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HomeMy WebLinkAbout2010 03 22 Regular 601 Requesting Acceptance of Comprehensive Annual Financial Report (CAFR) FY Ended September 30, 2009 COMMISSION AGENDA AWARDS & PRESENTATIONS INFORMATIONAL ITEM 601 PUBLIC HEARING REGULAR X March 22, 2010 MGR /DEPT 4 Regular Meeting A h • ation REQUEST: The City Manager Is Requesting City Commission Acceptance Of The Comprehensive Annual Financial Report (CAFR) As Presented For The Fiscal Year Ended September 30, 2009. SYNOPIS: The presentation of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2009 by the auditors, McDirmit Davis & Company, LLC. CONSIDERATIONS: The CAFR is prepared to give the City Commission and the citizens a greater understanding of the City's financial standing. The financial statements received an unqualified opinion by the auditors. Additionally, the 2009 CAFR will be submitted to the Government Finance Officers Association for participation in the Certificate of Achievement Award as we believe it continues to conform to the program's stringent requirements. FISCAL IMPACT: None COMMUNICATION EFFORTS: The 2009 CAFR will be posted to the website within a week of acceptance. RECOMMENDATIONS: It is recommended that the Commission accept the Comprehensive Annual Financial Report (CAFR) As Presented For The Fiscal Year Ended September 30, 2009. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/09 including the audited financial statements and the audit opinion cry of Winter Springs Florida I I i� �; CEIR a UMC MR Comprehensive Annual Financial Report MUM This page intentionally left blank. City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2009 �t� S U � • 1959 • ORVIP Prepared by: Finance Department This page intentionally left blank. U AL I � INTRODUCTORY SECTION This section contains the following subsections: • Table of Contents • Letter of Transmittal • GFOA Certificate of Achievement • List of Principal Officials • Organizational Chart This page intentionally left blank. H U CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2009 Paqe Introductory Section: Table of Contents i -iii Letter of Transmittal iv -vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x II. Financial Section: Independent Auditor's Report 1 -2 Management's Discussion and Analysis 3 -15 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements Balance Sheet - Governmental Funds 18 -19 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 20 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 21 -22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 24 -25 Public and Communications Service Tax Special Revenue Fund 26 Road Improvements Special Revenue Fund 27 Solid Waste /Recycling Special Revenue Fund 28 Statement of Net Assets - Proprietary Funds 29 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 30 Statement of Cash Flows - Proprietary Funds 31 -32 Statement of Fiduciary Net Assets - Fiduciary Funds 33 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 34 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2009 Paqe II. Financial Section - Continued: Notes to Financial Statements 35 -73 Required Supplementary Information 74 -75 Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual: TLBD Debt Service Fund 76 Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 77 -85 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 86 -94 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 95 -114 Debt Service Funds 115 -120 Capital Projects Funds 121 -129 III. Statistical Section: Financial Trends Net Assets by Component 130 Changes in Net Assets 131 -132 Governmental Activities Tax Revenues by Source 133 Fund Balances of Governmental Funds 134 Changes in Fund Balances of Governmental Funds 135 -136 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 137 Property Tax Rates, Direct and Overlapping Governments 138 Special Assessment Billings and Collections 139 Principal Property Taxpayers 140 Property Tax Levies and Collections 141 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2009 IV. Other Reports: 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 154 -155 Report on Compliance with Requirements Applicable to Each Major Federal Program and Internal Control over Compliance in Accordance with OMB Circular A -133 156 -157 Schedule of Expenditures of Federal Awards 158 Notes to Schedule of Expenditures of Federal Awards 159 Schedule of Findings and Questioned Costs 160 Management Letter 161 -164 Management Response 165 Communication with Those Charged with Governance 166 -167 Affidavit of Impact Fee Compliance 168 Paqe III. Statistical Section - Continued: Debt Capacity Legal Debt Margin 142 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 143 Ratio of Outstanding Debt by Type 144 Direct and Overlapping Governmental Activities Debt 145 Pledged- Revenue Coverage 146 -147 Demographic and Economic Information Demographic and Economic Statistics 148 Principal Employers 149 Operating Information Budgeted Full -time Equivalent City Government Employees by Function 150 Operating Indicators by Function 151 -152 Capital Asset Statistics by Function 153 IV. Other Reports: 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 154 -155 Report on Compliance with Requirements Applicable to Each Major Federal Program and Internal Control over Compliance in Accordance with OMB Circular A -133 156 -157 Schedule of Expenditures of Federal Awards 158 Notes to Schedule of Expenditures of Federal Awards 159 Schedule of Findings and Questioned Costs 160 Management Letter 161 -164 Management Response 165 Communication with Those Charged with Governance 166 -167 Affidavit of Impact Fee Compliance 168 This page intentionally left blank. 