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HomeMy WebLinkAbout2025 04 28 Regular 500 - 2024 Annual Comprehensive Financial Report (ACFR)REGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | APRIL 28, 2025 REGULAR MEETING TITLE 2024 Annual Comprehensive Financial Report (ACFR) SUMMARY The Annual Comprehensive Financial Report for the Fiscal Year Ended September 30th 2024 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. The 2024 Annual Comprehensive Financial Report will be submitted to the Government Finance Officers Association for consideration of their Certificate of Achievement award as we believe it conforms to the program's stringent requirements. FUNDING SOURCE RECOMMENDATION Staff recommends the City Commission accept the Annual Comprehensive Financial Report as presented for the Fiscal Year Ended September 30th 2024. 53 54 City of Winter Springs, Florida ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended September 30, 2024 Prepared by: Finance Department 55 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS i I. INTRODUCTORY SECTION Table of Contents ............................................................................................................................. i-iii Letter of Transmittal .......................................................................................................................iv-vi List of Principal Officials ..................................................................................................................... vii Organizational Chart ......................................................................................................................... viii 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 .................................................................................................... 34-61 56 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 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 ....................................................... 62 Schedule of Changes in Net Pension Liability and Related Ratios ............................................................................................................................. 63 Schedule of Contributions ........................................................................................................ 64-65 Schedule of Investment Returns .................................................................................................... 66 Other Supplementary Information Non-Major Governmental Funds: Combining Balance Sheet – Non-Major Governmental Funds .............................................. 67-72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds .......................................... 73-78 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: Police Education Fund .......................................................................................................... 79 Special Law Enforcement Trust Fund – Local ....................................................................... 80 Transportation Improvement Fund ..................................................................................... 81 Transportation Impact Fee Fund .......................................................................................... 82 Police Impact Fee Fund ........................................................................................................ 83 Fire Impact Fee Fund ............................................................................................................ 84 Parks Impact Fee Fund ......................................................................................................... 85 Arbor Fund ........................................................................................................................... 86 TLBD Maintenance Fund ...................................................................................................... 87 Oak Forest Maintenance Fund ............................................................................................. 88 Special Law Enforcement Trust Fund – Federal ................................................................... 89 Tuscawilla Phase III .............................................................................................................. 90 TLBD Debt Service Fund ....................................................................................................... 91 1999 Debt Service Fund ....................................................................................................... 92 1999 Construction Fund ....................................................................................................... 93 Revolving Rehab Fund .......................................................................................................... 94 Public Facilities Fund ............................................................................................................ 95 Excellence in Customer Service ............................................................................................ 96 III. STATISTICAL SECTION Financial Trends Net Position by Component ........................................................................................................... 97 Changes in Net Position ............................................................................................................ 98-99 Governmental Activities Tax Revenues by Source ....................................................................... 100 Fund Balances of Governmental Funds ....................................................................................... 101 Changes in Fund Balances of Governmental Funds .............................................................. 102-103 57 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS iii Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property ....................................................................................................................... 104 Property Tax Rates, Direct and Overlapping Governments ......................................................... 105 Special Assessment Billings and Collections ................................................................................ 106 Principal Property Taxpayers ....................................................................................................... 107 Property Tax Levies and Collections ............................................................................................ 108 Debt Capacity Legal Debt Margin ........................................................................................................................ 109 Ratio of Net General Obligation - Debt to Assessed Value and Net General Obligation Per Capita .......................................................................... 110 Ratio of Outstanding Debt by Type .............................................................................................. 111 Direct and Overlapping Governmental Activities Debt ............................................................... 112 Pledged-Revenue Coverage .................................................................................................. 113-114 Demographic and Economic Information Demographic and Economic Statistics ......................................................................................... 115 Principal Employers...................................................................................................................... 116 Operating Information Budgeted Full-Time Equivalent City Government Employees by Function ............................................................................................................. 117 Operating Indicators by Function ................................................................................................ 118 Capital Asset Statistics by Function ............................................................................................. 119 Other Reports Schedule of Expenditures of Federal Awards .............................................................................. 120 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 ........................................................... 121-122 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance ................................................................................... 123-125 Schedule of Findings and Questioned Costs ......................................................................... 126-127 Management Letter .............................................................................................................. 128-130 Independent Accountant’s Report on Compliance with Florida Statute Section 218.415 – Investments of Public Funds .............................................. 131 Management Response Letter ..................................................................................................... 132 58 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 April 23, 2025 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, 2024. 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 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, 2024 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, 2024 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. 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. 59 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 79. 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 FY24 was in excess of $3M and is estimated to be $750k for FY25. In November of 2024, the one-cent local government infrastructure sales tax was renewed by the voters. 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 2023- 2024 fiscal year (tax year 2023), the gross taxable value reflects an increase of 9.2% from the prior year. During fiscal year 2023-2024 (tax year 2023), 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 communication services tax continue to hold steady, while state sales tax revenues have plateaued after a post COVID spike. 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 currently in the pipeline include Chau Medical Plaza (Phase 2), Greenway Kia North (Retrofit), ACE Hardware, and Chick-Fil-A. 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 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. 60 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 Trotwood Park, completed a new basketball court at Trotwood, conversion of old basketball court to a parking lot, and installation of new Bocce Ball Courts at Sam Smith 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 2024, the City did not implement any new GASB Statements or update any financial policies. Major Initiatives. Continued improvements in customer service and information reporting are on-going, such as upgrades in several behind the scenes technological systems. The City’s primary capital focus is currently on the design and construction of two new Water Reclamation Facilities and Stormwater Infrastructure revitalization. The City continues its effort in safety improvements across its parks and through ongoing sidewalk replacements, and road resurfacing. 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. Finally, we would also like to express appreciation to the Mayor and the City Commission for their support and for maintaining high standards of professionalism in the management of the City of Winter Springs’ finances. Respectfully submitted, Kevin Sweet Holly Queen City Manager Finance Director 61 vii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2024 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 Holly Queen PARKS, RECREATION, & FACILITIES Leonard Hartman POLICE CHIEF Matthew Tracht UTILITY Bilal Iftikhar PUBLIC WORKS Philip Hursh * Kevin Sweet was hired as City Manager effective December 16, 2024. 62 Citizens of Winter Springs Mayor and City Commissioners Finance Police Department Community Devel. City Attorney Utilities Advisory Boards x Accounting x Debt Management x Budgeting x Purchasing x Contracts x Solid Waste x Treasury Management x Utility Business Services x Meter Service x Water Conservation x Water/ Wastewater Operations x Records x Communication x Patrol x Investigations x Code Enforcement x Planning x Land Management x Building Permits/ Insp. x Business Tax Receipts x Economic Development x Construction Inspections Operations x Human Resources x Risk Management x Public Information/ Marketing x Information Technology Parks & Recreation, Facilities x Civic/Senior Center x Events x Recreation Programs x Facilities/Cap Projects x Parks Maintenance x Urban Beatification City Manager Public Works x Roads (ROW) x Engineering x Sidewalks x Trees x Storm water x Fleet Maintenance City Clerk 63 FINANCIAL SECTION 64 INDEPENDENT AUDITOR’S REPORT 65 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, 2024, 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, 2024, 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. 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. 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. 66 2 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT 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 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. 67 3 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT 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 and the Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 April 23, 2025, 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. April 23, 2025 Gainesville, Florida 68 MANAGEMENT’S DISCUSSION AND ANALYSIS 69 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 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, 2024. 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 $161,325,040 (net position). Of this amount, $43,199,739 (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 $17,050,252 or 11.82% 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 $46,140,960. Approximately 21% of this total amount, $9,715,997, 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 $9,739,108 or 47% of total general fund expenditures. ■ As a result of current year’s activities, the City of Winter Springs’ total debt decreased by $2,701,006 (10%). 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. 70 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 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. 71 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 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 2 3-26. Budgetary comparison schedules have been provided for the non -major funds on pages 79-96. 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 34-61 of this report. Required Supplementary Information (RSI) RSI can be found on pages 62-66 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 67- 96 of this report. 72 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 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 $161,325,040 at the close of the most recent fiscal year. Of the City of Winter Springs’ net position, $90,582,366 or 56% 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 totals $27,542,935 (17%). The remaining balance of unrestricted net position, $43,199,739 (27%), may be used to meet the government’s ongoing obligations to citizens and creditors. At September 30, 2024, the City of Winter Springs is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Position for the current prior year. For more detail, see the Statement of Net Position on page 17. Statements of Net Position as of September 30: 2024 2023 2024 2023 2024 2023 Assets Current and Other Assets 62,346,034$ 70,419,660$ 46,750,281$ 34,467,749$ 109,096,315$ 104,887,409$ Restricted Assets 153,736 137,406 822,189 898,088 975,925 1,035,494 Capital Assets 60,461,571 57,163,894 41,911,821 42,880,832 102,373,392 100,044,726 Total Assets 122,961,341 127,720,960 89,484,291 78,246,669 212,445,632 205,967,629 Deferred Outflows of Resources Deferred Charge on Refunding - - 6,328 7,382 6,328 7,382 Deferred Outflow of Pension and OPEB 638,948 3,493,367 155,172 848,390 794,120 4,341,757 Total Deferred Outflows of Resources 638,948 3,493,367 161,500 855,772 800,448 4,349,139 Liabilities Current Liabilities 11,295,061 21,495,695 2,536,850 2,112,900 13,831,911 23,608,595 Long-Term Liabilities 9,648,038 17,172,819 16,538,988 19,655,990 26,187,026 36,828,809 Other Liabilities 151,645 135,795 611,416 638,014 763,061 773,809 Total Liabilities 21,094,744 38,804,309 19,687,254 22,406,904 40,781,998 61,211,213 Deferred Inflows of Resources Deferred Inflow of Leases 3,884,556 4,030,632 - - 3,884,556 4,030,632 Deferred Inflow of Pension and OPEB 5,836,942 643,787 1,417,544 156,348 7,254,486 800,135 Total Deferred Inflows of Resources 9,721,498 4,674,419 1,417,544 156,348 11,139,042 4,830,767 Net Position Net Investment in Capital Assets 57,732,797 53,772,849 32,849,569 33,001,489 90,582,366 86,774,338 Restricted 22,069,483 20,560,201 5,473,452 5,729,121 27,542,935 26,289,322 Unrestricted 12,981,767 13,402,549 30,217,972 17,808,579 43,199,739 31,211,128 Total Net Position 92,784,047$ 87,735,599$ 68,540,993$ 56,539,189$ 161,325,040$ 144,274,788$ Business-Type Governmental Activities Activities Total 73 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 8 Statements 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 $17,050,252 or 11.82% from the prior year. The previous fiscal year, 2023, net position increased by $1,884,467. Governmental activities increased net position by $5,048,448 in fiscal year 2024 compared to an increase of $2,275,168 in 2023. The increase in net position for fiscal year 2024 is more than the prior year’s increase, primarily due to the increase in investment income. Business-type activities increased net position by $12,001,804 in fiscal year 2024 compared to a decrease of ($390,701) in 2023. The increase in net position in fiscal year 2024 is more than the prior fiscal year’s decrease, primarily due to an increase in transfers in from the General Fund for infrastructure improvement projects. Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business-type activities, as well as the revenue “source” for each. Additional information regarding the changes in fund balance of the governmental and business-type activities can be found in the section entitled Financial Analysis of the Government’s Funds on pages 12-13. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph, the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income, or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. 74 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 9 Changes in Net Position for the years ended September 30: 2024 2023 2024 2023 2024 2023 Revenues Program Revenues: Charges for Services 7,687,746$ 7,055,668$ 16,757,033$ 14,750,324$ 24,444,779$ 21,805,992$ Operating Grants and Contributions 10,251,757 - - - 10,251,757 - Capital Grants and Contributions 4,084,198 3,901,648 276,177 750,655 4,360,375 4,652,303 General Revenues: Property Taxes 8,031,892 7,391,163 - - 8,031,892 7,391,163 Utility Taxes 5,416,598 5,297,021 - - 5,416,598 5,297,021 Business Tax Receipts 144,280 164,766 - - 144,280 164,766 Intergovernmental - Unrestricted 4,910,769 5,147,878 - - 4,910,769 5,147,878 Investment Income and Miscellaneous 4,554,965 2,816,058 3,444,559 1,323,576 7,999,524 4,139,634 Total Revenues 45,082,205 31,774,202 20,477,769 16,824,555 65,559,974 48,598,757 Expenses General Government 8,403,577 8,303,658 - - 8,403,577 8,303,658 Public Safety 9,680,559 8,775,138 - - 9,680,559 8,775,138 Physical Environment 8,643,543 9,383,755 - - 8,643,543 9,383,755 Culture and Recreation 3,630,227 3,272,041 - - 3,630,227 3,272,041 Interest on Long-Term Debt 427,119 468,506 - - 427,119 468,506 Water and Sewer - - 14,129,939 13,248,653 14,129,939 13,248,653 Development Services - - 1,869,308 1,534,424 1,869,308 1,534,424 Stormwater - - 1,725,450 1,728,115 1,725,450 1,728,115 Total Expenses 30,785,025 30,203,098 17,724,697 16,511,192 48,509,722 46,714,290 Excess (Decrease) in Net Position Before Transfers 14,297,180 1,571,104 2,753,072 313,363 17,050,252 1,884,467 Transfers (9,248,732) 704,064 9,248,732 (704,064) - - Increase (Decrease) in Net Position 5,048,448 2,275,168 12,001,804 (390,701) 17,050,252 1,884,467 Net Position, Beginning 87,735,599 85,460,431 56,539,189 56,929,890 144,274,788 142,390,321 Net Position, Ending 92,784,047$ 87,735,599$ 68,540,993$ 56,539,189$ 161,325,040$ 144,274,788$ Business-Type Governmental Activities Total 75 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 10 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 General Government Public Safety Physical Environment Culture & Recreation Interest on Long-Term Debt Governmental Program Specific Revenues and Expenses Revenues Expenses Intergovernmental 11% Charges for Services 17% Investment Income and Miscellaneous 10% Business Tax Receipts 0% Operating Grants and Contributions 23% Capital Grants and Contributions 9% Taxes 30% Governmental Revenues by Source 76 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 11 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Water and Sewer Development Services Stormwater Business-Type Activities Revenues and Expenses Revenues Expenses Capital Grants and Contributions 1% Investment Income and Miscellaneous 17% Charges for Services 82% Business-Type Activities Revenues by Source 77 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 12 Financial Analysis of the Government’s Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City of Winter Springs’ governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs’ financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of September 30, 2024, the City of Winter Springs’ governmental funds reported combined ending fund balances of $46,140,960, an increase of $2,053,705 over the prior year. Approximately 21%, or $9,715,997, 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 $9,739,108, while total fund balance was $11,917,641. 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 47% and 57%, respectively, of total General Fund expenditures. The increase in fund balance of $1,812,620 is the result of increased taxes and investment earnings combined with a reduction in expenditures for pension contributions and vehicle purchases for public safety. The Road Improvements Special Revenue Fund balance increased $795,387 due to an increase in investment earnings and a reduction in capital expenditures for resurfacing projects. The Solid Waste/Recycling Special Revenue Fund net position increased by $46,999. This increase is due to the increase in solid waste rates combined with a reduction in emergency disposal services. The American Recovery Plan Act Special Revenue Fund net position increased by $1,161,626. This increase is primarily due to investment earnings 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 $29,026,994, and total net position increased by $12,914,120 to $54,851,756. The increase in net position in fiscal year 2024 is more than the prior fiscal year’s increase, primarily due to the transfer from the General Fund, the increase in revenue from the sale of easement rights, and investment returns. The Development Services Fund net position decreased as a result of current year activities by ($426,455) to $5,165,176 at the end of the fiscal year. The decrease in net position is more than the prior fiscal year’s decrease due to an increase in salaries and benefits. 78 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 13 The Stormwater Utility Fund net position decreased as a result of current fiscal year activities by ($485,861) to $8,524,061 at the end of the fiscal year. This decrease in net position in fiscal year 2024 is less than the prior fiscal year’s decrease, primarily due to decreases in capital projects as compared to the prior year. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in an increase to appropriation to fund balance of $464,350. The actual results of the General Fund for the year show an appropriation to fund balance of $1,812,620 compared to a final budgeted appropriation from fund balance of ($480,133). The favorable variance of $2,292,753 is comprised of favorable revenue and expenditure variances. The favorable expenditure variance of $2,146,731 is displayed in the departmental cost centers below: Executive $ 223,227 General Government 109,279 Finance and Administrative Services 46,998 Information Services 298,997 Community Development 625,214 Police 152,489 Public Works 337,353 Parks and Recreation 353,174 Total $ 2,146,731 This favorable variance is represented by the following expenditure categories as both amounts and percentages of budget: Payroll $ 1,041,089 3.01% Other Operating 1,011,280 2.92% Capital 94,362 0.27% Total $ 2,146,731 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, 2024, amounts to $102,373,392 (net of accumulated depreciation), for an increase of $2,328,666 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 2.33% (a 5.77% increase for governmental activities, and a (2.26%) decrease for business-type activities). 79 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 14 Major capital asset events during the current fiscal year included the following: ■ The purchases: • New equipment for urban beautification at a cost of $141,627 • Vehicle replacement for urban beautification $53,775 • Portable radio replacements in the amount of $15,341 • New vehicles for the police department at a cost of approximately $648,291 • Replacement of code enforcement vehicles in the amount of $69,342 • New equipment for the parks department at a cost of approximately $218,095 • Thor guard system component replacement $44,772 • Purchase of new sewer & vac truck in the amount of $660,290 • Purchase of truck with utility service crane in the amount of $98,747 • Acquisition of mobile pumps for lift stations at a cost of $149,143 • Replacement of vehicles for water and sewer field crew in the amount of $98,273 • Relining of pipes for the water and sewer operations at a cost of approximately $192,903 • Relining of pipes for the stormwater utility operations at a cost of approximately $516,404 ■ The completion and capitalization of the following projects: • New pickleball facility with parking in the amount of $3,027,620 • Traffic signal at Michael Blake boulevard and SR 434 at a cost of $835,523 • Central Winds Park equipment building at a cost of $98,245 • Tuskawilla Road and drainage repairs in the amount of $205,761 • Stormwater rehabilitation city wide at a cost of approximately $331,993 • Murphy Road over Gee Creek Box culvert repair and restoration in the amount of $413,000 • Stormwater infrastructure repair on Deer Rd at a cost of approximately $110,649 • Trotwood Boardwalk at a cost of approximately $89,577 • Trotwood Basketball Courts in the amount of $247,356 • Resurfacing streets throughout the City at a cost of approximately $1,173,725 • Lift Station Pump replacements in the amount of $119,446 • Transfer switch breaker replacements for approximately $50,459 • Water Reclamation blower motor replacements in the amount of $85,286 ■ Beginning and continued construction on the following projects: • Water Treatment Plant 3 Power Reliability at a cost of approximately $500,000 • Tuscawilla Crossing reclaimed extension at a cost of approximately $3,100,000 • Winding Hollow turn lane at a cost of approximately $1,500,000 Additional information on the City of Winter Springs’ capital assets can be found in Note 6 on pages 47- 48 of this report. 80 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 15 Long-Term Debt At September 30, 2024, the City of Winter Springs had total debt outstanding of $23,275,395, a decrease of $2,701,006 from $25,976,401 at September 30, 2023. Total bonded debt of the City at the end of the current fiscal year was $4,016,630. This amount does not include accreted interest of $11,956,617. 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 For the first time in many years the operating millage rate was increased from 2.4100 to 2.5200 for fiscal year 2025. The gross property tax values in Winter Springs increased in fiscal year 2024 by 9.5% and have increased by approximately 8.2% in fiscal year 2025. In November 2024, 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 $3.7 million in additional revenues each year and expires in December 2034. 2024 2023 2024 2023 2024 2023 Land 10,341,976$ 10,341,976$ 7,170,177$ 7,170,177$ 17,512,153$ 17,512,153$ Buildings 6,671,146 6,871,044 1,187,504 1,248,160 7,858,650 8,119,204 Improvements Other Than Buildings 6,806,042 5,876,697 22,392,053 24,347,646 29,198,095 30,224,343 Machinery and Equipment 3,038,138 2,850,690 6,017,675 5,131,834 9,055,813 7,982,524 Subscription Assets 376,034 542,721 336,081 - 712,115 542,721 Intangibles - 1,790 23,480 50,260 23,480 52,050 Infrastructure 31,965,094 28,403,602 - - 31,965,094 28,403,602 Construction in Progress 1,263,141 2,275,374 4,784,851 4,932,755 6,047,992 7,208,129 Total Capital Assets 60,461,571$ 57,163,894$ 41,911,821$ 42,880,832$ 102,373,392$ 100,044,726$ Business-Type Governmental Activities Activities Total 2024 2023 2024 2023 2024 2023 Improvement Refunding Revenue Bonds, Series 1999 1,633,505$ 1,964,635$ -$ -$ 1,633,505$ 1,964,635$ Water and Sewer Refund Revenue Bonds, Series 2000 - - 2,383,125 2,874,056 2,383,125 2,874,056 Special Assessment Revenue Notes, Series 2011 725,890 831,298 - - 725,890 831,298 Revenue Refunding Note Series 2020 - - 2,609,956 2,748,956 2,609,956 2,748,956 State Revolving Fund Loans - - 3,966,302 4,256,327 3,966,302 4,256,327 Accreted Interest Payable 4,863,961 5,419,530 7,092,656 7,881,599 11,956,617 13,301,129 Total Long-Term Debt 7,223,356$ 8,215,463$ 16,052,039$ 17,760,938$ 23,275,395$ 25,976,401$ Business-Type Governmental Activities Activities Total 81 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2024 16 The General Fund’s fiscal year 2024 adopted an expenditure budget of $24,137,122 (inclusive of transfers) that marked an increase of 20.2% from the previous year. For the fiscal year 2025, the adopted expenditure budget is $26,691,028, an increase of 10.6% from fiscal year 2024. The total combined expenditure budget of fiscal year 2025 of $70,013,390 (inclusive of transfers) is $2,718,103 or 3.73% less than the adopted budget of fiscal year 2024. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs’ finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida 32708. The Annual Comprehensive Financial Report is also available at the City of Winter Springs’ website located at www.winterspringsfl.org. 82 BASIC FINANCIAL STATEMENTS 83 Governmental Business-Type Activities Activities Total Assets Cash and Cash Equivalents 3,678,410$ 3,104,822$ 6,783,232$ Investments 52,963,323 42,946,795 95,910,118 Receivables, Net 206,169 565,947 772,116 Lease Receivable 4,358,042 - 4,358,042 Inventories, at Cost 20,516 44,885 65,401 Prepaid Costs 92,026 - 92,026 Restricted Assets: Cash and Cash Equivalents 153,736 822,189 975,925 Receivables, Long-Term 665,891 - 665,891 Net Pension Asset 361,657 87,832 449,489 Capital Assets: Capital Assets Not Being Depreciated 11,605,117 11,955,028 23,560,145 Capital Assets Being Depreciated, Net of Accumulated Depreciation 48,856,454 29,956,793 78,813,247 Total Assets 122,961,341 89,484,291 212,445,632 Deferred Outflows of Resources Deferred Charge on Refunding - 6,328 6,328 Deferred Outflow of Pension and OPEB 638,948 155,172 794,120 Total Deferred Outflows of Resource 638,948 161,500 800,448 Liabilities Accounts Payable and Accrued Expenses 2,404,934 2,506,075 4,911,009 Due to Other Governments 461,933 - 461,933 Unearned Revenue 8,428,194 - 8,428,194 Accrued Interest Payable - 30,775 30,775 Liabilities Payable from Restricted Assets 151,645 611,416 763,061 Non-Current Liabilities: Due Within One Year 1,767,170 2,448,686 4,215,856 Due in More than One Year 7,880,868 14,090,302 21,971,170 Total Liabilities 21,094,744 19,687,254 40,781,998 Deferred Inflows of Resources Deferred Inflows of Leases 3,884,556 - 3,884,556 Deferred Inflows of Pension and OPEB 5,836,942 1,417,544 7,254,486 Total Deferred Inflows of Resources 9,721,498 1,417,544 11,139,042 Net Position Net Investment in Capital Assets 57,732,797 32,849,569 90,582,366 Restricted for: Capital Projects 6,185,798 - 6,185,798 Renewal and Replacement - 692,805 692,805 Building Fund - 4,692,815 4,692,815 Physical Environment 15,356,869 - 15,356,869 Public Safety 165,159 - 165,159 Pension Assets 361,657 87,832 449,489 Unrestricted 12,981,767 30,217,972 43,199,739 Total Net Position 92,784,047$ 68,540,993$ 161,325,040$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2024 See accompanying notes. 17 84 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 8,403,577$ 2,975,815$ 2,805,045$ -$ (2,622,717)$ -$ (2,622,717)$ Public Safety 9,680,559 181,391 5,203,270 109,281 (4,186,617) - (4,186,617) Physical Environment 8,643,543 4,225,069 819,100 3,803,422 204,048 - 204,048 Culture and Recreation 3,630,227 305,471 1,424,342 171,495 (1,728,919) - (1,728,919) Interest on Long-Term Debt 427,119 - - - (427,119) - (427,119) Total Governmental Activities 30,785,025 7,687,746 10,251,757 4,084,198 (8,761,324) - (8,761,324) Business-Type Activities: Water and Sewer 14,129,939 14,502,217 - 276,177 - 648,455 648,455 Development Services 1,869,308 1,115,088 - - - (754,220) (754,220) Stormwater 1,725,450 1,139,728 - - - (585,722) (585,722) Total Business-Type Activities 17,724,697 16,757,033 - 276,177 - (691,487) (691,487) Total Primary Government 48,509,722$ 24,444,779$ 10,251,757$ 4,360,375$ (8,761,324) (691,487) (9,452,811) General Revenues Property Taxes 8,031,892 - 8,031,892 Utility Taxes 5,416,598 - 5,416,598 Business Tax Receipts 144,280 - 144,280 Intergovernmental - Unrestricted 4,910,769 - 4,910,769 Investment Income/(Loss) and Miscellaneous 4,554,965 3,444,559 7,999,524 Transfers (9,248,732) 9,248,732 - Total General Revenues and Transfers 13,809,772 12,693,291 26,503,063 Changes in Net Position 5,048,448 12,001,804 17,050,252 Net Position, Beginning of Year 87,735,599 56,539,189 144,274,788 Net Position, End of Year 92,784,047$ 68,540,993$ 161,325,040$ CITY OF WINTER SPRINGS, FLORIDA Program Revenue Net (Expense) Revenue and Changes in Net Position Primary Government FOR THE YEAR ENDED SEPTEMBER 30, 2024 STATEMENT OF ACTIVITIES See accompanying notes. 