Waste/Recycling Special Revenue Fund
to demonstrate compliance with this budget on pages 24-27. Budgetary comparison schedules have been provided for the TLBD
Debt Service Fund,and the nonmajor funds on pages 70 and 83-102.
The basic governmental fund financial statements can be found on pages 18-23 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 28-32 of this report.
Page 14
City of Winter Springs, Florida
Management's Discussion and Analysis
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 33-34 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 35-64 of this report.
Required Supplementary Information(RSI)
RSI can be found on pages 65-69 of this report.
Other Information
The budget schedules for the major debt service fund is on page 70 after the RSI. The combining statements referred to earlier
in connection with nonmajor governmental funds are presented after this. Combining and individual fund statements and
schedules can be found on pages 71-82 of this report.
Government-wide Financial Analysis
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the
City of Winter Springs,assets and deferred outflows of resources exceeded liabilities and deferred outflows by$120,928,799 at
the close of the most recent fiscal year.
Of the City of Winter Springs' net position, $76,395,605 or 63%, 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$17,702,029(15%). The remaining balance of unrestricted
net position($26,831,165 or 22%)may be used to meet the government's ongoing obligations to citizens and creditors.
At September 30,2019,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.
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Page 15
City of Winter Springs, Florida
Management's Discussion and Analysis
The following table reflects the condensed Statement of Net Position for the current and prior year. For more detail see the Statement
of Net Position on page 16.
Statement of Net Position as of September 30
Governmental Activities Business-type Activities Total Primary Government
2019 2018 2019 2018 2019 2018
Assets:
Current and other assets $ 39,448,813 $ 33,424,709 $ 32,374,040 $ 25,512,554 $ 71,822,853 $ 58,937,263
Restricted assets 78,774 81,770 742,089 727,859 820,863 809,629
Capital assets 58,397,153 58,159,769 37,650,254 39,054,457 96,047,407 97,214,226
Total assets 97,924,740 91,666,248 70,766,383 65,294,870 168,691,123 156,961,118
Deferred Outflows of Resources
Deferred charge on refunding $ 10,218 $ 14,337 $ 164,735 $ 255,642 $ 174,953 $ 269,979
Deferred outflow of pension and
OPEB earnings 919,865 1,845,727 235,951 437,670 1,155,816 2,283,397
930,083 1,860,064 400,686 693,312 1,330,769 2,553,376
Liabilities:
Current liabilities 1,701,831 1,385,470 1,310,989 524,494 3,012,820 1,909,964
Long term liabilities 20,590,397 19,691,665 24,644,351 24,758,671 45,234,748 44,450,336
Other liabilities 75,884 78,480 662,169 646,255 738,053 724,735
Total liabilities 22,368,112 21,155,615 26,617,509 25,929,420 48,985,621 47,085,035
Deferred Inflows of Resources
Deferred inflow of pension and OPEB
earnings $ 80,728 $ 2,290,256 $ 26,744 $ 519,990 $ 107,472 $ 2,810,246
Net Position:
Net investment in capital assets 53,683,006 52,292,228 22,712,599 23,078,568 76,395,605 75,370,796
Restricted 17,089,058 14,736,524 612,971 514,889 17,702,029 15,251,413
Unrestricted 5,633,919 3,051,689 21,197,246 15,945,315 26,831,165 18,997,004
Total net position $ 76,405,983 $ 70,080,441 $ 44,522,816 $ 39,538,772 $ 120,928,799 $ 109,619,213
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Page 16
City of Winter Springs, Florida
Management's Discussion and Analysis
Statement of Changes in Net Position
The following table reflects the Statement of Changes in Net Position for the current and prior year. For more detailed
information see the Statement of Activities on page 17.
As a result of the current year's activities,the government's total net position increased by$11,309,586 or 10.32%from the prior
year. The previous fiscal year,2018,net position increased by$5,660,767.
Governmental activities increased net position by$6,325,542 in fiscal year 2019 compared to an increase of$3,488,100 in 2018.
The increase in net position for fiscal year 2019 is more than the prior year's increase primarily due to investment earnings,
electric franchise fee revenue, recognition of FEMA reimbursement, and a substantial positive expenditure variance that we
utilized for governmental funds transfer.
Business-type activities increased net position by$4,984,044 in fiscal year 2019 compared to an increase of$2,172,667 in 2018.
The increase in net position in fiscal year 2019 is more than the prior fiscal year's increase primarily due to development fees,
service availability fees,and timing of water consumption.
Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and
expenses for each of the governmental and business-type activities as well as the revenue"source"for each.
Additional information regarding the changes in fund balance of the governmental and business-type activities can be found in
the section entitled Financial Analysis of Government's Funds on page 11.
Note that the first graph depicts governmental program-specific revenues and expenses. For this graph the revenue does not
include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous
revenue. This chart is intended to show the amount of program expenses funded by specific program revenues.
