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HomeMy WebLinkAbout2024 09 09 Regular 500 - 2023 Annual Comprehensive Financial ReportREGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | SEPTEMBER 9, 2024 REGULAR MEETING TITLE 2023 Annual Comprehensive Financial Report (ACFR) SUMMARY The Annual Comprehensive Financial Report for the Fiscal Year Ended September 30th 2023 was prepared and will be presented by the City's external auditors Purvis, Gray and Company, LLP. The Annual Comprehensive Financial Report (ACFR) is prepared and presented to give the City Commission, citizens, and other users a greater understanding of the City's financial standing. Additionally, Florida Statues requires that all general purpose local governments publish a complete set of financial statements annually. FUNDING SOURCE RECOMMENDATION Staff recommends the City Commission accept the Annual Comprehensive Financial Report as presented for the Fiscal Year Ended September 30th 2023 and authorize staff to forward to Auditor General, Inspector General, and applicable financial institutions as required by debt covenants. 36 37 City of Winter Springs, Florida ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended September 30, 2023 Prepared by: Finance Department 38 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS i I. INTRODUCTORY SECTION Table of Contents ........................................................................................................................ i-iii Letter of Transmittal ................................................................................................................. iv-vii List of Principal Officials ............................................................................................................... viii Organizational Chart ......................................................................................................................ix II. FINANCIAL SECTION Independent Auditor’s Report.................................................................................................... 1-3 Management’s Discussion and Analysis ................................................................................... 4-16 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position ...................................................................................................... 17 Statement of Activities........................................................................................................... 18 Fund Financial Statements: Balance Sheet – Governmental Funds .................................................................................... 19 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................ 20 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................ 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................. 22 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: General Fund ...................................................................................................................... 23 Road Improvements Special Revenue Fund......................................................................... 24 Solid Waste/Recycling Special Revenue Fund ...................................................................... 25 American Recovery Plan Act Special Revenue Fund……………………………………………… ............. 26 Statement of Net Position – Proprietary Funds .............................................................. 27-28 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ..................................................................................... 29 Statement of Cash Flows – Proprietary Funds ................................................................ 30-31 Statement of Fiduciary Net Position – Fiduciary Funds ........................................................ 32 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ...................................... 33 Notes to Financial Statements ................................................................................................ 34-62 39 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS ii Required Supplementary Information Schedule of Changes in the City’s Net OPEB Liability and Related Ratios – Plan Retiree Continuation Insurance Plan .................................................... 63 Schedule of Changes in Net Pension Liability and Related Ratios........................................................................................................................ 64 Schedule of Contributions .................................................................................................... 65-66 Schedule of Investment Returns................................................................................................ 67 Other Supplementary Information Non-Major Governmental Funds: Combining Balance Sheet – Non-Major Governmental Funds............................................ 68-73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds ........................................ 74-79 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: Police Education Fund ..................................................................................................... 80 Special Law Enforcement Trust Fund – Local .................................................................... 81 Transportation Improvement Fund .................................................................................. 82 Transportation Impact Fee Fund ...................................................................................... 83 Police Impact Fee Fund .................................................................................................... 84 Fire Impact Fee Fund ....................................................................................................... 85 Parks Impact Fee Fund ..................................................................................................... 86 Arbor Fund ...................................................................................................................... 87 TLBD Maintenance Fund .................................................................................................. 88 Oak Forest Maintenance Fund ......................................................................................... 89 Special Law Enforcement Trust Fund – Federal ................................................................ 90 Tuscawilla Phase III .......................................................................................................... 91 TLBD Debt Service Fund ................................................................................................... 92 1999 Debt Service Fund ................................................................................................... 93 1999 Construction Fund .................................................................................................. 94 Revolving Rehab Fund ..................................................................................................... 95 Public Facilities Fund ....................................................................................................... 96 Excellence in Customer Service ........................................................................................ 97 III. STATISTICAL SECTION Financial Trends Net Position by Component ...................................................................................................... 98 Changes in Net Position ..................................................................................................... 99-100 Governmental Activities Tax Revenues by Source.................................................................... 101 Fund Balances of Governmental Funds ................................................................................... 102 Changes in Fund Balances of Governmental Funds ........................................................... 103-104 40 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS iii Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property ................................................................................................................. 105 Property Tax Rates, Direct and Overlapping Governments ...................................................... 106 Special Assessment Billings and Collections ............................................................................. 107 Principal Property Taxpayers ................................................................................................... 108 Property Tax Levies and Collections ........................................................................................ 109 Debt Capacity Legal Debt Margin ................................................................................................................... 110 Ratio of Net General Obligation - Debt to Assessed Value and Net General Obligation Per Capita ....................................................................... 111 Ratio of Outstanding Debt by Type .......................................................................................... 112 Direct and Overlapping Governmental Activities Debt ............................................................. 113 Pledged-Revenue Coverage.............................................................................................. 114-115 Demographic and Economic Information Demographic and Economic Statistics ..................................................................................... 116 Principal Employers................................................................................................................. 117 Operating Information Budgeted Full-Time Equivalent City Government Employees by Function ........................................................................................................ 118 Operating Indicators by Function ............................................................................................ 119 Capital Asset Statistics by Function ......................................................................................... 120 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 ........................................................ 121-125 Management Letter ......................................................................................................... 126-127 Independent Accountant’s Report on Compliance with Florida Statutes, Section 218.415 – Investments of Public Funds .......................................... 128 Management Response Letter ......................................................................................... 129-130 41 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 September 4th 2024 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: It is with great pleasure that we present to you the City of Winter Springs, Florida Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. 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 Purvis Gray, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2023 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, 2023 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 39,000. 42 The City operates according to a Council/Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four-year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City’s Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day-to-day operations of the government and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational facilities, activities and cultural events. The City maintains both a Water and Sewer Utility Fund, a Stormwater Utility Fund, and a Development Services Fund, which function, in essence, as departments of the City of Winter Springs and therefore have been included as an integral part of the City of Winter Springs’ financial statements. The annual budget serves as the foundation for the City of Winter Springs’ financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Commission for review on or before July 1st. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget-to-actual comparisons are provided in this report for each individual governmental fund. The General Fund, the Road Improvements Fund, the Solid Waste/Recycling Fund and the American Recovery Act Fund, are presented on pages 23-26 as part of the basic financial statements for the governmental funds. The non-major governmental funds’ budget comparisons are presented in the governmental fund subsection of this report which starts on page 80. 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. The distribution for FY23 was in excess of $3M and is estimated to be $3.4M for FY24. Approximately 82% 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 2022-2023 fiscal year (tax year 2022), the gross taxable value reflects an increase of 10.8% from the prior year. During fiscal year 2022-2023 (tax year 2022), the City was able to maintain the operating millage rate at 2.41. At the local level, revenues such as review and permit fees, investment income and state sales tax revenues continue to hold steady. New construction in Winter Springs has been robust for the past several years. Hickory Grove Townhomes (132 units) anticipated completion is the end of 2025. Commercial projects expected to kick off in 2024 include, Fisher Optometry, Elliano’s Coffee, and Living Life Development. Seminole County Public School system is the 13th 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 and one charter school. Nearby Seminole State College and University of Central Florida offer our community an affordable and 43 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 Winter Springs Police Department continues to provide exemplary policing and customer service with increased sworn officer positions, new technology and equipment enhancements, and prioritizing officer wellness. The department also coordinates several events to promote positive interaction with the community and bridge the gap between law enforcement and its residents, such as the Citizens Advisory Committee, National Night Out, Community Youth Outreach, and annual school supply drive, which provides school supplies to hundreds of children within our community. The City continues to invest in our excellent parks and recreation areas with numerous upgrades, including a new Pickleball Complex at Central Winds Park, new boardwalk at Torcaso Park, the Central Winds baseball field parking lot and a new restroom on Flamingo Ave at Torcaso Park. The City of Winter Springs continues to offer its citizens the highest quality services and community-minded events. These community seasonal events include Egg-Citing Egg Hunt, Arbor Day with free tree giveaways, Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran’s Day Ceremony, Winter Wonderland Parade, and the new addition Winter Wonderland of Lights. The City’s Sports Partnerships include traditional sports such as Babe Ruth Baseball/Softball, Florida Kraze Krush Soccer and Winter Springs Football League. Our very popular summer camp program offers affordable day camp options and spectacular field trips. These events enhances not only residents’ quality of life but also a sense of community. Long-term financial planning. The City Commission updated and transmitted a 5-year Capital Improvements Plan (CIP) in December 2021 for fiscal years 2022 through 2026. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement with the year of intended purchase/ commencement; annual expenditure; and method of financing. Each year, the plan is reviewed to ensure that all necessary capital improvements are incorporated into the budget process. It should be noted however, that the CIP is not a static document but a flexible and dynamic one that may change to reflect changing priorities, opportunities, costs, or financing approach. Relevant Financial Policies. In fiscal year 2023, the City adopted GASB statement No. 96, Subscription- Based Information Technology Arrangements (SBITAs). The statement required that SBITAs be recognized as a right-to-use subscription asset and a corresponding subscription liability on the balance sheet, both of which will be reduced over the life of the agreement. In fiscal year 2022, the City adopted GASB statement No. 87, Leases. This statement requires that all long-term, non-cancelable leases of the lessor be recorded as a lease receivable on the balance sheet with a corresponding deferred inflow of resources, both of which will be reduced over the life of the lease agreement. Major Initiatives. Continued improvements in customer service and information reporting are on-going, such as upgrades in several behind the scenes technological systems. Upgrades and refurbishment of the City’s Water and Wastewater Plants, recreational facilities and Stormwater infrastructure. Additionally, infrastructure replacement and improvement in transportation such as bridge and roadway repairs. There have also been and will continue to be city-wide safety improvements across parks, sidewalk replacements, and roadway improvements. Acknowledgements In closing, we would like to express our appreciation to all members of the finance 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. 44 45 viii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2023 ELECTED OFFICIALS MAYOR Kevin McCann DEPUTY MAYOR / COMMISSIONER Matt Benton COMMISSIONER Victoria Bruce COMMISSIONER Ted Johnson COMMISSIONER Cade Resnick COMMISSIONER Rob Elliott CITY MANAGER (INTERIM) Philip Hursh CITY CLERK Christian Gowan LEGAL COUNSEL Anthony Garganese Garganese, Weiss & D’Agresta, P.A. DEPARTMENT DIRECTORS OPERATIONS Brian Dunigan COMMUNITY DEVELOPMENT Terrilyn Rolle FINANCE (INTERIM) Donna Bruno* PARKS, RECREATION, & FACILITIES Leonard Hartman POLICE CHIEF Matthew Tracht UTILITY Bilal Iftikhar PUBLIC WORKS Philip Hursh *Holly Queen was hired as Finance Director in March of 2024 46 Citizens of Winter SpringsMayor and City CommissionersFinancePolice DepartmentCommunity Devel.City AttorneyUtilitiesAdvisory BoardsxAccountingxDebt ManagementxBudgetingxPurchasingxContractsxSolid WastexTreasury ManagementxUtility Business ServicesxMeter ServicexWater ConservationxWater/Wastewater OperationsxRecordsxCommunicationxPatrolxInvestigationsxCode EnforcementxPlanningxLand ManagementxBuilding Permits/Insp.xBusiness Tax ReceiptsxEconomic DevelopmentxConstruction InspectionsOperationsxHuman ResourcesxRisk ManagementxPublic Information/MarketingxInformation TechnologyParks & Recreation, Facilities xCivic/Senior CenterxEventsxRecreation ProgramsxFacilities/Cap ProjectsxParks MaintenancexUrban BeatificationCity ManagerPublic WorksxRoads (ROW)xEngineeringxSidewalksxTreesxStorm waterxFleet Maintenance City Clerkix47 FINANCIAL SECTION 48 INDEPENDENT AUDITOR’S REPORT 49 1 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on the Audit of the Financial Statements Opinions 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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. 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, 2023, 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, solid waste/recycling special revenue fund, and the American Recovery Plan Act special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We have 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter – Change in Accounting Principle As further discussed in Note 17 to the financial statements, in 2023 the City adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for 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. 50 2 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. ■ Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. ■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. ■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents (collectively, the required supplementary information), be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 51 3 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT 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. Supplementary 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 accompanying combining and individual non-major fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 3, 2024, 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 solely 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 the effectiveness of the City’s 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. September 3, 2024 Gainesville, Florida 52 MANAGEMENT’S DISCUSSION AND ANALYSIS 53 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 4 As management of the City of Winter Springs, Florida, we offer readers of the City of Winter Springs’ financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2023. 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 $144,274,788 (net position). Of this amount, $31,211,128 (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 $1,884,467 or 1.32% 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 $44,087,255. Approximately 19% of this total amount, $8,544,161, 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 $8,575,434 or 45% of total general fund expenditures. ■ As a result of current year’s activities, the City of Winter Springs’ total debt decreased by $2,380,426 (8%). Overview of the Financial Statements The financial statements focus on both the City of Winter Springs 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 of Winter Springs’ 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. 54 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 5 The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Winter Springs that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Winter Springs include general government, public safety, physical environment, and culture and recreation. The business-type activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility , and Development Services. The government-wide financial statements include only the City of Winter Springs itself (known as the primary government). The City of Winter Springs had no component units. The Water and Sewer Utility, the Stormwater Utility, and Development Services function as departments of the City of Winter Springs, and, therefore, have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 17-18 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 55 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 6 The City of Winter Springs maintains 22 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, Road Improvements Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and American Recovery Plan Act Fund, all four of which are considered to be major funds. Data from the other 18 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Road Improvements Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and American Recovery Plan Act Special Revenue Fund to demonstrate compliance with this budget on pages 23-26. Budgetary comparison schedules have been provided for the non-major funds on pages 80-97. The basic governmental fund financial statements can be found on pages 19-22 of this report. Proprietary Funds The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility, and Development Services department. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 27-31 of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Winter Springs’ 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 32-33 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 34-62 of this report. Required Supplementary Information (RSI) RSI can be found on pages 63-67 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds are presented after this. Combining and individual fund statements and schedules can be found on pages 68- 97 of this report. 