18 85 Road American Other Total General Improvements Solid Waste/Recovery Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Assets Cash and Cash Equivalents 757,571$ 688,532$ 132,999$ 690,575$ 1,408,733$ 3,678,410$ Investments 12,559,769 9,524,362 1,839,757 9,552,634 19,486,801 52,963,323 Receivable, Net 40,678 - 165,479 - 12 206,169 Leases Receivable 4,358,042 - - - - 4,358,042 Inventories, at Cost 20,516 - - - - 20,516 Prepaids 90,526 - - - 1,500 92,026 Special Assessments Receivable - - - - 665,891 665,891 Advances to Other Funds 33,091 - - - - 33,091 Restricted Assets: Cash and Cash Equivalents 151,645 - - - 2,091 153,736 Total Assets 18,011,838 10,212,894 2,138,235 10,243,209 21,565,028 62,171,204 Liabilities and Fund Balances Liabilities Accounts Payable 584,514 373,511 274,977 94,163 66,220 1,393,385 Accrued Liabilities 1,011,549 - - - - 1,011,549 Unearned Revenue - - - 8,428,194 - 8,428,194 Advances from Other Funds - - - - 33,091 33,091 Due to Other Governments 461,933 - - - - 461,933 Payable from Restricted Assets 151,645 - - - - 151,645 Total Liabilities 2,209,641 373,511 274,977 8,522,357 99,311 11,479,797 Deferred Inflows of Resources Deferred Inflows from Leases 3,884,556 - - - - 3,884,556 Unavailable Revenue - Special Assessments - - - - 665,891 665,891 Total Deferred Inflows of Resources 3,884,556 - - - 665,891 4,550,447 Fund Balances Non-Spendable 144,133 - - - 1,500 145,633 Restricted - 9,839,383 - - 11,868,443 21,707,826 Committed - - - - 3,274,049 3,274,049 Assigned 2,034,400 - 1,863,258 1,720,852 5,678,945 11,297,455 Unassigned 9,739,108 - - - (23,111) 9,715,997 Total Fund Balances 11,917,641 9,839,383 1,863,258 1,720,852 20,799,826 46,140,960 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 18,011,838$ 10,212,894$ 2,138,235$ 10,243,209$ 21,565,028$ 62,171,204$ Special Revenue SEPTEMBER 30, 2024 GOVERNMENTAL FUNDS BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA See accompanying notes. 19 86 Total Fund Balance, Governmental Funds 46,140,960$ 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.60,461,571 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.665,891 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.(5,197,994) Net pension assets are not recognized in the governmental fund; however, they are recorded in net position under full accrual accounting.361,657 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.(8,732,914) Net pension liabilities and other postemployment benefit liabilities are not available in the current period and, therefore, are not reported in the funds.(915,124) Net Position of Governmental Activities in the Statement of Net Position 92,784,047$ CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2024 See accompanying notes. 20 87 Road American Other Total General Improvements Solid Waste/Recovery Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Revenues Taxes: Property Taxes 8,031,892$ -$ -$ -$ -$ 8,031,892$ Utility Taxes 5,416,598 - - - - 5,416,598 Business Tax Receipts 144,280 - - - - 144,280 Permits and Fees 2,709,863 - - - 970 2,710,833 Intergovernmental Revenues 4,922,321 3,065,232 51,686 10,251,757 600,066 18,891,062 Charges for Services 969,544 - 3,247,179 - - 4,216,723 Fines and Forfeitures 133,758 - - - 50,601 184,359 Impact Fees/Assessments - - - - 1,073,292 1,073,292 Investment Income/(Loss)1,017,071 575,913 122,945 1,177,451 1,286,544 4,179,924 Miscellaneous 153,046 - - - 221,997 375,043 Total Revenues 23,498,373 3,641,145 3,421,810 11,429,208 3,233,470 45,224,006 Expenditures Current: General Government 7,475,743 - - - 5,040 7,480,783 Public Safety 8,322,855 - - - 18,552 8,341,407 Physical Environment 1,281,529 537,395 3,374,811 - 1,187,359 6,381,094 Culture and Recreation 2,574,370 - - - - 2,574,370 Debt Service: Principal 148,046 - - - 436,538 584,584 Interest and Fiscal Charges 12,499 - - - 970,190 982,689 Capital Outlay: General Government 214,448 - - - 216,962 431,410 Public Safety 541,935 - - - 365,357 907,292 Physical Environment - 2,858,363 - 267,582 862,972 3,988,917 Culture and Recreation 155,596 - - - 2,093,427 2,249,023 Total Expenditures 20,727,021 3,395,758 3,374,811 267,582 6,156,397 33,921,569 Excess (Deficiency) of Revenues Over Expenditures 2,771,352 245,387 46,999 11,161,626 (2,922,927) 11,302,437 Other Financing Sources (Uses) Transfers In 10,751,268 550,000 - - 1,710,000 13,011,268 Transfers (Out)(11,710,000) - - (10,000,000) (550,000) (22,260,000) Total Other Financing Sources (Uses)(958,732) 550,000 - (10,000,000) 1,160,000 (9,248,732) Net Change in Fund Balances 1,812,620 795,387 46,999 1,161,626 (1,762,927) 2,053,705 Fund Balances, Beginning of Year 10,105,021 9,043,996 1,816,259 559,226 22,562,753 44,087,255 Fund Balances, End of Year 11,917,641$ 9,839,383$ 1,863,258$ 1,720,852$ 20,799,826$ 46,140,960$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 Special Revenue AND CHANGES IN FUND BALANCES See accompanying notes. 21 88 Net Change in Fund Balances - Total Governmental Funds 2,053,705$ 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.3,297,677 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.584,584 The payment of accreted interest that was recognized in a prior year is not reported as an expense on the statement of activities.943,870 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year.(141,799) Cash pension contributions reported in the funds differed from the calculated pension expense on the statement of activities and, therefore, changed net position.(1,396,468) 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.(293,121) Change in Net Position of Governmental Activities 5,048,448$ 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, 2024 STATEMENT OF ACTIVITIES See accompanying notes. 22 89 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Property Taxes 8,036,609$ 8,036,609$ 8,031,892$ (4,717)$ Utility Taxes 5,260,500 5,260,500 5,416,598 156,098 Business Tax Receipts 90,000 90,000 144,280 54,280 Permits and Fees 2,791,973 2,791,973 2,709,863 (82,110) Intergovernmental Revenues 5,124,500 5,124,500 4,922,321 (202,179) Charges for Services 512,522 642,522 969,544 327,022 Fines and Forfeitures 107,976 107,976 133,758 25,782 Investment Income/(Loss)300,000 1,000,000 1,017,071 17,071 Miscellaneous 209,391 290,371 153,046 (137,325) Total Revenues 22,433,471 23,344,451 23,498,373 153,922 Expenditures Current: General Government: Executive 827,609 851,609 628,382 223,227 General Government*(51,701) (366,701) (475,980) 109,279 Finance and Administrative Services 1,752,423 1,856,073 1,809,075 46,998 Information Services 3,614,216 4,125,196 3,826,199 298,997 Community Development 2,625,074 2,613,074 1,987,860 625,214 Public Safety: Police 9,092,479 9,092,479 8,939,990 152,489 Physical Environment: Public Works 1,483,882 1,618,882 1,281,529 337,353 Culture and Recreation: Parks and Recreation 3,503,140 3,083,140 2,729,966 353,174 Total Expenditures 22,847,122 22,873,752 20,727,021 2,146,731 Excess (Deficiency) of Revenues Over Expenditures (413,651) 470,699 2,771,352 2,300,653 Other Financing Sources (Uses) Transfers In 759,168 10,759,168 10,751,268 (7,900) Transfers (Out)(1,290,000) (11,710,000) (11,710,000) - Total Other Financing Sources (530,832) (950,832) (958,732) (7,900) Net Change in Fund Balances (944,483) (480,133) 1,812,620 2,292,753 - Fund Balances, Beginning of Year 10,467,193 9,519,917 10,105,021 585,104 Fund Balances, End of Year 9,522,710$ 9,039,784$ 11,917,641$ 2,877,857$ *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, 2024 See accompanying notes. 23 90 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 3,430,000$ 3,430,000$ 3,065,232$ (364,768)$ Investment Income/(Loss)150,000 150,000 575,913 425,913 Total Revenues 3,580,000 3,580,000 3,641,145 61,145 Expenditures Current: Physical Environment 25,000 25,000 537,395 (512,395) Capital Outlay: Physical Environment 10,500,000 4,500,000 2,858,363 1,641,637 Total Expenditures 10,525,000 4,525,000 3,395,758 1,129,242 Excess (Deficiency) of Revenues Over Expenditures (6,945,000) (945,000) 245,387 1,190,387 Other Financing Sources (Uses) Transfers In - 550,000 550,000 - Total Other Financing Sources - 550,000 550,000 - Net Change in Fund Balances (6,945,000) (395,000) 795,387 1,190,387 Fund Balances, Beginning of Year 8,358,115 9,043,998 9,043,996 (2) Fund Balances, End of Year 1,413,115$ 8,648,998$ 9,839,383$ 1,190,385$ 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, 2024 See accompanying notes. 24 91 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 55,800$ 55,800$ 51,686$ (4,114)$ Charges for Services 2,654,350 3,229,350 3,247,179 17,829 Investment Income/(Loss)48,000 48,000 122,945 74,945 Total Revenues 2,758,150 3,333,150 3,421,810 88,660 Expenditures Current: Physical Environment 3,247,221 3,402,221 3,374,811 27,410 Total Expenditures 3,247,221 3,402,221 3,374,811 27,410 Net Change in Fund Balances (489,071) (69,071) 46,999 116,070 Fund Balances, Beginning of Year 1,828,804 1,816,258 1,816,259 1 Fund Balances, End of Year 1,339,733$ 1,747,187$ 1,863,258$ 116,071$ 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, 2024 See accompanying notes. 25 92 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues -$ 17,559,090$ 10,251,757$ (7,307,333)$ Investment Income/(Loss)550,000 550,000 1,177,451 627,451 Total Revenues 550,000 18,109,090 11,429,208 (6,679,882) Expenditures Capital Outlay: Physical Environment 5,400,000 12,959,090 267,582 12,691,508 Total Expenditures 5,400,000 12,959,090 267,582 12,691,508 Excess (Deficiency) of Revenues Over Expenditures (4,850,000) 5,150,000 11,161,626 6,011,626 Other Financing Sources (Uses) Transfers (Out)(7,900) (10,007,900) (10,000,000) 7,900 Debt Proceeds 5,400,000 5,400,000 - (5,400,000) Total Other Financing Sources 5,392,100 (4,607,900) (10,000,000) (5,392,100) Net Change in Fund Balances 542,100 542,100 1,161,626 619,526 Fund Balances, Beginning of Year 17,898,603 559,227 559,226 (1) Fund Balances, End of Year 18,440,703$ 1,101,327$ 1,720,852$ 619,525$ 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, 2024 See accompanying notes. 26 93 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Assets Current Assets: Cash and Cash Equivalents 2,655,518$ 348,910$ 100,394$ 3,104,822$ Investments 36,733,022 4,825,040 1,388,733 42,946,795 Receivables, Net 519,900 - 46,047 565,947 Inventories 44,885 - - 44,885 Total Current Assets 39,953,325 5,173,950 1,535,174 46,662,449 Non-Current Assets: Restricted Cash and Cash Equivalents 822,189 - - 822,189 Net Pension Asset 56,832 15,500 15,500 87,832 Capital Assets: Land, Buildings and Equipment 82,862,683 919,061 15,070,627 98,852,371 Construction in Progress 4,054,217 71,687 658,947 4,784,851 Less Accumulated Depreciation (52,882,392) (431,018) (8,411,991) (61,725,401) Total Capital Assets (Net of Accumulated Depreciation 34,034,508 559,730 7,317,583 41,911,821 Total Non-Current Assets 34,913,529 575,230 7,333,083 42,821,842 Total Assets 74,866,854 5,749,180 8,868,257 89,484,291 Deferred Outflows of Resources Deferred Charge on Refunding 6,328 - - 6,328 Deferred Outflow Pension and OPEB 100,406 27,383 27,383 155,172 Total Deferred Outflows Resources 106,734 27,383 27,383 161,500 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2024 Business-Type Activities - Enterprise Funds See accompanying notes. 27 94 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Liabilities Current Liabilities: Accounts Payable 2,212,777$ 163,693$ 36,945$ 2,413,415$ Accrued Liabilities 25,245 37,367 30,048 92,660 Compensated Absences - Current 19,281 2,712 2,282 24,275 Customer Deposits Payable 611,416 - - 611,416 Notes Payable - Current 433,118 - - 433,118 Subscription Liabilities - Current - 102,869 - 102,869 Revenue Bonds Payable - Current 460,950 - - 460,950 Other Postemployment Benefits - Current 8,694 2,365 2,365 13,424 Accreted Interest Payable - Current 1,414,050 - - 1,414,050 Accrued Interest Payable 30,775 - - 30,775 Total Current Liabilities 5,216,306 309,006 71,640 5,596,952 Non-Current Liabilities: Notes Payable 6,143,140 - - 6,143,140 Revenue Bonds Payable 1,922,175 - - 1,922,175 Accreted Interest Payable 5,678,606 - - 5,678,606 Compensated Absences 109,260 15,371 12,929 137,560 Other Postemployment Benefits 135,111 36,855 36,855 208,821 Total Non-Current Liabilities 13,988,292 52,226 49,784 14,090,302 Total Liabilities 19,204,598 361,232 121,424 19,687,254 Deferred Inflows of Resources Deferred Inflow of Pension and OPEB 917,234 250,155 250,155 1,417,544 Total Deferred Inflows of Resources 917,234 250,155 250,155 1,417,544 Net Position Net Investment in Capital Assets 25,075,125 456,861 7,317,583 32,849,569 Restricted for: Renewal and Replacement 692,805 - - 692,805 Building Fund - 4,692,815 - 4,692,815 Pension Assets 56,832 15,500 15,500 87,832 Unrestricted 29,026,994 - 1,190,978 30,217,972 Total Net Position 54,851,756$ 5,165,176$ 8,524,061$ 68,540,993$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2024 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 28 95 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Operating Revenues User Charges 14,502,217$ 1,115,088$ 1,139,728$ 16,757,033$ Total Operating Revenues 14,502,217 1,115,088 1,139,728 16,757,033 Operating Expenses Salaries and Benefits 1,765,393 794,136 524,828 3,084,357 Materials and Supplies 1,153,081 22,343 430,604 1,606,028 Depreciation and Amortization 2,988,797 178,916 434,848 3,602,561 Other Operating Expenses 7,551,677 870,054 335,170 8,756,901 Total Operating Expenses 13,458,948 1,865,449 1,725,450 17,049,847 Operating Income (Loss)1,043,269 (750,361) (585,722) (292,814) Non-Operating Revenue (Expenses) Investment Income/(Loss)1,655,699 316,138 99,604 2,071,441 Interest Expense (75,866) (3,859) - (79,725) Accreted Interest Expense (595,125) - - (595,125) Gain on Sale of Assets 110,291 11,627 257 122,175 Other Non-Operating Revenues 1,250,943 - - 1,250,943 Total Non-Operating Revenue (Expenses)2,345,942 323,906 99,861 2,769,709 Income (Loss) Before Contributions and Transfers 3,389,211 (426,455) (485,861) 2,476,895 Other Financing Sources (Uses) Capital Contributions: Connection Fees 276,177 - - 276,177 Transfers In 10,000,000 - - 10,000,000 Transfers (Out)(751,268) - - (751,268) Total Other Financing Sources (Uses)9,524,909 - - 9,524,909 Change in Net Position 12,914,120 (426,455) (485,861) 12,001,804 Net Position, Beginning of Year 41,937,636 5,591,631 9,009,922 56,539,189 Net Position, End of Year 54,851,756$ 5,165,176$ 8,524,061$ 68,540,993$ 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, 2024 See accompanying notes. 29 96 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Cash Flows from Operating Activities Receipts from Customers 15,011,378$ 1,115,088$ 1,140,251$ 17,266,717$ Payments to Suppliers (8,431,311) (751,575) (786,151) (9,969,037) Payments to Employees (1,512,752) (707,411) (449,946) (2,670,109) Net Cash Provided (Used) by Operating Activities 5,067,315 (343,898) (95,846) 4,627,571 Cash Flows from Non-Capital Financing Activities Transfers In 10,000,000 - - 10,000,000 Transfers (Out)(751,268) - - (751,268) Other Non-Operating Revenues 1,250,943 - - 1,250,943 Net Cash Provided (Used) by Non-Capital Financing Activities 10,499,675 - - 10,499,675 Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets (2,061,494) (122,037) (268,015) (2,451,546) Proceeds from Sale of Capital Assets 118,509 29,000 257 147,766 Principal Paid (919,957) (104,728) - (1,024,685) Interest Paid (1,460,685) (3,859) - (1,464,544) Connection Fees 276,177 - - 276,177 Net Cash Provided (Used) by Capital and Related Financing Activities (4,047,450) (201,624) (267,758) (4,516,832) Cash Flows from Investing Activities Sale (Purchase) of Investments (11,986,358) 290,695 271,111 (11,424,552) Interest Income 1,655,699 316,138 99,604 2,071,441 Net Cash Provided (Used) by Investing Activities (10,330,659) 606,833 370,715 (9,353,111) Net Increase (Decrease) in Cash and Cash Equivalents 1,188,881 61,311 7,111 1,257,303 Cash and Cash Equivalents, Beginning of Year 2,288,826 287,599 93,283 2,669,708 Cash and Cash Equivalents, End of Year 3,477,707$ 348,910$ 100,394$ 3,927,011$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2024 Business-Type Activities - Enterprise Funds See accompanying notes. 