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Page 17
City of Winter Springs, Florida
Management's Discussion and Analysis
Changes in Net Position for the year ended September 30
Governmental Activities Business-type Activities Total Primary Government
2019 2018 2019 2018 2019 2018
Revenues:
Program Revenues:
Charges for services $ 6,488,365 $ 5,846,101 $ 14,983,246 $ 12,068,502 $ 21,471,611 $ 17,914,603
Operating grants and contributions 1,283,796 108,904 926,115 118,291 2,209,911 227,195
Capital grants and contributions 5,121,721 3,048,672 1,483,528 1,137,655 6,605,249 4,186,327
General Revenues:
Property taxes 5,487,217 5,150,425 - - 5,487,217 5,150,425
Utility taxes 4,212,706 4,003,425 4,212,706 4,003,425
Business tax receipts 122,362 125,834 122,362 125,834
Intergovernmental-unrestricted 4,036,045 3,966,625 - - 4,036,045 3,966,625
Investment income and
miscellaneous 1,337,741 1,211,105 825,339 323,463 2,163,080 1,534,568
Total revenues 28,089,953 23,461,091 18,218,228 13,647,911 46,308,181 37,109,002
Expenses:
General government 7,052,183 6,232,860 - - 7,052,183 6,232,860
Public safety 6,891,732 5,791,499 6,891,732 5,791,499
Physical environment 6,562,502 6,932,533 6,562,502 6,932,533
Culture and recreation 2,282,091 2,300,595 2,282,091 2,300,595
Interest and other fiscal charges on
long-term debt 673,202 588,715 - - 673,202 588,715
Water and sewer - - 8,568,757 7,984,753 8,568,757 7,984,753
Development services 647,180 574,476 647,180 574,476
Stormwater - - 2,320,948 1,042,804 2,320,948 1,042,804
Total expenses 23,461.710 21.846,202 11,536,885 9,602,033 34,998,595 31,448,235
Increase(Decrease)In Net
Position Before Transfers 4,628.243 1,614,889 6,681,343 4,045,878 11,309,586 5,660,767
Transfers 1,697,299 1,873,211 (1,697,299) (1,873,211) - -
Increase In Net Position 6,325,542 3,488,100 4,984,044 2,172,667 11,309,586 5,660,767
Net position,October 1 70,080,441 66,592,341 39,538,772 37,366,105 109,619,213 103,958,446
Net position,September 30 $ 76,405,983 $ 70,080,441 $ 44,522,816 $ 39,538,772 $ 120,928,799 $ 109,619,213
Page 18
City of Winter Springs, Florida
Management's Discussion and Analysis
F
Governmental Program Specific Revenues and
Expenses
10,000,000
9,000,000
8,000,000
7,000,000
6-
6,000,000 —
5,000,000
Revenues
4,000,000
3,000,000 Expenses
2,000,000
1,000,000
0
General Public Safety Physical Culture & Interest on
Government Environment Recreation Long-Term
Debt
Governmental Revenues by Source
Investment Income
and Miscellaneous
5%
Taxes
axe Charges for Services
23%
Capital and
Operating Grants
and Contributions
NzEes menta 1 23%
Page9
City of Winter Springs, Florida
Management's Discussion and Analysis
Business-type Activities
Revenues and Expenses
14,000,000
12,000,000 —
10,000,000
8,000,000 —
■Revenues
6,000,000 ■Expenses
4,000,000
2,000,000
0
Water and Sewer Development Services Stormwater
Business-type Activities
Revenues by Source
Investment
Capital and
Income and
Operati ng Gra nts Miscellaneous
and Contributions
5%
13%
Chargesfor
Services
82%
Page10
City of Winter Springs, Florida
Management's Discussion and Analysis
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, 2019, the City of Winter Springs' governmental funds reported combined ending fund balances of
$36,603,635, an increase of$5,792,802 over the prior year. Approximately 21% or$7,537,629 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$8,410,820, while total fund balance was $8,698,111. 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 54%and 55% respectively,of total General Fund expenditures. The increase in
fund balance of$183,684 is primarily the result of increased revenue(electricity,and investment income).
The Road Improvements Fund balance increased$2,200,297 due to the deferral of budgeted capital projects.
The Solid Waste Fund net position increased by $786,512. This increase is primarily due to the recognition of FEMA
reimbursements related to Hurricane Irma.
The TLBD Debt Service Fund net position decreased by$30,420. This decrease is a result of additional non-recurring capital
expenditures and accounts for 100%of the decrease.
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 $15,342,998 and total net
position increased$2,702,084 to$31,643,606. The increase in net position in fiscal year 2019 is more than the prior fiscal year's
increase primarily due to increased consumption and higher utility connectivity charges.
The Development Services Fund net position increased as a result of current year activities by$2,295,228 to$5,226,960 at the
end of the fiscal year. The increase in net position is more than the prior fiscal year's increase due to robust development
activity.
The Stormwater Utility Fund net position decreased as a result of current fiscal year activities by$13,268 to$7,652,250 at the
end of the fiscal year. This decrease in net position is due to an increase in repair and maintenance costs.
General Fund Budgetary Highlights
Differences between the original General Fund budget and the final amended General Fund budget resulted in no change in
appropriations from fund balance during the year.
Page 111
City of Winter Springs, Florida
Management's Discussion and Analysis
The actual results of General Fund for the year show an appropriation to fund balance of$183,684 compared to a final budgeted
appropriation to fund balance of$1,499. The favorable variance of$182,185 is comprised of a favorable revenue and transfers
variance of$13,907 and a favorable expenditure variance as set forth in the Departmental cost centers below:
Executive&Legislative $ 810
General Government 7,838
Finance&Admin Services 29,427
Information Services 27,651
Community Development 15,121
Public Safety 14,589
Public Works 33,978
Parks&Recreation 38,864
Total $ 168,278
This favorable variance is represented by the following expenditure categories as both amounts and percentage of budget:
Payroll $ (22,121) -0.1%
Other Operating 251,440 1.0%
Capital (61,041) -0.3%
Total $ 168,278 2.50%
Although payroll reflects a slight negative variance it should be noted that this was due to payroll budget transfers and movement
of employees between cost centers. Total payroll costs did not exceed that which was originally budgeted and was more than
offset by favorable variances within the respective Departmental cost centers as reflected above.
The comparison of budgeted results to actual results for the General Fund is shown on pages 24-25.
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,
2019, amounts to $96,047,407 (net of accumulated depreciation), for a decrease of $1,166,819 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 1.20%(a 0.41%increase for governmental activities,and a 3.60%decrease for business-type activities).
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Page 112
City of Winter Springs, Florida
Management's Discussion and Analysis
Major capital asset events during the current fiscal year included the following:
• The purchase of the following capital assets:
• ProjectDox ePlan Solution Software at a cost of approximately$27,110
• New equipment for the Public Works/Utilities Department at a cost of approximately$251,600
• New vehicles for the Police Department at a cost of approximately$305,655
• Parks&Recreation software at a cost of approximately$11,000
• The completion and capitalization of the following projects:
• Central Winds Park practice field renovations at a cost of approximately$27,400(spent in prior years)
• Central Winds Park gate entrance enhancements at a cost of approximately$43,700(spent in prior years)
• Central Winds Park Field F enhancements at a cost of approximately$9,700(spent in prior years)
• New generator for Police Department headquarters at a cost of approximately$217,800
• Trotwood Family Pavilion at a cost of approximately$515,600(approximately$137,700 spent in prior years)
• Remodeled kitchen at the Senior Center at a cost of approximately$12,200
• City Hall drive-up quick pay kiosk at a cost of approximately $127,000 (approximately $31,200 spent in prior
years)
• Winding Hollow playground renovations at a cost of approximately$103,100(approximately$50,300 spent in prior
years)
• Road reconstruction and resurfacing totaling approximately$670,900
• City Hall front and rear sidewalk paving at a cost of approximately$49,800
• City Hall E-sign upgrades at a cost of approximately$34,000(approximately$23,200 spent in prior years)
• Pipe Relining at a cost of approximately$43,700
• Replacement and upgrades to bypass pumps for the Water & Sewer / Utility department at a cost of
approximately$299,200
• Water system pipe relining at a cost of approximately$20,000
• Replacement and upgrades to the bulk chlorine tank at the East Wastewater Treatment Plant at a cost of
approximately$9,100
• Iron pipe replacements and upgrades at Bear Creek/Northern Way at a cost of approximately$42,600
• Ground Storage Tank#1  upgrades at Water Treatment Plant#1 at a total cost of approximately$143,800
• Shade Structure at Water Treatment Plant#1 at a cost of approximately$42,200(spent in prior years)
• Control Upgrades at Water Treatment Plant#1 at cost of approximately$6,200
• PLC replacements and upgrades at Water Treatment Plant#3 at a cost of approximately$48,000
• Central Winds Park playground renovations at a cost of approximately$503,000
• Electrical Panel Replacements at a total cost of approximately $37,800 (approximately $25,500 spent in prior
years)
• East/West Water Treatment Plant refurbishments at a total cost of approximately$116,700(spent in prior years)
• The capitalization of donated assets as a result of new residential and commercial building projects including:
• The Blake Apartments additions to water/and system infrastructure at a value of approximately$1,230,000
• Beginning and continued construction on the following projects:
• Torcaso park site improvement, playground, basketball court, and field house upgrades at a total cost of
approximately$258,800(approximately$173,800 spent in prior years)
• Trotwood playground upgrades at an approximate cost of$161,400
• 434/Winding Hollow Blvd decel lane at a cost of approximately$19,300
• TLBD Entrance-Full-Scale Landscape at a cost of approximately$33,400
Additional information on the City of Winter Springs'capital assets can be found in Note 6 on pages 47-48 of this report.