56 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 7 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 inflows by $144,274,788 at the close of the most recent fiscal year. Of the City of Winter Springs’ net position, $86,774,338 or 60% 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 s $26,289,322 (18%). The remaining balance of unrestricted net position, $31,211,128 (22%), may be used to meet the government’s ongoing obligations to citizens and creditors. At September 30, 2023, the City of Winter Springs is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Position for the current prior year. For more detail, see the Statement of Net Position on page 17. Statement of Net Position as of September 30 2023 2022 2023 2022 2023 2022 Assets Current and Other Assets 70,419,660$ 68,435,961$ 34,467,749$ 38,449,127$ 104,887,409$ 106,885,088$ Restricted Assets 137,406 127,352 898,088 750,329 1,035,494 877,681 Capital Assets 57,163,894 54,352,680 42,880,832 40,232,700 100,044,726 94,585,380 Total Assets 127,720,960 122,915,993 78,246,669 79,432,156 205,967,629 202,348,149 Deferred Outflows of Resources Deferred Charge on Refunding - 7,432 7,382 8,436 7,382 15,868 Deferred Outflow of Pension and OPEB 3,493,367 4,907,049 848,390 1,191,714 4,341,757 6,098,763 Total Deferred Outflows of Resources 3,493,367 4,914,481 855,772 1,200,150 4,349,139 6,114,631 Liabilities Current Liabilities 21,495,695 20,836,537 2,112,900 1,829,194 23,608,595 22,665,731 Long-Term Liabilities 17,172,819 16,691,057 19,655,990 21,083,634 36,828,809 37,774,691 Other Liabilities 135,795 125,741 638,014 658,445 773,809 784,186 Total Liabilities 38,804,309 37,653,335 22,406,904 23,571,273 61,211,213 61,224,608 Deferred Inflows of Resources Deferred Inflow of Leases 4,030,632 4,176,708 - - 4,030,632 4,176,708 Deferred Inflow of Pension and OPEB 643,787 540,000 156,348 131,143 800,135 671,143 Total Deferred Inflows of Resources 4,674,419 4,716,708 156,348 131,143 4,830,767 4,847,851 Net Position Net Investment in Capital Assets 53,772,849 51,213,286 33,001,489 29,384,974 86,774,338 80,598,260 Restricted 20,560,201 17,969,683 5,729,121 6,126,243 26,289,322 24,095,926 Unrestricted 13,402,549 16,277,462 17,808,579 21,418,673 31,211,128 37,696,135 Total Net Position 87,735,599$ 85,460,431$ 56,539,189$ 56,929,890$ 144,274,788$ 142,390,321$ Business-Type Governmental Activities Activities Total 57 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 8 Statement of Changes in Net Position The following table reflects the Statement of Changes in Net Position for the current and prior year. For more detailed information, see the Statement of Activities on page 18. As a result of the current year’s activities, the government’s total net position increased by $1,884,467 or 1.32% from the prior year. The previous fiscal year, 2021, net position increased by $2,977,199. Governmental activities increased net position by $2,275,168 in fiscal year 2023 compared to an increase of $2,912,644 in 2022. The increase in net position for fiscal year 2023 is less than the prior year’s increase, primarily due to the change in the compensated absences liability. Business-type activities decreased net position by ($390,701) in fiscal year 2023 compared to an increase of $64,555 in 2022. The decrease in net position in fiscal year 2023 is less than the prior fiscal year’s increase, primarily due to an increase in expenses for salaries and benefits, materials and supplies and other operating expenses in the Water and Sewer Utility Fund. Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business-type activities, as well as the revenue “source” for each. Additional information regarding the changes in fund balance of the governmental and business -type activities can be found in the section entitled Financial Analysis of the Government’s Funds on page 11. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph, the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income, or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. 58 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 9 Changes in Net Position for the year ended September 30: 2023 2022 2023 2022 2023 2022 Revenues Program Revenues: Charges for Services 7,055,668$ 7,008,691$ 14,750,324$ 14,245,009$ 21,805,992$ 21,253,700$ Operating Grants and Contributions - 9,261 - 488 - 9,749 Capital Grants and Contributions 3,901,648 4,059,858 750,655 686,458 4,652,303 4,746,316 General Revenues: Property Taxes 7,391,163 6,628,699 - - 7,391,163 6,628,699 Utility Taxes 5,297,021 4,862,491 - - 5,297,021 4,862,491 Business Tax Receipts 164,766 88,511 - - 164,766 88,511 Intergovernmental - Unrestricted 5,147,878 5,044,297 - - 5,147,878 5,044,297 Investment Income and Miscellaneous 2,816,058 (239,859) 1,323,576 (584,595) 4,139,634 (824,454) Total Revenues 31,774,202 27,461,949 16,824,555 14,347,360 48,598,757 41,809,309 Expenses General Government 8,803,658 5,487,492 - - 8,803,658 5,487,492 Public Safety 8,275,138 7,468,110 - - 8,275,138 7,468,110 Physical Environment 9,383,755 8,600,747 - - 9,383,755 8,600,747 Culture and Recreation 3,272,041 3,025,734 - - 3,272,041 3,025,734 Interest on Long-Term Debt 468,506 513,924 - - 468,506 513,924 Water and Sewer - - 13,248,653 11,018,402 13,248,653 11,018,402 Development Services - - 1,534,424 1,315,827 1,534,424 1,315,827 Stormwater - - 1,728,115 1,401,874 1,728,115 1,401,874 Total Expenses 30,203,098 25,096,007 16,511,192 13,736,103 46,714,290 38,832,110 Excess (Decrease) in Net Position Before Transfers 1,571,104 2,365,942 313,363 611,257 1,884,467 2,977,199 Transfers 704,064 546,702 (704,064) (546,702) - - Increase (Decrease) in Net Position 2,275,168 2,912,644 (390,701) 64,555 1,884,467 2,977,199 Net Position, Beginning 85,460,431 82,547,787 56,929,890 56,865,335 142,390,321 139,413,122 Net Position, Ending 87,735,599$ 85,460,431$ 56,539,189$ 56,929,890$ 144,274,788$ 142,390,321$ Business-Type Governmental Activities Total 59 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 10 60 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 11 Financial Analysis of the Government’s Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City of Winter Springs’ governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs’ financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. 61 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 12 As of September 30, 2023, the City of Winter Springs’ governmental funds reported combined ending fund balances of $44,087,255, an increase of $1,537,313 over the prior year. Approximately 19%, or $8,544,161, 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 $8,575,434, while total fund balance was $10,105,021. 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 45% and 53%, respectively, of total General Fund expenditures. The increase in fund balance of $782,878 is primarily the result of increased taxes. The Road Improvements Special Revenue Fund balance decreased ($441,217) due to an increase in capital expenditures for on-going projects. The Solid Waste/Recycling Special Revenue Fund net position decreased by ($1,084,537). This decrease is primarily due to a reduction in transfers in from the General Fund. The American Recovery Plan Act Special Revenue Fund net position increased by $674,244. This increase is primarily due to investment gains relating to market performance. 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 $16,283,073, and total net position increased by $435,433 to $41,937,636. The increase in net position in fiscal year 2023 is less than the prior fiscal year’s increase, primarily due to increases in salaries and benefits, materials and supplies and other operating expenses greater than increases in revenues. The Development Services Fund net position decreased as a result of current year activities by ($331,902) to $5,591,631 at the end of the fiscal year. The decrease in net position is less than the prior fiscal year’s decrease due to an increase in investment performance. The Stormwater Utility Fund net position decreased as a result of current fiscal year activities by ($494,232) to $9,009,922 at the end of the fiscal year. This decrease in net position in fiscal year 2023 is more than the prior fiscal year’s decrease, primarily due to increases in materials and supplies and other operating expenses. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in an increase to appropriate to fund balance of $88,619. 62 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 13 The actual results of the General Fund for the year show an appropriation to fund balance of $782,878 compared to a final budgeted appropriation to fund balance of $116,020. The favorable variance of $666,858 is comprised of favorable revenue and expenditure variances. The favorable expenditure variance of $452,483 is displayed in the departmental cost centers below: Executive $ 12,312 General Government 13,989 Finance and Administrative Services 108,780 Information Services (280,550) Community Development 28,386 Police (416,804) Public Works 52,760 Parks and Recreation 28,644 Total $ 452,483 This favorable variance is represented by the following expenditure categories as both amounts and percentages of budget: Payroll $ 176,047 0.95% Other Operating 744,142 4.00% Capital (467,706) -2.51% Total $ 452,483 The comparison of budgeted results to actual results for the General Fund is shown on page 23. Capital Asset and Debt Administration Capital Assets The City of Winter Springs’ investment in capital assets for its governmental and business -type activities as of September 30, 2023, amounts to $100,044,726 (net of accumulated depreciation), for an increase of $5,459,346 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total increase in the City of Winter Springs’ investment in capital assets for the current fiscal year was 5.77% (a 5.17% increase for governmental activities, and a 6.58% increase for business-type activities). Major capital asset events during the current fiscal year included the following: • The purchases: • Replacement of Civic Center AC system at a cost of $27,109 • Purchase of laser grader for parks in the amount of $27,500 • New equipment for urban beautification at a cost of $42,194 • New equipment for pile driving in the amount of $14,000 • New double drum compactor for public works in the amount of $53,273 • New vehicles for the police department at a cost of approximately $620,182 • New trucks for the parks department at a cost of approximately $128,964 • Replacement of Civic Center roof at approximately $49,900 63 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 14 • Purchase of used sewer & vac truck in the amount of $325,000 • Purchase of generators for lift stations in the amount of $203,255 • Acquisition of mobile pump for lift stations at a cost of $138,703 • New truck for meter reader in the amount of $23,817 • Relining of pipes for the water and sewer operations at a cost of approximately $106,193 • Relining of pipes for the stormwater utility operations at a cost of approximately $312,182 • Reconstruction of underdrains for stormwater system at a cost of approximately $101,319 • The completion and capitalization of the following projects: • Pickleball restrooms in the amount $155,070 • New restrooms on Flamingo Ave at Torasco Park at a cost of $160,851 • Central Winds Park maintenance shed and storage shed at a cost of $166,923 • Tuskawilla Road and drainage repairs in the amount of $184,778 • Bridge and road emergency repairs from Hurricane Ian at a cost of $1,002,888 • Shore Road emergency repairs at a cost of $198,342 • Wade Street emergency repairs at a cost of $162,460 • Torasco Boardwalk at a cost of approximately $108,795 • Central Winds Park baseball field parking lot at a cost of approximately $42,570 • Central Winds Park electrical upgrades in the amount of $41,774 • Trotwood Park curb replacements in the amount of $26,699 • Resurfacing streets throughout the City at a cost of approximately $1,809,939 • Wastewater emergency repairs at a cost of approximately $2,790,960 • East and West Plan influent screens at a cost of $121,203 • Water Well 2, 3, and 4 rehab at a total cost of $72,406 • Beginning and continued construction on the following projects: • Tuscawilla Crossing reclaimed extension at a cost of approximately $3,100,000 • Lake Jessup Overlook, including pickleball, at a cost of approximately $2,500,000 • Winding Hollow turn lane at a cost of approximately $1,500,000 • Traffic signal at Michael Blake boulevard and state road 434 at a cost of approximately $500,000 Additional information on the City of Winter Springs’ capital assets can be found in Note 6 on pages 4 7- 48 of this report. 2023 2022 2023 2022 2023 2022 Land 10,341,976$ 10,341,976$ 7,170,177$ 7,170,177$ 17,512,153$ 17,512,153$ Buildings 6,871,044 6,874,011 1,248,160 1,308,931 8,119,204 8,182,942 Improvements Other Than Buildings 5,876,697 6,400,691 24,347,646 23,010,101 30,224,343 29,410,792 Machinery and Equipment 2,850,690 2,958,205 5,131,834 4,545,027 7,982,524 7,503,232 Subscription Assets 542,721 - - - 542,721 - Intangibles 1,790 5,263 50,260 77,223 52,050 82,486 Infrastructure 28,403,602 27,115,983 - - 28,403,602 27,115,983 Construction in Progress 2,275,374 656,551 4,932,755 4,121,241 7,208,129 4,777,792 Total Capital Assets 57,163,894$ 54,352,680$ 42,880,832$ 40,232,700$ 100,044,726$ 94,585,380$ Business-Type Governmental Activities Activities Total 64 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 15 Long-Term Debt At September 30, 2023, the City of Winter Springs had total debt outstanding of $25,976,401, a decrease of $2,380,426 from $28,356,827 at September 30, 2022. Total bonded debt of the City at the end of the current fiscal year was $4,838,691. This amount does not include accreted interest of $13,301,129. The City of Winter Springs’ bonded debt represents bonds and notes are secured solely by specified revenue sources. There are no limitations placed on the amount of debt the City may issue either by the City’s charter, code of ordinances, or by the Florida State Statutes. Additional information on the City’s long-term debt can be found in Note 7 on pages 48-51 of this report. The above information does not include the interfund loan balances related to the repayment of the general obligation note. Economic Factors and Next Year’s Budgets and Rates Through conservative fiscal policies and aggressive budget oversight, the Interim City Manager and City Commission have maintained the operating millage rate at 2.4100 since fiscal year 2021 and continue to maintain that rate in fiscal year 2024. The gross property tax values in Winter Springs increased in fiscal year 2023 by 10.8% and have increased by approximately 9.2% in fiscal year 2024. In May 2014, a county- wide precinct referendum resulted in an additional 1% local government infrastructure sales surtax, which will largely be utilized for transportation related to infrastructure improvements. The surtax is expected to result in $2.0 million in additional revenues each year and expires in December 2024. An additional extension will be on the November 2024 ballot and will be determined by the taxpayers. The General Fund’s fiscal year 2023 adopted an expenditure budget of $20,079,653 (inclusive of transfers) that marked an increase of 7.2% from the previous year. For fiscal year 2024, the adopted expenditure budget is $24,137,122, an increase of 20.2% from fiscal year 2023. The total combined expenditure budget of fiscal year 2024 of $72,731,493 (inclusive of transfers) is $19,987,463 or 27.8% more than the adopted budget of fiscal year 2023. 2023 2022 2023 2022 2023 2022 Improvement Refunding Revenue Bonds, Series 1999 1,964,635$ 2,315,528$ -$ -$ 1,964,635$ 2,315,528$ Water and Sewer Refund Revenue Bonds, Series 2000 - - 2,874,056 3,396,694 2,874,056 3,396,694 Special Assessment Revenue Notes, Series 2011 831,298 831,298 - - 831,298 831,298 Revenue Refunding Note Series 2020 - - 2,748,956 2,794,956 2,748,956 2,794,956 State Revolving Fund Loans - - 4,256,327 4,544,276 4,256,327 4,544,276 Accreted Interest Payable 5,419,530 5,907,407 7,881,599 8,566,668 13,301,129 14,474,075 Total Long-Term Debt 8,215,463$ 9,054,233$ 17,760,938$ 19,302,594$ 25,976,401$ 28,356,827$ Business-Type Governmental Activities Activities Total 65 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2023 16 Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs’ finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida 32708. The Annual Comprehensive Financial Report is also available at the City of Winter Springs’ website located at www.winterspringsfl.org. 66 BASIC FINANCIAL STATEMENTS 67 Governmental Business-Type Activities Activities Total Assets Cash and Cash Equivalents 3,324,014$ 1,771,620$ 5,095,634$ Investments 61,144,019 31,522,276 92,666,295 Receivables, Net 250,162 550,175 800,337 Due from Other Government - 552,056 552,056 Lease Receivable 4,351,595 - 4,351,595 Inventories, at Cost 16,782 47,198 63,980 Prepaid Costs 442,872 24,424 467,296 Restricted Assets: Cash and Cash Equivalents 256,323 898,088 1,154,411 Receivables, Long-Term 771,299 - 771,299 Capital Assets: Capital Assets Not Being Depreciated 12,617,350 12,102,932 24,720,282 Capital Assets Being Depreciated, Net of Accumulated Depreciation 44,546,544 30,777,900 75,324,444 Total Assets 127,720,960 78,246,669 205,967,629 Deferred Outflows of Resources Deferred Charge on Refunding - 7,382 7,382 Deferred Outflow of Pension and OPEB 3,493,367 848,390 4,341,757 Total Deferred Outflows of Resource 3,493,367 855,772 4,349,139 Liabilities Accounts Payable and Accrued Expenses 2,352,206 2,080,320 4,432,526 Due to Other Governments 312,961 - 312,961 Unearned Revenue 18,752,839 - 18,752,839 Retainage Payable 77,689 - 77,689 Accrued Interest Payable - 32,580 32,580 Liabilities Payable from Restricted Assets 135,795 638,014 773,809 Non-Current Liabilities: Due Within One Year 1,704,664 2,323,622 4,028,286 Due in More than One Year 15,468,155 17,332,368 32,800,523 Total Liabilities 38,804,309 22,406,904 61,211,213 Deferred Inflows of Resources Deferred Inflows of Leases 4,030,632 - 4,030,632 Deferred Inflows of Pension and OPEB 643,787 156,348 800,135 Total Deferred Inflows of Resources 4,674,419 156,348 4,830,767 Net Position Net Investment in Capital Assets 53,772,849 33,001,489 86,774,338 Restricted for: Capital Projects 6,537,333 - 6,537,333 Renewal and Replacement - 563,875 563,875 Building Fund - 5,165,246 5,165,246 Physical Environment 13,857,399 - 13,857,399 Public Safety 165,469 - 165,469 Unrestricted 13,402,549 17,808,579 31,211,128 Total Net Position 87,735,599$ 56,539,189$ 144,274,788$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2023 See accompanying notes. 17 68 Operating Capital Business- Charges for Grants and Grants and Governmental Type Function/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government Governmental Activities: General Government 8,803,658$ 3,005,327$ -$ -$ (5,798,331)$ -$ (5,798,331)$ Public Safety 8,275,138 225,450 - 27,291 (8,022,397) - (8,022,397) Physical Environment 9,383,755 3,528,713 - 3,774,457 (2,080,585) - (2,080,585) Culture and Recreation 3,272,041 296,178 - 99,900 (2,875,963) - (2,875,963) Interest on Long-Term Debt 468,506 - - - (468,506) - (468,506) Total Governmental Activities 30,203,098 7,055,668 - 3,901,648 (19,245,782) - (19,245,782) Business-Type Activities: Water and Sewer 13,248,653 12,616,106 - 750,655 - 118,108 118,108 Development Services 1,534,424 997,054 - - - (537,370) (537,370) Stormwater 1,728,115 1,137,164 - - - (590,951) (590,951) Total Business-Type Activities 16,511,192 14,750,324 - 750,655 - (1,010,213) (1,010,213) Total Primary Government 46,714,290$ 21,805,992$ -$ 4,652,303$ (19,245,782) (1,010,213) (20,255,995) General Revenues Property Taxes 7,391,163 - 7,391,163 Utility Taxes 5,297,021 - 5,297,021 Business Tax Receipts 164,766 - 164,766 Intergovernmental - Unrestricted 5,147,878 - 5,147,878 Investment Income/(Loss) and Miscellaneous 2,816,058 1,323,576 4,139,634 Transfers 704,064 (704,064) - Total General Revenues and Transfers 21,520,950 619,512 22,140,462 Changes in Net Position 2,275,168 (390,701) 1,884,467 Net Position, Beginning of Year 85,460,431 56,929,890 142,390,321 Net Position, End of Year 87,735,599$ 56,539,189$ 144,274,788$ CITY OF WINTER SPRINGS, FLORIDA Program Revenue Net (Expense) Revenue and Changes in Net Position Primary Government FOR THE YEAR ENDED SEPTEMBER 30, 2023 STATEMENT OF ACTIVITIES See accompanying notes. 18 69 Road American Other Total General Improvements Solid Waste/Recovery Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Assets Cash and Cash Equivalents 362,272$ 503,761$ 103,087$ 1,023,692$ 1,331,202$ 3,324,014$ Investments 10,631,679 8,963,883 1,834,313 18,215,485 21,498,659 61,144,019 Receivable, Net 116,625 - 131,634 - 1,903 250,162 Leases Receivable 4,351,595 - - - - 4,351,595 Inventories, at Cost 16,782 - - - - 16,782 Prepaids 441,372 - - - 1,500 442,872 Special Assessments Receivable - - - - 771,299 771,299 Advances to Other Funds 126,950 - - - - 126,950 Restricted Assets: Cash and Cash Equivalents 135,795 - - - 120,528 256,323 Total Assets 16,183,070 9,467,644 2,069,034 19,239,177 23,725,091 70,684,016 Liabilities and Fund Balances Liabilities Accounts Payable 506,034 423,648 252,775 - 264,089 1,446,546 Accrued Liabilities 905,660 - - - - 905,660 Unearned Revenue 72,888 - - 18,679,951 - 18,752,839 Retainage Payable 77,689 - - - - 77,689 Advances from Other Funds - - - - 126,950 126,950 Due to Other Governments 312,961 - - - - 312,961 Payable from Restricted Assets 135,795 - - - - 135,795 Total Liabilities 2,011,027 423,648 252,775 18,679,951 391,039 21,758,440 Deferred Inflows of Resources Deferred Inflows from Leases 4,030,632 - - - - 4,030,632 Unavailable Revenue - Other 36,390 - - - - 36,390 Unavailable Revenue - Special Assessments - - - - 771,299 771,299 Total Deferred Inflows of Resources 4,067,022 - - - 771,299 4,838,321 Fund Balances Non-Spendable 585,104 - - - 1,500 586,604 Restricted - 9,043,996 - - 11,516,205 20,560,201 Committed - - - - 4,073,008 4,073,008 Assigned 944,483 - 1,816,259 559,226 7,003,313 10,323,281 Unassigned 8,575,434 - - - (31,273) 8,544,161 Total Fund Balances 10,105,021 9,043,996 1,816,259 559,226 22,562,753 44,087,255 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 16,183,070$ 9,467,644$ 2,069,034$ 19,239,177$ 23,725,091$ 70,684,016$ Special Revenue SEPTEMBER 30, 2023 GOVERNMENTAL FUNDS BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA See accompanying notes. 19 70 Total Fund Balance, Governmental Funds 44,087,255$ Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.57,163,894 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.807,689 Deferred inflows and outflows of resources related to pension and OPEB are not recognized in the governmental funds; however, they are recorded in net position under full accrual accounting.2,849,581 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.(9,907,615) Net pension liabilities and other postemployment benefit liabilities are not available in the current period and, therefore, are not reported in the funds.(7,265,205) Net Position of Governmental Activities in the Statement of Net Position 87,735,599$ CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2023 See accompanying notes. 20 71 Road American Other Total General Improvements Solid Waste/Recovery Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Revenues Taxes: Property Taxes 7,391,163$ -$ -$ -$ -$ 7,391,163$ Utility Taxes 5,297,021 - - - - 5,297,021 Business Tax Receipts 164,766 - - - - 164,766 Permits and Fees 2,821,481 - - - 1,504 2,822,985 Intergovernmental Revenues 5,086,414 3,075,652 61,464 - 596,434 8,819,964 Charges for Services 762,122 - 2,663,862 - - 3,425,984 Fines and Forfeitures 97,181 - - - 131,898 229,079 Impact Fees/Assessments - - - - 873,877 873,877 Investment Income/(Loss)676,874 356,067 85,271 674,244 747,965 2,540,421 Miscellaneous 268,267 - - - 7,372 275,639 Total Revenues 22,565,289 3,431,719 2,810,597 674,244 2,359,050 31,840,899 Expenditures Current: General Government 6,801,888 - - - 10,741 6,812,629 Public Safety 7,147,149 - - - 33,198 7,180,347 Physical Environment 1,041,474 418,721 3,895,134 - 1,300,613 6,655,942 Culture and Recreation 2,253,722 - - - - 2,253,722 Debt Service: Principal 150,312 - - - 350,893 501,205 Interest and Fiscal Charges 10,233 - - - 938,720 948,953 Capital Outlay: General Government 279,227 - - - 6,645 285,872 Public Safety 1,039,369 - - - - 1,039,369 Physical Environment 30,687 3,454,215 - - 77,733 3,562,635 Culture and Recreation 260,151 - - - 2,174,562 2,434,713 Total Expenditures 19,014,212 3,872,936 3,895,134 - 4,893,105 31,675,387 Excess (Deficiency) of Revenues Over Expenditures 3,551,077 (441,217) (1,084,537) 674,244 (2,534,055) 165,512 Other Financing Sources (Uses) Transfers In 764,064 - - - 4,140,000 4,904,064 Transfers (Out)(4,200,000) - - - - (4,200,000) Proceeds from Subscriptions 667,737 - - - - 667,737 Total Other Financing Sources (Uses)(2,768,199) - - - 4,140,000 1,371,801 Net Change in Fund Balances 782,878 (441,217) (1,084,537) 674,244 1,605,945 1,537,313 Fund Balances, Beginning of Year 9,322,143 9,485,213 2,900,796 (115,018) 20,956,808 42,549,942 Fund Balances, End of Year 10,105,021$ 9,043,996$ 1,816,259$ 559,226$ 22,562,753$ 44,087,255$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 Special Revenue AND CHANGES IN FUND BALANCES See accompanying notes. 