30 97 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)1,043,269$ (750,361)$ (585,722)$ (292,814)$ Adjustments Not Affecting Cash: Depreciation and Amortization 2,988,797 178,916 434,848 3,602,561 Change in Assets and Liabilities: Decrease (Increase) in Accounts Receivable (18,323) - 523 (17,800) Decrease (Increase) in Due From Other Governments 552,056 - - 552,056 Decrease (Increase) in Due From Others 2,026 - - 2,026 Decrease (Increase) in Inventories 2,313 - - 2,313 Decrease (Increase) in Prepaid Expenses 24,424 - - 24,424 Decrease (Increase) in Deferred Outflows 448,552 122,333 122,372 693,257 Increase (Decrease) in Accounts Payable 246,710 140,822 (20,377) 367,155 Increase (Decrease) in Accrued Liabilities 25,245 20,938 12,417 58,600 Increase (Decrease) in Customer Deposits (26,598) - - (26,598) Increase (Decrease) in Accrued Compensated Absences 17,478 8,536 5,175 31,189 Increase (Decrease) in Deferred Inflows 816,068 222,564 222,564 1,261,196 Increase (Decrease) in Net Pension Liability/Asset (1,093,816) (298,314) (298,316) (1,690,446) Increase (Decrease) in Net OPEB Liability 39,114 10,668 10,670 60,452 Total Adjustments 4,024,046 406,463 489,876 4,920,385 Net Cash Provided (Used) by Operating Activities 5,067,315$ (343,898)$ (95,846)$ 4,627,571$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2024 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 31 98 Defined Benefit Pension Trust Fund Assets Cash and Cash Equivalents 5,470,242$ Contributions Receivable 730,030 Investments, at Fair Value: Common Funds, Equity 51,390,679 Common Funds, Bonds 16,140,557 Other Investments 5,318,338 Total Investments 72,849,574 Total Assets 79,049,846 Liabilities Accounts Payable 58,411 Total Liabilities 58,411 Net Position Net Position Restricted for Pensions 78,991,435$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2024 See accompanying notes. 32 99 Defined Benefit Pension Trust Fund Additions Contributions: Employer 1,994,135$ Plan Members 264,602 Total Contributions 2,258,737 Investment Income: Net Increase (Decrease) in Fair Value of Investments 14,912,155 Interest 826,894 Investment-Related Expenses (317,570) Net Investment Income 15,421,479 Total Additions 17,680,216 Deductions Benefits 4,989,518 Administrative Expenses 67,092 Total Deductions 5,056,610 Change in Net Position 12,623,606 Net Position, Beginning of Year 66,367,829 Net Position, End of Year 78,991,435$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED SEPTEMBER 30, 2024 See accompanying notes. 33 100 NOTES TO FINANCIAL STATEMENTS 101 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 102 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds:  Major Governmental Funds • General Fund - is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. • Road Improvements Special Revenue Fund - accounts for collected one-cent sales tax revenues restricted for use for transportation, safety, capacity, and infrastructure consistent with 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. 103 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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. 104 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 105 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 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 3-10 106 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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. 107 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for 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. 108 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 41 Implementation of New Accounting Pronouncement During the fiscal year, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. The statement enhances accounting and financial reporting requirements for accounting changes and error corrections. The statement defines accounting changes as: (a) changes in accounting principles, (b) changes in accounting estimates, or (c) changes to or within the financial reporting entity, each with its own financial reporting requirements. Disclosure requirements include description of accounting changes and error corrections and their quantitative effects on account balances. There was no impact to the City’s financial statements as a result of the adoption of this statement. 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 $ (1,633,505) Accreted Interest Payable (4,863,961) Notes Payable (725,890) Compensated Absences (1,140,179) SBITAs (369,379) Net Adjustment to Reduce Fund Balance, Total Governmental Funds to Arrive at Net Position, Governmental Activities $ (8,732,914) 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 $ 7,576,642 Depreciation Expense (4,278,965) Net Adjustment to Increase Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ 3,297,677 109 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 42 Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long- term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities”. The details of this difference are as follows: SBITAs $ 148,046 Principal Repayment 436,538 Net Adjustment to Decrease Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ 584,584 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 $ 34,551 Other Postemployment Benefits 60,629 Accreted Interest Payable (388,301) Net Adjustment to Decrease Net Changes in Fund Balance, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ (293,121) 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. 110 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 43 Deficit Fund Balances As a result of the internal loan, the Tuscawilla Phase III Special Revenue Fund has a deficit fund balance of $23,111 at September 30, 2024. Note 4 - Deposits and Investments Deposits All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida’s Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to “authorized depositories”. Investments The City’s investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280, 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. Minimum ratings are based on the highest rating by a Nationally Recognized Statistical Ratings Organization and apply at the time of purchase. 111 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 44 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 pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2024, all of the City’s bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2024, 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 information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which may include the City’s own data in measuring unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2024: 112 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 45 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 $ 9,644,952 $ - $ 9,644,952 U.S. Treasury Notes 36,965,601 36,965,601 - Commercial Mortgage-Backed Securities 877,917 - 877,917 Consumer Asset Backed Securities 13,321,031 - 13,321,031 Other U.S. Credit 24,398,657 - 24,398,657 Municipal Credit 998,400 - 998,400 Federal Agency Bonds 9,502,211 - 9,502,211 $ 95,708,769 $ 36,965,601 $ 58,743,168 As of September 30, 2024, the government held an investment in a pooled investment fund managed by PFM Asset Management. The investment is reported at fair value, which is determined using the fund’s net asset value (NAV) per share or its equivalent as a practical expedient. The investment had a fair value of $201,349 and is not classified within the fair value hierarchy pursuant to GASB Statement No. 72. The fund permits same-day daily redemptions. Investments held by the City at September 30, 2024, are detailed below. Weighted Average Investments Fair Value Credit Rating Maturity Commercial Paper $ 9,644,952 A-1 0.29 years U.S. Treasury Notes 36,965,601 AA+ 1.33 years Collateralized Mortgage Obligations - AA+ 1.75 years Commercial Mortgage-Backed Securities 877,917 AAA-A- 1.75 years Consumer Asset Backed Securities 13,321,031 AAA 2.66 years Commercial Asset Backed Securities - AAA 2.66 years Other U.S. Credit 24,398,657 A+-BBB+ 0.90 years Municipal Credit 998,400 AAA 0.50 years Federal Agency Bonds 9,502,211 AA+ 0.29 years $ 95,708,769 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 113 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 46 The investments held by the City’s Pension Trust Fund at September 30, 2024, 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 $ 51,390,679 $ 51,390,679 $ - $ - Bond Mutual Funds 16,140,557 - 16,140,557 - Real Estate Investment Trusts 4,709,220 - - 4,709,220 Other Investments 609,118 - 609,118 - Total Investments 72,849,574 $ 51,390,679 $ 16,749,675 $ 4,709,220 Cash and Cash Equivalents 5,470,242 Total Cash and Investments $ 78,319,816 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) backing commercial paper, the long-term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers’ acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and/or Revenue Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a nationally recognized rating service or rated “MIG-2” or “SP-2”, for short-term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of “A1” by Standard & Poor’s (S&P) or “P1” by Moody’s Investor Services (Moody’s); fixed income securities be investment grade as measured by S&P or Moody’s; and any bonds or notes that fall below investment quality must be liquidated immediately. 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, 2024, 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, 2024, there were no security investments in the Trust that were over their respective limitations. 114 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 47 Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, as long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. Note 5 - Receivables Receivables as of year-end for the City’s individual major funds and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance for Accounts Uncollectible Fund Receivable Accounts Net Receivable General $ 43,231 $ (2,553) $ 40,678 Solid Waste/Recycling Special Revenue 188,419 (22,940) 165,479 Other Governmental Funds 12 - 12 Water and Sewer Utility 650,965 (131,065) 519,900 Stormwater Utility 55,602 (9,555) 46,047 $ 938,229 $ (166,113) $ 772,116 Note 6 - Capital Assets Capital asset activity for the year ended September 30, 2024, 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 2,275,374 6,181,659 (7,193,892) 1,263,141 Total Capital Assets, Not Being Depreciated 12,617,350 6,181,659 (7,193,892) 11,605,117 Capital Assets, Being Depreciated: Buildings 16,362,515 290,196 - 16,652,711 Improvements 16,063,873 1,548,211 - 17,612,084 Intangible Assets 1,167,464 - - 1,167,464 Subscription Assets 667,737 - - 667,737 Machinery and Equipment 12,648,104 1,373,175 (213,233) 13,808,046 Infrastructure 80,092,507 5,377,293 - 85,469,800 Total Capital Assets, Being Depreciated 127,002,200 8,588,875 (213,233) 135,377,842 Less Accumulated Depreciation for: Buildings (9,491,471) (490,093) - (9,981,564) Improvements (10,187,176) (618,864) - (10,806,040) Intangible Assets (1,165,674) (1,790) - (1,167,464) Subscription Assets (125,016) (166,688) - (291,704) Machinery and Equipment (9,797,414) (1,185,731) 213,233 (10,769,912) Infrastructure (51,688,905) (1,815,799) - (53,504,704) Total Accumulated Depreciation (82,455,656) (4,278,965) 213,233 (86,521,388) Total Capital Assets, Being Depreciated, Net 44,546,544 4,309,910 - 48,856,454 Governmental Activities Capital Assets, Net 57,163,894$ 10,491,569$ (7,193,892)$ 60,461,571$ 115 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 48 Depreciation expense was charged to functions/programs as follows: Governmental Activities General Government $ 556,596 Public Safety 652,149 Physical Environment 2,138,408 Culture and Recreation 931,812 Total Depreciation Expense, Governmental Activities $ 4,278,965 Business-Type Activities Water and Sewer $ 2,988,797 Development Services 178,916 Stormwater 434,848 Total Depreciation Expense, Business-Type Activities $ 3,602,561 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 $7,650,000. For the fiscal year, principal and interest paid (including accreted interest) on this series was $1,275,000, and total pledged revenue was $7,905,137. Beginning Ending Balance Increases Decreases Balance Business-Type Activities Capital Assets, Not Being Depreciated: Land 7,170,177$ -$ -$ 7,170,177$ Construction in Progress 4,932,755 612,607 (760,511) 4,784,851 Total Capital Assets, Not Being Depreciated 12,102,932 612,607 (760,511) 11,955,028 Capital Assets, Being Depreciated: Buildings 2,281,497 - - 2,281,497 Improvements 75,226,253 571,331 - 75,797,584 Intangible Assets 413,331 - - 413,331 Subscription Assets - 487,318 - 487,318 Machinery and Equipment 11,517,108 1,748,398 (563,040) 12,702,466 Total Capital Assets, Being Depreciated 89,438,189 2,807,047 (563,040) 91,682,196 Less Accumulated Depreciation for: Buildings (1,033,337) (60,656) - (1,093,993) Improvements (50,878,607) (2,526,925) - (53,405,532) Intangible Assets (363,071) (26,779) - (389,850) Subscription Assets - (151,237) - (151,237) Machinery and Equipment (6,385,274) (836,964) 537,447 (6,684,791) Total Accumulated Depreciation (58,660,289) (3,602,561) 537,447 (61,725,403) Total Capital Assets, Being Depreciated, Net 30,777,900 (795,514) (25,593) 29,956,793 Business-Type Activities Capital Assets, Net 42,880,832$ (182,907)$ (786,104)$ 41,911,821$ 116 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 $11,250,000. For the fiscal year, the principal and interest paid on this series was $1,875,000, and total pledged net revenue was $6,781,474. 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 2024 Governmental Activities Improvement Refunding Revenue Bonds Series 1999 (Excludes 10/1/2020 $4,863,959 of Accreted Interest on 3.25%-5.25% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2029 $ 7,998,970 $ 1,633,505 Total $ 1,633,505 Balance Interest Rates Original September 30, and Dates Maturity Amount 2024 Business-Type Activities Water and Sewer Refunding Revenue Bonds Series 2000 (Excludes 10/1/2022 $7,092,656 of Accreted Interest on 4.5%-5.5% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2030 $ 6,969,191 $ 2,383,125 Total $ 2,383,125 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 2025 $ 312,413 $ 962,587 $ 460,950 $ 1,414,050 2026 295,456 979,544 432,638 1,442,363 2027 278,677 996,323 405,919 1,469,081 2028 263,517 1,011,483 382,688 1,492,313 2029 248,485 1,026,515 360,788 1,514,213 2030 234,957 1,040,043 340,142 1,534,855 $ 1,633,505 $ 6,016,495 $ 2,383,125 $ 8,866,875 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 $798,605. For the fiscal year, principal and interest paid on this series was $130,712, and total pledged revenue was $138,530. 117 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 $2,856,285. For the fiscal year, principal and interest paid was $185,492 and total pledged revenue was $6,781,474. 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 $4,161,951. For the fiscal year, principal and interest paid on this series was $320,150, and total pledged net revenue was $6,781,474. 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% $ 725,890 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% $ 3,966,302 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% 2,609,956 $ 6,576,258 118 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 2025 $ 113,321 $ 21,750 $ 433,118 $ 72,116 2026 115,967 18,024 438,225 67,567 2027 118,435 14,215 443,347 62,950 2028 120,722 10,329 447,484 58,276 2029 127,821 6,290 452,637 53,543 2030-2034 129,624 2,106 3,413,029 115,539 2035-2039 - - 948,418 11,987 $ 725,890 $ 72,714 $ 6,576,258 $ 441,978 Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2024, was as follows: Note 8 - Interfund Receivables, Payables and Transfers The composition of interfund advances as of September 30, 2024, is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds $ 33,091 Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Bonds Payable - Revenue Bonds 1,964,635$ -$ (331,130)$ 1,633,505$ 312,413$ Accreted Interest Payable 5,419,530 388,301 (943,870) 4,863,961 962,587 Notes Payable - Direct Borrowing: Capital Improvement Notes 831,298 - (105,408) 725,890 113,321 Subscription Liabilities 517,425 - (148,046) 369,379 152,549 Other Postemployment Benefits 666,215 248,909 - 915,124 55,273 Net Pension Liability 6,598,986 - (6,598,986) - - Compensated Absences 1,174,730 360,886 (395,437) 1,140,179 171,027 Governmental Activity Long-Term Liabilities 17,172,819$ 998,096$ (8,522,877)$ 9,648,038$ 1,767,170$ Business-Type Activities Bonds Payable - Revenue Bonds 2,874,056$ -$ (490,931)$ 2,383,125$ 460,950$ Accreted Interest Payable 7,881,599 595,125 (1,384,068) 7,092,656 1,414,050 Notes Payable - Direct Borrowing: Revenue Notes 2,748,956 - (139,000) 2,609,956 141,000 SRF Loans 4,256,327 - (290,025) 3,966,302 292,118 Subscription Liabilities - 207,598 (104,729) 102,869 102,869 Other Postemployment Benefits 161,793 60,452 - 222,245 13,424 Net Pension Liability 1,602,614 - (1,602,614) - - Compensated Absences 130,645 104,711 (73,521) 161,835 24,275 Business-Type Activity Long-Term Liabilities 19,655,990$ 967,886$ (4,084,888)$ 16,538,988$ 2,448,686$ 119 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 52 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, 2024, are summarized below: Interfund transfers for the year ended September 30, 2024, are detailed below: Recipient Fund Amount Purpose General Fund $ 10,751,268 Transfer from Water and Sewer Utility Fund for utility billing ($751,268). Transfer from American Recovery Plan Act Fund for revenue replacement ($10,000,000). Road Improvement Fund 550,000 Transfer from Transportation Improvement Fund for Hurricane Ian projects. Other Governmental Funds 1,710,000 Transfer from General Fund for annual debt service requirements ($1,290,000). Transfer from General Fund for public facilities capital projects ($420,000). Water and Sewer Utility Fund 10,000,000 Transfer from General Fund for Sewer Infrastructure projects. $ 23,011,268 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. Road Other Water and Improvements Governmental Sewer Utility Transfers Out General Fund Fund Funds Fund Total General Fund -$ -$ 1,710,000$ 10,000,000$ 11,710,000$ American Recovery Plan Act Fund 10,000,000 - - - 10,000,000 Other Governmental Funds - 550,000 - - 550,000 Water and Sewer Utility Fund 751,268 - - - 751,268 10,751,268$ 550,000$ 1,710,000$ 10,000,000$ 23,011,268$ Transfers In 120 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 53 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. 