Page 113
City of Winter Springs, Florida
Management's Discussion and Analysis
Capital Assets(Net of Depreciation)as of September 30
Governmental Activities Business-type Activities Total Primary Government
2019 2018 2019 2018 2019 2018
Land $ 9,946,795 $ 9,946,795 $ 7,170,177 $ 7,170,177 $ 17,116,972 $ 17,116,972
Buildings 8,000,031 7,697,935 1,499,724 1,590,093 9,499,755 9,288,028
Improvements Other Than
Buildings 7,071,144 7,499,360 23,081,399 24,230,833 30,152,543 31,730,193
Machinery and Equipment 2,529,024 1,580,340 5,483,161 5,453,355 8,012,185 7,033,695
Intangibles 570,333 97,436 154,499 164,052 724,832 261,488
Infrastructure 28,808,753 29,656,284 - - 28,808,753 29,656,284
Construction in Progress 1,471,073 1,681,619 261,294 445,947 1,732,367 2,127,566
Total $ 58,397,153 $ 58,159,769 $ 37,650,254 $ 39,054,457 $ 96,047,407 $ 97,214,226
Long-term debt
At September 30, 2019, the City of Winter Springs had total debt outstanding of$34,204,232, a decrease of$1,022,090 from
$35,226,322 at September 30, 2018. Total bonded debt of the City at the end of the current fiscal year was$7,293,161. This
amount does not include accreted interest of$14,377,477.
The City of Winter Springs'bonded debt represents bonds and notes 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.
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Page 114
City of Winter Springs, Florida
Management's Discussion and Analysis
Additional information on the City of Winter Springs' long-term debt can be found in Note 7 on pages 49-53 of this report.
Long Term Debt as of September 30
Governmental Activities Business-type Activities Total Primary Government
2019 2018 2019 2018 2019 2018
Improvement Refunding Revenue
Bonds,Series 1999 $ 3,498,970 $ 3,498,970 $ - $ - $ 3,498,970 $ 3,498,970
Water&Sewer Refunding Revenue
Bonds,Series 2000 - - 3,794,191 3,794,191 3,794,191 3,794,191
Revenue Refunding Note Series 2011 - 233,128 - - - 233,128
Special Assessment Revenue Notes,
Series 2011 1,225,395 1,318,780 1,225,395 1,318,780
Improvement Refunding Revenue Note,
Series 2014 - 831,000 - - - 831,000
Revenue Refunding Note Series 2016 - 2,715,000 4,241,000 2,715,000 4,241,000
Revenue Refunding Note Series 2018 1,924,000 1,924,000 1,924,000 1,924,000
State Revolving Fund Loan 6,669,199 6,272,340 6,669,199 6,272,340
Accreted Interest Payable 6,979,057 6,351,227 7,398,420 6,761,686 14,377,477 13,112,913
Total $ 11,703,422 $ 12,233,105 $ 22,500,810 $ 22,993,217 $ 34,204,232 $ 35,226,322
The above information does not include the interfund loan balances related to the repayment of the general obligation note.
Economic Factors and Next Year's Budgets and Rates
Winter Springs is primarily a residential community in Seminole Count servicing more than 37,000 residents. Located in Central
Florida, it is just 15 miles north of the City of Orlando,one of Florida's largest metropolitan statistical areas.
Through conservative fiscal policies and aggressive budget oversight, the City Manager and City Commission maintained the
operating millage rate at 2.4300 for both FY 2019 and FY 2020. The voted debt millage rate was lowered to .0500 for FY 2019
and eliminated for FY 2020.The gross property tax values in Winter Springs increased in FY 2019 by 7%and have increased an
approximate 9.5% in FY 2020. In May 2014, a countywide precinct referendum resulted in an additional 1% local government
infrastructure sales surtax, which will largely be utilized for transportation related to infrastructure improvements. The surtax is
expected to result in$2.0 million in additional revenues each year and expires in 2024.
The General Fund's FY 2019 adopted expenditure budget of$18,577,900 (inclusive of transfers) marked an increase of 5.7%
from the previous year. For FY 2020 the adopted expenditure budget is$19,101,792 a slight increase of 2.8%from FY 2019.
The total combined expenditure budget of FY 2020$51,470,066(inclusive of transfers)is$423,106 or.8% less than the adopted
budget of FY 2019.
Requests for Information
This financial report is designed to provide a general overview of the City of Winter Springs'finances for all those with an interest
in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708.
The Comprehensive Annual Financial Report is also available at the City of Winter Springs' website located at
www.wintersprin.qsfl.org.