21 72 Net Change in Fund Balances - Total Governmental Funds 1,537,313$ 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 amount is the net effect of the difference between capital outlays and depreciation.2,811,214 Some revenues reported in the statement of activities do no provide current financial resources and therefore are not reported as revenues in governmental funds.35,636 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on the net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.(166,532) The payment of accreted interest that was recognized in a prior year is not reported as an expense on the statement of activities.924,107 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year.(102,332) Cash pension contributions reported in the funds differed from the calculated pension expense on the statement of activities and, therefore, changed net position.(1,695,136) Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in the governmental funds.(1,069,102) Change in Net Position of Governmental Activities 2,275,168$ CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE YEAR ENDED SEPTEMBER 30, 2023 STATEMENT OF ACTIVITIES See accompanying notes. 22 73 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Property Taxes 7,354,324$ 7,414,324$ 7,391,163$ (23,161)$ Utility Taxes 4,641,760 5,351,760 5,297,021 (54,739) Business Tax Receipts 102,000 177,000 164,766 (12,234) Permits and Fees 2,372,172 2,802,172 2,821,481 19,309 Intergovernmental Revenues 3,921,224 5,101,224 5,086,414 (14,810) Charges for Services 558,689 699,108 762,122 63,014 Fines and Forfeitures 100,500 100,500 97,181 (3,319) Investment Income/(Loss)76,250 206,250 676,874 470,624 Miscellaneous 200,277 245,554 268,267 22,713 Total Revenues 19,327,196 22,097,892 22,565,289 467,397 Expenditures Current: General Government: Executive 690,077 690,077 677,765 12,312 General Government*(63,756) 61,244 47,255 13,989 Finance and Administrative Services 1,513,153 1,536,153 1,427,373 108,780 Information Services 2,716,734 2,999,456 3,280,006 (280,550) Community Development 2,132,447 1,762,447 1,734,061 28,386 Public Safety: Police 7,740,559 7,844,914 8,261,718 (416,804) Physical Environment: Public Works 1,232,921 1,124,921 1,072,161 52,760 Culture and Recreation: Parks and Recreation 2,842,517 2,542,517 2,513,873 28,644 Total Expenditures 18,804,652 18,561,729 19,014,212 (452,483) Excess (Deficiency) of Revenues Over Expenditures 522,544 3,536,163 3,551,077 14,914 Other Financing Sources (Uses) Transfers In 779,858 779,858 764,064 (15,794) Transfers (Out)(1,275,001) (4,200,001) (4,200,000) 1 SBITAs - - 667,737 667,737 Total Other Financing Sources (495,143) (3,420,143) (2,768,199) 651,944 Net Change in Fund Balances 27,401 116,020 782,878 666,858 - Fund Balances, Beginning of Year 9,042,979 9,551,171 9,322,143 (229,028) Fund Balances, End of Year 9,070,380$ 9,667,191$ 10,105,021$ 437,830$ *The City budgets central service costs paid by the Enterprise Funds to the General Fund through the General Government department. Periodically, this will result in the department reporting a negative actual expense (revenue). Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 23 74 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 2,660,169$ 2,660,169$ 3,075,652$ 415,483$ Investment Income/(Loss)100,000 100,000 356,067 256,067 Total Revenues 2,760,169 2,760,169 3,431,719 671,550 Expenditures Current: Physical Environment 25,000 25,000 418,721 (393,721) Capital Outlay: Physical Environment 2,738,380 4,133,524 3,454,215 679,309 Total Expenditures 2,763,380 4,158,524 3,872,936 285,588 Net Change in Fund Balances (3,211) (1,398,355) (441,217) 957,138 Fund Balances, Beginning of Year 6,289,605 9,756,470 9,485,213 (271,257) Fund Balances, End of Year 6,286,394$ 8,358,115$ 9,043,996$ 685,881$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ROAD IMPROVEMENTS SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 24 75 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 61,320$ 61,320$ 61,464$ 144$ Charges for Services 3,182,261 2,645,674 2,663,862 18,188 Investment Income/(Loss)20,158 20,158 85,271 65,113 Miscellaneous 1,600 1,600 - (1,600) Total Revenues 3,265,339 2,728,752 2,810,597 81,845 Expenditures Current: Physical Environment 3,259,646 3,897,646 3,895,134 2,512 Total Expenditures 3,259,646 3,897,646 3,895,134 2,512 Net Change in Fund Balances 5,693 (1,168,894) (1,084,537) 84,357 Fund Balances, Beginning of Year 1,907,320 2,969,698 2,900,796 (68,902) Fund Balances, End of Year 1,913,013$ 1,800,804$ 1,816,259$ 15,455$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SOLID WASTE/RECYCLING SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 25 76 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)110,000$ 110,000$ 674,244$ 564,244$ Total Revenues 110,000 110,000 674,244 564,244 Expenditures Current: Physical Environment 1,350,000 1,000,000 - 1,000,000 Total Expenditures 1,350,000 1,000,000 - 1,000,000 Excess (Deficiency) of Revenues Over Expenditures (1,240,000) (890,000) 674,244 1,564,244 Other Financing Sources (Uses) Transfers (Out)(15,800) (15,800) - 15,800 Net Change in Fund Balances (1,255,800) (905,800) 674,244 1,580,044 Fund Balances, Beginning of Year 18,687,851 18,804,403 (115,018) (18,919,421) Fund Balances, End of Year 17,432,051$ 17,898,603$ 559,226$ (17,339,377)$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL AMERICAN RECOVERY PLAN ACT SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 26 77 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Assets Current Assets: Cash and Cash Equivalents 1,390,738$ 287,599$ 93,283$ 1,771,620$ Investments 24,746,664 5,115,735 1,659,877 31,522,276 Receivables, Net 503,603 - 46,572 550,175 Due from Other Governments 552,056 - - 552,056 Inventories 47,198 - - 47,198 Prepaid Expenses 24,424 - - 24,424 Total Current Assets 27,264,683 5,403,334 1,799,732 34,467,749 Non-Current Assets: Restricted Cash and Cash Equivalents 898,088 - - 898,088 Capital Assets: Land, Buildings and Equipment 81,409,078 458,067 14,741,221 96,608,366 Construction in Progress 3,951,550 260,867 720,338 4,932,755 Less Accumulated Depreciation (50,390,597) (292,549) (7,977,143) (58,660,289) Total Capital Assets (Net of Accumulated Depreciation 34,970,031 426,385 7,484,416 42,880,832 Total Non-Current Assets 35,868,119 426,385 7,484,416 43,778,920 Total Assets 63,132,802 5,829,719 9,284,148 78,246,669 Deferred Outflows of Resources Deferred Charge on Refunding 7,382 - - 7,382 Deferred Outflow Pension and OPEB 548,958 149,716 149,716 848,390 Total Deferred Outflows Resources 556,340 149,716 149,716 855,772 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2023 Business-Type Activities - Enterprise Funds See accompanying notes. 27 78 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Liabilities Current Liabilities: Accounts Payable 1,966,068$ 22,871$ 57,321$ 2,046,260$ Accrued Liabilities - 16,429 17,631 34,060 Compensated Absences - Current 16,659 1,432 1,505 19,596 Customer Deposits Payable 638,014 - - 638,014 Notes Payable - Current 429,026 - - 429,026 Revenue Bonds Payable - Current 490,931 - - 490,931 Accreted Interest Payable - Current 1,384,069 - - 1,384,069 Accrued Interest Payable 32,580 - - 32,580 Total Current Liabilities 4,957,347 40,732 76,457 5,074,536 Non-Current Liabilities: Notes Payable 6,576,257 - - 6,576,257 Revenue Bonds Payable 2,383,125 - - 2,383,125 Accreted Interest Payable 6,497,530 - - 6,497,530 Compensated Absences 94,406 8,115 8,528 111,049 Other Post-Employment Benefits 104,691 28,552 28,550 161,793 Net Pension Liability 1,036,984 282,814 282,816 1,602,614 Total Non-Current Liabilities 16,692,993 319,481 319,894 17,332,368 Total Liabilities 21,650,340 360,213 396,351 22,406,904 Deferred Inflows of Resources Deferred Inflow of Pension and OPEB 101,166 27,591 27,591 156,348 Total Deferred Inflows of Resources 101,166 27,591 27,591 156,348 Net Position Net Investment in Capital Assets 25,090,688 426,385 7,484,416 33,001,489 Restricted for: Renewal and Replacement 563,875 - - 563,875 Building Fund - 5,165,246 - 5,165,246 Unrestricted 16,283,073 - 1,525,506 17,808,579 Total Net Position 41,937,636$ 5,591,631$ 9,009,922$ 56,539,189$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2023 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 28 79 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Operating Revenues User Charges 12,616,106$ 997,054$ 1,137,164$ 14,750,324$ Total Operating Revenues 12,616,106 997,054 1,137,164 14,750,324 Operating Expenses Salaries and Benefits 1,831,838 570,900 348,413 2,751,151 Materials and Supplies 1,735,324 7,378 449,442 2,192,144 Depreciation and Amortization 2,197,130 26,155 436,343 2,659,628 Other Operating Expenses 6,737,010 929,991 493,917 8,160,918 Total Operating Expenses 12,501,302 1,534,424 1,728,115 15,763,841 Operating Income (Loss)114,804 (537,370) (590,951) (1,013,517) Non-Operating Revenue (Expenses) Investment Income/(Loss)1,041,389 205,468 76,719 1,323,576 Interest Expense (80,057) - - (80,057) Accreted Interest Expense (667,294) - - (667,294) Capital Grants 552,056 - - 552,056 Total Non-Operating Revenue (Expenses)846,094 205,468 76,719 1,128,281 Income (Loss) Before Contributions and Transfers 960,898 (331,902) (514,232) 114,764 Other Financing Sources (Uses) Capital Contributions: Connection Fees 198,599 - - 198,599 Transfers In 40,000 - 20,000 60,000 Transfers (Out)(764,064) - - (764,064) Total Other Financing Sources (Uses)(525,465) - 20,000 (505,465) Change in Net Position 435,433 (331,902) (494,232) (390,701) Net Position, Beginning of Year 41,502,203 5,923,533 9,504,154 56,929,890 Net Position, End of Year 41,937,636$ 5,591,631$ 9,009,922$ 56,539,189$ AND CHANGES IN FUND NET POSITION Business-Type Activities - Enterprise Funds CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 29 80 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Cash Flows from Operating Activities Receipts from Customers 12,055,125$ 997,054$ 1,145,874$ 14,198,053$ Payments to Suppliers (8,155,087) (937,570) (947,454) (10,040,111) Payments to Employees (1,556,944) (503,131) (277,087) (2,337,162) Net Cash Provided (Used) by Operating Activities 2,343,094 (443,647) (78,667) 1,820,780 Cash Flows from Non-Capital Financing Activities Transfers In 40,000 - 20,000 60,000 Transfers (Out)(764,064) - (764,064) Grants 552,056 - - 552,056 Net Cash Provided (Used) by Non-Capital Financing Activities (172,008) - 20,000 (152,008) Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets (4,634,321) (71,687) (601,721) (5,307,729) Principal Paid (856,586) - - (856,586) Interest Paid (1,408,601) - - (1,408,601) Connection Fees 198,599 - - 198,599 Net Cash Provided (Used) by Capital and Related Financing Activities (6,700,909) (71,687) (601,721) (7,374,317) Cash Flows from Investing Activities Sale (Purchase) of Investments (87,123) (65,932) 405,644 252,589 Investment Income 1,041,389 205,468 76,719 1,323,576 Net Cash Provided (Used) by Investing Activities 954,266 139,536 482,363 1,576,165 Net Increase (Decrease) in Cash and Cash Equivalents (3,575,557) (375,798) (178,025) (4,129,380) Cash and Cash Equivalents, Beginning of Year 5,864,383 663,397 271,308 6,799,088 Cash and Cash Equivalents, End of Year 2,288,826$ 287,599$ 93,283$ 2,669,708$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 Business-Type Activities - Enterprise Funds See accompanying notes. 30 81 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss)114,804$ (537,370)$ (590,951)$ (1,013,517)$ Adjustments Not Affecting Cash: Depreciation and Amortization 2,197,130 26,155 436,343 2,659,628 Change in Assets and Liabilities: Decrease (Increase) in Accounts Receivable (540,550) - 8,710 (531,840) Decrease (Increase) in Inventories (5,586) - - (5,586) Decrease (Increase) in Prepaid Expenses (10,954) - - (10,954) Decrease (Increase) in Deferred Outflows 222,150 60,587 60,587 343,324 Increase (Decrease) in Accounts Payable 333,791 (201) (4,098) 329,492 Increase (Decrease) in Accrued Liabilities (57,522) (6,006) (5,026) (68,554) Increase (Decrease) in Customer Deposits (20,431) - - (20,431) Increase (Decrease) in Accrued Compensated Absences 75,161 3,615 6,195 84,971 Increase (Decrease) in Deferred Inflows 16,309 4,448 4,448 25,205 Increase (Decrease) in Net Pension Liability/Asset 50,781 13,849 13,849 78,479 Increase (Decrease) in Net OPEB Liability (31,989) (8,724) (8,724) (49,437) Total Adjustments 2,228,290 93,723 512,284 2,834,297 Net Cash Provided (Used) by Operating Activities 2,343,094$ (443,647)$ (78,667)$ 1,820,780$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 31 82 Defined Benefit Pension Trust Fund Assets Cash and Cash Equivalents 771,628$ Contributions Receivable 493,834 Investments, at Fair Value: Common Funds, Equity 44,746,050 Common Funds, Bonds 13,958,721 Other Investments 6,397,596 Total Investments 65,102,367 Total Assets 66,367,829 Net Position Net Position Restricted for Pensions 66,367,829$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2023 See accompanying notes. 32 83 Defined Benefit Pension Trust Fund Additions Contributions: Employer 2,492,912$ Plan Members 206,423 Total Contributions 2,699,335 Investment Income: Net Increase (Decrease) in Fair Value of Investments 6,083,198 Interest 835,315 Investment-Related Expenses (242,136) Net Investment Income 6,676,377 Total Additions 9,375,712 Deductions Benefits 4,760,493 Administrative Expenses 34,871 Other Expenses 11,598 Total Deductions 4,806,962 Change in Net Position 4,568,750 Net Position, Beginning of Year 61,799,079 Net Position, End of Year 66,367,829$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 See accompanying notes. 33 84 NOTES TO FINANCIAL STATEMENTS 85 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 34 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 i n some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from busi ness-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. 86 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 35 Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of t he 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 Section 212.055, Florida Statutes. • Solid Waste/Recycling Special Revenue Fund - accounts for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are committed to pay monthly vendor charges for providing solid waste and recycling services. • American Rescue Plan Act (ARPA) Fund - accounts for the collection and expenditures of the Coronavirus State and Local Recovery Funds, a part of the ARPA.  Non-Major Governmental Fund Types • Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects. 87 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 36 • 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 - used to account for the operations of the City’s building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. • Stormwater Utility Fund - used to account for the City’s operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges.  Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are other charges between the City’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s water, sewer, and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 88 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 37 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 Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a non-spendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. Inventories and Prepaid Items All inventories are valued at cost using the average cost 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. Leases As described further in Note 16, the City is a lessor for non-cancellable leases of its cell towers. In accordance with both agreements, the City recognizes a lease receivable and deferred inflow of resources. The City recognizes lease receivables for leases with a term greater than 12 months. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured 89 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 38 as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and receivable if certain changes occur that are expected to significantly affect the amount of the lease receivable. Subscription-Based Information Technology Arrangements As described further in Note 17, the City is party to two subscription-based information technology arrangements (SBITAs). The City recognizes both a subscription asset and a related subscription liability for arrangements with terms greater than 12 months. At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be paid during the lease term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments received at or before commencement. Subsequently, the subscription asset is amortized as depreciation expense over the life of the arrangement term. The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure the subscription asset and subscription liability if certain changes occur that are expected to significantly affect the arrangement. Restricted Assets Certain proceeds of the City’s enterprise fund revenue bonds and notes, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the statement of net position. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is expensed as incurred. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Years Buildings 30 Improvements 20-50 Infrastructure 30-50 Intangible Assets 3-10 Equipment 3-10 90 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 39 Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences, other postemployment benefits (OPEB), and net pension liability are generally liquidated by the General Fund. Long-Term Obligations In the government-wide financial statements, and for proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts (including deep-discount or capital appreciation bonds) are deferred and amortized over the life of the bonds and notes using the effective interest method. Bonds payable and notes payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The deferred charge on refunding and deferred outflows of pension and OPEB reported in the enterprise and government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The first, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: county taxes, special assessments, and other. The second, deferred inflows from leases, are reported in both the governmental funds balance sheet and in the government-wide statement of net position. 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. 91 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 40 Net Position Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance i n 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 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. 92 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 41 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 $ (1,964,635) Accreted Interest Payable (5,419,528) Notes Payable (831,298) Compensated Absences (1,174,729) Subscription-Based Information Technology Arrangements (517,425) Net Adjustment to Reduce Fund Balance, Total Governmental Funds to Arrive at Net Position, Governmental Activities $ (9,907,615) 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 $ 7,341,519 Depreciation Expense (4,530,305) Net Adjustment to Increase Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ 2,811,214 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 effe ct 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: SBITAs $ (667,737) Principal Repayment 501,205 Net Adjustment to Decrease Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ (166,532) 93 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 42 Another element of that reconciliation states that “some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds”. The details of this difference are as follows: Compensated Absences $ (683,518) Amortization of Loss on Refunding (7,432) Accrued Interest Payable - Other Postemployment Benefits 58,078 Accreted Interest Payable (436,230) Net Adjustment to Decrease Net Changes in Fund Balance, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ (1,069,102) Note 3 - Stewardship, Compliance, and Accountability Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year -end. The City follows the procedures set forth below in establishing the budgetary data reflected in the financial statements. 1. On or before July 1 of each year, the City Manager submits a proposed budget to the City Commission for the fiscal year beginning the following October 1. The budget includes proposed revenues, expenditures, and a description of capital activities for the ensuing fiscal year. 2. The City Commission then holds informal workshops, wherein the public is invited to attend. 3. On or before September 30 of each year, two public hearings are convened, and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 4. The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in the accompanying financial statements have been adjusted for any legally authorized revisions of the annual budgets during the year. 5. The City Manager is authorized to transfer budgeted amounts between accounts within a department. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriations among programs within one department. The legal level of budgetary control is the departmental level. Deficit Fund Balances As a result of the internal loan, the Tuscawilla Phase III Special Revenue Fund has a deficit fund balance of $31,273 at September 30, 2023. Excess of Expenditures Over Appropriations The budgetary comparison schedule for the General Fund’s Information Systems Department and Police Department had an excess of expenditures over appropriations in the amount of $280,500 and $416,804, respectively. Additionally, the following non-major governmental fund also had expenditures in excess of appropriations: Special Law Enforcement Trust Fund – Federal’s public safety function, $23,981. 94 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 43 Note 4 - Deposits and Investments Deposits All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida’s Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. Thi s limits local government deposits to “authorized depositories”. Investments The City’s investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280, Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LGIP) 2. U.S. Government Securities 3. U.S. Government Agency Securities 4. Federal Instrumentalities (U.S. Government Sponsored Agencies) 5. Interest-Bearing Time Deposit or Savings Deposit 6. Repurchase Agreements 7. Commercial Paper 8. Bankers’ Acceptances 9. State and/or Local Government and/or Tax-Exempt Debt 10. Registered Investment Companies (Money Market Mutual Funds) 11. Intergovernmental Investment Pool The City’s investment policy limits credit risk by restricting authorized investments to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poor’s (S&P) rating of Aam or Aam-G. Investments in commercial paper and bankers’ acceptances must be rated, at a minimum, “P-1” by Moody’s Investors Services and “A-1” by S&P. Investment in state and/or local government taxable and/or tax-exempt debt must be rated at least “Aa” by Moody’s and “AA” by S&P for long-term debt, or rated at least “MIG-2” by Moody’s and “SP-2” by S&P for short-term debt. Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Depositories Trust Fund, a multiple financial institution p ool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2023, all of the City’s bank deposits were in qualified public depositories. 