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, 2024, plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 141 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 158 Active Plan Members 61 360 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 Asset The City’s net pension liability was measured as of September 30, 2024, and the net pension liability was determined by an actuarial valuation as of October 1, 2023, updated to September 30, 2024. The components of the net pension liability of the sponsor on September 30, 2024, were as follows: Total Pension Liability $ (78,541,946) Plan Fiduciary Net Position 78,991,435 Sponsor's Net Pension Asset $ 449,489 Plan Fiduciary Net Position as a Percentage of Total Pension Asset 100.57% Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 2023, updated to September 30, 2024, using the following actuarial assumptions: Inflation 2.75% Salary Increases 3.0 - 4.5% Investment Rate of Return 6.75% 121 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 54 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. 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 pro jected 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 impro vements 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, 2024, are summarized in the following table: Long-Term Target Expected Asset Class Allocation Rate of Return Domestic Equity 50% 7.50% International Equity 15% 8.50% Domestic Bonds 15% 2.50% Real Estate 10% 4.50% Alternative Investments 10% 6.24% Total 100% Discount Rate The discount rate used to measure the total pension liability was 6.75%. 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 122 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 55 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. Changes in Net Pension Liability/(Asset) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability (a) Net Position* (b) Liability (Asset) (a)-(b) Balances at September 30, 2023 $ 74,569,429 $ 66,367,829 $ 8,201,600 Changes for a Year: Service Cost 447,227 - 447,227 Interest 5,124,101 - 5,124,101 Differences Between Expected and Actual Experience 721,817 - 721,817 Assumption Changes 2,668,890 - 2,668,890 Contributions - Employer - 1,994,135 (1,994,135) Contributions - Employee - 264,602 (264,602) Net Investment Income - 15,421,479 (15,421,479) Benefit Payments, Including Refunds of Employee Contributions (4,989,518) (4,989,518) - Administrative Expense - (67,092) 67,092 Net Changes 3,972,517 12,623,606 (8,651,089) Balances at September 30, 2024 $ 78,541,946 $ 78,991,435 $ (449,489) *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 (5.75%) (6.75%) (7.75%) Net Pension Liability (Asset) $ 8,396,191 $ (449,489) $ (7,860,067) Deferred Outflows and Inflows of Resources For the year ended September 30, 2024, the City recognized pension expense of $3,729,744. At September 30, 2024, 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 $ 65,620 $ - Changes of Assumptions 242,626 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - (6,619,363) $ 308,246 $ (6,619,363) 123 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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, 2025 $ (1,604,468) 2026 190,222 2027 (2,689,656) 2028 (2,207,215) Total $ (6,311,117) 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, 2024, employer contributions required and made were $336,334. As of September 30, 2024, 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, 2023, the valuation date, there were 158 active employees and 41 inactive employees or beneficiaries currently receiving benefits. The OPEB liability of $1,137,369 was measured as of October 1, 2023, and was determined by the actuarial valuation. The covered payroll was $8,961,647, and the ratio of net OPEB liability as a percentage of covered payroll was 12.69%. 124 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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 6.0%, gradually decreasing to an ultimate rate of 3.7% in 2042. Valuation Date October 1, 2023 Measurement Date October 1, 2023 Actuarial Cost Method Entry Age Normal Discount Rate 4.63% Inflation Rate 2.50% Salary Rate Increase 3.75%-7.00% 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. 125 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 58 Below are the details regarding the total OPEB liability for the measurement period from October 1, 2023 to September 30, 2024: Total OPEB Liability Balance as of September 30, 2023 $ 828,008 Changes for the Year: Service Cost 42,004 Interest 37,654 Difference Between Expected and Actual Experience 280,062 Changes of Assumptions and Other Inputs* (21,590) Benefit Payments (28,769) Net Changes (309,361) Balances as of September 30, 2024 $ 1,137,369 * Changes in assumptions and other inputs reflect a change in the discount rate from 4.40% for the measurement period ended September 30, 2023, to 4.63% for the measurement period ended September 30, 2024. 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 (3.63%) (4.63%) (5.63%) Total OPEB Liability $ 1,284,872 $ 1,137,369 $ 1,015,019 The following presents the total OPEB liability of the City using a healthcare cost trend rate of 6.0% 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 (5.0% to 2.7%) (6.0% to 3.7%) (7.0% to 4.7%) Total OPEB Liability $ 1,041,719 $ 1,137,369 $ 1,253,351 For the fiscal year ended September 30, 2024, 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 $ 237,628 $ (393,259) Changes of Assumption of Other Inputs 179,549 (241,864) Contributions Subsequent to the Measurement Date 68,697 - Total $ 485,874 $ (635,123) 126 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 59 The deferred outflows of resources related to OPEB, totaling $68,697, 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, 2024. 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, 2025 $ (92,508) 2026 (82,136) 2027 (78,298) 2028 (45,226) 2029 39,738 Thereafter 40,484 $ (217,946) 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. 127 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 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, 2024, the City had entered into construction contracts in the amount of $16,738,627. 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. 128 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 61 At September 30, 2024, 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 $130,602 in interest income related to these agreements. At September 30, 2024, the City recognized $4,358,042 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, 2024, the balance of deferred inflows of resources was $3,884,556. Note 17 - Subscription-Based Information Technology Arrangements The City has arrangements for its evidence maintenance system, web conferencing system, and building permitting system. The agreement terms range from 3 to 6 years, including the non-cancelable period of the arrangement and extensions the City is reasonably certain to exercise and vary with each contract. During the fiscal year, the City recognized $16,358 in interest expenditures related to these agreements. At September 30, 2024, the City recognized total subscription assets of $712,114, net of accumulated depreciation. Additionally, the City has remaining principal payments of $472,248 between these arrangements. Road American Other Total Improvements Solid Waste/Recovery Plan Governmental Governmental General Fund Fund Recycling Act Funds Funds Fund Balance Non-Spendable: Inventory/Prepaid 111,042$ -$ -$ -$ 1,500$ 112,542$ Advances 33,091 - - - - 33,091 Restricted for: Physical Environment - 9,839,383 - - 439,165 10,278,548 Transportation Improvements - - - - 6,860,183 6,860,183 Public Safety - - - - 727,294 727,294 Fire Impact Fees - - - - 2,961,080 2,961,080 Parks Improvements - - - - 880,721 880,721 Committed to: Arbor - - - - 1,824,049 1,824,049 Transportation Improvements - - - - 1,450,000 1,450,000 Assigned to: Storm Reserve - - 1,863,258 - - 1,863,258 Debt Service - - - - 1,369,651 1,369,651 Capital Projects - - - - 4,309,294 4,309,294 Physical Environment - - - 1,720,852 - 1,720,852 Subsequent Year's Budget 2,034,400 - - - - 2,034,400 Unassigned 9,739,108 - - - (23,111) 9,715,997 Total Fund Balance 11,917,641$ 9,839,383$ 1,863,258$ 1,720,852$ 20,799,826$ 46,140,960$ 129 REQUIRED SUPPLEMENTARY INFORMATION 130 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 42,004$ 66,408$ 64,604$ 61,772$ 60,410$ 62,209$ 105,694$ Interest 37,654 24,781 39,230 42,084 57,351 52,706 38,973 Differences Between Expected and Actual Experience 280,062 - (577,243) - (249,780) - (9,706) Changes in Assumptions (21,590) (312,323) 24,355 12,587 211,887 (72,616) 212,072 Benefit Payments (28,769) (31,870) (39,255) (42,189) (43,183) (54,750) (55,000) Net Change in Total OPEB Liability 309,361 (253,004) (488,309) 74,254 36,685 (12,451) 292,033 Total OPEB Liability, Beginning of Year 828,008 1,081,012 1,569,321 1,495,067 1,458,382 1,470,833 1,178,800 Total OPEB Liability, End of Year 1,137,369$ 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%0.00% Covered Payroll 8,961,647$ 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 12.69%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, 2024 62 131 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total Pension Liability Service Cost 447,227$ 405,604$ 370,884$ 390,407$ 401,950$ 472,736$ 502,667$ 697,459$ 808,281$ 834,402$ Interest 5,124,101 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 Differences Between Expected and Actual Experience 721,817 1,300,852 258,774 661,000 569,125 1,281,355 124,345 (592,087) 275,994 (107,513) Changes of Assumptions 2,668,890 2,978,730 - 691,291 479,182 - 2,531,601 526,115 - 8,107 Benefit Payments, Including Refunds of Employee Contributions (4,989,518) (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) Net Change in Total Pension Liability 3,972,517 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 Total Pension Liability, Beginning 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 Total Pension Liability, Ending (a)78,541,946 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 Plan Fiduciary Net Position Contributions - Employer 1,994,135 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 Contributions - Employee 264,602 206,423 215,136 208,098 217,975 265,688 460,745 342,209 479,257 358,106 Net Investment Income 15,421,479 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 Benefit Payments, Including Refunds of Employee Contributions (4,989,518) (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) Administrative Expense (67,092) (34,871) (71,691) (46,494) (32,984) (69,023) (64,770) (55,697) (28,208) (11,937) Other - (11,598) - - - - - - - - Net Change in Plan Fiduciary Net Position 12,623,606 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 Plan Fiduciary Net Position, Beginning 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 Plan Fiduciary Net Position, Ending (b)78,991,435 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 Net Pension (Asset)/Liability, Ending (a)-(b)(449,489)$ 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$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 100.57%89.00%88.79%105.84%88.74%86.01%88.40%86.24%78.44%73.42% Covered Payroll*4,327,083$ 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$ Net Pension (Asset)/Liability as a Percentage of Covered Payroll -10.39%191.64%179.46%-92.16%171.45%185.33%131.17%131.23%173.20%191.31% Valuation Date 10/1/2023 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 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, 2024 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS CITY OF WINTER SPRINGS, FLORIDA 63 132 Actuarially Contribution/Actual Fiscal Year Determined Actual Deficiency Covered Contribution as Ended September 30,Contribution Contribution (Excess)Payroll a % of Payroll 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% 2024 846,797 1,994,135 (1,147,338) 4,327,083 46.08% 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 7.00% Retirement Age Mortality YEAR ENDED SEPTEMBER 30, 2024 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. 64 133 Mortality (Concluded) Benefit Changes Assumption Changes (Concluded) 2022:Investment return updated.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. 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, 2024 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. 65 134 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% 2024 23.56% CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF INVESTMENT RETURNS YEAR ENDED SEPTEMBER 30, 2024 66 135 OTHER SUPPLEMENTARY INFORMATION 136 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. 137 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. 138 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Assets Cash and Cash Equivalents 2,013$ 2,195$ 441,319$ 121,450$ Investments 27,849 30,358 6,104,703 1,679,996 Receivable, Net - - - - Special Assessments Receivable - - - - Prepaids - - 1,500 - Restricted Assets: Cash and Cash Equivalents - 2,091 - - Total Assets 29,862 34,644 6,547,522 1,801,446 Liabilities Accounts Payable - - 17,701 19,584 Advances from Other Funds - - - - Total Liabilities - - 17,701 19,584 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - - - Fund Balances Non-Spendable - - 1,500 - Restricted 29,862 34,644 5,078,321 1,781,862 Committed - - 1,450,000 - Assigned - - - - Unassigned - - - - Total Fund Balances 29,862 34,644 6,529,821 1,781,862 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 29,862$ 34,644$ 6,547,522$ 1,801,446$ Special Revenue SEPTEMBER 30, 2024 NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA 67 139 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Assets Cash and Cash Equivalents 38,019$ 199,630$ 59,376$ 122,984$ Investments 525,911 2,761,450 821,345 1,701,218 Receivable, Net - - - - Special Assessments Receivable - - - - Prepaids - - - - Restricted Assets: Cash and Cash Equivalents - - - - Total Assets 563,930 2,961,080 880,721 1,824,202 Liabilities Accounts Payable 1,795 - - 153 Advances from Other Funds - - - - Total Liabilities 1,795 - - 153 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - - - Fund Balances Non-Spendable - - - - Restricted 562,135 2,961,080 880,721 - Committed - - - 1,824,049 Assigned - - - - Unassigned - - - - Total Fund Balances 562,135 2,961,080 880,721 1,824,049 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 563,930$ 2,961,080$ 880,721$ 1,824,202$ Special Revenue 68 140 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Assets Cash and Cash Equivalents 24,084$ 7,049$ 6,786$ 699$ 1,025,604$ Investments 333,155 97,504 93,867 9,675 14,187,031 Receivable, Net 9 - - - 9 Special Assessments Receivable - - - - - Prepaids - - - - 1,500 Restricted Assets: Cash and Cash Equivalents - - - - 2,091 Total Assets 357,248 104,553 100,653 10,374 15,216,235 Liabilities Accounts Payable 21,151 1,485 - 394 62,263 Advances from Other Funds - - - 33,091 33,091 Total Liabilities 21,151 1,485 - 33,485 95,354 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - - - Total Deferred Inflows of Resources - - - - - Fund Balances Non-Spendable - - - - 1,500 Restricted 336,097 103,068 100,653 - 11,868,443 Committed - - - - 3,274,049 Assigned - - - - - Unassigned - - - (23,111) (23,111) Total Fund Balances 336,097 103,068 100,653 (23,111) 15,120,881 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 357,248$ 104,553$ 100,653$ 10,374$ 15,216,235$ COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA Special Revenue SEPTEMBER 30, 2024 NON-MAJOR GOVERNMENTAL FUNDS (Continued) 69 141 Page 2 of 3 TLBD Debt 1999 Debt Total Service Service Debt Fund Fund Service Assets Cash and Cash Equivalents 2,315$ 90,072$ 92,387$ Investments 32,018 1,245,947 1,277,965 Receivable, Net 3 - 3 Special Assessments Receivable 665,891 - 665,891 Prepaids - - - Restricted Assets: Cash and Cash Equivalents - - - Total Assets 