Page 115
Basic Financial Statements
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Incorporated 0
1959
i,�cvo WE��J�+�
Government-Wide Financial Statements
City of Winter Springs, Florida
Statement of Net Position
September 30, 2019
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents $ 2,593,603 $ 2,241,207 $ 4,834,810
Investments 34,475,481 28,957,788 63,433,269
Receivables,net 973,869 410,439 1,384,308
Due from other governments - 744,968 744,968
Inventories,at cost 29,734 13,858 43,592
Prepaid costs 210,730 5,780 216,510
Restricted Assets:
Cash and cash equivalents 78,774 742,089 820,863
Receivables,long-term 1,165,396 - 1,165,396
Capital Assets
Capital assets not being depreciated 11,417,868 7,431,471 18,849,339
Capital assets being depreciated,net of accumulated depreciation 46,979,285 30,218,783 77,198,068
Total assets 97,924,740 70,766,383 168,691,123
Deferred Outflows of Resources
Deferred charge on refunding 10,218 164,735 174,953
Deferred outflow of pension and OPEB 919,865 235,951 1,155,816
930,083 400,686 1,330,769
Liabilities
Accounts payable and accrued expenses 1,541,931 1,113,099 2,655,030
Due to other governments 139,987 - 139,987
Unearned revenue - 125,895 125,895
Accrued interest payable 19,913 71,995 91,908
Liabilities payable from restricted assets 75,884 662,169 738,053
Noncurrent Liabilities:
Due within one year 1,489,534 1,956,296 3,445,830
Due in more than one year 19,100,863 22,688,055 41,788,918
Total liabilities 22,368,112 26,617,509 48,985,621
Deferred Inflows of Resources
Deferred inflows of pension and OPEB 80,728 26,744 107,472
80,728 26,744 107,472
Net Position
Net investment in capital assets 53,683,006 22,712,599 76,395,605
Restricted for:
Capital projects 5,715,661 - 5,715,661
Debt service 80,837 - 80,837
Renewal and replacement - 612,971 612,971
Physical environment 11,213,246 - 11,213,246
Public safety 79,314 - 79,314
Unrestricted 5,633,919 21,197,246 26,831,165
Total net position $ 76,405,983 $ 44,522,816 $ 120,928,799
The accompanying Notes to Financial Statements are an integral part of these statements. Page 116
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Fund Financial Statements
City of Winter Springs, Florida
Balance Sheet
Governmental Funds
September 30, 2019
Special Revenue
Road
Improvements Solid
General Fund Fund Waste/Recycling
Assets:
Cash and cash equivalents $ 611,923 $ 649,042 $ 106,261
Investments 8,869,836 8,386,391 1,373,019
Receivables,net 57,491 13,268 903,110
Inventories,at cost 29,734 - -
Prepaids 209,340
Special assessments receivable -
Advances to other funds 48,217
Restricted assets:
Cash and cash equivalents 75,884 - -
Total assets $ 9,902,425 $ 9,048,701 $ 2,382,390
Liabilities and Fund Balances:
Accounts payable $ 229,550 $ 5,143 $ 217,303
Accrued liabilities 688,353 - -
Retainage payable 70,540
Due to other funds -
Due to other governments 139,987
Payable from restricted assets 75,884 - -
Total liabilities 1,204,314 5,143 217,303
Deferred Inflows of Resources
Unavailable revenue-county taxes - 754 -
Unavailable revenue-special assessments -
Total deferred inflows of resources - 754
Fund Balances:
Nonspendable 287,291 -
Restricted - 9,042,804 -
Committed - 951,065
Assigned - 1,214,022
Unassigned 8,410,820 - -
Total fund balances 8,698,111 9,042,804 2,165,087
Total liabilities,deferred inflows of resources
and fund balances $ 9,902,425 $ 9,048,701 $ 2,382,390
The accompanying Notes to Financial Statements are an integral part of these statements. Page 18
Debt Service
Other Total
Governmental Governmental
TLBD Debt Service Funds Funds
$ 5,807 $ 1,220,570 $ 2,593,603
75,030 15,771,205 34,475,481
- - 973,869
- 29,734
- 1,390 210,730
1,165,396 - 1,165,396
- 860,000 908,217
- 2,890 78,774
$ 1,246,233 $ 17,856,055 $ 40,435,804
$ - $ 331,042 $ 783,038
- 688,353
- 70,540
908,217 908,217
- 139,987
- 75,884
1,239,259 2,666,019
- - 754
1,165,396 1,165,396
1,165,396 - 1,166,150
- 1,390 288,681
80,837 7,964,663 17,088,304
- 879,315 1,830,380
8,644,619 9,858,641
- (873,191) 7,537,629
80,837 16,616,796 36,603,635
$ 1,246,233 $ 17,856,055 $ 40,435,804
The accompanying Notes to Financial Statements are an integral part of these statements. Page 19
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1959
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City of Winter Springs, Florida
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
September 30, 2019
Total Fund Balance,governmental funds $ 36,603,635
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. 58,397,153
Other long-term assets are not available to pay for current period expenditures and,
therefore,are deferred in the funds. 1,166,150
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 839,137
Long-term liabilities, including bonds payable,are not due and payable in the current period
and therefore are not reported in the funds. (13,346,887)
Net pension liabilities are not due and payable in the current period and therefore,are not
reported in the funds (7,253,205)
Net Position of Governmental Activities in the Statement of Net Position $ 76,405,983
The accompanying Notes to Financial Statements are an integral part of these statements. Page 20
City of Winter Springs, Florida
Statement of Revenues, Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
Special Revenue
Road
Improvements Solid
General Fund Fund Waste/Recycling
Revenues:
Taxes:
Property taxes $ 5,376,555 $ $
Utility taxes 4,212,706
Business tax receipts 122,362
Permits and fees 2,358,770 -
Intergovernmental revenues 4,213,668 2,783,939 1,026,918
Charges for services 765,337 - 2,542,099
Fines and forfeitures 114,993 -
Impact fees/assessments - - -
Investment income 350,941 239,323 44,170
Miscellaneous 172,535 - -
Total revenues 17,687,867 3,023,262 3,613,187
Expenditures:
Current:
General government 5,397,344 - -
Public safety 6,484,576 -
Physical environment 982,449 2,740,166
Culture and recreation 1,865,720 -
Debt Service:
Principal -
Interest and fiscal charges -
Capital Outlay:
General government 29,184
Public safety 361,571 -
Physical environment 220,050 822,965
Culture and recreation 365,897 - -
Total expenditures 15,706,791 822,965 2,740,166
Excess(Deficiency)of
Revenues Over Expenditures 1,981,076 2,200,297 873,021
Other Financing Sources(Uses)
Transfers in 1,882,608 - -
Transfers out (3,680,000) (86,509)
Total other financing sources(uses) (1,797,392) - (86,509)
Net Change in Fund Balances 183,684 2,200,297 786,512
Fund balances, beginning 8,514,427 6,842,507 1,378,575
Fund balances,ending $ 8,698,111 $ 9,042,804 $ 2,165,087