0- :�a U � T �L v� CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 Telephone (407) 327 -1800 March 22, 2010 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: State law requires 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. Pursuant to that requirement, it is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2009. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs' comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of Winter Springs' financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2009 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 unqualified opinion that the City of Winter Springs' financial statements for the fiscal year ended September 30, 2009 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. 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. This area is one of the fastest growing iv areas in the country. The City currently has a land area of 14.81 square miles and a population of approximately 34,340. 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, Cleric and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day -to -day operations of the government, and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational activities and cultural events. The City maintains both a Water and Sewer Utility, a Stormwater Utility, 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 then uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Commission for review on or before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City's fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget -to- actual comparisons are provided in this report for each individual governmental fund. For the General Fund, the Public and Communications Service Tax Fund, the Road Improvements Fund and the Solid Waste /Recycling Fund, these comparisons are presented on pages 25.28 as part of the basic financial statements for the governmental funds. For other governmental funds these comparisons are presented in the governmental fund subsection of this report which starts on page 77. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Local economy. The City of Winter Springs is primarily a retail, office and residential area with a small amount of light industry and commercial business. Approximately 88% of our tax base is comprised of residential properties. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2008 -2009 fiscal year (tax year 2008), the gross taxable value reflects a decrease of 9% from the prior year but an increase of 122% since fiscal year 1999. The operating millage rate decreased from 3.2496 to 2.4714 mills, due to the consolidation of the fire department with Seminole County. The voted debt millage rate associated with the Central Winds General Obligation debt increased slightly from 0.1022 to 0.1100 mills as a result of the declining property valuation. During fiscal year 2009 -2010 (tax year 2009), despite declining property values, the City was able to maintain constant operating and voted debt millage rates at 2.4714 and 0.1100 mills, respectively. MA The City's population has increased 18% from that of ten years ago. local indicators are still reflective of a slow real estate market, low construction activity, high foreclosure and unemployment rates and decreased spending. This economic downturn has had an impact on revenue at both the state and local level. At the local level, revenues such as review and permit fees, investment income and state revenue sources have declined. The City has mitigated the effect of reduced revenues with reduced expenditures, constrained hiring and /or project delays and the use of reserves for capital. Thus far into the 2010 fiscal year, there have been no mid -year adjustments to those revenues which the City receives from the state. The best approach for balancing the state's 2010 budget is currently ongoing in the legislature. Long -term financial planning. The City Commission updated and adopted a 5 -year Capital Improvements Plan (CIP) on September 28, 2009 for fiscal years 2010 through 2015. The CIP is currently being evaluated and updated through Fiscal Year 2016 with anticipated completion by summer 2010. The CIP is a multi -year prioritized schedule of improvements that lists each capital improvement by the year it is intended to be purchased or commenced; the amount to be spent per year; and the method of financing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation of all necessary capital improvements. 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. Implementation of Zero -Based Budgeting represents a major change in the fiscal year 2010 model as compared to incremental budgeting used in prior fiscal years. There are three fiscal policies that are utilized when preparing and adopting the City's annual budget. The first policy is to maintain an Unreserved General Fund balance not less than 25% of the total operating expenses of the General Fund, excluding capital outlay and debt. By a super - majority vote of the Commission, supplemental appropriation from Unreserved General Fund balance may be authorized by the Commission for a General Fund purpose which may potentially reduce the Unreserved General Fund balance which would be restored to, at least, the minimum in the following year's budget. This fund balance philosophy carries over to the Water and Sewer Utility, Stormwater Utility and Development Services. Some funds such as debt service exist for very specific purposes; as such, the potential for unforeseen expenditures is very low. Consequently, it is not necessary for all funds to be constrained by this policy. In such case, the budget serves as the sole constraint. The second fiscal policy is that sufficient recurring revenues exist to pay for all recurring costs, thus avoiding the use of non - recurring revenues and fund balance to fund recurring costs. The final fiscal policy is that sufficient recurring and non- recurring revenues are available to fund non - recurring costs. Major Initiatives. During