700,227 1,336,019 2,036,246 Liabilities Accounts Payable 704 - 704 Advances from Other Funds - - - Total Liabilities 704 - 704 Deferred Inflows of Resources Unavailable Revenue - Special Assessments 665,891 - 665,891 Total Deferred Inflows of Resources 665,891 - 665,891 Fund Balances Non-Spendable - - - Restricted - - - Committed - - - Assigned 33,632 1,336,019 1,369,651 Unassigned - - - Total Fund Balances 33,632 1,336,019 1,369,651 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 700,227$ 1,336,019$ 2,036,246$ Debt Service 70 142 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Assets Cash and Cash Equivalents 65,259$ 59$ 118,266$ Investments 148,031 822 2,390,653 Receivable, Net - - - Special Assessments Receivable - - - Prepaids - - - Restricted Assets: Cash and Cash Equivalents - - - Total Assets 213,290 881 2,508,919 Liabilities Accounts Payable - - 3,253 Advances from Other Funds - - - Total Liabilities - - 3,253 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - - Total Deferred Inflows of Resources - - - Fund Balances Non-Spendable - - - Restricted - - - Committed - - - Assigned 213,290 881 2,505,666 Unassigned - - - Total Fund Balances 213,290 881 2,505,666 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 213,290$ 881$ 2,508,919$ CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 Capital Projects (Concluded) 71 143 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Assets Cash and Cash Equivalents 107,158$ 290,742$ 1,408,733$ Investments 1,482,299 4,021,805 19,486,801 Receivable, Net - - 12 Special Assessments Receivable - - 665,891 Prepaids - - 1,500 Restricted Assets: Cash and Cash Equivalents - - 2,091 Total Assets 1,589,457 4,312,547 21,565,028 Liabilities Accounts Payable - 3,253 66,220 Advances from Other Funds - - 33,091 Total Liabilities - 3,253 99,311 Deferred Inflows of Resources Unavailable Revenue - Special Assessments - - 665,891 Total Deferred Inflows of Resources - - 665,891 Fund Balances Non-Spendable - - 1,500 Restricted - - 11,868,443 Committed - - 3,274,049 Assigned 1,589,457 4,309,294 5,678,945 Unassigned - - (23,111) Total Fund Balances 1,589,457 4,309,294 20,799,826 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,589,457$ 4,312,547$ 21,565,028$ Capital Projects 72 144 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Revenues Permits and Fees -$ -$ -$ -$ Intergovernmental Revenues - - 600,066 - Fines and Forfeitures 7,462 - - - Impact Fees/Assessments - - - 138,125 Investment Income/(Loss)1,498 2,084 388,324 141,099 Miscellaneous 42 - - - Total Revenues 9,002 2,084 988,390 279,224 Expenditures Current: General Government - - - - Public Safety 58 4,497 - - Physical Environment - - 351,329 - Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - - Public Safety - - - - Physical Environment - - 105,062 757,910 Culture and Recreation - - - - Total Expenditures 58 4,497 456,391 757,910 Excess (Deficiency) of Revenues Over (Under) Expenditures 8,944 (2,413) 531,999 (478,686) Other Financing Sources (Uses) Transfers In - - - - Transfers Out - - (550,000) - Total Other Financing Sources (Uses)- - (550,000) - Net Changes in Fund Balances 8,944 (2,413) (18,001) (478,686) Fund Balances, Beginning 20,918 37,057 6,547,822 2,260,548 Fund Balances, End 29,862$ 34,644$ 6,529,821$ 1,781,862$ CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 Special Revenue 73 145 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Revenues Permits and Fees -$ -$ -$ 970$ Intergovernmental Revenues - - - - Fines and Forfeitures - - - 3,000 Impact Fees/Assessments 28,326 17,717 171,495 - Investment Income/(Loss)47,592 170,494 44,249 116,197 Miscellaneous - - - 1,448 Total Revenues 75,918 188,211 215,744 121,615 Expenditures Current: General Government - - - - Public Safety - - - - Physical Environment - - - 242,940 Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - 127,634 Public Safety 324,923 - - - Physical Environment - - - - Culture and Recreation - - 27,799 - Total Expenditures 324,923 - 27,799 370,574 Excess (Deficiency) of Revenues Over (Under) Expenditures (249,005) 188,211 187,945 (248,959) Other Financing Sources (Uses) Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses)- - - - Net Changes in Fund Balances (249,005) 188,211 187,945 (248,959) Fund Balances, Beginning 811,140 2,772,869 692,776 2,073,008 Fund Balances, End 562,135$ 2,961,080$ 880,721$ 1,824,049$ Special Revenue 74 146 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Revenues Permits and Fees -$ -$ -$ -$ 970$ Intergovernmental Revenues - - - - 600,066 Fines and Forfeitures - - 40,139 - 50,601 Impact Fees/Assessments 543,212 55,644 - 13,374 967,893 Investment Income/(Loss)22,501 6,961 7,451 844 949,294 Miscellaneous 208,089 4,600 - - 214,179 Total Revenues 773,802 67,205 47,590 14,218 2,783,003 Expenditures Current: General Government - - - 5,040 5,040 Public Safety - - 13,997 - 18,552 Physical Environment 526,067 63,707 - - 1,184,043 Debt Service: Principal - - - - - Interest and Fiscal Charges - - - 1,016 1,016 Capital Outlay: General Government 79,149 - - - 206,783 Public Safety - - 40,434 - 365,357 Physical Environment - - - - 862,972 Culture and Recreation - - - - 27,799 Total Expenditures 605,216 63,707 54,431 6,056 2,671,562 Excess (Deficiency) of Revenues Over (Under) Expenditures 168,586 3,498 (6,841) 8,162 111,441 Other Financing Sources (Uses) Transfers In - - - - - Transfers Out - - - - (550,000) Total Other Financing Sources (Uses)- - - - (550,000) Net Changes in Fund Balances 168,586 3,498 (6,841) 8,162 (438,559) Fund Balances, Beginning 167,511 99,570 107,494 (31,273) 15,559,440 Fund Balances, End 336,097$ 103,068$ 100,653$ (23,111)$ 15,120,881$ CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 Special Revenue (Continued) 75 147 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 105,399 - 105,399 Investment Income/(Loss)26,870 30,055 56,925 Miscellaneous 7,818 - 7,818 Total Revenues 140,087 30,055 170,142 Expenditures Current: General Government - - - Public Safety - - - Physical Environment 3,316 - 3,316 Debt Service: Principal 105,408 331,130 436,538 Interest and Fiscal Charges 25,304 943,870 969,174 Capital Outlay: General Government - - - Public Safety - - - Physical Environment - - - Culture and Recreation - - - Total Expenditures 134,028 1,275,000 1,409,028 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,059 (1,244,945) (1,238,886) Other Financing Sources (Uses) Transfers In - 1,290,000 1,290,000 Transfers Out - - - Total Other Financing Sources (Uses)- 1,290,000 1,290,000 Net Changes in Fund Balances 6,059 45,055 51,114 Fund Balances, Beginning 27,573 1,290,964 1,318,537 Fund Balances, End 33,632$ 1,336,019$ 1,369,651$ Debt Service 76 148 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Revenues Permits and Fees -$ -$ -$ Intergovernmental Revenues - - - Fines and Forfeitures - - - Impact Fees/Assessments - - - Investment Income/(Loss)18,826 10,348 158,672 Miscellaneous - - - Total Revenues 18,826 10,348 158,672 Expenditures Current: General Government - - - Public Safety - - - Physical Environment - - - Debt Service: Principal - - - Interest and Fiscal Charges - - - Capital Outlay: General Government - - - Public Safety - - - Physical Environment - - - Culture and Recreation 201,876 553,548 1,251,944 Total Expenditures 201,876 553,548 1,251,944 Excess (Deficiency) of Revenues Over (Under) Expenditures (183,050) (543,200) (1,093,272) Other Financing Sources (Uses) Transfers In - - 420,000 Transfers Out - - - Total Other Financing Sources (Uses)- - 420,000 Net Changes in Fund Balances (183,050) (543,200) (673,272) Fund Balances, Beginning 396,340 544,081 3,178,938 Fund Balances, End 213,290$ 881$ 2,505,666$ CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 Capital Projects (Concluded) 77 149 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Revenues Permits and Fees -$ -$ 970$ Intergovernmental Revenues - - 600,066 Fines and Forfeitures - - 50,601 Impact Fees/Assessments - - 1,073,292 Investment Income/(Loss)92,479 280,325 1,286,544 Miscellaneous - - 221,997 Total Revenues 92,479 280,325 3,233,470 Expenditures Current: General Government - - 5,040 Public Safety - - 18,552 Physical Environment - - 1,187,359 Debt Service: Principal - - 436,538 Interest and Fiscal Charges - - 970,190 Capital Outlay: General Government 10,179 10,179 216,962 Public Safety - - 365,357 Physical Environment - - 862,972 Culture and Recreation 58,260 2,065,628 2,093,427 Total Expenditures 68,439 2,075,807 6,156,397 Excess (Deficiency) of Revenues Over (Under) Expenditures 24,040 (1,795,482) (2,922,927) Other Financing Sources (Uses) Transfers In - 420,000 1,710,000 Transfers Out - - (550,000) Total Other Financing Sources (Uses)- 420,000 1,160,000 Net Changes in Fund Balances 24,040 (1,375,482) (1,762,927) Fund Balances, Beginning 1,565,417 5,684,776 22,562,753 Fund Balances, End 1,589,457$ 4,309,294$ 20,799,826$ Capital Projects 78 150 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Fines and Forfeitures 4,000$ 4,000$ 7,462$ 3,462$ Investment Income/(Loss)150 150 1,498 1,348 Miscellaneous - - 42 42 Total Revenues 4,150 4,150 9,002 4,852 Expenditures Current: Public Safety 7,500 7,500 58 7,442 Total Expenditures 7,500 7,500 58 7,442 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,350) (3,350) 8,944 12,294 Fund Balances, Beginning of Year 7,355 7,355 20,918 13,563 Fund Balances, End of Year 4,005$ 4,005$ 29,862$ 25,857$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE EDUCATION FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts 79 151 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)600$ 600$ 2,084$ 1,484$ Total Revenues 600 600 2,084 1,484 Expenditures Current: Public Safety 11,500 11,500 4,497 7,003 Total Expenditures 11,500 11,500 4,497 7,003 Excess (Deficiency) of Revenues Over (Under) Expenditures (10,900) (10,900) (2,413) 8,487 Fund Balances, Beginning of Year 27,095 27,095 37,057 9,962 Fund Balances, End of Year 16,195$ 16,195$ 34,644$ 18,449$ 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, 2024 Budgeted Amounts (Continued) 80 152 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 1,680,000$ 580,000$ 600,066$ 20,066$ Investment Income/(Loss)47,000 47,000 388,324 341,324 Total Revenues 1,727,000 627,000 988,390 361,390 Expenditures Current: Physical Environment 632,865 674,745 351,329 323,416 Capital Outlay: Physical Environment 1,700,000 1,700,000 105,062 1,594,938 Total Expenditures 2,332,865 2,374,745 456,391 1,918,354 Excess (Deficiency) of Revenues Over (Under) Expenditures (605,865) (1,747,745) 531,999 2,279,744 Other Financing Sources (Uses) Transfers Out - (550,000) (550,000) - Total Other Financing Sources (Uses)- (550,000) (550,000) - Net Change in Fund Balances (605,865) (2,297,745) (18,001) 2,279,744 Fund Balances, Beginning of Year 3,841,544 6,547,822 6,547,822 - Fund Balances, End of Year 3,235,679$ 4,250,077$ 6,529,821$ 2,279,744$ YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPROVEMENT FUND (Continued) 81 153 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 26,600$ 138,125$ 111,525$ Investment Income/(Loss)40,000 40,000 141,099 101,099 Total Revenues 40,000 66,600 279,224 212,624 Expenditures Capital Outlay: Physical Environment 379,000 1,129,000 757,910 371,090 Total Expenditures 379,000 1,129,000 757,910 371,090 Excess (Deficiency) of Revenues Over (Under) Expenditures (339,000) (1,062,400) (478,686) 583,714 Fund Balances, Beginning of Year 1,664,966 2,260,549 2,260,548 (1) Fund Balances, End of Year 1,325,966$ 1,198,149$ 1,781,862$ 583,713$ 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, 2024 Budgeted Amounts (Continued) 82 154 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 7,700$ 28,326$ 20,626$ Investment Income/(Loss)19,000 47,000 47,592 592 Total Revenues 19,000 54,700 75,918 21,218 Expenditures Capital Outlay: Public Safety 324,900 329,900 324,923 4,977 Total Expenditures 324,900 329,900 324,923 4,977 Excess (Deficiency) of Revenues Over (Under) Expenditures (305,900) (275,200) (249,005) 26,195 Fund Balances, Beginning of Year 805,965 811,140 811,140 - Fund Balances, End of Year 500,065$ 535,940$ 562,135$ 26,195$ 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, 2024 (Continued) 83 155 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 4,800$ 17,717$ 12,917$ Investment Income/(Loss)80,000 80,000 170,494 90,494 Total Revenues 80,000 84,800 188,211 103,411 Excess (Deficiency) of Revenues Over (Under) Expenditures 80,000 84,800 188,211 103,411 Fund Balances, Beginning of Year 2,780,584 2,772,870 2,772,869 (1) Fund Balances, End of Year 2,860,584$ 2,857,670$ 2,961,080$ 103,410$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FIRE IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 84 156 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ 46,600$ 171,495$ 124,895$ Investment Income/(Loss)10,000 10,000 44,249 34,249 Total Revenues 10,000 56,600 215,744 159,144 Expenditures Capital Outlay: Culture and Recreation 410,000 29,000 27,799 1,201 Total Expenditures 410,000 29,000 27,799 1,201 Excess (Deficiency) of Revenues Over (Under) Expenditures (400,000) 27,600 187,945 160,345 Fund Balances, Beginning of Year 634,333 692,775 692,776 1 Fund Balances, End of Year 234,333$ 720,375$ 880,721$ 160,346$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARKS IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 85 157 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Permits and Fees 1,000$ 1,000$ 970$ (30)$ Fines and Forfeitures - 2,700 3,000 300 Investment Income/(Loss)37,000 37,000 116,197 79,197 Miscellaneous - - 1,448 1,448 Total Revenues 38,000 40,700 121,615 80,915 Expenditures Current: Physical Environment 543,886 543,886 242,940 300,946 Capital Outlay: General Government 200,000 200,000 127,634 72,366 Total Expenditures 743,886 743,886 370,574 373,312 Excess (Deficiency) of Revenues Over (Under) Expenditures (705,886) (703,186) (248,959) 454,227 Net Change in Fund Balances (705,886) (703,186) (248,959) 454,227 Fund Balances, Beginning of Year 1,648,280 2,073,000 2,073,008 8 Fund Balances, End of Year 942,394$ 1,369,814$ 1,824,049$ 454,235$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ARBOR FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 86 158 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 538,566$ 538,566$ 543,212$ 4,646$ Investment Income/(Loss)2,000 2,000 22,501 20,501 Miscellaneous - 208,000 208,089 89 Total Revenues 540,566 748,566 773,802 25,236 Expenditures Current: Physical Environment 625,770 625,770 526,067 99,703 Capital Outlay: Physical Environment - 80,000 79,149 851 Total Expenditures 625,770 705,770 605,216 100,554 Excess (Deficiency) of Revenues Over (Under) Expenditures (85,204) 42,796 168,586 125,790 Fund Balances, Beginning of Year 118,487 167,511 167,511 - Fund Balances, End of Year 33,283$ 210,307$ 336,097$ 125,790$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TLBD MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 87 159 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 55,445$ 55,445$ 55,644$ 199$ Investment Income/(Loss)2,500 2,500 6,961 4,461 Miscellaneous - 4,600 4,600 - Total Revenues 57,945 62,545 67,205 4,660 Expenditures Current: Physical Environment 73,868 78,468 63,707 14,761 Total Expenditures 73,868 78,468 63,707 14,761 Excess (Deficiency) of Revenues Over (Under) Expenditures (15,923) (15,923) 3,498 19,421 Fund Balances, Beginning of Year 98,370 99,570 99,570 - Fund Balances, End of Year 82,447$ 83,647$ 103,068$ 19,421$ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OAK FOREST MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2024 (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA 88 160 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 3,500$ 30,504$ 40,139$ 9,635$ Investment Income/(Loss)- - 7,451 7,451 Total Revenues 3,500 30,504 47,590 17,086 Expenditures Current: Public Safety 14,440 14,440 13,997 443 Capital Outlay: Public Safety - 45,000 40,434 4,566 Total Expenditures 14,440 59,440 54,431 5,009 Excess (Deficiency) of Revenues Over (Under) Expenditures (10,940) (28,936) (6,841) 22,095 Fund Balances, Beginning of Year 131,183 107,494 107,494 - Fund Balances, End of Year 120,243$ 78,558$ 100,653$ 22,095$ YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL 89 161 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 13,389$ 13,389$ 13,374$ (15)$ Investment Income/(Loss)80 80 844 764 Total Revenues 13,469 13,469 14,218 749 Expenditures Current: General Government 11,026 11,026 5,040 5,986 Debt Service: Interest and Other Charges 4,788 4,211 1,016 3,195 Total Expenditures 15,814 15,237 6,056 9,181 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,345) (1,768) 8,162 9,930 Fund Balances, Beginning of Year 4,830 (31,274) (31,273) 1 Fund Balances, End of Year 2,485$ (33,042)$ (23,111)$ 9,931$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) TUSCAWILLA PHASE III YEAR ENDED SEPTEMBER 30, 2024 90 162 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 137,955$ 137,955$ 105,399$ (32,556)$ Investment Income/(Loss)1,000 1,000 