The accompanying Notes to Financial Statements are an integral part of these statements. Page 121
Debt Service
Other Total
TLBD Debt Governmental Governmental
Service Funds Funds
$ $ 110,662 $ 5,487,217
- 4,212,706
- 122,362
11,255 2,370,025
635,716 8,660,241
43,100 3,350,536
168,352 283,345
93,384 1,671,099 1,764,483
44,679 388,340 1,067,453
4,495 - 177,030
142,558 3,028,524 27,495,398
- 10,140 5,407,484
- 18,805 6,503,381
3,192 1,181,339 4,907,146
- - 1,865,720
93,384 1,064,129 1,157,513
41,343 7,835 49,178
- 186,791 215,975
- 33,782 395,353
33,403 230,918 1,307,336
- 1,224,912 1,590,809
171,322 3,958,651 23,399,895
(28,764) (930,127) 4,095,503
3,861,896 5,744,504
(1,656) (279,040) (4,047,205)
(1,656) 3,582,856 1,697,299
(30,420) 2,652,729 5,792,802
111,257 13,964,067 30,810,833
$ 80,837 $ 16,616,796 $ 36,603,635
The accompanying Notes to Financial Statements are an integral part of these statements. Page 22
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1959
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City of Winter Springs, Florida
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2019
Net Change in Fund Balances-total governmental funds: $ 5,792,802
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report outlays for capital assets as expenditures. However,in the
statement of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period (450,555)
Contributions of capital assets are not reported as revenues in the governmental funds 687,939
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt consumes the current financial resources
of governmental funds. Neither transaction,however,has any effect on net position. Also,
governmental funds report the effect of premiums,discounts and similar items when debt is first
issued,whereas these amounts are deferred and amortized in the statement of activities. This
amount is the net effect of these differences in the treatment of long-term debt and related items
1,157,513
Special assessment revenue reported in the funds must be eliminated from the statement of
activities since revenue was recognized in a prior year (93,384)
Cash pension contributions reported in the funds were less than the calculated pension
expense on the statement of activities,and therefore decreased net position (232,409)
Some expenses reported in the statement of activities do not require the use of current financial
resources and these are not reported as expenditures in governmental funds. (536,364)
Change in net position of governmental activities $ 6,325,542
The accompanying Notes to Financial Statements are an integral part of these statements. Page 23
City of Winter Springs, Florida
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual
For The Year Ended September 30, 2019
Variance with
Final Budget-
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Taxes:
Property Taxes $ 5,367,809 $ 5,367,809 $ 5,376,555 $ 8,746
Utility taxes 4,078,000 4,265,000 4,212,706 (52,294)
Business tax receipts 116,000 116,000 122,362 6,362
9,561,809 9,748,809 9,711,623 (37,186)
Permits and fees:
Permits 20,000 20,000 27,625 7,625
Franchise fees 2,169,770 2,329,770 2,331,145 1,375
2,189,770 2,349,770 2,358,770 9,000
Intergovernmental revenues:
Sales tax 2,565,000 2,565,000 2,559,096 (5,904)
State revenue sharing 1,364,000 1,379,000 1,376,164 (2,836)
Other state shared revenue 38,000 48,000 46,499 (1,501)
Other county shared revenue 5,000 5,000 5,000
Federal grants - 234,615 226,909 (7,706)
3,972,000 4,231,615 4,213,668 (17,947)
Charges for services:
Program activity fees 227,073 227,073 226,309 (764)
Rental and other 456,463 509,716 539,028 29,312
683,536 736,789 765,337 28,548
Fines and forfeitures 85,500 85,500 114,993 29,493
Investment income 110,000 353,000 350,941 (2,059)
Miscellaneous 85,602 150,795 172,535 21,740
Total revenues 16,688,217 17,656,278 17,687,867 31,589
The accompanying Notes to Financial Statements are an integral part of these statements. Page 124
Variance with
Final Budget-
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Expenditures:
Current:
General government:
Executive $ 676,123 $ 719,963 $ 719,153 $ 810
General government 1,092,206 723,314 715,476 7,838
Finance and administrative services 1,877,868 1,819,028 1,789,601 29,427
Information services 779,037 742,037 714,386 27,651
Community development 1,405,270 1,503,033 1,487,912 15,121
5,830,504 5,507,375 5,426,528 80,847
Public Safety:
Police 7,035,827 6,618,336 6,604,728 13,608
Fire 215,400 242,400 241,419 981
7,251,227 6,860,736 6,846,147 14,589
Physical environment:
Public works 1,129,477 1,236,477 1,202,499 33,978
Culture and recreation:
Parks and recreation 2,176,692 2,270,481 2,231,617 38,864
Total expenditures 16,387,900 15,875,069 15,706,791 168,278
Excess(deficiency)of revenues over
expenditures 300,317 1,781,209 1,981,076 199,867
Other financing sources(uses):
Transfers in 1,891,182 1,900,290 1,882,608 (17,682)
Transfers out (2,190,000) (3,680,000) (3,680,000)
Net other financing sources (298,818) (1,779,710) (1,797,392) (17,682)
Net change in fund balances 1,499 1,499 183,684 182,185
Fund balances, beginning 8,514,427 8,514,427 8,514,427 -
Fund balances,ending $ 8,515,926 $ 8,515,926 $ 8,698,111 $ 182,185
The accompanying Notes to Financial Statements are an integral part of these statements. Page 125
City of Winter Springs, Florida
Road Improvements Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual
For The Year Ended September 30, 2019
Variance with
Final Budget-
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Intergovernmental revenues $ 2,611,786 $ 2,558,473 $ 2,783,939 $ 225,466
Investment income 50,000 50,000 239,323 189,323
Total revenues 2,661,786 2,608,473 3,023,262 414,789
Expenditures:
Current:
Physical environment 25,000 25,000 - 25,000
Capital Outlay:
Physical environment 1,182,000 1,445,943 822,965 622,978
Total expenditures 1,207,000 1,470,943 822,965 647,978
Excess(deficiency)of revenues over
expenditures 1,454,786 1,137,530 2,200,297 1,062,767
Other financing sources(uses)
Transfers out (3,212,000) - - -
Total other financing sources(uses) (3,212,000) - -
Net Change in Fund Balances (1,757,214) 1,137,530 2,200,297 1,062,767
Fund balances, beginning 6,842,507 6,842,507 6,842,507 -
Fund balances,ending $ 5,085,293 $ 7,980,037 $ 9,042,804 $ 1,062,767
The accompanying Notes to Financial Statements are an integral part of these statements. Page 126
City of Winter Springs, Florida
Solid Waste/Recycling Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual
For The Year Ended September 30, 2019
Variance with
Final Budget-
Positive