95 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 44 For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2023, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City’s investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year, and commercial paper and bankers’ acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant inform ation generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which may include the City’s own data in measuring unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2023: Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs Investments Valued by Fair Value Fair Value (Level 1) (Level 2) Commercial Paper $ 14,484,074 $ - $ 14,484,074 U.S. Treasury Notes 29,123,017 29,123,017 - Collateralized Mortgage Obligations 869,623 - 869,623 Commercial Mortgage-Backed Securities 1,841,958 - 1,841,958 Consumer Asset Backed Securities 8,350,849 - 8,350,849 Commercial Asset Backed Securities 141,069 - 141,069 Other U.S. Credit 24,196,425 - 24,196,425 Municipal Credit 1,816,524 - 1,816,524 Federal Agency Bonds 11,842,756 - 11,842,756 $ 92,666,295 $ 29,123,017 $ 63,543,278 96 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 45 Investments held by the City at September 30, 2023, are detailed below. Weighted Average Investments Fair Value Credit Rating Maturity Commercial Paper $ 14,484,074 N/A 165 days U.S. Treasury Notes 29,123,017 AA+ 359 days Collateralized Mortgage Obligations 869,623 AA+ 337 days Commercial Mortgage-Backed Securities 1,841,958 AAA-A- 153 days Consumer Asset Backed Securities 8,350,849 AAA 953 days Commercial Asset Backed Securities 141,069 AAA 953 days Other U.S. Credit 24,196,425 AA-BBB+ 409 days Municipal Credit 1,816,524 AAA 430 days Federal Agency Bonds 11,842,756 AA+ 447 days $ 92,666,295 Investments: Pension Funds The City’s Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280, Florida Statutes. Authorized investments are: 1. Equities traded on a national exchange 2. Fixed income investments having a minimum rating of investment grade or higher as determined by at least one major credit rating service 3. Money market fund or short-term investment fund provided by the plan’s custodian 4. Real estate limited to commingled funds 5. Alternatives 6. Foreign securities limited to fully and easily negotiable securities or commingled funds with investments in such securities 7. Commingled funds/mutual funds and exchange traded funds The investments held by the City’s Pension Trust Fund at September 30, 202 3, are detailed below: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Investments Fair Value (Level 1) (Level 2) (Level 3) Equity Mutual Funds $ 44,746,050 $ 44,746,050 $ - $ - Bond Mutual Funds 13,958,721 - 13,958,721 - Real Estate Investment Trusts 5,396,946 - - 5,396,946 Other Investments 1,000,650 - 1,000,650 - Total Investments 65,102,367 $ 44,746,050 $ 14,959,371 $ 5,396,946 Cash and Cash Equivalents 771,628 Total Cash and Investments $ 65,873,995 97 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 46 Credit Risk The City’s Trust investment policy limits credit risk by restricting authorized investments to those described above. The policy requires that the investments in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backin g commercial paper, the long-term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers’ acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and/or Revenue Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a nationally recognized rating service or rated “MIG-2” or “SP-2”, for short-term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of “A1” by Standard & Poor’s (S&P) or “P1” by Moody’s Investor Services (Moody’s); fixed income securities be investment grade as measured by S&P or Moody’s; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2023, none of the Trust investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City’s Trust investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. The policy limits an individual issuer of common or capital stock to no more than 5% of the fund’s assets; the aggregate investment in any one stock issuing company to no more than 5% of the outstanding capital stock of the company; and the value of bonds issued by any single corporation to no more than 3% of the total fund. The policy limits investments in corporate common stock and convertible bonds to no more than 75% of the fund assets at market value; foreign securities to no more than 20% of fund assets at market value; and alternative investments, such as timber and real estate, to no more than 15% of the fund assets at market value. At September 30, 2023, there were no security investments in the Trust that were over their respective limitations. Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, as long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. 98 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 47 Note 5 - Receivables Receivables as of year-end for the City’s individual major funds and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance for Accounts Uncollectible Fund Receivable Accounts Net Receivable General $ 117,738 $ (1,113) $ 116,625 Solid Waste/Recycling Special Revenue 147,785 (16,151) 131,634 Other Governmental Funds 1,903 - 1,903 Water and Sewer Utility 587,105 (83,502) 503,603 Stormwater Utility 52,944 (6,372) 46,572 $ 907,475 $ (107,138) $ 800,337 There is an amount of $36,390 included in accounts receivable above in the General Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $771,299 that are not available to liquidate liabilities of the current period. These receivables are reported as deferred inflows of resources in the governmental funds balance sheet. Note 6 - Capital Assets Capital asset activity for the year ended September 30, 2023, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets, Not Being Depreciated: Land 10,341,976$ -$ -$ 10,341,976$ Construction in Progress 656,552 5,730,254 (4,111,432) 2,275,374 Total Capital Assets, Not Being Depreciated 10,998,528 5,730,254 (4,111,432) 12,617,350 Capital Assets, Being Depreciated: Buildings 15,879,669 482,846 - 16,362,515 Improvements 15,945,431 118,442 - 16,063,873 Intangible Assets 1,167,464 - - 1,167,464 Subscription Assets - 667,737 - 667,737 Machinery and Equipment 11,707,740 943,899 (3,535) 12,648,104 Infrastructure 76,582,734 3,509,773 - 80,092,507 Total Capital Assets, Being Depreciated 121,283,038 5,722,697 (3,535) 127,002,200 Less Accumulated Depreciation for: Buildings (9,005,658) (485,813) - (9,491,471) Improvements (9,544,739) (642,437) - (10,187,176) Intangible Assets (1,162,201) (3,473) - (1,165,674) Subscription Assets - (125,016) - (125,016) Machinery and Equipment (8,749,539) (1,051,410) 3,535 (9,797,414) Infrastructure (49,466,749) (2,222,156) - (51,688,905) Total Accumulated Depreciation (77,928,886) (4,530,305) 3,535 (82,455,656) Total Capital Assets, Being Depreciated, Net 43,354,152 1,192,392 - 44,546,544 Governmental Activities Capital Assets, Net 54,352,680$ 6,922,646$ (4,111,432)$ 57,163,894$ 99 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 48 Depreciation expense was charged to functions/programs as follows: Governmental Activities General Government $ 606,934 Public Safety 498,979 Physical Environment 2,558,847 Culture and Recreation 865,545 Total Depreciation Expense, Governmental Activities $ 4,530,305 Business-Type Activities Water and Sewer $ 2,197,130 Development Services 436,343 Stormwater 26,155 Total Depreciation Expense, Business-Type Activities $ 2,659,628 Note 7 - Long-Term Debt Revenue Bonds - Public Offering The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business-type activities. The 1999 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $8,925,000. For the fiscal year, principal and interest paid (including accreted interest) on this series was $1,275,000, and total pledged revenue was $7,852,258. Beginning Ending Balance Increases Decreases Balance Business-Type Activities Capital Assets, Not Being Depreciated: Land 7,170,177$ -$ -$ 7,170,177$ Construction in Progress 4,121,241 4,579,182 (3,767,668) 4,932,755 Total Capital Assets, Not Being Depreciated 11,291,418 4,579,182 (3,767,668) 12,102,932 Capital Assets, Being Depreciated: Buildings 2,281,497 - - 2,281,497 Improvements 71,952,532 3,273,721 - 75,226,253 Intangible Assets 413,331 - - 413,331 Machinery and Equipment 10,317,258 1,222,525 (22,675) 11,517,108 Total Capital Assets, Being Depreciated 84,964,618 4,496,246 (22,675) 89,438,189 Less Accumulated Depreciation for: Buildings (972,566) (60,771) - (1,033,337) Improvements (48,942,431) (1,936,176) - (50,878,607) Intangible Assets (336,107) (26,964) - (363,071) Machinery and Equipment (5,772,232) (635,717) 22,675 (6,385,274) Total Accumulated Depreciation (56,023,336) (2,659,628) 22,675 (58,660,289) Total Capital Assets, Being Depreciated, Net 28,941,282 1,836,618 - 30,777,900 Business-Type Activities Capital Assets, Net 40,232,700$ 6,415,800$ (3,767,668)$ 42,880,832$ 100 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 49 The 2000 Water and Sewer Refunding bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $13,125,000. For the fiscal year, the principal and interest paid on this series was $1,875,000, and total pledged net revenue was $3,551,922. The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year- end, are as follows: Balance Interest Rates Original September 30, and Dates Maturity Amount 2023 Governmental Activities Improvement Refunding Revenue Bonds Series 1999 (Excludes 10/1/2020 $5,419,530 of Accreted Interest on 3.25%-5.25% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2029 $ 7,998,970 $ 1,964,635 Total $ 1,964,635 Balance Interest Rates Original September 30, and Dates Maturity Amount 2023 Business-Type Activities Water and Sewer Refunding Revenue Bonds Series 2000 (Excludes 10/1/2022 $7,881,599 of Accreted Interest on 4.5%-5.5% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2030 $ 6,969,191 $ 2,874,056 Total $ 2,874,056 Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Governmental Activities Business-Type Activities September 30, Principal Interest Principal Interest 2024 $ 331,130 $ 943,870 $ 490,931 $ 1,384,069 2025 312,413 962,587 460,950 1,414,050 2026 295,456 979,544 432,637 1,442,363 2027 278,677 996,323 405,919 1,469,081 2028 263,517 1,011,486 382,688 1,492,312 2029-2030 483,442 2,066,558 700,931 3,049,069 $ 1,964,635 $ 6,960,365 $ 2,874,056 $ 10,250,944 Notes Payable - Direct Borrowing The 2011 Special Assessment Revenue Refunding Note is secured by a first lien and pledge of assessments levied on the property within the assessed area. The agreement provides for total funding of $1,765,000. The note period is for 18 years with an interest rate of 3.25% payable semiannually. The total principal and interest remaining to be paid on this series is $929,317. For the fiscal year, principal and interest paid on this series was $0, and total pledged revenue was $140,319. 101 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 50 The 2020 Water and Sewer System Revenue Refunding Note Payable was issued in October 2020 and is secured by net revenue from the water and sewer system. Net revenues are calculated using system gross revenues less any expenses paid for operation and maintenance. This Revenue Refunding Note Payable was used to refund the 2018 Water and Sewer System Revenue Refunding Note Payable and 2013 Clean Water State Revolving Fund (SRF) Loan. The agreement provides for total funding of $3,063,000. The note period is for 12 years with an interest rate of 1.72% payable semiannually. The total principal and interest remaining to be paid on this series is $3,041,821. For the fiscal year, principal and interest paid was $70,037 and total pledged revenue was $3,551,922. In the event of default, the note holders may make the outstanding amounts due and payable immediately. In 2017, the City executed the Drinking Water State Revolving Fund Construction Loan agreement DW590610 for Water Treatment Plant Water Quality Improvements. The agreement provides for total funding of $5,862,732. The loan period is for 20 years with an interest rate of .72%. The note is secured by gross revenues from the water and sewer utility net of operations and maintenance costs. The principal and interest remaining to be paid on this series is $4,482,101. For the fiscal year, principal and interest paid on this series was $320,150, and total pledged net revenue was $3,551,922. In the event of default on the State Revolving Fund Loans, the Florida Department of Environmental Protection may cause to establish rates and collect fees, require the City to account for all moneys received and used, appoint a receiver to manage the water and sewer systems, intercept delinquent amounts plus a penalty due to the City under State Revenue Sharing, recover all amounts due including costs of collection and attorney fees, and accelerate the repayment schedule or increase the interest rate by a factor of up to 1.667%. The City has notes payable for both governmental and business-type activities. Outstanding notes payable at year-end are as follows: Governmental Activities Special Assessment Refunding Revenue Note, Series 2011 - Payable in Annual Principal Installments Starting 10/1/2012 through 10/1/2029 and Interest Paid Semiannually at 3.25% $ 831,298 Business-Type Activities 2017 SRF Loan - Payable in Semiannual Principal and Interest Installments Starting 12/15/2017 through 6/15/2037, with Interest Paid Semiannually at .72% $ 4,256,327 Water and Sewer System Revenue Refunding Note, Series 2020 - Payable in Annual Principal Installments Starting 10/15/2020 through 10/1/2032 with Interest Paid Semiannually at 1.72% 2,748,956 $ 7,005,283 102 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 51 Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities Business-Type Activities September 30, Principal Interest Principal Interest 2024 $ 105,408 $ 25,304 $ 429,026 $ 76,616 2025 113,321 21,750 433,117 72,116 2026 115,967 18,024 438,225 67,567 2027 118,435 14,215 443,347 62,950 2028 120,822 10,329 447,484 58,276 2029-2033 257,445 8,396 3,554,029 160,570 2034-2038 - - 1,260,055 20,499 $ 831,298 $ 98,018 $ 7,005,283 $ 518,594 Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2023, was as follows: Note 8 - Interfund Receivables, Payables and Transfers The composition of interfund advances as of September 30, 2023, is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds $ 126,950 Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Bonds Payable - Revenue Bonds 2,315,528$ -$ (350,893)$ 1,964,635$ 331,130$ Accreted Interest Payable 5,907,407 436,230 (924,107) 5,419,530 943,870 Notes Payable - Direct Borrowing: Capital Improvement Notes 831,298 - - 831,298 105,408 Subscription Liabilities - 667,737 (150,312) 517,425 148,046 Other Postemployment Benefits 869,780 - (203,565) 666,215 - Net Pension Liability 6,275,832 323,154 - 6,598,986 - Compensated Absences 491,212 1,028,337 (344,819) 1,174,730 176,210 Governmental Activity Long-Term Liabilities 16,691,057$ 2,455,458$ (1,973,696)$ 17,172,819$ 1,704,664$ Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-Type Activities Bonds Payable - Revenue Bonds 3,396,694$ -$ (522,638)$ 2,874,056$ 490,931$ Accreted Interest Payable 8,566,668 667,293 (1,352,362) 7,881,599 1,384,069 Notes Payable - Direct Borrowing: Revenue Notes 2,794,956 - (46,000) 2,748,956 139,000 SRF Loans 4,544,276 - (287,949) 4,256,327 290,026 Other Postemployment Benefits 211,232 - (49,439) 161,793 - Net Pension Liability 1,524,136 78,478 - 1,602,614 - Compensated Absences 45,672 118,348 (33,375) 130,645 19,596 Business-Type Activity Long-Term Liabilities 21,083,634$ 864,119$ (2,291,763)$ 19,655,990$ 2,323,622$ 103 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 52 $36,286 of the balance due to the General Fund represents an interfund loan with the Tuscawilla III Special Revenue Fund, which was established with Resolution 2013-22 in the amount of $80,820 of which cumulative $17,100 in prepayments were received for a net interfund loan of $63,720. The terms of the note are an initial interest rate of 2.875% for 20 years. The interest rate is variable, with maximum increases of 1.25% in years 6-15, and 1.5% in years 16-20. The remaining amount due to the General Fund is a cash advance to the TLBD Debt Service Fund. Interfund transfers for the year ended September 30, 2023, are summarized below: Interfund transfers for the year ended September 30, 2023, are detailed below: Recipient Fund Amount Purpose General Fund $ 764,064 Transfer from Water and Sewer Utility Fund for utility billing. Transportation Improvement Fund 2,500,000 Transfer from General Fund for transportation capital projects. 1999/2011 Debt Service 1,275,000 Transfer from General Fund for annual debt service requirements. Excellence in Customer Service Fund 365,000 Transfer from General Fund for capital projects. Water Sewer Utility Fund 40,000 Transfer from General Fund for payroll cost-of-living adjustment. Stormwater Fund 20,000 Transfer from General Fund for payroll cost-of-living adjustment. $ 4,964,064 Note 9 - Defined Benefit Pension Plan Plan Description The City maintains a single-employer defined benefit pension plan that provides retirement benefits to City employees. The pension plan is maintained as a Pension Trust Fund and is included with the fund financial statements. This pension plan does not issue a stand-alone financial report. General employees hired on or after October 1, 2011, are no longer eligible for the defined benefit pension plan but are eligible for the City’s defined contribution plan. Employees hired as sworn police officers or hired as forensic professionals on or after October 1, 2011, will continue to participate in the defined benefit plan. In October 2008, the City consolidated fire services with Seminole County and firefighters were given the option to either remain in the City’s pension plan or enroll in the County’s pension plan. As a result, 27 firefighters elected to remain in the City’s pension plan, of which one remains, although they are no longer employees of the City. Other Water and Governmental Sewer Utility Stormwater Transfers Out General Fund Funds Fund Fund Total General Fund -$ 4,140,000$ 40,000$ 20,000$ 4,200,000$ Water and Sewer Utility Fund 764,064 - - - 764,064 764,064$ 4,140,000$ 40,000$ 20,000$ 4,964,064$ Transfers In 104 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 53 The Board of Trustees of the plan are appointed by the City Commission to make advisory recommendations regarding the plan’s investment and portfolio strategies. Any recommendations are then taken back to the City Commission for final approval. Plan Membership At September 30, 2023, plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 137 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 166 Active Plan Members 68 371 Benefits Provided For Firefighters, Police Officers, and Forensic Professionals, 3% times final average compensation multiplied by accrual service up to a maximum of 30 years. For General Employees, 3% times accrual service earned through September 30, 2011, times final average compensation plus 2.5% times accrual service earned after September 30, 2011, times final average compensation, up to a maximum of 30 years of accrual service. Contributions Contribution requirements of plan members and the City are established and may be amended by the City Commission. The Plan currently requires employees to contribute 5% of their salary. Net Pension Liability The City’s net pension liability was measured as of September 30, 2023, and the net pension liability was determined by an actuarial valuation as of October 1, 2022, updated to September 30, 2023. The components of the net pension liability of the sponsor on September 30, 2023, were as follows: Total Pension Liability $ (74,569,429) Plan Fiduciary Net Position 66,367,829 Sponsor's Net Pension Liability $ (8,201,600) Plan Fiduciary Net Position as a Percentage of Total Pension Liability 89.00% Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 202 2, updated to September 30, 2023, using the following actuarial assumptions: Inflation 2.75% Salary Increases 3.0% - 4.5% Investment Rate of Return 7.0% For healthy General Employee participants post-employment, PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for male, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. 105 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 54 For healthy Firefighter, Police Officer, and Forensic Professional participants during employment, PUB- 2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. For healthy Firefighter, Police Officer, and Forensic Professional participants postemployment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. For disabled General Employee participants, PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements. For disabled Firefighter, Police Officer, and Forensic Professional participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of September 30, 2023, are summarized in the following table: Long-Term Target Expected Asset Class Allocation Rate of Return Domestic Equity 50% 7.5% International Equity 15% 8.5% Domestic Bonds 15% 2.5% International Bonds 10% 4.5% Real Estate 10% 6.24% Total 100% Discount Rate The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed member contributions will be made at the current contribution rate and employer contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 106 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 55 Changes in Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability (a) Net Position* (b) Liability (Asset) (a)-(b) Balances at September 30, 2022 $ 69,610,645 $ 61,810,677 $ 7,799,968 Changes for a Year: Service Cost 405,604 - 405,604 Interest 5,034,091 - 5,034,091 Differences Between Expected and Actual Experience 1,300,852 - 1,300,852 Assumption Changes 2,978,730 - 2,978,730 Contributions - Employer - 2,492,912 (2,492,912) Contributions - Employee - 206,423 (206,423) Net Investment Income - 6,664,779 (6,664,779) Benefit Payments, Including Refunds of Employee Contributions (4,760,493) (4,760,493) - Administrative Expense - (34,871) 34,871 Other - (11,598) 11,598 Net Changes 4,958,784 (4,557,152) 401,632 Balances at September 30, 2023 $ 74,569,429 $ 66,367,829 $ 8,201,600 *The figures in the table vary from the Statement of Changes in Fiduciary Net Position due to the timing of receipts and disbursements in the Plan. Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate Current 1% Decrease Discount Rate 1% Increase (6.00%) (7.00%) (8.00%) Net Pension Liability (Asset) $ 16,578,130 $ 8,201,600 $ 1,179,981 Deferred Outflows and Inflows of Resources For the year ended September 30, 2023, the City recognized pension expense of $4,599,724. At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences Between Expected and Actual Experience $ 487,819 $ - Changes of Assumptions 1,117,024 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 2,470,738 - $ 4,075,581 $ - 107 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 56 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending September 30, 2024 $ 1,866,081 2025 294,502 2026 2,397,438 2027 (482,440) Total $ 4,075,581 Note 10 - Defined Contribution Plan In March 2012, the City established the Winter Springs Defined Contribution Plan (General Plan) as a defined contribution plan covering all full -time employees of the City hired after October 1, 2011, not eligible to participate in the Defined Benefit Pension Plan. The plan is authorized and may be amended by the City Commission. The City makes employer contributions of 5% (no mandatory employee contribution) and will match an employee's 457 deferred contribution, dollar for dollar, up to 2.5% of employee's salary. Employees are eligible to participate in the General Plan after 6 months of employment. Vesting is 0% until at least 2 years, 40% at the end of year 2, 60% at the end of year 3, 80% at the end of year 4, and 100% at the end of year 5. Benefits are available upon termination subject to IRS regulations, regardless of age, based on vested years of service. Normal retirement age has been designated by the employer as age 65. For the fiscal year ended September 30, 2023, employer contributions required and made were $193,289. As of September 30, 2023, participation in the plan consisted of 62 active members. During the year, the General Plan held no securities issued by the employer. Note 11 - Other Postemployment Benefits In accordance with Florida Statutes, Section 112.0801, the City makes continued group health insurance through the City’s current provider available to retirees and eligible dependents provided certain service requirements and normal age retirement requirements have been met. This plan is a single employer plan. This benefit has no cost to the City, other than the implicit cost of including retirees in the group calculation. All premiums are paid by the retiree. The City has chosen pay -as-you-go funding but is recording the liability in the government-wide financial statements. This plan does not issue stand-alone financial statements. As of October 1, 2021, the valuation date, there were 142 active employees and 39 inactive employees or beneficiaries currently receiving benefits. The OPEB liability of $828,008 was measured as of October 1, 2022, and was determined by the actuarial valuation. The covered payroll was $7,599,208, and the ratio of net OPEB liability as a percentage of covered payroll was 10.90%. 