26,870 25,870 Miscellaneous - - 7,818 7,818 Total Revenues 138,955 138,955 140,087 1,132 Expenditures Current: Physical Environment 4,015 4,015 3,316 699 Debt Service: Principal 105,408 105,408 105,408 - Interest and Other Charges 25,592 25,592 25,304 288 Total Expenditures 135,015 135,015 134,028 987 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,940 3,940 6,059 2,119 Fund Balances, Beginning of Year 38,080 38,080 27,573 (10,507) Fund Balances, End of Year 42,020$ 42,020$ 33,632$ (8,388)$ (Continued) Budgeted Amounts 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, 2024 91 163 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)30,000$ 30,000$ 30,055$ 55$ Total Revenues 30,000 30,000 30,055 55 Expenditures Current: General Government 2,500 2,500 - 2,500 Debt Service: Principal 331,131 331,131 331,130 1 Interest and Other Charges 943,870 943,870 943,870 - Total Expenditures 1,277,501 1,277,501 1,275,000 2,501 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,247,501) (1,247,501) (1,244,945) 2,556 Other Financing Sources (Uses) Transfers In 1,290,000 1,290,000 1,290,000 - Total Other Financing Sources (Uses)1,290,000 1,290,000 1,290,000 - Net Change in Fund Balances 42,499 42,499 45,055 2,556 Fund Balances, Beginning of Year 1,304,358 1,304,358 1,290,964 (13,394) Fund Balances, End of Year 1,346,857$ 1,346,857$ 1,336,019$ (10,838)$ (Continued) YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 DEBT SERVICE FUND 92 164 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)2,000$ 2,000$ 18,826$ 16,826$ Total Revenues 2,000 2,000 18,826 16,826 Expenditures Capital Outlay: Physical Environment - 201,877 - 201,877 Culture and Recreation - - 201,876 (201,876) Total Expenditures - 201,877 201,876 1 Excess (Deficiency) of Revenues Over Expenditures 2,000 (199,877) (183,050) 16,827 Fund Balances, Beginning of Year 87,856 396,341 396,340 (1) Fund Balances, End of Year 89,856$ 196,464$ 213,290$ 16,826$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 CONSTRUCTION FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 93 165 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)500$ 9,467$ 10,348$ 881$ Total Revenues 500 9,467 10,348 881 Expenditures Capital Outlay: Culture and Recreation - 553,548 553,548 - Total Expenditures - 553,548 553,548 - Excess (Deficiency) of Revenues Over (Under) Expenditures 500 (544,081) (543,200) 881 Fund Balances, Beginning of Year 19,746 544,081 544,081 - Fund Balances, End of Year 20,246$ -$ 881$ 881$ 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, 2024 (Continued) 94 166 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)80,000$ 80,000$ 158,672$ 78,672$ Total Revenues 80,000 80,000 158,672 78,672 Expenditures Capital Outlay: Culture and Recreation 725,500 1,545,648 1,251,944 293,704 Total Expenditures 725,500 1,545,648 1,251,944 293,704 Excess (Deficiency) of Revenues Over (Under) Expenditures (645,500) (1,465,648) (1,093,272) 372,376 Other Financing Sources (Uses) Transfers Out - 420,000 420,000 - Total Other Financing Sources (Uses)- 420,000 420,000 - Net Change in Fund Balances (645,500) (1,045,648) (673,272) 372,376 Fund Balances, Beginning of Year 2,306,290 3,178,939 3,178,938 (1) Fund Balances, End of Year 1,660,790$ 2,133,291$ 2,505,666$ 372,375$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PUBLIC FACILITIES FUND YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts (Continued) 95 167 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)27,000$ 27,000$ 92,479$ 65,479$ Total Revenues 27,000 27,000 92,479 65,479 Expenditures Capital Outlay: General Government 542,000 542,000 10,179 531,821 Culture and Recreation - - 58,260 (58,260) Total Expenditures 542,000 542,000 68,439 473,561 Excess (Deficiency) of Revenues Over (Under) Expenditures (515,000) (515,000) 24,040 539,040 Fund Balances, Beginning of Year 1,195,832 1,195,832 1,565,417 369,585 Fund Balances, End of Year 680,832$ 680,832$ 1,589,457$ 908,625$ 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, 2024 (Concluded) 96 168 STATISTICAL SECTION 169 Statistical Section (Unaudited) Pages Financial Trends Information 97 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 104 These schedules contain information to help the reader assess the City's local revenue source. Debt Capacity Information 109 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 115 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 117 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 was 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. 170 FINANCIAL TRENDS INFORMATION 171 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental Activities: Net Investment in Capital Assets 45,650$ 48,555$ 52,573$ 52,292$ 53,683$ 54,922$ 53,758$ 51,213$ 53,773$ 57,733$ Restricted 12,336 12,027 12,755 14,736 17,089 18,011 19,630 17,970 20,560 22,069 Unrestricted 768 1,746 1,594 3,052 5,634 7,748 9,160 16,277 13,403 12,982 Total Governmental Activities Net Position 58,754$ 62,328$ 66,922$ 70,080$ 76,406$ 80,681$ 82,548$ 85,460$ 87,736$ 92,784$ Business-Type Activities: Net Investment in Capital Assets 21,426$ 21,802$ 23,922$ 23,079$ 22,713$ 27,385$ 28,905$ 29,385$ 33,001$ 32,850$ Restricted 567 561 560 515 613 647 1,332 6,127 5,729 5,473 Unrestricted 9,112 11,427 13,003 15,945 21,197 24,690 26,628 21,419 17,809 30,218 Total Business-Type Activities 31,105$ 33,790$ 37,485$ 39,539$ 44,523$ 52,722$ 56,865$ 56,931$ 56,539$ 68,541$ Primary Government: Net Investment in Capital Assets 67,076$ 70,357$ 76,495$ 75,371$ 76,396$ 82,307$ 82,663$ 80,598$ 86,774$ 90,583$ Restricted 12,903 12,588 13,315 15,251 17,702 18,658 20,962 24,097 26,289 27,542 Unrestricted 9,880 13,173 14,957 18,997 26,831 32,438 35,788 37,696 31,212 43,200 Total Primary Government 89,859$ 96,118$ 104,767$ 109,619$ 120,929$ 133,403$ 139,413$ 142,391$ 144,275$ 161,325$ FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA (AMOUNTS EXPRESSED IN THOUSANDS) (ACCRUAL BASIS OF ACCOUNTING) LAST TEN FISCAL YEARS NET POSITION BY COMPONENT 97 172 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses Governmental Activities: General Government 5,708$ 6,131$ 6,298$ 6,233$ 7,052$ 6,961$ 5,720$ 5,487$ 8,304$ 8,403$ Public Safety 7,101 6,764 6,228 5,791 6,892 5,278 5,746 7,468 8,775 9,681 Physical Environment 5,924 5,798 6,625 6,933 6,563 7,381 7,899 8,601 9,384 8,644 Culture and Recreation 2,109 2,163 2,045 2,301 2,282 2,827 2,625 3,026 3,272 3,630 Interest and Other Fiscal Charges on Long-Term Debt 657 668 635 589 673 603 560 514 468 427 Total Governmental Activities Expenses 21,499$ 21,524$ 21,831$ 21,847$ 23,462$ 23,050$ 22,550$ 25,096$ 30,203$ 30,785$ Business-Type Activities: Water and Sewer 6,943$ 7,295$ 7,881$ 7,985$ 8,569$ 10,051$ 9,738$ 11,018$ 13,249$ 14,130$ Development Services 501 510 665 574 647 1,130 1,331 1,315 1,534 1,869 Stormwater 1,162 1,223 941 1,043 2,321 1,759 1,300 1,402 1,728 1,726 Total Business-Type Activities Expenses 8,606$ 9,028$ 9,487$ 9,602$ 11,537$ 12,940$ 12,369$ 13,735$ 16,511$ 17,725$ Program Revenues Governmental Activities: Charges for Services: General Government 2,218$ 2,150$ 2,061$ 2,206$ 2,404$ 2,518$ 2,515$ 2,767$ 3,005$ 2,976$ Public Safety 731 418 1,075 232 180 100 243 130 225 181 Physical Environment 4,177 3,605 4,315 3,181 3,583 3,500 3,689 3,804 3,529 4,225 Culture and Recreation 846 418 1,079 378 321 179 209 308 296 306 Operating Grants and Contributions 16 2 87 74 1,284 31 553 9 - 10,252 Capital Grants and Contributions 2,756 3,583 2,781 2,897 5,122 5,692 3,470 4,060 3,902 4,084 Total Governmental Activities Program Revenues 10,744 10,176 11,398 8,968 12,894 12,020 10,679 11,078 10,957 22,024 Business-Type Activities: Water and Sewer 9,691 9,877 10,267 9,893 10,802 11,575 11,419 12,125 12,616 14,502 Development Services 2,075 1,315 1,968 1,055 3,031 2,148 1,297 986 997 1,115 Stormwater 871 1,117 1,167 1,120 1,150 1,135 1,137 1,134 1,137 1,140 Operating Grants and Contributions - - - 8 926 590 - - - - Capital Grants and Contributions 1,452 1,311 1,617 1,248 1,484 4,908 274 686 751 276 Total Business-Type Activities Program Revenues 14,089 13,620 15,019 13,324 17,393 20,356 14,127 14,931 15,501 17,033 Total Governmental Program Revenues 24,833$ 23,796$ 26,417$ 22,292$ 30,287$ 32,376$ 24,806$ 26,009$ 26,458$ 39,057$ CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) FISCAL YEAR 98 173 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net (Expense)/Revenue: Governmental Activities (10,755)$ (11,348)$ (10,433)$ (12,879)$ (10,568)$ (11,030)$ (11,871)$ (14,018)$ (19,246)$ (8,761)$ Business-Type Activities 5,483 4,592 5,532 3,722 5,856 7,416 1,758 1,196 (1,010) (692) Total Governmental Net Expense (5,272)$ (6,756)$ (4,901)$ (9,157)$ (4,712)$ (3,614)$ (10,113)$ (12,822)$ (20,256)$ (9,453)$ Governmental Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 4,284$ 4,516$ 4,727$ 5,150$ 5,487$ 5,870$ 6,291$ 6,629$ 7,391$ 8,032$ Utility Taxes 3,887 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 5,417 Business Tax Receipts 120 122 123 126 122 112 126 89 165 144 Intergovernmental Revenues - Unrestricted 3,481 3,557 3,706 3,967 4,036 3,858 4,360 5,044 5,148 4,911 Investment Income and Miscellaneous 424 711 616 1,246 1,338 1,047 584 (240) 2,816 4,555 Gain (Loss) on Disposal of Capital Assets 26 - - - - - - - - - Transfers 2,064 2,041 1,975 1,873 1,697 (93) (2,316) 547 704 (9,249) Total Governmental Activities 14,286 14,923 15,026 16,365 16,893 15,305 13,738 16,931 21,521 13,810 Business-Type Activities: Investment Income and Miscellaneous 108 135 138 323 825 691 69 (585) 1,324 3,445 Loss on Disposal of Capital Assets - - - - - - - - - - Transfers (2,064) (2,041) (1,975) (1,873) (1,697) 93 2,316 (547) (704) 9,249 Total Business-Type Activities (1,956) (1,906) (1,837) (1,550) (872) 784 2,385 (1,132) 620 12,694 Total Government 12,330$ 13,017$ 13,189$ 14,815$ 16,021$ 16,089$ 16,123$ 15,799$ 22,141$ 26,504$ Change in Net Position Governmental Activities 3,531$ 3,575$ 4,593$ 3,486$ 6,325$ 4,275$ 1,867$ 2,913$ 2,275$ 5,049$ Business-Type Activities 3,527 2,686 3,695 2,172 4,984 8,200 4,143 64 (390) 12,002 Total Government 7,058$ 6,261$ 8,288$ 5,658$ 11,309$ 12,475$ 6,010$ 2,977$ 1,885$ 17,051$ FISCAL YEAR (Concluded) CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 99 174 Fiscal Year Property Tax Franchise Tax Utility Tax Business Tax Receipts Total 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 2024 8,032 - 5,417 144 13,593 Fiscal Year Sales Tax State Revenue Sharing Other Total 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 2024 2,943 1,853 115 4,911 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 100 175 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Fund: Non-Spendable 333$ 275$ 256$ 226$ 287$ 338$ 231$ 248$ 585$ 144$ Assigned - - - - - - - - 945 2,034 Unassigned 8,163 8,226 8,250 8,289 8,411 8,597 8,812 9,074 8,575 9,739 Total General Fund 8,496$ 8,501$ 8,506$ 8,515$ 8,698$ 8,935$ 9,043$ 9,322$ 10,105$ 11,917$ All Other Governmental Funds: Non-Spendable -$ 1$ 3$ 1$ 1$ 1$ -$ -$ 2$ 2$ Restricted 11,304 12,025 12,751 14,736 17,088 18,010 16,356 17,970 20,560 21,708 Committed 1,032 799 1,292 972 1,830 1,901 2,616 4,464 4,073 3,274 Assigned 5,506 6,240 5,938 7,578 9,859 9,597 10,496 11,026 9,378 9,263 Unassigned (129) (81) (1,120) (990) (873) (36) (35) (232) (31) (23) Total All Other Governmental Funds 17,713$ 18,984$ 18,864$ 22,297$ 27,905$ 29,473$ 29,433$ 33,228$ 33,982$ 34,224$ 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) 101 176 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues Taxes: Property 4,098$ 4,320$ 4,595$ 5,026$ 5,377$ 5,870$ 6,291$ 6,629$ 7,391$ 8,032$ Utility 3,887 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 5,417 General Obligation 186 196 132 124 111 - - - - - Business Tax 120 122 123 126 122 112 126 89 165 144 Licenses and Permits: Franchise Fees 2,024 2,042 1,986 2,166 2,331 2,363 2,397 2,545 2,787 2,695 Other 47 62 91 44 39 34 22 17 36 16 Intergovernmental 8,727 8,144 6,575 6,972 8,660 6,748 7,995 8,745 8,820 18,891 Charges for Services 3,231 3,302 3,341 3,342 3,351 3,212 3,237 3,376 3,426 4,217 Fines and Forfeitures 168 178 175 256 283 109 421 492 229 184 Impact Fees/Assessments 2,627 1,232 3,162 819 1,764 1,348 1,021 1,045 874 1,073 Investment Income 226 275 247 428 1,067 913 118 (625) 2,540 4,180 Miscellaneous 225 364 281 690 177 134 466 386 276 375 Total Revenues 25,566 24,213 24,587 23,996 27,495 25,354 26,787 27,561 31,841 45,224 Expenditures General Government 5,051$ 5,187$ 5,161$ 5,057$ 5,407$ 4,711$ 5,307$ 5,146$ 6,313$ 7,481$ Public Safety 7,151 6,916 6,739 6,574 6,503 6,523 7,033 7,576 7,680 8,341 Physical Environment 4,225 4,303 5,057 5,296 4,907 5,252 4,865 5,258 6,656 6,381 Culture and Recreation 1,784 1,785 1,865 1,891 1,866 1,965 1,854 2,167 2,254 2,574 Capital Outlay 2,571 5,370 4,251 2,410 3,509 3,593 3,937 2,363 7,322 7,577 Debt Service: Principal 610 1,232 3,453 1,138 1,158 515 489 573 501 585 Interest 192 188 149 65 49 897 918 952 949 983 Total Expenditures 21,584 24,981 26,675 22,431 23,399 23,456 24,403 24,035 31,675 33,922 Excess Revenues Over (Under) Expenditures 3,982 (768) (2,088) 1,565 4,096 1,898 2,384 3,526 166 11,302 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) 102 177 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Other Financing Sources (Uses) Transfers In 7,043$ 4,659$ 4,494$ 5,763$ 5,744$ 4,062$ 3,964$ 4,835$ 4,904$ 13,011$ Transfers Out (4,977) (2,617) (2,520) (3,889) (4,047) (4,155) (6,280) (4,288) (4,200) (22,260) Proceeds from Financing - - - - - - - - 667 - Total Governmental Activities 2,066 2,042 1,974 1,874 1,697 (93) (2,316) 547 1,371 (9,249) Change in Fund Balances 6,048$ 1,274$ (114)$ 3,439$ 5,793$ 1,805$ 68$ 4,073$ 1,537$ 2,053$ Debt Services as a Percentage of Non-Capital Expenditures 4.22%7.24%16.06%6.01%6.07%7.11%6.87%7.04%5.95%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) 103 178 REVENUE CAPACITY INFORMATION 179 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 2015 2,442,043$ 2,162,934$ 88.57%279,109$ 66,887$ 52 760,723$ 1,748,259$ 2.5400 2,649,400$ 2016 2,670,315 2,322,345 86.97%347,970 71,576 53 898,230 1,843,714 2.5400 2,865,145 2017 2,847,989 2,488,346 87.37%359,643 73,137 56 959,840 1,961,342 2.5000 3,091,198 2018 3,128,578 2,716,013 86.81%412,565 78,213 56 1,059,572 2,147,275 2.4900 3,389,902 2019 3,370,872 2,923,507 86.73%447,365 82,498 58 1,159,460 2,293,968 2.4800 3,650,558 2020 3,647,697 3,118,225 85.48%529,472 89,028 56 1,145,903 2,590,878 2.4300 4,151,979 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 2024 5,751,633 4,958,393 86.21%793,240 99,073 67 2,389,492 3,461,281 2.4100 6,500,859 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) 104 180 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 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 2024 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.3780 0.0000 5.3780 0.1974 2.7649 15.6254 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 105 181 Tax Fiscal Year Year Billed Collected1 Difference Billed2 Collected1 Difference Billed Collected1 Difference Billed Collected1 Difference 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 2023 2024 58,047 55,644 2,403 708,374 681,743 26,631 - - - 13,955 13,374 581 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 106 182 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 76,136$ 1 2.20% WE Park at Laurel Oaks LLC 63,361 2 1.83% PAC Blake LLC 61,983 3 1.79% KMF XI Winter Springs LLC 48,125 4 1.39% Courtney Springs LLC 47,495 5 1.37%21,027$ 3 1.20% Duke Energy (Formerly Progress Energy)41,548 6 1.20%24,788 2 1.42% United Dominion Realty Trust Inc.22,014 7 0.64%8,675 4 0.50% Winter Springs Retirement Residence LLC 21,796 8 0.63% Winter Springs Station LLC 19,400 9 0.56% CSLC Hacienda Village MHC LLC 18,678 10 0.54% Laurel Oaks LLC 26,487 1 1.52% Summer Falls LLC 8,002 5 0.46% Bright House Networks LLC 6,447 6 0.37% Moss Park 5,571 7 0.32% Winter Springs Holdings, Inc.4,762 8 0.27% Baxley Robert & Annmarie TRS 4,333 9 0.25% Seminole Pines Assoc LTD 4,332 10 0.25% Totals 420,536$ 12.15%114,424$ 6.56% CITY OF WINTER SPRINGS, FLORIDA 2024 2015 (AMOUNTS EXPRESSED IN THOUSANDS) SEPTEMBER 30, 2024 PRINCIPAL PROPERTY TAXPAYERS 107 183 Fiscal Year Total Tax Collections in Ended Levy for Percentage of Subsequent Percentage of September 30,Fiscal Year1 Amount2 Levy Years Amount Levy 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% 2024 8,371,467 8,033,626 95.96%(667) 8,032,959 95.96% 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 108 184 DEBT CAPACITY INFORMATION 185 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN SEPTEMBER 30, 2024 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. 