Budgeted Amounts Actual Amounts (Negative)
Original Final
Revenues:
Intergovernmental revenues $ 50,400 $ 50,400 $ 1,026,918 $ 976,518
Charges for services 2,625,959 2,625,959 2,542,099 (83,860)
Investment income - 44,000 44,170 170
Total revenues 2,676,359 2,720,359 3,613,187 892,828
Expenditures:
Current:
Physical environment 2,766,479 2,775,479 2,740,166 35,313
Total expenditures 2,766,479 2,775,479 2,740,166 35,313
Excess(Deficiency)of Revenues Over
Expenditures (90,120) (55,120) 873,021 928,141
Other Financing Sources(Uses)
Transfers out (85,370) (85,370) (86,509) (1,139)
Total other financing sources(uses) (85,370) (85,370) (86,509) (1,139)
Net Change in Fund Balances (175,490) (140,490) 786,512 927,002
Fund balances, beginning 1,378,575 1,378,575 1,378,575 -
Fund balances,ending $ 1,203,085 $ 1,238,085 $ 2,165,087 $ 927,002
The accompanying Notes to Financial Statements are an integral part of these statements. Page 127
City of Winter Springs, Florida
Statement of Net Position
Proprietary Funds
September 30, 2019
Business-type Activities-Enterprise Funds
Water and Sewer Development Stormwater Utility
Utility Fund Services Fund Fund Total
Assets
Current assets:
Cash and cash equivalents $ 1,791,151 $ 382,170 $ 67,886 $ 2,241,207
Investments 23,143,828 4,936,798 877,162 28,957,788
Receivables,net 365,414 - 45,025 410,439
Due from other governments - 744,968 744,968
Inventories 13,858 - 13,858
Prepaid expense 5,780 - 5,780
Total current assets 25,320,031 5,318,968 1,735,041 32,374,040
Noncurrent assets:
Restricted cash 742,089 - - 742,089
Capital Assets:
Land,buildings and equipment 71,754,347 309,123 13,115,969 85,179,439
Construction in progress 142,677 - 118,617 261,294
Less Accumulated depreciation (41,271,732) (144,924) (6,373,823) (47,790,479)
Total capital assets(net of accumulated
depreciation) 30,625,292 164,199 6,860,763 37,650,254
Total noncurrent assets 31,367,381 164,199 6,860,763 38,392,343
Total assets 56,687,412 5,483,167 8,595,804 70,766,383
Deferred Outflows of Resources
Deferred charge on refunding 164,735 - - 164,735
Deferred outflow pension and OPEB 186,230 19,125 30,596 235,951
Total deferred outflows of resources 350,965 19,125 30,596 400,686
The accompanying Notes to Financial Statements are an integral part of these statements. Page 128
Business-type Activities-Enterprise Funds
Water and Sewer Development Stormwater Utility
Utility Fund Services Fund Fund Total
Liabilities
Current Liabilities:
Accounts payable 257,583 67,986 550,223 875,792
Accrued liabilities 188,981 21,172 27,154 237,307
Compensated absences-current 12,756 2,665 2,093 17,514
Customer deposits payable 662,169 - - 662,169
Unearned revenue - 125,895 125,895
Notes payable-current 1,938,782 - 1,938,782
Accrued interest payable 71,995 - - 71,995
Total current liabilities 3,132,266 91,823 705,365 3,929,454
Noncurrent Liabilities:
Notes payable 9,369,417 - - 9,369,417
Revenue bonds payable 3,794,191 3,794,191
Accreted interest payable 7,398,420 - - 7,398,420
Compensated absences 51,022 10,659 8,375 70,056
Other noncurrent liabilities 313,099 24,718 74,155 411,972
Net pension liability 1,315,755 146,329 181,915 1,643,999
Total noncurrent liabilities 22,241,904 181,706 264,445 22,688,055
Total liabilities 25,374,170 273,529 969,810 26,617,509
Deferred Inflows of Resources
Deferred inflow pension and OPEB 20,601 1,803 4,340 26,744
Total deferred outflows of resources 20,601 1,803 4,340 26,744
Net Position
Net investment in capital assets 15,687,637 164,199 6,860,763 22,712,599
Restricted for renewal and replacement 612,971 - - 612,971
Unrestricted 15,342,998 5,062,761 791,487 21,197,246
Total net position $ 31,643,606 $ 5,226,960 $ 7,652,250 $ 44,522,816
The accompanying Notes to Financial Statements are an integral part of these statements. Page 129
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1959
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City of Winter Springs, Florida
Statement of Revenues, Expenses,and Changes in Fund Net Position
Proprietary Funds
For The Year Ended September 30, 2019
Business-type Activities-Enterprise Funds
Water and Sewer Development Stormwater Utility
Utility Fund Services Fund Fund Total
Operating Revenues:
User charges $ 10,801,918 $ 3,030,937 $ 1,095,570 $ 14,928,425
Other revenue - - 54,821 54,821
Total operating revenues 10,801,918 3,030,937 1,150,391 14,983,246
Operating Expenses:
Salaries and benefits 2,275,463 283,424 501,255 3,060,142
Materials and supplies 1,149,701 1,256 1,211,591 2,362,548
Depreciation and amortization 2,613,781 14,744 403,011 3,031,536
Other operating expenses 1,636,728 347,756 205,091 2,189,575
Total Operating Expenses 7,675,673 647,180 2,320,948 10,643,801
Operating income(loss) 3,126,245 2,383,757 (1,170,557) 4,339,445
Nonoperating Revenue(Expenses):
Investment income 677,892 118,421 29,026 825,339
I nterest expense (256,350) - - (256,350)
Accreted interest expense (636,734) - (636,734)
Operating grants 24,222 901,893 926,115
Total nonoperating revenue(expenses) (190,970) 118,421 930,919 858,370
Income(loss)before contributions and transfers 2,935,275 2,502,178 (239,638) 5,197,815
Capital Contributions:
Connection fees 773,608 - - 773,608
Capital contribution 375,730 334,190 709,920
Transfers In 6,000 63,480 69,480
Transfers Out (1,388,529) (206,950) (171,300) (1,766,779)
Change in net position 2,702,084 2,295,228 (13,268) 4,984,044
Net position,beginning 28,941,522 2,931,732 7,665,518 39,538,772
Net position,ending $ 31,643,606 $ 5,226,960 $ 7,652,250 $ 44,522,816
The accompanying Notes to Financial Statements are an integral part of these statements. Page 30
City of Winter Springs, Florida
Statement of Cash Flows
Proprietary Funds
For The Year Ended September 30, 2019
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 $ 10,821,485 $ 3,036,708 $ 1,278,100 $ 15,136,293
Payments to suppliers (2,708,543) (358,985) (898,344) (3,965,872)
Payments to employees (2,167,263) (256,197) (488,626) (2,912,086)
Net cash provided by operating activities 5,945,679 2,421,526 (108,870) 8,258,335
Cash Flows from Noncapital Financing Activities:
Transfers in 6,000 - 63,480 69,480
Transfers out (1,388,529) (206,950) (171,300) (1,766,779)
Grants 24,222 156,925 181,147
Net cash provided(used)by noncapital
financing activities (1,358,307) (206,950) 49,105 (1,516,152)
Cash Flows from Capital and Related Financing Activities:
Acquisition of capital assets (856,843) (30,453) (30,117) (917,413)
Debt proceeds 759,601 759,601
Principal paid (1,888,742) (1,888,742)
Interest paid (159,467) (159,467)
Connection fees 773,608 773,608