fiscal year 2010, as approved during the budget process the City anticipates the following projects: • MUNIS software module to increase efficiencies in payroll timekeeping and reporting at a cost of approximately $11,000; • Implementation of VM Ware designed to provide Public Safety with greater reliability to their data and applications necessary for improved work flow at a cost of approximately $18,000; • City Hall message board to improve public communications /notifications $27,000; • The purchase of 38 new and leased vehicles, including 2 new motorcycles and 3 ATVs for various Police Department Divisions at a cost of approximately $370,000; • New mobile desktops and other data processing equipment for Police staff to cut costs by reducing redundancy of equipment and increase efficiency of reporting at a cost of approximately $158,000; • Projects to replace Police tactical equipment and the establishment of a forensics lab totaling approximately $91,000; • Continued development of Magnolia Park, a Town Center outdoor amphitheatre totaling vi $1,1 88,750; • Additional improvements at Trotwood Park and park expansion plans to include a permanent dog park, at a cost of approximately $145,000; • New road construction, road improvements and resurfacing and other transportation projects totaling approximately $4,245,000; • Stormwater improvements to meet state water quality regulations and improve efficiencies at a cost of approximately $220,000; • Completion of the Utility /Public Works Facility -- Administration building and storage facility project at an approximate cost of $1,139,000; • Replace /upgrade transportation improvement equipment at a cost of approximately $60,000; • Improvements to water treatment plant facilities, water system looping and major maintenance and improvement of water supply, water mains and sanitary sewer lines in order to meet conservation goals and increase efficiencies at a cost of $1,568,000; • Replace /upgrade and add new equipment to Water & Sewer operations at a cost of almost $97,000. Awards and Acknowtedgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in financial Reporting to the City of Winter Springs for its CAFR for the fiscal year ended September 30, 2008. This was the ninth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently - organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement program requirements and will be submitting it to the GFOA to determine its eligibility for another fiscal year. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. We would like to express our appreciation to all members the department who assisted and contributed to its preparation, Other City departments, although not extensively involved in year -end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult, Appreciation must also be expressed to the City's auditors whose suggestions and attention to detail enhanced the quality of this report. In closing, we would also like to express appreciation to the Mayor and the City Commission for their support and for maintaining high standards of professionalism in management of the City of Winter Springs' finances. Respectfully submitted, Kevin S ith City Manager K ly lagia Interim Finance Director vii Certificate of Achievement for Excellence in Financial Reporting Prese,nited to City of Winter Springs Florida For its Comprehensive Annual Financial Report . for the Fiscal Yw. Ended September 30, 2008 A Certificate of Achievement for Ezcettence in,Financiat Reporting is presented by the Government Finance Officers Association of the, 'United States and Canada to government units and publkC employee retirement systems whose comprehensive aon"I financial reports (CAFRa):achieve the'highest, standards in government accounting and financial reporting_ R President Exec-utiryve Director Viii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2009 ELECTED OFFICIALS MAYOR John F. Bush DEPUTY - MAYOR /COMMISSIONER Joanne M. Krebs COMMISSIONER Rick Brown COMMISSIONER Gary Bonner COMMISSIONER Sally M. McGinnis COMMISSIONER Jean Hovey CITY MANAGER Kevin L. Smith CITY CLERK Andrea Lorenzo- Luaces LEGAL COUNSEL Anthony Garganese Brown, Garganese, Weiss & D'Agresta, P,A. DEPARTMENT DIRECTORS COMMUNITY DEVELOPMENT Randy Stevenson FINANCEIADMIN SERVICES (INTERIM) Kelly Balagia INFORMATION SERVICES Joanne Dalka PARKS AND RECREATION Chuck Pula POLICE CHIEF Kevin Brunelle UTILITYIPUBLIC WORKS Kipton Lockcuff ix CITY OF WINTER SPRINGS ORGANIZATIONAL CHART Citizens of Winter Springs Administration Administration Administration Accounting Security Stormwater Debt Mgmt. Records Mgmt. Transportation Meter Svc. GIS Engineering Budgeting IT Maintenance Water Mgmt MR IT Development Water /Wastewater Risk Mgmt. Purchasing Treasury Mgmt. Administration Records Communications Patrol Investigations Code Enforcement Administration Civic /Senior Parks /Field Mnt Athletics Rec. Programs Concession Svc. Administration Comp Planning Land Mgmt. Permit & Insp. Urban Beautification • The City Manager is appointed by the Commission. • The City Cleric is appointed by the Mayor with ratification of the City Commission and works under the direction of the City Manager. • The City Attorney is appointed by the Mayor with ratification of the City Commission and works under the direction of the City Commission. • Advisory Boards are appointed by the Mayor and the City Commission and work under the direction of the City Commission. x This page intentionally left blank. U , �C Di FINANCIAL SECTION This page intentionally left blank. MCDIRMIT //l DAMS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of Winter Springs, Florida 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, as of and for the year ended September 30, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business4ype activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of