108 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 57 Summary of Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The OPEB Liability and Related Ratios Schedule, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Total OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Healthcare Cost Trend Rates Based on the Getzen Model, starting at 6.5%, gradually decreasing to an ultimate rate of 3.7% in 2042. Valuation Date October 1, 2021 Measurement Date October 1, 2022 Actuarial Cost Method Entry Age Normal Discount Rate 4.40% Inflation Rate 2.50% Salary Rate Increase 3.00%-4.50% Retiree’s Share of Benefit Related Costs 100% of blended health insurance premium rates except by law 0% for certain conditions for police officers’ death and disability benefits. 109 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 58 Below are the details regarding the total OPEB liability for the measurement period from October 1, 2021 to September 30, 2022: Total OPEB Liability Balance as of September 30, 2021 $ 1,081,012 Changes for the Year: Service Cost 66,408 Interest 24,781 Difference Between Expected and Actual Experience - Changes of Assumptions and Other Inputs* (312,323) Benefit Payments (31,870) Net Changes (253,004) Balances as of September 30, 2022 $ 828,008 * Changes in assumptions and other inputs reflect a change in the discount rate from 2.19% for the measurement period ended September 30, 2021, to 4.40% for the measurement period ended September 30, 2022. The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.40%) (4.40%) (5.40%) Total OPEB Liability $ 951,213 $ 828,008 $ 727,376 The following presents the total OPEB liability of the City using the 202 2 healthcare cost trend rate of 6.5% to 3.7%, as well as what the City’s OPEB liability would be if it were calculated using healthcare trend rates that were 1 percentage point lower and 1 percentage point higher than the current healthcare cost trend rates: 1% Decrease Current Trend 1% Increase (5.5% to 2.7%) (6.5% to 3.7%) (7.5% to 4.7%) Total OPEB Liability $ 759,538 $ 828,008 $ 913,746 For the fiscal year ended September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference Between Expected and Actual Experience $ - $ (516,641) Changes of Assumption of Other Inputs 231,207 (283,494) Contributions Subsequent to the Measurement Date 34,969 - Total $ 266,176 $ (800,135) 110 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 59 The deferred outflows of resources related to OPEB, totaling $34,969, resulting from City contributions to the OPEB plan subsequent to the measurement date, will be recognized as a reduction of the OPEB liability in the fiscal year ended September 30, 202 3. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending September 30, 2024 $ (131,673) 2025 (131,671) 2026 (121,299) 2027 (117,461) 2028 (84,389) Thereafter 17,565 $ (568,928) Summary of Benefits OPEB - The City of Winter Springs provides optional postemployment healthcare, life and dental insurance coverage to eligible individuals. Eligible Individuals - Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans - Eligible individuals may choose healthcare coverage under the United Healthcare Medical Plans 5 or 6. Required Monthly Premium for Postemployment Healthcare Coverage - Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children, or family coverage. Note 12 - Deferred Compensation Plan All employees of the City may voluntarily elect to participate in one of two available deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Nationwide Retirement Solutions and ICMA Retirement Corporation. The plans permit participants to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Because the Plan assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City’s financial statements. Note 13 - Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; job-related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance . There has been no significant reduction in insurance coverage from the previous year . There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. 111 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 60 Note 14 - Commitments and Contingencies Grants Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds . The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments Under Construction Contracts At September 30, 2023, the City had entered into construction contracts in the amount of $13,957,037. Transportation Impact Fee Credits The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2023, there are no remaining impact fee credits. Anticipated Cost of Wastewater Treatment System Replacement In the coming fiscal years, the wastewater treatment system requires replacement, which will be a large construction cost the City is responsible for funding. As of the date the financial statements were issued, the total anticipated cost of this project is $100 million and will be funded using American Recovery Plan Act revenues and financing options available to the City in the coming fiscal years. Note 15 - Fund Balance Minimum Fund Balance Policy In accordance with Resolution 2002-36, the City designates an amount equal to 20% of the total operating expenses of the General Fund to be maintained as a required minimum unreserved fund balance. The purpose of the policy is to provide capacity to: (1) provide sufficient cash flow for daily financial needs, (2) secure and maintain investment grade (i.e., A or above) bond ratings, (3) offset significant economic downturns or revenue shortfalls, and (4) provide funds for unforeseen expenditures related to emergencies. By a supermajority vote of the City Commission, supplemental appropriation from unassigned General Fund balance may be authorized by the City Commission for a General Fund purpose, reducing the unassigned General Fund’s fund balance below the 20% minimum provided that the assigned General Fund’s fund balance is restored to the minimum in the following year’s budget. 112 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 61 At September 30, 2023, the City’s governmental fund balances were as follows: Note 16 - Leases The City, as lessor, leases its cell towers to various private companies. The lease terms range from 29 to 31 years, including the non-cancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. The agreements allow for a 5% annual increase to the lease payments on the anniversary of the agreement. During the fiscal year, the City recognized $130,257 in interest income related to these agreements. At September 30, 2023, the City recognized $4,351,595 in lease receivables for these agreements. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease terms. At September 30, 2023, the balance of deferred inflows of resources was $4,030,632. Note 17 - Subscription-Based Information Technology Arrangements During fiscal year 2023, the City adopted GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). The statement required that SBITAs be recognized as a right-to-use subscription asset and a corresponding subscription liability on the balance sheet, both of which will be reduced over the life of the agreement. Management has reviewed all applicable arrangements and has implemented this standard. The City has arrangements for its evidence maintenance system and web conferencing system. The agreement terms range from 3 to 6 years, including the non-cancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. During the fiscal year, the City recognized $10,233 in interest expenditures related to these agreements. At September 30, 2023, the City recognized total subscription assets of $542,721, net of accumulated depreciation. Additionally, the City has remaining principal payments of $517,425 between these arrangements. Road American Other Total Improvements Solid Waste/Recovery Plan Governmental Governmental General Fund Fund Recycling Act Funds Funds Fund Balance Non-Spendable: Inventory/Prepaid 458,154$ -$ -$ -$ 1,500$ 459,654$ Advances 126,950 - - - - 126,950 Restricted for: Physical Environment - 9,043,996 - - 267,081 9,311,077 Transportation Improvements - - - - 6,806,870 6,806,870 Public Safety - - - - 976,609 976,609 Fire Impact Fees - - - - 2,772,869 2,772,869 Parks Improvements - - - - 692,776 692,776 Committed to: Arbor - - - - 2,073,008 2,073,008 Transportation Improvements - - - - 2,000,000 2,000,000 Assigned to: Storm Reserve - - 1,816,259 - - 1,816,259 Debt Service - - - - 1,318,537 1,318,537 Capital Projects - - - - 5,684,776 5,684,776 Physical Environment - - - 559,226 - 559,226 Subsequent Year's Budget 944,483 - - - - 944,483 Unassigned 8,575,434 - - - (31,273) 8,544,161 Total Fund Balance 10,105,021$ 9,043,996$ 1,816,259$ 559,226$ 22,562,753$ 44,087,255$ 113 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 62 Note 18 - Subsequent Event On December 11, 2023, the City Commission approved a contract with Carollo Engineers for engineering services on the required replacement of east and west wastewater treatment facilities in the amount of $12.9 million. This project will cover multiple fiscal years, and in total will end up costing the City approximately $100 million to meet current and future community growth. 114 REQUIRED SUPPLEMENTARY INFORMATION 115 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 66,408$ 64,604$ 61,772$ 60,410$ 62,209$ 105,694$ Interest 24,781 39,230 42,084 57,351 52,706 38,973 Differences Between Expected and Actual Experience - (577,243) - (249,780) - (9,706) Changes in Assumptions (312,323) 24,355 12,587 211,887 (72,616) 212,072 Benefit Payments (31,870) (39,255) (42,189) (43,183) (54,750) (55,000) Net Change in Total OPEB Liability (253,004) (488,309) 74,254 36,685 (12,451) 292,033 Total OPEB Liability, Beginning of Year 1,081,012 1,569,321 1,495,067 1,458,382 1,470,833 1,178,800 Total OPEB Liability, End of Year 828,008$ 1,081,012$ 1,569,321$ 1,495,067$ 1,458,382$ 1,470,833$ Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%0.00%0.00%0.00%0.00%0.00% Covered Payroll 7,599,208$ 7,373,675$ 6,979,027$ 6,870,391$ 7,190,589$ 7,049,660$ Net OPEB Liability as a Percentage of Covered Payroll 10.90%14.66%22.49%21.76%20.28%20.86% Notes to Schedule Ten years of data will be presented as available. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS PLAN RETIREE CONTINUATION INSURANCE PLAN YEAR ENDED SEPTEMBER 30, 2023 63 116 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 405,604$ 370,884$ 390,407$ 401,950$ 472,736$ 502,667$ 697,459$ 808,281$ 834,402$ 886,819$ Interest 5,034,091 4,948,720 4,858,742 4,736,276 4,693,091 4,452,760 4,229,901 4,059,813 3,851,130 3,666,120 Differences Between Expected and Actual Experience 1,300,852 258,774 661,000 569,125 1,281,355 124,345 (592,087) 275,994 (107,513) (581,481) Changes of Assumptions 2,978,730 - 691,291 479,182 - 2,531,601 526,115 - 8,107 - Benefit Payments, Including Refunds of Employee Contributions (4,760,493) (4,425,331) (4,119,650) (3,821,626) (3,276,412) (2,935,206) (2,679,408) (2,450,972) (2,202,769) (1,974,208) Net Change in Total Pension Liability 4,958,784 1,153,047 2,481,790 2,364,907 3,170,770 4,676,167 2,181,980 2,693,116 2,383,357 1,997,250 Total Pension Liability, Beginning 69,610,645 68,457,598 65,975,808 63,610,901 60,440,131 55,763,964 53,581,984 50,888,868 48,505,511 46,508,261 Total Pension Liability, Ending (a)74,569,429 69,610,645 68,457,598 65,975,808 63,610,901 60,440,131 55,763,964 53,581,984 50,888,868 48,505,511 Plan Fiduciary Net Position Contributions - Employer 2,492,912 2,734,292 3,052,914 3,213,927 2,924,706 2,635,968 2,605,753 2,586,936 2,392,948 2,527,508 Contributions - Employee 206,423 215,136 208,098 217,975 265,688 460,745 342,209 479,257 358,106 369,500 Net Investment Income 6,664,779 (9,095,110) 14,813,524 4,254,000 1,437,224 5,243,193 5,851,493 4,077,452 5,160 3,885,344 Benefit Payments, Including Refunds of Employee Contributions (4,760,493) (4,425,331) (4,119,650) (3,821,626) (3,276,412) (2,935,206) (2,679,408) (2,450,972) (2,202,769) (1,974,208) Administrative Expense (34,871) (71,691) (46,494) (32,984) (69,023) (64,770) (55,697) (28,208) (11,937) (159,424) Other (11,598) - - - - - - - - - Net Change in Plan Fiduciary Net Position 4,557,152 (10,642,704) 13,908,392 3,831,292 1,282,183 5,339,930 6,064,350 4,664,465 541,508 4,648,720 Plan Fiduciary Net Position, Beginning 61,810,677 72,453,381 58,544,989 54,713,697 53,431,514 48,091,584 42,027,234 37,362,769 36,821,261 32,172,541 Plan Fiduciary Net Position, Ending (b)66,367,829 61,810,677 72,453,381 58,544,989 54,713,697 53,431,514 48,091,584 42,027,234 37,362,769 36,821,261 Net Pension Liability, Ending (a)-(b)8,201,600$ 7,799,968$ (3,995,783)$ 7,430,819$ 8,897,204$ 7,008,617$ 7,672,380$ 11,554,750$ 13,526,099$ 11,684,250$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 89.00%88.79%105.84%88.74%86.01%88.40%86.24%78.44%73.42%75.91% Covered Payroll*4,279,689$ 4,346,257$ 4,335,802$ 4,334,163$ 4,800,755$ 5,342,971$ 5,846,735$ 6,671,503$ 7,070,355$ 7,369,943$ Net Pension Liability as a Percentage of Covered Payroll 191.64%179.46%-92.16%171.45%185.33%131.17%131.23%173.20%191.31%158.54% Valuation Date 10/1/2022 10/1/2021 10/1/2020 10/1/2019 10/1/2018 10/1/2017 10/1/2016 10/1/2015 10/1/2014 10/1/2013 Notes to Schedule Update procedures were used to roll forward the total pension liability to the measurement date. *Reported payroll on which contributions to the Plan are based on guidance provided under Governmental Accounting Standards Board Statement No. 82. YEAR ENDED SEPTEMBER 30, 2023 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS CITY OF WINTER SPRINGS, FLORIDA 64 117 Actuarially Contribution/Actual Fiscal Year Determined Actual Deficiency Covered Contribution as Ended September 30,Contribution Contribution (Excess)Payroll a % of Payroll 2014 2,230,908$ 2,527,508$ (296,600)$ 7,369,943$ 34.29% 2015 2,230,908 2,392,948 (162,040) 7,070,355 33.84% 2016 2,067,445 2,586,936 (519,491) 6,671,503 38.78% 2017 1,831,495 2,605,753 (774,258) 5,846,735 44.57% 2018 1,613,548 2,635,968 (1,022,420) 5,342,971 49.34% 2019 1,484,498 2,924,706 (1,440,208) 4,800,755 60.92% 2020 1,389,125 3,213,927 (1,824,802) 4,334,163 74.15% 2021 1,251,632 3,052,914 (1,801,282) 4,335,802 70.41% 2022 1,055,047 2,734,292 (1,679,245) 4,346,257 62.91% 2023 669,772 2,492,912 (1,823,140) 4,279,689 58.25% Notes to Schedule Update procedures were used to roll forward the total pension liability to the measurement date. Methods and Assumptions Used to Determine Contribution Rates Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar, Closed Remaining Amortization Period 30 Years Asset Valuation Method 5-Year Smoothed Market Inflation 2.75% Salary Increases 3.00%-4.50% Investment Rate of Return 7.40% Retirement Age Mortality YEAR ENDED SEPTEMBER 30, 2023 SCHEDULE OF CONTRIBUTIONS CITY OF WINTER SPRINGS, FLORIDA Actuarially determined contributions are calculated as of October 1,two years prior to the fiscal year-end in which contributions are reported. Experience-based table of rates that are specific to the type of eligibility condition. For healthy General Employee participants during employment,PUB-2010 Headcount Weighted General Below Median Employee Mortality Table,separate rates for males and females,set back 1 year for male,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy General Employee participants post employment,PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table,separate rates for males and females,set back 1 year for male,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. 65 118 Mortality (Concluded) Benefit Changes Assumption Changes For healthy Firefighter,Police Officer,and Forensic Professional participants during employment,PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table,both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF CONTRIBUTIONS YEAR ENDED SEPTEMBER 30, 2023 For healthy Firefighter,Police Officer,and Forensic Professional participants post employment,PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table,both set forward 1 year,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled General Employee participants,PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table,separate rates for males and females,both set forward 3 years, without projected mortality improvements. For disabled Firefighter,Police Officer,and Forensic Professional participants,80%PUB- 2010 Headcount Weighted General Disabled Retiree Mortality Table /20%PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table,separate rates for males and females, without projected mortality improvements. 2011:Plan closed to future general employees;pensionable earnings to base pay, overtime -maximum 150 hours and accrued leave balance as of July 1,2011;vesting schedule updated;unreduced early retirement eligibility updated;final average pay updated to five year average and future service benefit accrual rate reduced for general employees. (Concluded) 2020:Investment return and mortality rates for disabled updated.2019:Investment return,mortality,rates and disability rates updated.2017:Investment return,salary increase,withdrawal,and retirement rates updated.2016:Mortality rates updated. 2014: Disability rates updated. 66 119 Annual Money-Weighted Rate of Fiscal Year Ended September 30,Return Net of Investment Expense 2015 0.28% 2016 10.75% 2017 10.75% 2018 13.90% 2019 10.89% 2020 2.69% 2021 26.30% 2022 -14.02% 2023 10.24% Notes to Schedule Ten years of data will be presented as available. YEAR ENDED SEPTEMBER 30, 2023 SCHEDULE OF INVESTMENT RETURNS CITY OF WINTER SPRINGS, FLORIDA 67 120 OTHER SUPPLEMENTARY INFORMATION 121 CITY OF WINTER SPRINGS, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund―This fund is used to account for the $2.00 additional assessment on each traffic citation that is restricted for criminal justice education and training in accordance with Chapter 938.15, Florida Statutes. Special Law Enforcement Trust Fund – Local―This fund was established to receive revenues from local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Transportation Improvement Fund―Revenues in this fund are derived from Local Option Gasoline Tax distribution. Proceeds are restricted for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding road construction directly related to new growth. Police Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding capital investment needed to maintain the level of police service directly related to new growth. Fire Impact Fee Fund―This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future growth. Parks Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding capital investment needed to develop and improve the parks directly related to new growth. Arbor Fund―This fund is used to account for arbor permit revenues committed to new plantings and maintenance of trees and shrubs within the City of Winter Springs, Florida (the City). TLBD Maintenance Fund―This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and II of the project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance Fund―This fund is used to account for collected special assessments restricted for maintenance related to the Oak Forest subdivision wall. Special Law Enforcement Trust Fund – Federal―This fund was established to receive revenues from federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Such purposes may include drug/gang-related education, Shop with a Cop, movies, and other civic events. Tuscawilla Phase III―This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Phase III and repayment of advance from the General Fund. 122 CITY OF WINTER SPRINGS, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS Debt Service Funds TLBD Debt Service Fund―This fund is used to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue, which was refinanced in October 2011 with a private placement note payable. 1999 Debt Service Fund―This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue and Improvement Refunding Note Series 2011, which partially refunded the 1999 bond issue. Capital Projects Funds 1999 Construction Capital Projects Fund―This fund was established for the acquisition and construction of City-owned Capital Improvements. Revolving Rehab Capital Projects Fund ―This fund was established to fund capital improvements and economic development within the City. Public Facilities Fund―This fund was established to account for construction of additional public facilities. Excellence in Customer Service Fund―This fund was established to account for the acquisition of software and equipment to improve the level of customer service performance. 123 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Assets Cash and Cash Equivalents 1,087$ 1,886$ 465,496$ 120,564$ Investments 19,344 33,560 6,094,349 2,145,313 Receivable, Net 487 - - - Special Assessments Receivable - - - - Prepaids - - 1,500 - Restricted Assets: Cash and Cash Equivalents - 1,611 - - Total Assets 20,918 37,057 6,561,345 2,265,877 Liabilities Accounts Payable - - 13,523 5,329 Advances from Other Funds - - - - Total Liabilities - - 13,523 5,329 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - - - Fund Balances Non-Spendable - - 1,500 - Restricted 20,918 37,057 4,546,322 2,260,548 Committed - - 2,000,000 - Assigned - - - - Unassigned - - - - Total Fund Balances 20,918 37,057 6,547,822 2,260,548 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 20,918$ 37,057$ 6,561,345$ 2,265,877$ Special Revenue SEPTEMBER 30, 2023 NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA 68 124 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Assets Cash and Cash Equivalents 43,160$ 147,540$ 37,056$ 110,302$ Investments 767,980 2,625,329 659,365 1,962,706 Receivable, Net - - - - Special Assessments Receivable - - - - Prepaids - - - - Restricted Assets: Cash and Cash Equivalents - - - - Total Assets 811,140 2,772,869 696,421 2,073,008 Liabilities Accounts Payable - - 3,645 - Advances from Other Funds - - - - Total Liabilities - - 3,645 - Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - - - Fund Balances Non-Spendable - - - - Restricted 811,140 2,772,869 692,776 - Committed - - - 2,073,008 Assigned - - - - Unassigned - - - - Total Fund Balances 811,140 2,772,869 692,776 2,073,008 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 811,140$ 2,772,869$ 696,421$ 2,073,008$ Special Revenue 69 125 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Assets Cash and Cash Equivalents 10,857$ 5,664$ 5,645$ 287$ 949,544$ Investments 193,193 100,790 100,445 5,108 14,707,482 Receivable, Net 9 - 1,404 - 1,900 Special Assessments Receivable - - - - - Prepaids - - - - 1,500 Restricted Assets: Cash and Cash Equivalents - - - - 1,611 Total Assets 204,059 106,454 107,494 5,395 15,662,037 Liabilities Accounts Payable 36,548 6,884 - 382 66,311 Advances from Other Funds - - - 36,286 36,286 Total Liabilities 36,548 6,884 - 36,668 102,597 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - - Total Deferred Inflows of Resources - - - - - Fund Balances Non-Spendable - - - - 1,500 Restricted 167,511 99,570 107,494 - 11,516,205 Committed - - - - 4,073,008 Assigned - - - - - Unassigned - - - (31,273) (31,273) Total Fund Balances 167,511 99,570 107,494 (31,273) 15,559,440 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 204,059$ 106,454$ 107,494$ 5,395$ 15,662,037$ COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA Special Revenue SEPTEMBER 30, 2023 NON-MAJOR GOVERNMENTAL FUNDS (Continued) 70 126 Page 2 of 3 TLBD Debt 1999 Debt Total Service Service Debt Fund Fund Service Assets Cash and Cash Equivalents -$ 68,691$ 68,691$ Investments - 1,222,273 1,222,273 Receivable, Net 3 - 3 Special Assessments Receivable 771,299 - 771,299 Prepaids - - - Restricted Assets: Cash and Cash Equivalents 118,917 - 118,917 Total Assets 890,219 1,290,964 2,181,183 Liabilities Accounts Payable 683 - 683 Advances from Other Funds 90,664 - 90,664 Total Liabilities 91,347 - 91,347 Deferred Inflows of Resources Unavailable Revenue - Special Assessments 771,299 - 771,299 Total Deferred Inflows of Resources 771,299 - 771,299 Fund Balances Non-Spendable - - - Restricted - - - Committed - - - Assigned 27,573 1,290,964 1,318,537 Unassigned - - - Total Fund Balances 27,573 1,290,964 1,318,537 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 890,219$ 1,290,964$ 2,181,183$ Debt Service 71 127 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Assets Cash and Cash Equivalents 23,765$ 29,729$ 176,179$ Investments 422,867 528,992 3,134,922 Receivable, Net - - - Special Assessments Receivable - - - Prepaids - - - Restricted Assets: Cash and Cash Equivalents - - - Total Assets 446,632 558,721 3,311,101 Liabilities Accounts Payable 50,292 14,640 132,163 Advances from Other Funds - - - Total Liabilities 50,292 14,640 132,163 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - Total Deferred Inflows of Resources - - - Fund Balances Non-Spendable - - - Restricted - - - Committed - - - Assigned 396,340 544,081 3,178,938 