Net cash provided(used)by capital and related
financing activities (1,371,843) (30,453) (30,117) (1,432,413)
Cash Flows from Investing Activities:
Sale(purchase)of investments (3,695,556) (2,144,777) 81,330 (5,759,003)
Investment income 677,892 118,421 29,026 825,339
Net cash provided(used)by investing activities (3,017,664) (2,026,356) 110,356 (4,933,664)
Net Increase(Decrease)in Cash and Cash Equivalents 197,865 157,767 20,474 376,106
Cash and cash equivalents,beginning 1,593,286 224,403 47,412 1,865,101
Cash and cash equivalents,end $ 1,791,151 $ 382,170 $ 67,886 $ 2,241,207
Classified As:
Cash and cash equivalents $ 1,791,151 $ 382,170 $ 67,886 $ 2,241,207
Restricted cash - - - -
Total $ 1,791,151 $ 382,170 $ 67,886 $ 2,241,207
The accompanying Notes to Financial Statements are an integral part of these statements. Page 131
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) $ 3,126,245 $ 2,383,757 $ (1,170,557) $ 4,339,445
Adjustments Not Affecting Cash:
Depreciation and amortization 2,613,781 14,744 403,011 3,031,536
Change in Assets and Liabilities:
Decrease(increase)in accounts receivable 3,653 - 1,814 5,467
Decrease(increase)in inventories (6,877) - (6,877)
Decrease(increase)in prepaid expenses - - -
Increase(decrease)in accounts payable 84,763 (9,973) 518,338 593,128
Decrease(increase)in due from other governments - 5,771 - 5,771
Increase(decrease)in accrued liabilities 50,432 15,509 (4,444) 61,497
Increase(decrease)in customer deposits 15,914 - - 15,914
Increase(decrease)in unearned revenue - - 125,895 125,895
Increase(decrease)in accrued compensated absences (16,146) 9,524 5,972 (650)
Decrease in deferred outflows 162,522 17,372 21,825 201,719
Decrease in deferred inflows (395,497) (44,367) (53,382) (493,246)
Decrease in net pension liability 279,292 31,061 38,614 348,967
Increase in OPEB obligation 27,597 (1,872) 4,044 29,769
Total adjustments 205,653 23,025 658,676 887,354
Net Cash Provided By Operating Activities $ 5,945,679 $ 2,421,526 $ (108,870) $ 8,258,335
Noncash Capital and Financing Activities:
Contributed capital assets $ 375,730 $ - $ 334,190 $ 709,920
The accompanying Notes to Financial Statements are an integral part of these statements. Page 132
City of Winter Springs, Florida
Statement of Fiduciary Net Position
Fiduciary Fund
September 30, 2019
Defined Benefit
Pension Trust Fund
Assets:
Cash and cash equivalents $ 524,239
Receivables:
Employee contributions 8,320
Employer contributions 616,036
Total receivables 624,356
Investments,at fair value:
Common funds,equity 36,308,419
Common funds, bonds 9,321,235
Other investments 7,935,448
Total Investments 53,565,102
Total assets 54,713,697
Liabilities: -
Net Position:
Net position restricted for pensions $ 54,713,697
accompanying Notes to Financial Statements are an integral part of these statements. Page 33
City of Winter Springs, Florida
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
For The Year Ended September 30, 2019
Defined Benefit
Pension Trust Fund
Additions:
Contributions:
Employer $ 2,924,706
Plan Members 265,689
Total contributions 3,190,395
Investment income:
Net increase in fair value of investments 1,033,025
Interest 724,616
Investment-related expenses (320,417)
Net investment income 1,437,224
Total additions 4,627,619
Deductions:
Benefits 3,276,412
Administrative expenses 69,024
Total deductions 3,345,436
Change in net position 1,282,183
Net position, beginning 53,431,514
Net position,ending $ 54,713,697
accompanying Notes to Financial Statements are an integral part of these statements. Page 34
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Notes to Financial Statements
City of Winter Springs, Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Winter Springs, Florida (the City) is a political subdivision of the state of Florida located in Seminole County, and was
established by the Laws of Florida 59-1614.The legislative branch of the City is comprised of a five-member elected Commission and
a separately elected mayor,which is governed by the City Charter and by state and local laws and regulations.The City Commission
is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager
appointed by the Commission.
In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units.
The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially
accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its
officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or
there is a potential for the organization to provide specific financial benefits to,or to impose specific financial burdens on,the primary
government.A primary government may also be financially accountable for governmental organizations that are fiscally dependent on
it.
A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or
activities of,or the level of services performed or provided by,the organization.A financial benefit or burden relationship exists if the
primary government(a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to
finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the
organization. In applying the above criteria,management has determined that there are no component units to be included within the
reporting entity.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information
on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities,which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues
include 1)charges to customers or applicants who purchase, use,or directly benefit from goods,services,or privileges provided
by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,and fiduciary funds,even though the latter
are excluded from the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting,and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Page 135
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the
end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period.All other revenue items are considered to be measurable and available only when cash is received by the City.
The government reports the following funds:
Major Governmental Funds
General Fund- is the government's primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
Road Improvements Special Revenue Fund - accounts for collected one-cent sales tax revenues restricted for use for
transportation,safety,capacity and infrastructure consistent with 212.055, F.S.
Solid Waste/Recycling Special Revenue Fund-accounts for proceeds from billed solid waste and recycling services performed
by contract vendors. Proceeds are committed to pay monthly vendor charges for providing solid waste and recycling services.