109 186 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 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%- 2024 39,137 3,461,281,542 - - - 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 bonds 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 110 187 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 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 2024 6,498 - - 726 - 2,610 9,476 3,966 23,276 1.08%595 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 111 188 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 1,634 100%1,634 Accreted Interest 4,864 100%4,864 City of Winter Springs General Obligation Debt2 - 0%- City of Winter Springs Capital Improvement Notes 726 100%726 Total Direct and Overlapping Debt 7,224$ 7,224$ 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, 2024 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CITY OF WINTER SPRINGS, FLORIDA 112 189 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 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 2024 5,416,598 2,488,538 - - - - 138,530 8,043,666 1,405,712 5.72 CITY OF WINTER SPRINGS, FLORIDA PLEDGE-REVENUE COVERAGE LAST TEN FISCAL YEARS General Government 113 190 Net Revenue Fiscal Year Gross Operating Available for Ended Sept 30,Revenues1 Expenses2 Debt Service Principal Interest Total Coverage 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 2024 17,794,326 11,012,852 6,781,474 919,956 1,460,683 2,380,639 2.85 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) 114 191 DEMOGRAPHIC AND ECONOMIC INFORMATION 192 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 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 14.00 6,992 4.2% 2024 39,137 2,150,617 54,951 42.0 14.36 6,203 3.3% 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 115 193 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment2 Seminole County School Board 1,203 1 20.33%1,387 1 20.38% Publix (Winter Springs Town Center)198 2 3.35%223 2 3.28% City of Winter Springs 183 3 3.09%150 4 2.20% Dearborn Electronics 152 4 2.57%150 3 2.20% Modern Plumbing 150 5 2.53%110 5 1.62% Tuscawilla Country Club 99 6 1.67%59 6 0.87% Budget Tree 93 7 1.57% Watermark at Vistawilla 65 8 1.10% United States Post Office 56 9 0.95%44 7 0.65% McDonald's 45 10 0.76%40 9 0.59% Dittmer Architectural Aluminum 30 10 0.44% Longwood Kia / Mitsubishi 41 8 0.60% Totals 2,244 37.92%2,234 32.83% 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 2024 2015¹ 116 194 OPERATING INFORMATION 195 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function Development Services 5.46 4.73 5.46 3.46 3.73 5.19 8.73 6.00 7.00 8.00 General Government 36.38 36.95 36.08 33.13 33.05 36.80 40.80 48.03 47.90 53.63 Public Safety: Police: Sworn Officers 65.00 65.70 65.00 65.00 55.00 55.00 55.00 55.00 55.00 59.00 Civilians2 17.13 17.13 17.13 15.07 15.50 15.50 16.68 17.00 9.00 10.00 Public Works 16.00 16.00 16.00 16.00 14.00 15.00 12.00 13.00 17.00 17.00 Culture and Recreation 21.84 21.11 21.76 20.84 20.79 20.79 21.52 23.03 24.33 27.75 Utilities 36.17 36.45 38.45 38.45 38.73 38.00 20.00 22.00 21.73 22.73 Stormwater 9.00 9.00 10.00 9.00 8.00 9.00 6.00 6.00 7.00 8.00 Total 206.98 207.07 209.88 200.95 188.8 195.28 180.73 190.06 188.96 206.11 Part-Time FTEs (Included Above)20.98 23.07 22.88 19.95 17.80 18.28 22.73 16.06 13.96 16.11 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, 117 196 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function Police: Auto Accidents 399 560 479 526 489 420 569 424 597 680 Physical Arrests 1,456 1,220 1,034 824 704 534 268 299 940 475 Criminal Investigations Conducted 408 533 419 388 1,384 1,249 1,330 414 1,325 1,148 Total Calls for Service 111,943 106,477 102,146 101,086 101,356 94,933 109,563 496 154,666 168,918 911 Calls Received 3,573 3,539 3,607 4,175 4,338 4,982 5,572 2,555 2,539 7,263 Evidence Processed (Pieces)2,240 2,606 2,509 1,814 1,603 1,394 1,665 1,562 2,288 5,040 Highways and Streets: Streets Paved (Miles)4 - **108 ***** Streets Resurfaced (Miles)46,114 63,674 70,324 53,925 51,783 116,528 82,961 24,379 25,270 20,102 Sidewalks/Bike Paths Built or Repaired (Sq Ft)4,329 11,344 7,384 6,428 15,127 31,248 36,192 4,061 3,264 * Culture and Recreation: Games - Baseball/Softball 842 879 939 646 715 535 900 550 592 347 Games - Basketball 608 578 749 749 734 ***** Games - Football 103 22 61 61 39 145 120 *** Games - Soccer 1,176 879 882 1,130 950 679 1,020 675 865 306 Senior Activities 1,363 1,573 1,906 2,632 3,477 530 ***1,440 Civic Center and Pavilion Rentals 463 400 461 474 553 433 667 1,354 1,818 1,610 Pickleball - - - - - - - - - 2,414 Water: New Connections 176 165 32 61 227 230 177 81 67 75 Number of Customers 13,496 13,727 13,822 13,597 13,967 13,817 13,994 14,315 14,521 14,596 Water Main Breaks 4 2 10 6 5 8 3 13 29 28 Average Daily Consumption (Gallons/per Capita)103 104 97 103 119 252 96 119 122 125 Meter Reads 183,256 187,468 188,358 192,930 189,072 234,842 197,530 202,719 203,556 204,355 Community Development: Total Permits Issued 2,923 2,956 3,275 3,741 3,627 4,259 3,927 3,826 3,517 2,063 Building Inspections 8,189 8,885 6,194 7,154 7,690 6,662 9,441 9,402 9,334 3,244 Business Tax Receipts Issued 1,007 897 1,227 984 1,182 890 1,032 617 1,356 536 Land Use Amendments and Rezonings 13 3 8 1 *1 2 2 2 1 Permit Files Created/Reviews Initiated 3,201 3,111 3,436 3,868 3,829 4,690 4,185 4,294 3,963 1,923 General Government: Personnel Actions Processed 182 283 426 201 288 150 281 300 360 840 Worker's Comp Injuries 30 30 37 35 25 21 27 14 13 15 Legal Notices Published 40 18 26 25 22 12 13 18 23 20 Payroll - Checks 425 352 334 335 296 266 93 101 554 278 Payroll - Direct Deposit 6,468 7,209 6,034 5,695 5,555 4,384 4,410 4,233 4,553 4,741 Receipts Deposited 247,363 134,565 130,754 127,820 129,349 130,541 132,772 133,850 133,365 134,516 A/P Checks Issued 5,442 5,364 4,974 3,659 4,537 4,018 3,881 6,871 4,194 4,194 Purchase Orders Processed 3,262 2,262 2,319 2,138 1,905 2,040 2,212 1,194 1,658 1,924 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, 118 197 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function Public Safety: Police: Stations 1 1 1 1 1 1 1 1 1 1 Fleet 82 82 80 73 68 68 77 77 75 83 Fire Stations2 2 2 2 2 2 2 2 2 2 2 Highways and Streets: Streets - Paved (Miles)102.69 103.25 103.25 103.40 107.52 107.52 107.52 107.52 107.52 107.52 Streets - Unpaved (Miles)0.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Street Lights 3,404 3,432 3,432 3,452 3,638 3,638 3,638 3,638 3,638 3,638 Traffic Signals 10 10 10 10 10 10 10 10 10 11 Culture and Recreation: Park Acreage 266.70 266.70 266.70 266.70 266.70 266.70 267.93 267.93 267.93 267.93 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 Mains (Miles)173.10 173.20 173.60 175.20 243.90 243.90 243.90 243.90 243.90 243.90 Fire Hydrants 1,057 1,060 1,064 1,080 1,092 1,092 1,092 1,092 1,092 1,100 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)115.75 115.76 116.31 117.95 199.09 199.09 199.09 199.09 199.09 230.30 Storm Sewers (Miles)95.76 95.79 95.79 95.87 187.71 187.71 187.71 187.71 187.71 214.41 Treatment Facility Capacity (Millions of Gallons)4.212 4.212 4.212 4.212 4.212 4.212 4.212 4.082 4.082 4.082 Current Average Flow (Millions of Gallons)2.097 2.080 2.140 2.280 2.124 2.520 2.520 2.635 2.499 2.341 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 119 198 OTHER REPORTS 199 Assistance Amount of Federal Grantor/Pass-Through Grantor/Program Listing Contract Expenditures Title Number Number (1) (2) (3) United States Department of Agriculture: Emergency Watershed Protection Program 10.923 NR234209XXXXC012 362,042$ Total United States Department of Agriculture 362,042 United States Department of Treasury: Passed through Florida Division of Emergency Management: Coronavirus State and Local Fiscal Recovery Funds*21.027 Y5325 10,251,757 Total United States Department of Treasury 10,251,757 Total Expenditures of Federal Awards 10,613,799$ * Denotes major federal award program. Notes: (1) Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Winter Springs, Florida (the City) under programs of the federal government for the fiscal year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the City. (2) Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (3) Indirect Cost Rate Election: The City has not elected to use the de minimis cost rate allowed under the Uniform Guidance. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal 120 200 121 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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated April 23, 2025. 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 a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2023-04 that we consider to be a significant deficiency. 201 122 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 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 no instances of non-compliance or other matters that are required to be reported under 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. April 23, 2025 Gainesville, Florida 202 123 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Winter Springs’ (the City), Florida, compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. 203 124 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material non-compliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material non-compliance when it exists. The risk of not detecting material non-compliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Non-compliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material non-compliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. ■ Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material non-compliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control 204 125 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. April 23, 2025 Gainesville, Florida 205 126 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of Auditor’s Report Issued: Unmodified Internal Control Over Financial Reporting: Material weakness(es) identified? No Significant deficiency(ies) identified? Yes Non-compliance material to financial statements noted? No Federal Awards Internal Control Over Major Programs: Material weakness(es) identified? No Significant deficiency(ies) identified? None Reported Type of Auditor’s Report Issued on Compliance for Major Programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with CFR 200.516(A)? No Identification of Major Programs: Federal Program U.S. Department of Treasury: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. 21.027 Dollar Threshold Used to Distinguish Between Type A and Type B Programs – Federal Programs $750,000 Auditee qualified as low-risk auditee pursuant to the Uniform Guidance? No 206 127 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 FINANCIAL STATEMENT FINDINGS  2023-04 – Pension Plan Eligibility (Significant Deficiency) 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 the 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 the City review its pension plan eligibility requirements and implement additional controls to ensure that pension eligibility is verified prior to enrollment. Update: Verbal inquiry determined that resolution to the above finding was not completed. Therefore, the finding has been repeated in the current year. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER MATTERS A Summary Schedule of Prior Audit Findings is not required because there were no prior audit findings related to federal programs or state projects. A Corrective Action Plan is not required because there are no current year findings related to federal awards. Management has provided a response to the financial statement finding on page 132. 207 128 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, 2024, and have issued our report thereon dated April 23, 2025. 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; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); 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; Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; 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 April 23, 2025, 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: 2023-01 Bank Reconciliation; 2023-02 Access to Vendor Master File; 2023-03 Personnel Action Forms; 2023-05 Purchasing Cards; 2023-06 Financial Statement Audit; and 2023-07 Excess Expenditures Over Budget Appropriations. The following findings have been repeated as they were not fully corrected during the current audit period. 208 129 Honorable Mayor and City Commissioners City of Winter Springs, Florida MANAGEMENT LETTER Tabulation of Uncorrected Audit Findings 2023-2024 Fiscal Year Finding # 2022-2023 Fiscal Year Finding # 2021-2022 Fiscal Year Finding # N/A 2023-01 2022-02 N/A 2023-02 N/A N/A 2023-03 N/A 2023-04 2023-04 N/A N/A 2023-05 2022-06 N/A 2023-06 2022-07 N/A 2023-07 N/A 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. Property Assessed Clean Energy (PACE) Programs As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, the City must state as to whether a PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, did/did not operate within the City’s geographical boundaries during the fiscal year under audit. Management has asserted that no PACE program operated within the City’s geographical boundaries during the year ended September 30, 2024. 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. 209 130 Honorable Mayor and City Commissioners City of Winter Springs, Florida MANAGEMENT LETTER 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. April 23, 2025 Gainesville, Florida 210 131 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH FLORIDA STATUTE 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, 2024. 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, 2024. 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. April 23, 2025 Gainesville, Florida 211 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 Kevin Sweet Holly Queen City Manager Finance Director April 23, 2025 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, 2024. We have reviewed the report on internal controls and other compliance matters, and we concur with the finding. We appreciate the opportunity to implement the needed process improvements. Our response follows: 2023-04 Pension Plan Eligibility Staff concurs with this finding and is currently working through the required process to update the eligibility criteria. Upon researching this audit finding, it was concluded there are two conflicting documents speaking to when enrollment should actually occur. As of the date of this letter, the Board of Trustees has reviewed the proposed update to the plan documents and the plan restatement is being processed. The necessary changes will be presented to City Commission for final approval. Sincerely, Kevin Sweet Holly Queen City Manager Finance Director C: Kevin McCann, Mayor City Commission Commissioners Christian Gowan, City Clerk File 212 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, 2024. 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. ■ As described in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. The statement enhances accounting and financial reporting requirements for accounting changes and error corrections. The statement defines accounting changes as: (a) changes in accounting principles, (b) changes in accounting estimates, or (c) changes to or within the financial reporting entity, each with its own financial reporting requirements. Disclosure requirements include descriptions of accounting changes and error corrections and their quantitative effects on account balances. There was no impact to the City’s financial statements as a result of the adoption of this statement. The application of existing policies was not changed during 2024. 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: 213 2 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida ■ 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 based 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. ■ 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 Asset and Pension-Related Deferred Outflows and Inflows—The City’s combined net pension asset 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 upon 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. 214 3 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida 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. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. 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 April 23, 2025. 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. The following are audit matters we would like to bring to the attention of the City: ■ Effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter, GASB has issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of the financial statement users by updating the recognition and measurement guidance for compensated absences through aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. ■ Effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter, the GASB has issued Statement No. 102, Certain Risk Disclosures. The objective of this statement is to improve financial reporting by providing users of the financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. 215 4 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida 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. 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. April 23, 2025 Gainesville, Florida 216