Unassigned - - - Total Fund Balances 396,340 544,081 3,178,938 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 446,632$ 558,721$ 3,311,101$ CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Capital Projects (Concluded) 72 128 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Assets Cash and Cash Equivalents 83,294$ 312,967$ 1,331,202$ Investments 1,482,123 5,568,904 21,498,659 Receivable, Net - - 1,903 Special Assessments Receivable - - 771,299 Prepaids - - 1,500 Restricted Assets: Cash and Cash Equivalents - - 120,528 Total Assets 1,565,417 5,881,871 23,725,091 Liabilities Accounts Payable - 197,095 264,089 Advances from Other Funds - - 126,950 Total Liabilities - 197,095 391,039 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - 771,299 Total Deferred Inflows of Resources - - 771,299 Fund Balances Non-Spendable - - 1,500 Restricted - - 11,516,205 Committed - - 4,073,008 Assigned 1,565,417 5,684,776 7,003,313 Unassigned - - (31,273) Total Fund Balances 1,565,417 5,684,776 22,562,753 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,565,417$ 5,881,871$ 23,725,091$ Capital Projects 73 129 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Revenues Permits and Fees -$ -$ -$ -$ Intergovernmental Revenues - - 596,434 - Fines and Forfeitures 5,101 - - - Impact Fees/Assessments - - - 66,735 Investment Income/(Loss)644 1,347 134,666 79,099 Miscellaneous - - - - Total Revenues 5,745 1,347 731,100 145,834 Expenditures Current: General Government - - - - Public Safety 709 1,358 - - Physical Environment - - 559,271 - Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - - Physical Environment - - 54,840 11,081 Culture and Recreation - - - - Total Expenditures 709 1,358 614,111 11,081 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,036 (11) 116,989 134,753 Other Financing Sources (Uses) Transfers in - - 2,500,000 - Total Other Financing Sources (Uses)- - 2,500,000 - Net Changes in Fund Balances 5,036 (11) 2,616,989 134,753 Fund Balances, Beginning 15,882 37,068 3,930,833 2,125,795 Fund Balances, End 20,918$ 37,057$ 6,547,822$ 2,260,548$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 Special Revenue CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 74 130 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Revenues Permits and Fees -$ -$ -$ 1,504$ Intergovernmental Revenues - - - - Fines and Forfeitures - - - 3,750 Impact Fees/Assessments 16,822 10,469 99,900 - Investment Income/(Loss)28,404 97,809 23,949 76,335 Miscellaneous - - - - Total Revenues 45,226 108,278 123,849 81,589 Expenditures Current: General Government - - - - Public Safety - - - - Physical Environment - - - 142,750 Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - - Physical Environment - - - - Culture and Recreation - - 75,941 - Total Expenditures - - 75,941 142,750 Excess (Deficiency) of Revenues Over (Under) Expenditures 45,226 108,278 47,908 (61,161) Other Financing Sources (Uses) Transfers in - - - - Total Other Financing Sources (Uses)- - - - Net Changes in Fund Balances 45,226 108,278 47,908 (61,161) Fund Balances, Beginning 765,914 2,664,591 644,868 2,134,169 Fund Balances, End 811,140$ 2,772,869$ 692,776$ 2,073,008$ Special Revenue 75 131 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Revenues Permits and Fees -$ -$ -$ -$ 1,504$ Intergovernmental Revenues - - - - 596,434 Fines and Forfeitures - - 123,047 - 131,898 Impact Fees/Assessments 508,800 55,658 - 13,161 771,545 Investment Income/(Loss)8,359 3,991 1,688 488 456,779 Miscellaneous - - - - - Total Revenues 517,159 59,649 124,735 13,649 1,958,160 Expenditures Current: General Government - - - 10,741 10,741 Public Safety - - 31,131 - 33,198 Physical Environment 524,173 71,183 - - 1,297,377 Debt Service: Principal - - - - - Interest and Fiscal Charges - - - 1,104 1,104 Capital Outlay: General Government - - - - - Physical Environment - - - - 65,921 Culture and Recreation - - - - 75,941 Total Expenditures 524,173 71,183 31,131 11,845 1,484,282 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,014) (11,534) 93,604 1,804 473,878 Other Financing Sources (Uses) Transfers in - - - - 2,500,000 Total Other Financing Sources (Uses)- - - - 2,500,000 Net Changes in Fund Balances (7,014) (11,534) 93,604 1,804 2,973,878 Fund Balances, Beginning 174,525 111,104 13,890 (33,077) 12,585,562 Fund Balances, End 167,511$ 99,570$ 107,494$ (31,273)$ 15,559,440$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 Special Revenue (Continued) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 76 132 Page 2 of 3 TLBD Debt 1999 Debt Total Service Service Debt Fund Fund Service Revenues Permits and Fees -$ -$ -$ Intergovernmental Revenues - - - Fines and Forfeitures - - - Impact Fees/Assessments 102,332 - 102,332 Investment Income/(Loss)30,615 24,156 54,771 Miscellaneous 7,372 - 7,372 Total Revenues 140,319 24,156 164,475 Expenditures Current: General Government - - - Public Safety - - - Physical Environment 3,236 - 3,236 Debt Service: Principal - 350,893 350,893 Interest and Fiscal Charges 13,509 924,107 937,616 Capital Outlay: General Government - - - Physical Environment 11,812 - 11,812 Culture and Recreation - - - Total Expenditures 28,557 1,275,000 1,303,557 Excess (Deficiency) of Revenues Over (Under) Expenditures 111,762 (1,250,844) (1,139,082) Other Financing Sources (Uses) Transfers in - 1,275,000 1,275,000 Total Other Financing Sources (Uses)- 1,275,000 1,275,000 Net Changes in Fund Balances 111,762 24,156 135,918 Fund Balances, Beginning (84,189) 1,266,808 1,182,619 Fund Balances, End 27,573$ 1,290,964$ 1,318,537$ Debt Service 77 133 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Revenues Permits and Fees -$ -$ -$ Intergovernmental Revenues - - - Fines and Forfeitures - - - Impact Fees/Assessments - - - Investment Income/(Loss)26,754 34,051 133,045 Miscellaneous - - - Total Revenues 26,754 34,051 133,045 Expenditures Current: General Government - - - Public Safety - - - Physical Environment - - - Debt Service: Principal - - - Interest and Fiscal Charges - - - Capital Outlay: General Government - - - Physical Environment - - - Culture and Recreation 476,066 645,618 976,937 Total Expenditures 476,066 645,618 976,937 Excess (Deficiency) of Revenues Over (Under) Expenditures (449,312) (611,567) (843,892) Other Financing Sources (Uses) Transfers in - - - Total Other Financing Sources (Uses)- - - Net Changes in Fund Balances (449,312) (611,567) (843,892) Fund Balances, Beginning 845,652 1,155,648 4,022,830 Fund Balances, End 396,340$ 544,081$ 3,178,938$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 Capital Projects (Concluded) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 78 134 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Revenues Permits and Fees -$ -$ 1,504$ Intergovernmental Revenues - - 596,434 Fines and Forfeitures - - 131,898 Impact Fees/Assessments - - 873,877 Investment Income/(Loss)42,565 236,415 747,965 Miscellaneous - - 7,372 Total Revenues 42,565 236,415 2,359,050 Expenditures Current: General Government - - 10,741 Public Safety - - 33,198 Physical Environment - - 1,300,613 Debt Service: Principal - - 350,893 Interest and Fiscal Charges - - 938,720 Capital Outlay: General Government 6,645 6,645 6,645 Physical Environment - - 77,733 Culture and Recreation - 2,098,621 2,174,562 Total Expenditures 6,645 2,105,266 4,893,105 Excess (Deficiency) of Revenues Over (Under) Expenditures 35,920 (1,868,851) (2,534,055) Other Financing Sources (Uses) Transfers in 365,000 365,000 4,140,000 Total Other Financing Sources (Uses)365,000 365,000 4,140,000 Net Changes in Fund Balances 400,920 (1,503,851) 1,605,945 Fund Balances, Beginning 1,164,497 7,188,627 20,956,808 Fund Balances, End 1,565,417$ 5,684,776$ 22,562,753$ Capital Projects 79 135 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Fines and Forfeitures 3,000$ 3,000$ 5,101$ 2,101$ Investment Income/(Loss)125 125 644 519 Total Revenues 3,125 3,125 5,745 2,620 Expenditures Current: Public Safety 12,000 12,000 709 11,291 Total Expenditures 12,000 12,000 709 11,291 Excess (Deficiency) of Revenues Over Expenditures (8,875) (8,875) 5,036 13,911 Fund Balances, Beginning of Year 9,658 16,230 15,882 (348) Fund Balances, End of Year 783$ 7,355$ 20,918$ 13,563$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE EDUCATION FUND YEAR ENDED SEPTEMBER 30, 2023 80 136 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)50$ 50$ 1,347$ 1,297$ Total Revenues 50 50 1,347 1,297 Expenditures Current: Public Safety 11,500 11,500 1,358 10,142 Total Expenditures 11,500 11,500 1,358 10,142 Excess (Deficiency) of Revenues Over Expenditures (11,450) (11,450) (11) 11,439 Fund Balances, Beginning of Year 12,856 38,545 37,068 (1,477) Fund Balances, End of Year 1,406$ 27,095$ 37,057$ 9,962$ (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts 81 137 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 551,000$ 551,000$ 596,434$ 45,434$ Investment Income/(Loss)12,000 12,000 134,666 122,666 Total Revenues 563,000 563,000 731,100 168,100 Expenditures Current: Physical Environment 611,603 611,603 559,271 52,332 Capital Outlay: Physical Environment 632,500 100,000 54,840 45,160 Total Expenditures 1,244,103 711,603 614,111 97,492 Excess (Deficiency) of Revenues Over (Under) Expenditures (681,103) (148,603) 116,989 265,592 Other Financing Sources (Uses) Transfers In - 2,500,000 2,500,000 - Total Other Financing Sources (Uses)- 2,500,000 2,500,000 - Net Changes in Fund Balances (681,103) 2,351,397 2,616,989 265,592 Fund Balances, Beginning of Year 1,166,153 1,613,147 3,930,833 2,317,686 Fund Balances, End of Year 485,050$ 3,964,544$ 6,547,822$ 2,583,278$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPROVEMENT FUND YEAR ENDED SEPTEMBER 30, 2023 82 138 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 45,000$ 66,735$ 21,735$ Investment Income/(Loss)5,000 5,000 79,099 74,099 Total Revenues 5,000 50,000 145,834 95,834 Expenditures Capital Outlay: Physical Environment 954,000 575,000 11,081 563,919 Total Expenditures 954,000 575,000 11,081 563,919 Excess (Deficiency) of Revenues Over (Under) Expenditures (949,000) (525,000) 134,753 659,753 Fund Balances, Beginning of Year 1,369,075 2,189,966 2,125,795 (64,171) Fund Balances, End of Year 420,075$ 1,664,966$ 2,260,548$ 595,582$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts (Continued) 83 139 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 10,000$ 16,822$ 6,822$ Investment Income/(Loss)6,000 6,000 28,404 22,404 Total Revenues 6,000 16,000 45,226 29,226 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,000 16,000 45,226 29,226 Fund Balances, Beginning of Year 778,471 789,965 765,914 (24,051) Fund Balances, End of Year 784,471$ 805,965$ 811,140$ 5,175$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2023 84 140 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 6,700$ 10,469$ 3,769$ Investment Income/(Loss)25,000 25,000 97,809 72,809 Total Revenues 25,000 31,700 108,278 76,578 Excess (Deficiency) of Revenues Over (Under) Expenditures 25,000 31,700 108,278 76,578 Fund Balances, Beginning of Year 2,708,903 2,748,884 2,664,591 (84,293) Fund Balances, End of Year 2,733,903$ 2,780,584$ 2,772,869$ (7,715)$ (Continued) YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FIRE IMPACT FEE FUND 85 141 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 64,000$ 99,900$ 35,900$ Investment Income/(Loss)4,000 4,000 23,949 19,949 Total Revenues 4,000 68,000 123,849 55,849 Expenditures Capital Outlay: Culture and Recreation 100,000 100,000 75,941 24,059 Total Expenditures 100,000 100,000 75,941 24,059 Excess (Deficiency) of Revenues Over (Under) Expenditures (96,000) (32,000) 47,908 79,908 Fund Balances, Beginning of Year 619,158 666,333 644,868 (21,465) Fund Balances, End of Year 523,158$ 634,333$ 692,776$ 58,443$ (Continued) PARKS IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 86 142 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Permits and Fees 500$ 500$ 1,504$ 1,004$ Fines and Forfeitures 500 500 3,750 3,250 Investment Income/(Loss)9,200 9,200 76,335 67,135 Total Revenues 10,200 10,200 81,589 71,389 Expenditures Current: Physical Environment 557,604 557,604 142,750 414,854 Total Expenditures 557,604 557,604 142,750 414,854 Excess (Deficiency) of Revenues Over (Under) Expenditures (547,404) (547,404) (61,161) 486,243 Net Change in Fund Balances (547,404) (547,404) (61,161) 486,243 Fund Balances, Beginning of Year 1,790,969 2,195,684 2,134,169 (61,515) Fund Balances, End of Year 1,243,565$ 1,648,280$ 2,073,008$ 424,728$ IN FUND BALANCE - BUDGET AND ACTUAL ARBOR FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 87 143 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 507,548$ 507,548$ 508,800$ 1,252$ Investment Income/(Loss)800 800 8,359 7,559 Total Revenues 508,348 508,348 517,159 8,811 Expenditures Current: Physical Environment 610,111 575,111 524,173 50,938 Total Expenditures 610,111 575,111 524,173 50,938 Excess (Deficiency) of Revenues Over (Under) Expenditures (101,763) (66,763) (7,014) 59,749 Fund Balances, Beginning of Year 147,098 185,250 174,525 (10,725) Fund Balances, End of Year 45,335$ 118,487$ 167,511$ 49,024$ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TLBD MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts (Continued) CITY OF WINTER SPRINGS, FLORIDA 88 144 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 55,725$ 55,725$ 55,658$ (67)$ Investment Income/(Loss)650 650 3,991 3,341 Total Revenues 56,375 56,375 59,649 3,274 Expenditures Current: Physical Environment 72,920 72,920 71,183 1,737 Total Expenditures 72,920 72,920 71,183 1,737 Excess (Deficiency) of Revenues Over (Under) Expenditures (16,545) (16,545) (11,534) 5,011 Fund Balances, Beginning of Year 89,461 114,915 111,104 (3,811) Fund Balances, End of Year 72,916$ 98,370$ 99,570$ 1,200$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OAK FOREST MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2023 89 145 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 123,047$ 123,047$ -$ Investment Income/(Loss)40 40 1,688 1,648 Total Revenues 40 123,087 124,735 1,648 Expenditures Current: Public Safety 7,150 7,150 31,131 (23,981) Total Expenditures 7,150 7,150 31,131 (23,981) Excess (Deficiency) of Revenues Over (Under) Expenditures (7,110) 115,937 93,604 (22,333) Fund Balances, Beginning of Year 8,095 15,246 13,890 (1,356) Fund Balances, End of Year 985$ 131,183$ 107,494$ (23,689)$ (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts 90 146 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 13,216$ 13,216$ 13,161$ (55)$ Investment Income/(Loss)- - 488 488 Total Revenues 13,216 13,216 13,649 433 Expenditures Current: General Government 10,936 10,936 10,741 195 Debt Service: Interest and Other Charges 4,212 4,212 1,104 3,108 Total Expenditures 15,148 15,148 11,845 3,303 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,932) (1,932) 1,804 3,736 Fund Balances, Beginning of Year 5,933 6,762 (33,077) (39,839) Fund Balances, End of Year 4,001$ 4,830$ (31,273)$ (36,103)$ (Continued) TUSCAWILLA PHASE III YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 91 147 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 138,655$ 138,655$ 102,332$ (36,323)$ Investment Income/(Loss)50 50 30,615 30,565 Miscellaneous - - 7,372 7,372 Total Revenues 138,705 138,705 140,319 1,614 Expenditures Current: Physical Environment 4,870 4,870 3,236 1,634 Debt Service: Principal 102,332 102,332 - 102,332 Interest and Other Charges 28,680 28,680 13,509 15,171 Capital Outlay: Physical Environment - 12,000 11,812 188 Total Expenditures 135,882 147,882 28,557 119,325 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,823 (9,177) 111,762 120,939 Fund Balances, Beginning of Year 32,613 35,257 (84,189) (119,446) Fund Balances, End of Year 35,436$ 26,080$ 27,573$ 1,493$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TLBD DEBT SERVICE FUND YEAR ENDED SEPTEMBER 30, 2023 (Continued) Budgeted Amounts 92 148 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)10,000$ 10,000$ 24,156$ 14,156$ Total Revenues 10,000 10,000 24,156 14,156 Expenditures Current: General Government 2,500 2,500 - 2,500 Debt Service: Principal 331,131 350,893 350,893 - Interest and Other Charges 943,870 924,108 924,107 1 Total Expenditures 1,277,501 1,277,501 1,275,000 2,501 Excess (Deficiency) of Revenues Over Expenditures (1,267,501) (1,267,501) (1,250,844) 16,657 Other Financing Sources (Uses) Transfers In 1,275,001 1,275,001 1,275,000 (1) Total Other Financing Sources (Uses)1,275,001 1,275,001 1,275,000 (1) Net Change in Fund Balances 7,500 7,500 24,156 16,656 Fund Balances, Beginning of Year 1,279,563 1,296,858 1,266,808 (30,050) Fund Balances, End of Year 1,287,063$ 1,304,358$ 1,290,964$ (13,394)$ (Continued) YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 DEBT SERVICE FUND 93 149 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)800$ 800$ 26,754$ 25,954$ Total Revenues 800 800 26,754 25,954 Expenditures Capital Outlay: Physical Environment 785,900 785,900 - 785,900 Culture and Recreation - - 476,066 (476,066) Total Expenditures 785,900 785,900 476,066 309,834 Excess (Deficiency) of Revenues Over Expenditures (785,100) (785,100) (449,312) 335,788 Fund Balances, Beginning of Year 787,624 872,956 845,652 (27,304) Fund Balances, End of Year 2,524$ 87,856$ 396,340$ 308,484$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 CONSTRUCTION FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts (Continued) 94 150 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)-$ -$ 34,051$ 34,051$ Total Revenues - - 34,051 34,051 Expenditures Capital Outlay: Physical Environment 1,172,600 1,172,600 - 1,172,600 Culture and Recreation - - 645,618 (645,618) Total Expenditures 1,172,600 1,172,600 645,618 526,982 Excess (Deficiency) of Revenues Over Expenditures (1,172,600) (1,172,600) (611,567) 561,033 Fund Balances, Beginning of Year 1,174,894 1,192,346 1,155,648 (36,698) Fund Balances, End of Year 2,294$ 19,746$ 544,081$ 524,335$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVOLVING REHAB FUND YEAR ENDED SEPTEMBER 30, 2023 (Continued) 95 151 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)20,000$ 20,000$ 133,045$ 113,045$ Total Revenues 20,000 20,000 133,045 113,045 Expenditures Capital Outlay: Physical Environment 864,500 1,868,818 - 1,868,818 Culture and Recreation - - 976,937 (976,937) Total Expenditures 864,500 1,868,818 976,937 891,881 Excess (Deficiency) of Revenues Over Expenditures (844,500) (1,848,818) (843,892) 1,004,926 Net Change in Fund Balances (844,500) (1,848,818) (843,892) 1,004,926 Fund Balances, Beginning of Year 2,967,349 4,155,108 4,022,830 (132,278) Fund Balances, End of Year 2,122,849$ 2,306,290$ 3,178,938$ 872,648$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PUBLIC FACILITIES FUND YEAR ENDED SEPTEMBER 30, 2023 Budgeted Amounts (Continued) 96 152 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)9,000$ 9,000$ 42,565$ 33,565$ Total Revenues 9,000 9,000 42,565 33,565 Expenditures Capital Outlay: General Government 15,000 15,000 6,645 8,355 Total Expenditures 15,000 15,000 6,645 8,355 Excess (Deficiency) of Revenues Over Expenditures (6,000) (6,000) 35,920 41,920 Other Financing Sources (Uses) Transfers In - 365,000 365,000 - Total Other Financing Sources (Uses)- 365,000 365,000 - Net Change in Fund Balances (6,000) 359,000 400,920 41,920 Fund Balances, Beginning of Year 1,185,770 836,832 1,164,497 327,665 Fund Balances, End of Year 1,179,770$ 1,195,832$ 1,565,417$ 369,585$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EXCELLENCE IN CUSTOMER SERVICE YEAR ENDED SEPTEMBER 30, 2023 (Concluded) 97 153 STATISTICAL SECTION 154 Statistical Section (Unaudited) Pages Financial Trends Information 98 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Information 105 These schedules contain information to help the reader assess the City's local revenue source. Debt Capacity Information 110 These schedules present information to help the reader assess the City's debt burden and its ability to issue additional debt in the future. Demographic and Economic Information 116 These schedules offer demographic and economic indicators to help the reader understand the environment in which the City's financial activities take place. Operating Information 118 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules were obtained from the Annual Comprehensive Financial Reports for the relevant year. Contents This part of the City of Winter Springs,Florida's (the City)Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the City's overall financial health. 155 FINANCIAL TRENDS INFORMATION 156 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental Activities: Net Investment in Capital Assets 45,826$ 45,650$ 48,555$ 52,573$ 52,292$ 53,683$ 54,922$ 53,758$ 51,213$ 53,773$ Restricted 8,802 12,336 12,027 12,755 14,736 17,089 18,011 19,630 17,970 20,560 Unrestricted 11,737 768 1,746 1,594 3,052 5,634 7,748 9,160 16,277 13,403 Total Governmental Activities Net Position 66,365$ 58,754$ 62,328$ 66,922$ 70,080$ 76,406$ 80,681$ 82,548$ 85,460$ 87,736$ Business-Type Activities: Net Investment in Capital Assets 21,541$ 21,426$ 21,802$ 23,922$ 23,079$ 22,713$ 27,385$ 28,905$ 29,385$ 33,001$ Restricted 482 567 561 560 515 613 647 1,332 6,127 5,729 Unrestricted 7,873 9,112 11,427 13,003 15,945 21,197 24,690 26,628 21,419 17,809 Total Business-Type Activities 29,896$ 31,105$ 33,790$ 37,485$ 39,539$ 44,523$ 52,722$ 56,865$ 56,931$ 56,539$ Primary Government: Net Investment in Capital Assets 67,367$ 67,076$ 70,357$ 76,495$ 75,371$ 76,396$ 82,307$ 82,663$ 80,598$ 86,774$ Restricted 9,284 12,903 12,588 13,315 15,251 17,702 18,658 20,962 24,097 26,289 Unrestricted 19,610 9,880 13,173 14,957 18,997 26,831 32,438 35,788 37,696 31,212 Total Primary Government 96,261$ 89,859$ 96,118$ 104,767$ 109,619$ 120,929$ 133,403$ 139,413$ 142,391$ 144,275$ 1 Decrease in unrestricted net position due to implementation of GASB Statement No. 68 in FY2015. FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA (AMOUNTS EXPRESSED IN THOUSANDS) (ACCRUAL BASIS OF ACCOUNTING) LAST TEN FISCAL YEARS NET POSITION BY COMPONENT 98 157 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expenses Governmental Activities: General Government 5,498$ 5,708$ 6,131$ 6,298$ 6,233$ 7,052$ 6,961$ 5,720$ 5,487$ 8,804$ Public Safety 7,476 7,101 6,764 6,228 5,791 6,892 5,278 5,746 7,468 8,275 Physical Environment 5,874 5,924 5,798 6,625 6,933 6,563 7,381 7,899 8,601 9,384 Culture and Recreation 2,170 2,109 2,163 2,045 2,301 2,282 2,827 2,625 3,026 3,272 Interest and Other Fiscal Charges on Long-Term Debt 782 657 668 635 589 673 603 560 514 468 Total Governmental Activities Expenses 21,800$ 21,499$ 21,524$ 21,831$ 21,847$ 23,462$ 23,050$ 22,550$ 25,096$ 30,203$ Business-Type Activities: Water and Sewer 6,945$ 6,943$ 7,295$ 7,881$ 7,985$ 8,569$ 10,051$ 9,738$ 11,018$ 13,249$ Development Services 409 501 510 665 574 647 1,130 1,331 1,315 1,534 Stormwater 1,150 1,162 1,223 941 1,043 2,321 1,759 1,300 1,402 1,728 Total Business-Type Activities Expenses 8,504$ 8,606$ 9,028$ 9,487$ 9,602$ 11,537$ 12,940$ 12,369$ 13,735$ 16,511$ Program Revenues Governmental Activities: Charges for Services: General Government 2,058$ 2,218$ 2,150$ 2,061$ 2,206$ 2,404$ 2,518$ 2,515$ 2,767$ 3,005$ Public Safety 458 731 418 1,075 232 180 100 243 130 225 Physical Environment 3,590 4,177 3,605 4,315 3,181 3,583 3,500 3,689 3,804 3,529 Culture and Recreation 363 846 418 1,079 378 321 179 209 308 296 Operating Grants and Contributions 23 16 2 87 74 1,284 31 553 9 - Capital Grants and Contributions 1,382 2,756 3,583 2,781 2,897 5,122 5,692 3,470 4,060 3,902 Total Governmental Activities Program Revenues 7,874 10,744 10,176 11,398 8,968 12,894 12,020 10,679 11,078 10,957 Business-Type Activities: Water and Sewer 9,240 9,691 9,877 10,267 9,893 10,802 11,575 11,419 12,125 12,616 Development Services 821 2,075 1,315 1,968 1,055 3,031 2,148 1,297 986 997 Stormwater 1,097 871 1,117 1,167 1,120 1,150 1,135 1,137 1,134 1,137 Operating Grants and Contributions - - - - 8 926 590 - - - Capital Grants and Contributions 1,526 1,452 1,311 1,617 1,248 1,484 4,908 274 686 751 Total Business-Type Activities Program Revenues 12,684 14,089 13,620 15,019 13,324 17,393 20,356 14,127 14,931 15,501 Total Governmental Program Revenues 20,558$ 24,833$ 23,796$ 26,417$ 22,292$ 30,287$ 32,376$ 24,806$ 26,009$ 26,458$ CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) FISCAL YEAR 99 158 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net (Expense)/Revenue: Governmental Activities (13,926)$ (10,755)$ (11,348)$ (10,433)$ (12,879)$ (10,568)$ (11,030)$ (11,871)$ (14,018)$ (19,246)$ Business-Type Activities 