TLBD Debt Service Fund-was established to account for the accumulation of resources and payment of principal and interest
for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable.
Nonmajor Governmental Fund Types
Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted or committed to
expenditure for specified purposes other than debt service or capital projects.
Debt Service Funds-account for the accumulation of resources for and the payment of principal and interest on certain general
governmental obligations.
Capital Projects Funds-account for financial resources segregated for the acquisition or construction of major capital facilities.
Major Proprietary Funds
Water and Sewer Utility Fund - used to account for the operations of the City's water and wastewater systems, which are
financed in a manner similar to private business enterprises,where the costs, including depreciation,of providing services to the
general public on an ongoing basis are financed primarily through user charges.
Development Services Fund- is used to account for the operations of the City's building and other permits department, where
the costs, including depreciation,of providing services to the general public are financed primarily through user charges.
Stormwater Utility Fund- used to account for the City's operation and maintenance of the stormwater system,where the costs,
including depreciation,of providing services to the general public are financed primarily through user charges.
Page 136
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Fiduciary Fund
The Pension Trust Fund accounts for contributions to the defined benefit plan.
As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions
to this general rule are other charges between the City's water and sewer function and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise,general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to
customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the
cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets.All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources
first,then unrestricted resources as they are needed.
Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance
Deposits and Investments
The government's cash and cash equivalents are considered to be cash on hand,demand deposits,and short-term investments
with original maturities of less than 2 years from the date of acquisition.
Investments for the City are reported at fair value and are categorized within the fair value hierarchy established in accordance
with GASB Statement No.72,Fair Value Measurement and Application.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are
referred to as either"due to/from other funds" (i.e.,the current portion of interfund loans) or"advances to/from other funds" (i.e.,
the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other
funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as"internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance in applicable
governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
All receivables are shown net of an allowance for uncollectibles.The County bills and collects property taxes and remits them to
the City.City property tax revenues are recognized when levied to the extent that they result in current receivables.
Page 137
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
All property is reassessed according to its fair value on the lien date,or January 1 of each year.Taxes are levied on October 1 of
each year. Discounts are allowed for early payment at the rate of 4% in the month of November,3% in the month of December,
2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes
become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year,
certificates are sold for all delinquent taxes on real property.
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out(FIFO) method. Inventories of governmental funds are recorded as
expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements. These are recorded as expenditures when consumed rather than when
purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds and notes, as well as certain resources set aside for their
repayment,are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and
their use is limited by applicable bond covenants.Assets so designated are identified as restricted assets on the balance sheet.
Capital Assets
Capital assets,which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), are reported in the applicable governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the City as assets with an initial, individual cost of$1,000 or more and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets
constructed.
Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful
lives:
Assets Years
Buildings 30
Improvements 20-50
Infrastructure 30-50
Intangible Assets 3-10
Equipment 3-10
Page 138
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability
for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate
from service with the government. All vacation pay is accrued when incurred in the government-wide and proprietary fund
financial statements.A liability for these amounts is reported in governmental funds only if they have matured,for example,as a
result of employee resignations and retirements. For governmental activities, compensated absences, other post-employment
benefits and net pension obligation are generally liquidated by the General Fund.
Long-term Obligations
In the government-wide financial statements, and for proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts (including deep-discount or capital appreciation
bonds),are deferred and amortized over the life of the bonds and notes using the effective interest method. Bonds payable and
notes payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on
debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuances costs,whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources(expense/expenditure) until then.The
City has two items that qualify for reporting in this category.The deferred charge on refunding and deferred outflows of pension
and OPEB reported in the enterprise and government-wide statement of net position. A deferred charge on refunding results
from the difference in the carrying value of refunded debt and its reacquisition price.This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of
resources.This separate financial statement element,deferred inflows of resources,represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one
type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds
report unavailable revenues from two sources: county taxes and special assessments. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available. The City also has deferred inflows of
pension and OPEB reported in the enterprise and government-wide statement of net position.
Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the
amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow
assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider
restricted net position to have been depleted before unrestricted net position is applied.
Page 139
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Fund Balance Flow Assumption
Sometimes the city will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of
committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed,
assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about
the order in which the resources are considered to be applied. It is the City's policy to consider restricted fund balance to have
been depleted before using any components of unrestricted fund balance. Further, when the components of unrestricted fund
balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of
resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment
(committed fund balance)or an assignment(assigned fund balance).
The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a
formal action of the government's highest level of decision making authority.The City Commission is the highest level of decision
making authority for the City that can, by adoption of a Resolution prior to the end of the fiscal year,commit fund balance. Once
adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another
resolution)to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the
criteria to be classified as committed. The commission may assign fund balance as it does when appropriating fund balance to
cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments,
assignments generally only exist temporarily.
The General Fund is the only fund that reports a positive unassigned fund balance. However, in other governmental funds, if
expenditures incurred for specific purposes exceed the amounts that are restricted,committed,or assigned to those purposes, it
may be necessary to report a negative unassigned fund balance in that fund.
New GASB Statement Implemented
In fiscal year 2019,the City implemented GASB Statement No.88, Certain Disclosures Related to Debt, Including Direct Borrowings
and Direct Placements. This statement requires additional note disclosures for certain debt issues. There was no effect on beginning
balances of the City.
THIS SECTION INTENTIONALLY LEFT BLANK
Page 140
City of Winter Springs,Florida
Notes to Financial Statements
Year Ended September 30,2019
NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of
Net Position
The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net position -
governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that
"long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the
funds."The details of this difference are as follows:
Bonds payable $ (3,498,970)
Accreted interest payable (6,979,057)
Notes payable (1,225,395)
Less:deferred charge on refunding (to be amortized as interest expense) 10,218
Accrued interest payable (19,913)
Other post employment benefits (1,046,410)
Compensated absences (587,360)
Net Adjustment to Reduce Fund Balance,total governmental funds to arrive
at net position,governmental activities $ (13,346,887)
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures,and Changes in
Fund Balances and the Government-Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net
changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the
government-wide statement of activities.One element of that reconciliation explains that"Governmental funds report capital outlays as
expenditures.However,in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense."The details of this difference are as follows:
Capital Outlay $ 3,521,681
Depreciation Expense (3,972,236)
Net Adjustment to Decrease Net Changes in Fund Balances,total governmental
funds to arrive at changes in net position,governmental activities $ (450,555)
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 $ 1,157,513
Net Adjustment to Increase Net Changes in Fund Balances,total governmental
funds to arrive at changes in net position,governmental activities $ 1,157,513
Page 141