4,180 5,483 4,592 5,532 3,722 5,856 7,416 1,758 1,196 (1,010) Total Governmental Net Expense (9,746)$ (5,272)$ (6,756)$ (4,901)$ (9,157)$ (4,712)$ (3,614)$ (10,113)$ (12,822)$ (20,256)$ Governmental Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 4,015$ 4,284$ 4,516$ 4,727$ 5,150$ 5,487$ 5,870$ 6,291$ 6,629$ 7,391$ Utility Taxes 4,035 3,887 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 Business Tax Receipts 105 120 122 123 126 122 112 126 89 165 Intergovernmental Revenues - Unrestricted 3,269 3,481 3,557 3,706 3,967 4,036 3,858 4,360 5,044 5,148 Investment Income and Miscellaneous 336 424 711 616 1,246 1,338 1,047 584 (240) 2,816 Gain (Loss) on Disposal of Capital Assets 17 26 - - - - - - - - Transfers 1,985 2,064 2,041 1,975 1,873 1,697 (93) (2,316) 547 704 Total Governmental Activities 13,762 14,286 14,923 15,026 16,365 16,893 15,305 13,738 16,931 21,521 Business-Type Activities: Investment Income and Miscellaneous 32 108 135 138 323 825 691 69 (585) 1,324 Loss on Disposal of Capital Assets - - - - - - - - - - Transfers (1,985) (2,064) (2,041) (1,975) (1,873) (1,697) 93 2,316 (547) (704) Total Business-Type Activities (1,953) (1,956) (1,906) (1,837) (1,550) (872) 784 2,385 (1,132) 620 Total Government 11,809$ 12,330$ 13,017$ 13,189$ 14,815$ 16,021$ 16,089$ 16,123$ 15,799$ 22,141$ Change in Net Position Governmental Activities (164)$ 3,531$ 3,575$ 4,593$ 3,486$ 6,325$ 4,275$ 1,867$ 2,913$ 2,275$ Business-Type Activities 2,227 3,527 2,686 3,695 2,172 4,984 8,200 4,143 64 (390) Total Government 2,063$ 7,058$ 6,261$ 8,288$ 5,658$ 11,309$ 12,475$ 6,010$ 2,977$ 1,885$ FISCAL YEAR (Concluded) CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 100 159 Fiscal Year Property Tax Franchise Tax Utility Tax Business Tax Receipts Total 2014 4,015$ -$ 4,035$ 105$ 8,155$ 2015 4,284 - 3,887 120 8,291 2016 4,516 - 3,976 122 8,614 2017 4,727 - 3,879 123 8,729 2018 5,150 - 4,003 126 9,279 2019 5,487 - 4,213 122 9,822 2020 5,870 - 4,511 112 10,493 2021 6,291 - 4,693 126 11,110 2022 6,629 - 4,862 89 11,580 2023 7,391 - 5,297 165 12,853 Fiscal Year Sales Tax State Revenue Sharing Other Total 2014 2,097$ 1,038$ 134$ 3,269$ 2015 2,249 1,128 104 3,481 2016 2,305 1,168 84 3,557 2017 2,366 1,245 95 3,706 2018 2,552 1,313 102 3,967 2019 2,559 1,376 101 4,036 2020 2,475 1,279 104 3,858 2021 2,748 1,510 102 4,360 2022 3,073 1,874 97 5,044 2023 3,109 1,938 101 5,148 CITY OF WINTER SPRINGS, FLORIDA TAXES INCLUDED IN UNRESTRICTED INTERGOVERNMENTAL REVENUES (AMOUNTS EXPRESSED IN THOUSANDS) (ACCRUAL BASIS OF ACCOUNTING) LAST TEN FISCAL YEARS GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE 101 160 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Fund: Non-Spendable 416$ 333$ 275$ 256$ 226$ 287$ 338$ 231$ 248$ 585$ Assigned 433 - - - - - - - - 945 Unassigned 7,647 8,163 8,226 8,250 8,289 8,411 8,597 8,812 9,074 8,575 Total General Fund 8,496$ 8,496$ 8,501$ 8,506$ 8,515$ 8,698$ 8,935$ 9,043$ 9,322$ 10,105$ All Other Governmental Funds: Non-Spendable -$ -$ 1$ 3$ 1$ 1$ 1$ -$ -$ 2$ Restricted 5,298 11,304 12,025 12,751 14,736 17,088 18,010 16,356 17,970 20,560 Committed 1,285 1,032 799 1,292 972 1,830 1,901 2,616 4,464 4,073 Assigned 5,258 5,506 6,240 5,938 7,578 9,859 9,597 10,496 11,026 9,378 Unassigned (172) (129) (81) (1,120) (990) (873) (36) (35) (232) (31) Total All Other Governmental Funds 11,669$ 17,713$ 18,984$ 18,864$ 22,297$ 27,905$ 29,473$ 29,433$ 33,228$ 33,982$ FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 102 161 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues Taxes: Property 3,841$ 4,098$ 4,320$ 4,595$ 5,026$ 5,377$ 5,870$ 6,291$ 6,629$ 7,391$ Utility 4,035 3,887 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 General Obligation 174 186 196 132 124 111 - - - - Business Tax 106 120 122 123 126 122 112 126 89 165 Licenses and Permits: Franchise Fees 1,953 2,024 2,042 1,986 2,166 2,331 2,363 2,397 2,545 2,787 Other 40 47 62 91 44 39 34 22 17 36 Intergovernmental 4,059 8,727 8,144 6,575 6,972 8,660 6,748 7,995 8,745 8,820 Charges for Services 3,071 3,231 3,302 3,341 3,342 3,351 3,212 3,237 3,376 3,426 Fines and Forfeitures 281 168 178 175 256 283 109 421 492 229 Impact Fees/Assessments 1,247 2,627 1,232 3,162 819 1,764 1,348 1,021 1,045 874 Investment Income 139 226 275 247 428 1,067 913 118 (625) 2,540 Miscellaneous 219 225 364 281 690 177 134 466 386 276 Total Revenues 19,165 25,566 24,213 24,587 23,996 27,495 25,354 26,787 27,561 31,841 Expenditures General Government 5,012$ 5,051$ 5,187$ 5,161$ 5,057$ 5,407$ 4,711$ 5,307$ 5,146$ 6,813$ Public Safety 6,987 7,151 6,916 6,739 6,574 6,503 6,523 7,033 7,576 7,180 Physical Environment 4,128 4,225 4,303 5,057 5,296 4,907 5,252 4,865 5,258 6,656 Culture and Recreation 1,787 1,784 1,785 1,865 1,891 1,866 1,965 1,854 2,167 2,254 Capital Outlay 1,925 2,571 5,370 4,251 2,410 3,509 3,593 3,937 2,363 7,322 Debt Service: Principal 5,101 610 1,232 3,453 1,138 1,158 515 489 573 501 Interest 424 192 188 149 65 49 897 918 952 949 Total Expenditures 25,364 21,584 24,981 26,675 22,431 23,399 23,456 24,403 24,035 31,675 Excess Revenues Over (Under) Expenditures (6,199) 3,982 (768) (2,088) 1,565 4,096 1,898 2,384 3,526 166 FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 103 162 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Other Financing Sources (Uses) Transfers In 3,642$ 7,043$ 4,659$ 4,494$ 5,763$ 5,744$ 4,062$ 3,964$ 4,835$ 4,904$ Transfers Out (1,653) (4,977) (2,617) (2,520) (3,889) (4,047) (4,155) (6,280) (4,288) (4,200) Proceeds from Financing 3,494 - - - - - - - - 667 Total Governmental Activities 5,483 2,066 2,042 1,974 1,874 1,697 (93) (2,316) 547 1,371 Change in Fund Balances (716)$ 6,048$ 1,274$ (114)$ 3,439$ 5,793$ 1,805$ 68$ 4,073$ 1,537$ Debt Services as a Percentage of Non-Capital Expenditures 23.57%4.22%7.24%16.06%6.01%6.07%7.11%6.87%7.04%5.95% FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (Concluded) 104 163 REVENUE CAPACITY INFORMATION 164 Fiscal Year Total Residential Ended and Commercial Residential Commercial Personal Centrally Tax Exempt Real Total Taxable Total Direct Tax Estimated Actual September 30,Real Property 1 Property 1 Residential %Property 1 Property 1 Assessed 1 Property 1 Assessed Value 1 Rate 2 Taxable Value 1 2014 2,199,733$ 1,931,766$ 87.82%267,967$ 65,664$ 50 625,780$ 1,639,667$ 2.5400 2,330,707$ 2015 2,442,043 2,162,934 88.57%279,109 66,887 52 760,723 1,748,259 2.5400 2,649,400 2016 2,670,315 2,322,345 86.97%347,970 71,576 53 898,230 1,843,714 2.5400 2,865,145 2017 2,847,989 2,488,346 87.37%359,643 73,137 56 959,840 1,961,342 2.5000 3,091,198 2018 3,128,578 2,716,013 86.81%412,565 78,213 56 1,059,572 2,147,275 2.4900 3,389,902 2019 3,370,872 2,923,507 86.73%447,365 82,498 58 1 1,159,460 2,293,968 2.4800 3,650,558 2020 3,647,697 3,118,225 85.48%529,472 89,028 56 1,145,903 2,590,878 2.4300 4,151,979 2021 3,893,861 3,309,150 84.98%584,711 93,231 62 1,278,919 2,708,235 2.4100 4,430,171 2022 4,162,723 3,558,774 85.49%603,949 89,283 62 1,394,301 2,857,767 2.4100 4,724,520 2023 5,051,263 4,311,311 85.35%739,952 90,758 67 1,970,822 3,171,266 2.4100 5,713,431 Note: 1 Source: Seminole County Property Appraiser (www.scpafl.org). 2 Source: Seminole County Tax Collector (www.seminoletax.org). Real Property CITY OF WINTER SPRINGS, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) 105 165 St. John's Water Debt Debt Total Debt Total Manage-County Fire Total Direct Fiscal Operating Service Total City Operating Service County Operating Service School ment Protections & Overlap- Year Millage Millage Millage Millage Millage Millage Millage Millage Millage District (MSTU)ping Rates 2014 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.3610 1.0000 8.3610 0.3283 2.3299 18.4343 2015 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.1970 0.7000 7.8970 0.3164 2.3299 17.9584 2016 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.1490 0.7000 7.8490 0.3023 2.3299 17.8963 2017 2.4300 0.0700 2.5000 4.8751 0.0000 4.8751 6.8570 0.7000 7.5570 0.2885 2.3299 17.5505 2018 2.4300 0.0600 2.4900 4.8751 0.0000 4.8751 6.5690 0.0000 6.5690 0.2724 2.7649 16.9714 2019 2.4300 0.0500 2.4800 4.8751 0.0000 4.8751 6.3130 0.0000 6.3130 0.2562 2.7649 16.6892 2020 2.4300 0.0000 2.4300 4.8751 0.0000 4.8751 6.1330 0.0000 6.1330 0.2414 2.7649 16.4444 2021 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.9340 0.0000 5.9340 0.2287 2.7649 16.2127 2022 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.8250 0.0000 5.8250 0.2189 2.7649 16.0939 2023 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.4600 0.0000 5.4600 0.1974 2.7649 15.7074 Note: Source: Seminole County Tax Collector (www/seminoletax.org). 1 Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. 2 Taxes levied for the fiscal year are based on the prior calendar year taxable value. LAST TEN FISCAL YEARS2 PROPERTY TAX RATES - DIRECT AND OVERLAPPING1 GOVERNMENTS CITY OF WINTER SPRINGS, FLORIDA Winter Springs Seminole County School District Overlapping Rates1 106 166 Tax Fiscal Year Year Billed Collected1 Difference Billed2 Collected1 Difference Billed Collected1 Difference Billed Collected1 Difference 2013 2014 116,237$ 111,963$ 4,274$ 701,658$ 675,955$ 25,703$ 42,280$ 40,784$ 1,496$ 12,753$ 12,279$ 474$ 2014 2015 112,351 108,253 4,098 673,320 648,971 24,349 27,357 26,380 977 12,668 12,219 449 2015 2016 112,351 108,286 4,065 673,164 648,823 24,341 27,346 26,369 977 12,668 12,204 464 2016 2017 112,351 108,213 4,138 673,128 648,645 24,483 27,335 23,363 3,972 12,668 12,193 475 2017 2018 58,047 55,872 2,175 673,128 648,946 24,182 - 8 (8) 12,668 12,217 451 2018 2019 58,047 55,916 2,131 673,128 648,654 24,474 - - - 12,668 12,212 456 2019 2020 58,047 55,914 2,133 673,128 648,400 24,728 - - - 13,746 13,230 516 2020 2021 58,047 54,766 3,281 673,128 638,891 34,237 - - - 13,746 13,237 509 2021 2022 58,047 55,610 2,437 673,128 647,095 26,033 - - - 13,746 13,175 571 2022 2023 58,047 55,658 2,389 708,374 647,183 61,191 - - - 13,955 13,161 794 Note:Special Assessment Debt Issued: 1 Includes prepayments.Oak Forest June 2020 (refinanced internally June of 2010) 2 TLBD Maintenance and Phase I Capital are shown in the TLBD Phase I program amounts.TLBD Phase I May 2001 (Refinanced October of 2011) TLBD Phase II February 2006; No assessment levied until Fiscal Year 2007. Tuscawilla III Financed Internally CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS Tuscawilla III Assessments Cap/Maint Cap/Maint Capital Only Cap/Maint Oak Forest Assessments Tuscawilla Lighting and Beautification (TLBD) - Phase I Assessments Tuscawilla Lighting and Beautification (TLBD) - Phase II Assessments 107 167 Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value CIP 2014/Winter Springs 360 69,215$ 1 2.18% WE Park at Laurel Oaks LLC 57,960 2 1.83% PAC Blake LLC 57,738 3 1.82% KMF XI Winter Springs LLC 47,277 4 1.49% Courtney Springs LLC 43,319 5 1.37%20,088$ 3 1.23% Duke Energy (Formerly Progress Energy)33,806 6 1.07%23,812 2 1.45% United Dominion Realty Trust Inc.20,274 8 0.64%7,917 4 0.48% Winter Springs Station LLC 18,917 9 0.60% Vistawilla ALF LLC 15,022 10 0.47% Winter Springs Retirement Residence LLC 2,100 7 0.07% Laurel Oaks LLC 24,104 1 1.47% Summer Falls LLC 7,721 5 0.47% Bright House Networks LLC 6,397 6 0.39% Moss Park 5,270 7 0.32% Winter Springs Holdings, Inc.4,762 8 0.29% Baxley Robert & Annmarie TRS 4,233 9 0.26% Pathfinder Landology Isis 4,213 10 0.26% Totals 365,628$ 11.54%108,517$ 6.62% CITY OF WINTER SPRINGS, FLORIDA 2023 2014 (AMOUNTS EXPRESSED IN THOUSANDS) SEPTEMBER 30, 2023 PRINCIPAL PROPERTY TAXPAYERS 108 168 Fiscal Year Total Tax Collections in Ended Levy for Percentage of Subsequent Percentage of September 30,Fiscal Year1 Amount2 Levy Years Amount Levy 2014 4,164,738$ 4,014,098$ 96.38%582$ 4,014,680$ 96.40% 2015 4,440,561 4,281,737 96.42%2,392 4,284,129 96.48% 2016 4,683,015 4,515,547 96.42%485 4,516,032 96.43% 2017 4,903,354 4,730,295 96.47%984 4,731,279 96.49% 2018 5,346,715 5,145,529 96.24%4,436 5,149,965 96.32% 2019 5,574,343 5,481,310 98.33%4,763 5,486,073 98.42% 2020 6,099,004 5,869,644 96.24%260 5,869,904 96.24% 2021 6,526,846 6,172,023 94.56%53,049 6,225,072 95.38% 2022 6,911,491 6,625,956 95.87%2,878 6,628,834 95.91% 2023 7,660,754 7,362,718 96.11%574 7,363,292 96.12% Note: 1 Gross taxes before discount of 1% - 4%, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org). 2 Source: Seminole County Tax Collector (www.seminoletax.org). 3 Includes voted debt service not to exceed 0.2500 mills for Central Winds General Obligation Debt (voted debt eliminated in fiscal year 2020). Fiscal Year of the Levy Collected within the Total Collections To-Date CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS 3 LAST TEN FISCAL YEARS 109 169 DEBT CAPACITY INFORMATION 170 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN SEPTEMBER 30, 2023 Neither the City of Winter Springs Charter or Code,nor the Florida State Statutes limits the amount of debt the City of Winter Springs can issue. 110 171 Ratio of Net Gen Obligation Net Debt to Gen Obligation Fiscal Assessed Gross Less Debt Gen Obligation Assessed Debt Per Year Population1 Value2 Debt3 Service Fund4 Debt Value Capita 2014 33,871 1,639,667,121$ 2,533,833$ 25,305$ 2,508,528$ 0.153%74$ 2015 34,901 1,748,258,752 2,425,161 1,167,015 1,258,146 0.072%36 2016 35,266 1,843,713,578 2,312,629 1,176,903 1,135,726 0.062%32 2017 35,599 1,961,341,503 - - 1,074,143 0.055%30 2018 36,635 2,147,274,968 - - 949,131 0.044%26 2019 37,321 2,293,968,241 - - 835,458 0.036%22 2020 38,764 2,509,878,198 - - - 0.000%- 2021 38,975 2,708,235,730 - - - 0.000%- 2022 39,038 2,854,767,219 - - - 0.000%- 2023 39,097 3,171,266,844 - - - 0.000%- Note: 1 Source: American Fact Finder; previous statistics from multiple sources. 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bons and revenue bonds. 4 Amount available for repayment of limited general obligation note. During fiscal year 2017, the external loan was retired and replaced with an interest-free loan from the City's General Fund, which was forgiven at the beginning of the fiscal year 2020. CITY OF WINTER SPRINGS, FLORIDA LAST TEN FISCAL YEARS AND NET GENERAL OBLIGATION PER CAPITA RATIO OF NET GENERAL OBLIGATION - DEBT TO ASSESSED VALUE 111 172 Fiscal Year Special Water and Water and Percentage of Ended Refunding Limited General Assessment Refunding Limited General Sewer Revenue Sewer Refunding State Revolving Total Primary Personal September 30,Revenue Bonds Obligation Bonds Revenue Bonds Notes Obligation Notes Notes Revenue Bonds Loan Government Income Per Capita 2014 7,931$ -$ -$ 6,282$ 2,534$ 9,601$ 10,226$ 1,635$ 38,209$ 3.52%1,128$ 2015 8,386 - - 5,781 2,425 8,266 10,730 1,568 37,156 3.41%1,065 2016 8,866 - - 4,661 2,313 6,497 11,264 1,498 35,099 3.07%995 2017 9,374 - - 3,521 - 5,747 11,830 4,307 34,779 2.97%977 2018 9,850 - - 2,383 - 6,165 10,555 6,272 35,225 2.92%962 2019 10,478 - - 1,225 - 4,639 11,192 6,669 34,203 2.49%916 2020 9,767 - - 1,128 - 3,061 11,867 6,308 32,131 2.14%829 2021 9,016 - - 1,033 - 3,216 12,584 4,830 30,679 1.86%787 2022 8,223 - - 831 - 2,795 11,964 4,544 28,357 1.81%726 2023 7,384 - - 831 - 2,749 10,756 4,256 25,976 1.54%664 Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements: Note 7 - Long-Term Debt. CITY OF WINTER SPRINGS, FLORIDA Governmental Activities Business-Type Activities (DOLLARS IN THOUSANDS, EXCEPT PER CAPITA) LAST TEN FISCAL YEARS RATIO OF OUTSTANDING DEBT BY TYPE 112 173 Estimated Estimated Debt Percentage Share of Governmental Unit Outstanding Applicable1 Debt Overlapping Debt: Seminole County General Obligation Debt -$ 0%-$ Subtotal, Overlapping Debt - - Direct Debt: Series 1999 Improvement Revenue Bonds 1,964,635 100%1,964,635 Accreted Interest 5,419,530 100%5,419,530 City of Winter Springs General Obligation Debt2 - 0%- City of Winter Springs Capital Improvement Notes 831,298 100%831,298 Total Direct and Overlapping Debt 8,215,463$ 8,215,463$ Note: Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 Through fiscal year 2019, the City of Winter Springs had a "limited" general obligation note being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. Fiscal Year 2019 was the last year of the levy as the internal loan was forgiven effective October 1, 2019. (AMOUNTS EXPRESSED IN THOUSANDS) AS OF SEPTEMBER 30, 2023 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CITY OF WINTER SPRINGS, FLORIDA 113 174 Federal Emergency Impact Fees Management (Fire, Police Agency Public Recreation,Non-Ad Valorem Total Revenue Maximum Fiscal Year Public Service Electric Half-Cent Sales General Assistance and Public Special Available for Annual Debt Ended Sept 30,Taxes Franchise Fees Tax Obligation Grants Facilities)Assessments Debt Service Service Coverage 2014 4,034,667$ 1,816,567$ -$ 173,876$ -$ -$ 165,152$ 6,190,262$ 1,838,498$ 3.37 2015 3,887,124 1,941,840 - 185,527 - - 162,442 6,176,933 1,838,498 3.36 2016 3,975,578 1,874,893 - 195,560 - - 159,347 6,205,378 1,838,498 3.38 2017 3,879,197 1,812,388 - 132,374 - - 160,024 5,983,983 1,838,498 3.25 2018 4,003,425 1,960,722 - 124,109 - - 135,163 6,223,419 1,633,823 3.81 2019 4,212,706 2,124,125 - 110,662 - - 138,063 6,585,556 1,633,823 4.03 2020 4,510,783 2,137,683 - 27 - - 136,883 6,785,376 1,410,310 4.81 2021 4,692,986 2,167,002 - - - - 139,137 6,999,125 1,405,721 4.98 2022 4,862,490 2,325,261 - - - - 138,362 7,326,113 1,406,052 5.21 2023 5,297,022 2,555,236 - - - - 138,383 7,990,641 1,406,012 5.68 CITY OF WINTER SPRINGS, FLORIDA PLEDGE-REVENUE COVERAGE LAST TEN FISCAL YEARS General Government 114 175 Net Revenue Fiscal Year Gross Operating Available for Ended Sept 30,Revenues1 Expenses2 Debt Service Principal Interest Total Coverage 2014 9,534,771$ 5,488,225$ 4,046,546$ 1,296,376$ 409,422$ 1,705,798$ 2.37 2015 11,189,753 5,493,666 5,696,087 1,401,786 412,670 1,814,456 3.14 2016 11,189,465 5,765,435 5,424,030 1,446,699 3 368,458 1,815,160 2.99 2017 11,154,709 6,235,351 4,919,358 822,719 187,884 1,010,603 4.87 2018 10,260,680 6,140,468 4,120,212 1,875,000 99,668 1,974,668 2.09 2019 12,259,418 6,450,421 5,808,997 1,888,696 159,542 2,048,238 2.84 2020 12,943,985 7,059,281 5,884,704 1,938,782 156,801 2,095,583 2.81 2021 14,205,837 7,111,885 7,093,952 1,369,149 113,608 1,482,757 4.78 2022 12,632,292 8,553,286 4,079,006 819,384 1,027,961 1,847,345 2.21 2023 13,856,093 10,304,172 3,551,921 803,611 1,433,419 2,237,030 1.59 Note: 1 Gross revenue is computed per bond resolution requirements, and is equivalent to revenue recognized under generally accepted accounting principles (GAAP). Revenues include investment income and other income. 2 "Direct operating expense" is computed per bond resolution requirements, and is equal to expenses recognized under GAAP (less interest, depreciation, and amortization expense) losses on disposal of fixed assets, and non-recurring transfers out. 3 Excludes principal paid on refunding. CITY OF WINTER SPRINGS, FLORIDA PLEDGE-REVENUE COVERAGE LAST TEN FISCAL YEARS Water Revenue Bonds Debt Service Requirements (Concluded) 115 176 DEMOGRAPHIC AND ECONOMIC INFORMATION 177 Personal Education Income Level in (Amounts Per Capita Years of Fiscal Expressed in Personal Median Formal School Unemployment Year Population1 Thousands)Income1 Age1 Schooling1 Enrollment2 Rate3 2014 33,871 1,084,989$ 32,033$ 39.0 *6,461 5.4% 2015 34,901 1,090,935 31,258 40.2 14.00 6,072 5.0% 2016 35,266 1,144,523 32,454 40.7 13.98 5,565 4.6% 2017 35,599 1,170,887 32,891 42.2 14.18 5,708 4.0% 2018 36,635 1,204,962 32,891 43.4 14.31 5,366 3.3% 2019 37,321 1,375,615 36,859 43.4 14.36 5,258 3.0% 2020 38,764 1,502,038 38,748 43.9 14.42 6,370 4.6% 2021 38,975 1,651,059 42,362 43.4 14.48 5,587 4.3% 2022 39,038 1,564,128 40,067 42.7 14.65 5,469 3.7% 2023 39,097 1,685,996 43,123 43.1 0.00 6,992 4.2% Note: 1 Source: American Fact Finder; previous statistics from multiple sources, Orlando Economic Partnership. 2 Source: American Fact Finder; Seminole County Public Schools. 3 Source: Bureau of Economic and Business Research (BEBR), Orlando Economic Partnership. CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 116 178 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment2 Seminole County School Board 1,203 1 17.68%1,403 1 20.62% Publix (Winter Springs Town Center)175 2 2.57%150 4 2.20% City of Winter Springs 172 3 2.53%212 2 3.12% Dearborn Electronics 153 4 2.25%170 3 2.50% Modern Plumbing 150 5 2.20%85 5 1.25% Tuscawilla Country Club 75 6 1.10%80 6 1.18% Budget Tree 62 7 0.91% United States Post Office 56 8 0.82%48 7 0.71% Watermark at Vistawilla 55 9 0.81% McDonald's 50 10 0.73%30 10 0.44% Dittmer Architectural Aluminum 36 9 0.53% Longwood Kia/Mitsubishi 42 8 0.62% Totals 2,151 31.60%2,256 33.17% Note: 1 Per telephone survey of major local businesses and e-mail correspondence. 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 6,805 FTEs. CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS CURRENT AND TEN YEARS AGO 2023 2014 1 117 179 OPERATING INFORMATION 180 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function Development Services 5.46 5.46 4.73 5.46 3.46 3.73 5.19 8.73 6.00 7.00 General Government 36.67 36.38 36.95 36.08 33.13 33.05 36.80 40.80 48.03 47.90 Public Safety: Police: Sworn Officers 65.00 65.00 65.70 65.00 65.00 55.00 55.00 55.00 55.00 55.00 Civilians2 16.88 17.13 17.13 17.13 15.07 15.50 15.50 16.68 17.00 9.00 Public Works 16.00 16.00 16.00 16.00 16.00 14.00 15.00 12.00 13.00 17.00 Culture and Recreation 24.06 21.84 21.11 21.76 20.84 20.79 20.79 21.52 23.03 24.33 Utilities 35.73 36.17 36.45 38.45 38.45 38.73 38.00 20.00 22.00 21.73 Stormwater 9.00 9.00 9.00 10.00 9.00 8.00 9.00 6.00 6.00 7.00 Total 208.8 206.98 207.07 209.88 200.95 188.8 195.28 180.73 190.06 188.96 Part-Time FTEs (Included Above)21.95 20.98 23.07 22.88 19.95 17.80 18.28 22.73 16.06 13.96 Note: 1 City of Winter Springs Annual Budget Documents. 2 Police civilians include emergency communications center personnel. CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION1 LAST TEN FISCAL YEARS Full-Time Equivalent Employees as of September 30, 118 181 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function Police: Auto Accidents 423 399 560 479 526 489 420 569 424 597 Physical Arrests 1,106 1,456 1,220 1,034 824 704 534 268 299 940 Criminal Investigations Conducted 522 408 533 419 388 1,384 1,249 1,330 414 1,325 Total Calls for Service 152,357 111,943 106,477 102,146 101,086 101,356 94,933 109,563 496 154,666 911 Calls Received 3,691 3,573 3,539 3,607 4,175 4,338 4,982 5,572 2,555 2,539 Evidence Processed (Pieces)2,327 2,240 2,606 2,509 1,814 1,603 1,394 1,665 1,562 2,288 Highways and Streets: Streets Paved (Miles)1 4 - **108 **** Streets Resurfaced (Miles)39,958 46,114 63,674 70,324 53,925 51,783 116,528 82,961 24,379 25,270 Sidewalks/Bike Paths Built or Repaired (Sq Ft)5,122 4,329 11,344 7,384 6,428 15,127 31,248 36,192 4,061 3,264 Culture and Recreation: Games - Baseball/Softball 978 842 879 939 646 715 535 900 550 592 Games - Basketball 738 608 578 749 749 734 **** Games - Football 256 103 22 61 61 39 145 120 ** Games - Soccer 1,140 1,176 879 882 1,130 950 679 1,020 675 865 Senior Activities 1,102 1,363 1,573 1,906 2,632 3,477 530 *** Civic Center and Pavilion Rentals 438 463 400 461 474 553 433 667 1,354 1,818 Water: New Connections 112 176 165 32 61 227 230 177 81 67 Number of Customers 13,383 13,496 13,727 13,822 13,597 13,967 13,817 13,994 14,315 14,521 Water Main Breaks 9 4 2 10 6 5 8 3 13 29 Average Daily Consumption (Gallons/per Capita)98 103 104 97 103 119 252 96 119 122 Meter Reads 181,145 183,256 187,468 188,358 192,930 189,072 234,842 197,530 202,719 203,556 Community Development: Total Permits Issued 3,466 2,923 2,956 3,275 3,741 3,627 4,259 3,927 3,826 3,517 Building Inspections 5,921 8,189 8,885 6,194 7,154 7,690 6,662 9,441 9,402 9,334 Business Tax Receipts Issued 968 1,007 897 1,227 984 1,182 890 1,032 617 1,356 Land Use Amendments and Rezonings 11 13 3 8 1 *1 2 2 2 Permit Files Created/Reviews Initiated 3,869 3,201 3,111 3,436 3,868 3,829 4,690 4,185 4,294 3,963 General Government: Personnel Actions Processed 309 182 283 426 201 288 150 281 300 360 Worker's Comp Injuries 32 30 30 37 35 25 21 27 14 13 Legal Notices Published 40 40 18 26 25 22 12 13 18 23 Payroll - Checks 499 425 352 334 335 296 266 93 101 554 Payroll - Direct Deposit 6,858 6,468 7,209 6,034 5,695 5,555 4,384 4,410 4,233 4,553 Receipts Deposited 266,630 247,363 134,565 130,754 127,820 129,349 130,541 132,772 133,850 133,365 A/P Checks Issued 5,285 5,442 5,364 4,974 3,659 4,537 4,018 3,881 6,871 4,194 Purchase Orders Processed 2,968 3,262 2,262 2,319 2,138 1,905 2,040 2,212 1,194 1,658 Source: Summary of Departmental Reports Note: * Information not available. CITY OF WINTER SPRINGS, FLORIDA OPERATING INDICATORS BY FUNCTION1 LAST TEN FISCAL YEARS Full-Time Equivalent Employees as of September 30, 119 182 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function Public Safety: Police: Stations 1 1 1 1 1 1 1 1 1 1 Fleet 85 82 82 80 73 68 68 77 77 75 Fire Stations2 2 2 2 2 2 2 2 2 2 2 Highways and Streets: Streets - Paved (Miles)102.69 102.69 103.25 103.25 103.40 107.52 107.52 107.52 107.52 107.52 Streets - Unpaved (Miles)0.51 0.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Street Lights 2,616 3,404 3,432 3,432 3,452 3,638 3,638 3,638 3,638 3,638 Traffic Signals 10 10 10 10 10 10 10 10 10 10 Culture and Recreation: Park Acreage 266.70 266.70 266.70 266.70 266.70 266.70 266.70 267.93 267.93 267.93 Parks - Community 6 6 6 6 6 6 6 6 6 6 Parks - Neighborhood 6 6 6 6 6 6 6 6 6 6 Senior Center 1 1 1 1 1 1 1 1 1 1 Community Center 1 1 1 1 1 1 1 1 1 1 Water: Water Maines (Miles)173.00 173.10 173.20 173.60 175.20 243.90 243.90 243.90 243.90 243.90 Fire Hydrants 1,055 1,057 1,060 1,064 1,080 1,092 1,092 1,092 1,092 1,092 Maximum Daily Capacity (Millions of Gallons)12 12 12 12 12 12 12 12 12 12 Deep Wells 8 8 8 8 8 8 8 8 8 8 Sewer: Sanitary Sewers (Miles)115.75 115.75 115.76 116.31 117.95 199.09 199.09 199.09 199.09 199.09 Storm Sewers (Miles)95.76 95.76 95.79 95.79 95.87 187.71 187.71 187.71 187.71 187.71 Treatment Facility Capacity (Millions of Gallons)4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.082 4.082 Current Average Flow (Millions of Gallons)2.067 2.097 2.080 2.140 2.280 2.124 2.520 2.520 2.635 2.499 Note: * Information not available. 1 City of Winter Springs Departmental Reports. 2 Seminole County is leasing stations per Consolidation Agreement. CITY OF WINTER SPRINGS, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION1 LAST TEN FISCAL YEARS 120 183 OTHER REPORTS 184 121 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida (the City) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated September 3, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control listed below that we consider to be significant deficienci es. 185 122 Honorable Mayor and City Commissioners City of Winter Springs, Florida 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 ■ 2023-01 Bank Reconciliation Condition: The City’s bank reconciliation process was not performed timely and required correction through an adjusting entry. The September 2023 bank reconciliation was not finalized until June 2024 and the completed reconciliation required an adjustment of $22,478. Criteria: Accurate and timely bank reconciliations are a critical component of the financial management and reporting process. Cause: Due to turnover and personnel issues in the finance department, the City’s internal controls over bank reconciliation did not adequately identify errors in the reconciliation process nor did they ensure timely completion. Effect: If the errors corrected had not been detected during our audit, which is designed only to provide reasonable assurance that the financial statements are fairly presented, the City’s cash balances would have been misstated. Recommendation: We recommend that management design and implement additional internal controls to ensure that bank reconciliations are prepared timely and correctly. ■ 2023-02 Access to Vendor Master File Condition: Controls were not in place to restrict the Accounts Payable Coordinator from making modifications to the vendor master file. Criteria: Proper segregation of duties is critical to preventing fraud or errors in the cash disbursement process. Cause: Due to turnover and personnel issues in the finance department, the City’s internal controls over cash disbursements were not implemented properly. Effect: While no errors or fraudulent activity was discovered in testing, without proper segregation of duties, there is an increased risk of fraud or error within the cash disbursement process. Recommendation: We recommend that the City implement system access controls to remove the Accounts Payable Coordinator’s ability to modify the vendor master file. ■ 2023-03 Personnel Action Forms Condition: During testing of the payroll process, we noted 1 employee out of 40 tested that was not being paid in accordance with their approved pay rate. Additionally, 2 employees lacked the proper authorization of their enacted pay rate. Criteria: The City’s personnel policy and payroll best practices require that employees be compensated in accordance with their properly authorized pay rate. 186 123 Honorable Mayor and City Commissioners City of Winter Springs, Florida 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 Cause: Due to turnover and personnel issues in the human resources department, the City’s internal controls over payroll processing were not implemented properly. Effect: The first employee was underpaid relative to their authorized pay rate. We were unable to determine whether the 2 employees were being paid in accordance with an approved pay rate. Recommendation: We recommend that the City review their payroll processing system to ensure that all pay rates are approved and that system rates are in accordance with the approved pay rates. ■ 2023-04 Pension Plan Eligibility Condition: Census data testing showed that 2 of 5 active pension plan members and 5 of 5 new hires tested did not have the prerequisite period of service before being enrolled in the pension plan. Criteria: The Plan’s eligibility criteria requires that employees complete 6 months of service prior to plan enrollment. Cause: Due to turnover and personnel issues in the human resources department, the City’s internal controls over pension plan enrollment were not implemented properly. Effect: Additional employees, beyond those who were eligible, were enrolled in the pension plan. Recommendation: We recommend that the City review its pension plan eligibility requirements and implement additional controls to ensure that pension eligibility is verified prior to enrollment. ■ 2023-05 Purchasing Cards Condition: During testing, 14 of 40 purchasing card statements tested contained at least one transaction that was not properly requisitioned under the City’s disbursement policies. Additionally, the City was unable to provide support that 38 of 40 purchasing card statements were properly reviewed prior to payment and 12 of the 40 statements did not have some or all of the associated supporting documentation. Criteria: In accordance with best practices, the City should ensure the controls surrounding purchasing cards are properly implemented and operating effectively. Cause: Due to turnover and personnel issues in the finance department, the City’s processes for reviewing and recording purchasing card transactions were not appropriately implemented. Effect: While no fraudulent activity was noted in testing, the deficiencies in the process could have allowed inappropriate transactions to occur with a City purchasing card without knowledge of supervising personnel. Recommendation: We recommend that the City ensure that all controls surrounding purchasing cards are implemented and operating effectively to verify. 187 124 Honorable Mayor and City Commissioners City of Winter Springs, Florida 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 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, non-compliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of non-compliance or other matters that are required to be reported under Government Auditing Standards and which are described below. ■ 2023-06 Financial Statement Audit Condition: The financial statement audit was submitted past the statutory deadline of 9 months after fiscal year-end. Criteria: Florida Statute 218.32 states that the City is required to provide for an audit under Florida Statute 218.39(1) and must submit a copy of the audit report and annual financial report to the Department of Financial Services (the Department) within 45 days after the completion of the audit report but no later than 9 months after the end of the fiscal year. Cause: The City experienced significant turnover within the finance department during the year and was delayed in preparation for the audit due to delays in the completion of the 2022 financial statement audit. Effect: The audit was submitted to the Department after the statutory deadline. Recommendation: We recommend the City work to adequately staff the Department to ensure resources are available to submit the annual financial report timely. ■ 2023-07 Excess Expenditures Over Budget Appropriations Condition: Budget testing determined that the City over expended its budget in the General Fund’s Information Services Department by $280,500, the General Fund’s Police Department by $416,804, and its Special Law Enforcement Trust Fund – Federal’s Public Safety Department by $23,981. Criteria: Effective budget management and monitoring processes are essential to ensure that departments operate within their allocated budgets and the City operates within its means. Additionally, Florida Statutes Section 166.241(2) mandates municipalities adhere to the budgetary limits established by the governing body. Cause: Due to turnover and personnel issues in the finance department, the City’s internal controls over budget monitoring and amendment were not implemented properly. Additionally, the new accounting standard, GASB Statement No. 96, Subscription-Based Information Technology Arrangements, was not recognized in the financial statements until after the final budget amendment was submitted. Effect: As noted in the condition above, the City expended amounts beyond their budget appropriations. Recommendation: We recommend that the City implement additional budget monitoring controls to prevent over expenditure and accompanying budget amendments are made timely. 188 125 Honorable Mayor and City Commissioners City of Winter Springs, Florida 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 City of Winter Springs’ Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the paragraphs above. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. September 3, 2024 Gainesville, Florida 189 126 MANAGEMENT LETTER Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on the Financial Statements We have audited the financial statements of the City of Winter Springs, Florida (the City) as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated September 3, 2024. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with the American Institute of Certified Public Accountants Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated September 3, 2024, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Corrective actions have been taken to address the following findings and recommendations made in the preceding financial audit report: 2022-01 Financial Close and Reporting; 2022-03 Capital Assets; 2022-04 Pooled Cash Management; 2022-05 Accounts Payable; 2022-08 Inventory Management Controls; 2022-09 Pension Data Submission Controls; 2022-10 Pension Contribution Controls; 2022-11 Investment Compliance Controls. The following findings have been repeated as they were not fully corrected during the current audit period. Tabulation of Uncorrected Audit Findings Current Year Finding # 2021-2022 Fiscal Year Finding # 2023-01 2022-02 2023-05 2022-06 2023-06 2022-07 190 127 Honorable Mayor and City Commissioners City of Winter Springs, Florida MANAGEMENT LETTER Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the City. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we have no recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a municipality to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the municipality in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate non-compliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, City Commission and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. We would like to take this opportunity to express our appreciation for the professionalism and courtesies which were extended to our staff. If you have any questions or comments about the contents of this letter, or the information accompanying this letter, please do not hesitate to contact us. September 3, 2024 Gainesville, Florida 191 128 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH FLORIDA STATUTES, SECTION 218.415 – INVESTMENTS OF PUBLIC FUNDS The Honorable Mayor and City Commissioners City of Winter Springs, Florida We have examined the City of Winter Springs, Florida’s (the City) compliance with Section 218.415, Florida Statutes, during the fiscal year ended September 30, 2023. City management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material non-compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. We are required to be independent and to meet our ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the City complied, in all material respects, with the aforementioned requirements during the fiscal year ended September 30, 2023. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, the Honorable Mayor and members of the City Commission, and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. September 3, 2024 Gainesville, Florida 192 CITY OF WINTER SPRINGS, FLORIDA FINANCE & ADMINISTRATIVE SERVICES 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 TELEPHONE: (407) 327-1800 FACSIMILE: (407) 327-4753 WEBSITE: www.winterspringsfl.org Philip Hursh Holly Queen Interim City Manager Finance Director September 3, 2024 The Office of the Florida Auditor General Local Government and Specialty Audits 111 West Madison Street, Room 401 Tallahassee, FL 32399 To whom it may concern, We are in receipt of the City’s audited financial statements for the fiscal year ended September 30, 2023. We have reviewed the report on internal controls and other compliance matters, and we concur with the findings. We appreciate the opportunity to implement the needed process improvements. Our responses follow: 2023-01 Bank Reconciliation Staff concurs with this finding. The bank reconciliation is one of the most important daily tasks required of staff and timely reconciliation is imperative. As stated in the audit comment, the turnover noted above had a significant impact on the reconciliation of the bank statement. This is a residual effect from the prior year finding as key positions were not filled until late 2023. 2023-02 Access to Vendor Master File Staff concurs with this finding. Due to excessive turnover, the accounts payable coordinator profile in the system was not correctly established. The finance and IT department are updating processes to ensure segregation of duties are set up properly in the system. 2023-03 Personnel Action Form Staff concurs with this finding and believes this item is a result of turnover in the HR department. The City has reorganized the payroll function from the HR Department to the Finance Department and implemented additional internal controls to ensure employees are paid properly and that all personnel actions are documented. 129 193 130 194 1 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida (the City) for the year ended September 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated July 26, 2021. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies . The significant accounting policies used by the City are described in Note 1 to the financial statements . Except for the adoption of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements, the application of existing policies was not changed during the year ended September 30, 2023. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates may be particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: ■ Allowance for Doubtful Accounts—Management’s estimate of the allowance for doubtful accounts reduces the City’s accounts receivable balance to the net realizable value and increases the bad debt expense. Management adjusts the allowance for uncollectible utility billing receivables bas ed on historical revenues, loss levels, and analysis of the collectability of accounts. ■ Accumulated Depreciation—Management estimates accumulated depreciation and depreciation expense for capital assets using the straight-line method of depreciation and industry guidelines for useful lives. 195 2 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida ■ Compensated Absences—The City bases this liability on employees’ current pay and benefit rates and accrued hours (for sick and vacation time) as of year-end. ■ Net Pension Liability and Pension-Related Deferred Outflows and Inflows—The City’s combined net pension liability and pension-related deferred outflows and inflows of resources are based on actuarial studies performed by a qualified actuary retained by the City. The actuarial valuation is based upon actuarial methods and assumptions, which are selected based on risk and market factors affecting governmental entities of similar sizes, pension plan policies, and employee census information. ■ Other Postemployment Benefits (OPEB)—Management’s estimate of the total OPEB liability, related deferred inflows/outflows of resources, and expenses for OPEB, is an estimate based on actuarial studies performed by a qualified actuary retained by the City. The actuarial valuation is based upo n actuarial methods and assumptions which are selected based on risk and market factors affecting governmental entities of similar sizes, OPEB plan policies, and employee census information. The total OPEB liability and deferred inflows/outflows of resources allocated to the City are determined by the actuary and also considered a significant estimate. We evaluated the key factors and assumptions used to develop the above-described estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: ■ Pledged Revenues – The City has pledged certain revenues related to debt obligations as described in Note 7 to the financial statements. ■ Commitments and Contingencies – As more fully described in Note 14 to the financial statements, the City is under contract with various contractors for future construction services and also requires significant construction in the near future to replace or rehabilitate their Wastewater Treatment Plant. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. However, the commencement of the audit was delayed due to turnover in the finance department. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. A list of these misstatements is included in the attached Appendix A. 196 3 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida Disagreements with Management For the purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated September 3, 2024. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the required supplementary information (other than MD&A), as listed in the table of contents (collectively, the required supplementary information), which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining financial statements and budgetary comparison schedule as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the other supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 197 4 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida Restriction on Use This information is intended solely for the information and use of the City Commission and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. September 3, 2024 Gainesville, Florida 198 Number Account Description Account Debit Credit 1 Accrued Wages Year - End Accrual 001-00-0000-216000-001 001 (26,866.13)$ 1 Base Wage - Mayor/Commission 001-12-1100-510110-000 001 221.43$ 1 FICA 001-12-1100-520200-000 001 16.94 1 Base Wages/Salaries 001-12-1200-510100-000 001 376.54 1 FICA 001-12-1200-520200-000 001 30.00 1 Pension DC 001-12-1200-520225-000 001 18.54 1 Health Insurance 001-12-1200-520230-000 001 30.10 1 Base Wages/Salaries 001-12-1210-510100-000 001 346.93 1 FICA 001-12-1210-520200-000 001 26.08 1 Pension DC 001-12-1210-520225-000 001 18.30 1 Health Insurance 001-12-1210-520230-000 001 94.77 1 Base Wages/Salaries 001-13-1300-510100-000 001 1,314.78 1 FICA 001-13-1300-520200-000 001 91.84 1 Pension DC 001-13-1300-520225-000 001 43.31 1 Health Insurance 001-13-1300-520230-000 001 217.85 1 Base Wages/Salaries 001-13-1360-510100-000 001 1,159.12 1 FICA 001-13-1360-520200-000 001 86.32 1 Pension DC 001-13-1360-520225-000 001 62.81 1 Health Insurance 001-13-1360-520230-000 001 175.56 1 Base Wages/Salaries 001-15-1500-510100-000 001 265.05 1 FICA 001-15-1500-520200-000 001 20.04 1 Pension DC 001-15-1500-520225-000 001 15.14 1 Health Insurance 001-15-1500-520230-000 001 15.06 1 Base Wages/Salaries 001-15-1510-510100-000 001 332.95 1 FICA 001-15-1510-520200-000 001 24.93 1 Pension DC 001-15-1510-520225-000 001 9.10 1 Health Insurance 001-15-1510-520230-000 001 45.77 1 Base Wages/Salaries 001-15-1520-510100-000 001 440.75 1 FICA 001-15-1520-520200-000 001 34.44 1 Pension DC 001-15-1520-520225-000 001 30.94 1 Health Insurance 001-15-1520-520230-000 001 139.54 1 Base Wages/Salaries 001-16-1315-510100-000 001 678.60 1 FICA 001-16-1315-520200-000 001 50.27 1 Pension DC 001-16-1315-520225-000 001 15.46 1 Health Insurance 001-16-1315-520230-000 001 77.35 1 Base Wages/Salaries 001-16-1600-510100-000 001 963.91 1 FICA 001-16-1600-520200-000 001 71.13 1 Pension DC 001-16-1600-520225-000 001 54.27 1 Health Insurance 001-16-1600-520230-000 001 159.09 1 Base Wages/Salaries 001-16-1935-510100-000 001 266.36 1 FICA 001-16-1935-520200-000 001 21.52 1 Pension DC 001-16-1935-520225-000 001 19.46 1 Health Insurance 001-16-1935-520230-000 001 53.61 1 Base Wages/Salaries 001-16-7415-510100-000 001 580.40 1 FICA 001-16-7415-520200-000 001 40.90 1 Pension DC 001-16-7415-520225-000 001 35.74 1 Health Insurance 001-16-7415-520230-000 001 138.07 CITY OF WINTER SPRINGS YEAR ENDED SEPTEMBER 30, 2023 APPENDIX A 199 1 Base Wages/Salaries 001-21-2100-510100-000 001 10,286.68 1 FICA 001-21-2100-520200-000 001 804.64 1 Pension DC 001-21-2100-520225-000 001 27.52 1 Health Insurance 001-21-2100-520230-000 001 1,849.36 1 Base Wages/Salaries 001-41-1930-510100-000 001 9.37 1 FICA 001-41-1930-520200-000 001 0.72 1 Pension DC 001-41-1930-520225-000 001 0.71 1 Base Wages/Salaries 001-41-1940-510100-000 001 439.15 1 FICA 001-41-1940-520200-000 001 33.27 1 Pension DC 001-41-1940-520225-000 001 5.78 1 Health Insurance 001-41-1940-520230-000 001 93.95 1 Base Wages/Salaries 001-41-4100-510100-000 001 374.30 1 FICA 001-41-4100-520200-000 001 28.41 1 Pension DC 001-41-4100-520225-000 001 28.53 1 Health Insurance 001-41-4100-520230-000 001 64.55 1 Base Wages/Salaries 001-41-4110-510100-000 001 574.52 1 FICA 001-41-4110-520200-000 001 40.48 1 Pension DC 001-41-4110-520225-000 001 33.17 1 Health Insurance 001-41-4110-520230-000 001 233.48 1 Base Wages/Salaries 001-72-7200-510100-000 001 463.70 1 FICA 001-72-7200-520200-000 001 34.65 1 Pension DC 001-72-7200-520225-000 001 30.91 1 Health Insurance 001-72-7200-520230-000 001 32.54 1 Base Wages/Salaries 001-72-7230-510100-000 001 1,575.98 1 FICA 001-72-7230-520200-000 001 123.69 1 Pension DC 001-72-7230-520225-000 001 51.12 1 Health Insurance 001-72-7230-520230-000 001 190.03 1 Base Wages/Salaries 001-72-7250-510100-000 001 427.68 1 FICA 001-72-7250-520200-000 001 33.37 1 Pension DC 001-72-7250-520225-000 001 11.48 1 Health Insurance 001-72-7250-520230-000 001 31.32 1 Accrued Wages Year - End Accrual 410-00-0000-216000-001 410 (3,450.98) 1 Base Wages/Salaries 410-36-3600-510100-000 410 2,539.92 1 FICA 410-36-3600-520200-000 410 199.52 1 Pension DC 410-36-3600-520225-000 410 114.79 1 Health Insurance 410-36-3600-520230-000 410 596.75 1 Accrued Wages Year - End Accrual 411-00-0000-216000-001 411 (825.18) 1 Base Wages/Salaries 411-38-3800-510100-000 411 453.41 1 FICA 411-38-3800-520200-000 411 32.15 1 Pension DC 411-38-3800-520225-000 411 18.89 1 Health Insurance 411-38-3800-520230-000 411 178.08 1 Base Wages/Salaries 411-38-3810-510100-000 411 103.03 1 FICA 411-38-3810-520200-000 411 7.08 1 Health Insurance 411-38-3810-520230-000 411 32.54 1 Accrued Wages Year - End Accrual 420-00-0000-216000-001 420 (1,133.13) 1 Base Wages/Salaries 420-24-2400-510100-000 420 912.12 1 FICA 420-24-2400-520200-000 420 68.62 1 Pension DC 420-24-2400-520225-000 420 42.64 1 Health Insurance 420-24-2400-520230-000 420 109.75 Audit Adjustment To correct the calculation of accrued salaries and wages at fiscal year-end. 200 2 Equity in PC Equity in PC 001-00-0000-100400-800 001 22,477.52 2 Misc Revenue 001-00-0000-369900-000 001 (22,477.52) 2 Bank - Operating 800-00-0000-100100-000 800 22,477.52 2 P/C Equity Due To General Fund 800-00-0000-204000-001 800 (22,477.52) Audit Adjustment To correct an error within the bank reconciliation. 201