September 30, 2009 and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the general fund, the public and communications service tax special revenue fund, road improvement special revenue fund, and the solid wastelrecycling special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET, SUM.: 635 • ORLANDO, FLORIDA 32801 TELEPHONE 407 - 843 -5406 • FAx 407- 649 -9339 • EMAIL: INFO[ MCD]RMITDAVIS.COM ME179I:RS: PRIVATE COMPANIES PRACTICE SR • AMERWAN NNSTITIM- OF CFRT1I :IF.D PUBLiC ACCOO-V w:TS • FLORIDA INSTITI rF. OF CERTIFIED PUBLIC ACCOUNTANTS In accordance with Government Auditing Standards, we have also issued a report dated February 19, 2010 on our consideration of the City of Winter Springs, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit preformed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis starting on page 3 and the pension and other postemployment benefits disclosures on pages 74 and 75 are not a required part of the basic financial statements but are supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Winter Springs, Florida basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A -133 and Audits of States, Local Govemments, and Non - Profit Organizations, and is also not a required part of the basic financial statements of the City of Winter Springs, Florida. The schedule of expenditures of federal awards and the combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. February 19, 2010 E MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Winter Springs we offer readers of the City of Winter Springs' financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2009. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal which can be found on pages iv - vii of this report. Financial Highlights • The assets of the City of Winter Springs exceeded its liabilities at the close of the most recent fiscal year by $81,749,405 (net assets). Of this amount, $ 16,949,456 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets decreased by $1,508,651 or 2 %. • As of the close of the current fiscal year, the City of Winter Springs' governmental funds reported combined ending fund balances of $19,497,237. Approximately 93% of this total amount, $18,121,615, is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $8,543,903, or 53% of total general fund expenditures. • The City of Winter Springs' total debt decreased by $1,477,360 (3 %) during the current fiscal year. Principal payments were made in the amount of $2,070,871. Overview of the Financial Statements The financial statements focus on both the City as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year -to -year or government -to- government) and enhance the City's accountability. This discussion and analysis are intended to serve as an introduction to the City of Winter Springs' basic financial statements, which are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs' finances, in a manner similar to a private- sector business. The Statement of Net Assets presents information on all of the City of Winter Springs' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining. The Statement of Activities presents information showing how the government's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, 3 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued) Government -wide financial statements. (Continued) 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 16 -17 of this report Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Winter Springs maintains 40 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, Public and Communications Service Tax Special Revenue Fund, Road Improvements Special Revenue Fund, Solid Waste /Recycling Special Revenue Fund, and TLBD Debt Service Fund, all five of which are considered to be major funds. Data from the other 35 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds in provided in the form of combining statements elsewhere in this report. 4 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued Governmental Funds. (Continued) The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Public and Communications Service Tax Special Revenue Fund, Road Improvements Special Revenue Fund, and Solid Waste /Recycling Special Revenue Fund to demonstrate compliance with this budget on pages 24 -28. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund and the nonmajor funds on pages 76 and 95 -129. The basic governmental fund financial statements can be found on pages 18 -23 of this report. Proprietary funds. The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility and Development Services department. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 29 -32 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 33- 34 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 35 -73 of this report. Required Supplementary Information (RSI). RSI can be found on pages 74 -75 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the Notes to Financial Statements. Combining and individual fund statements and schedules can be found on pages 77 -129 of this report. Government -wide Financial Analysis Statement of Net Assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Winter Springs, assets exceeded liabilities by $81,749,405 at the close of the most recent fiscal year. Over half ($53,740,287 or 66 %) of the City of Winter Springs' net assets reflect 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. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Net Assets. (Continued) 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 assets that are subject to external restrictions as to how they may be used total $11,059,662 (13 %). The remaining balance of unrestricted net assets ($16,949,456 or 21 %) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2009, the City of Winter Springs is able to report positive balances in all three categories of net assets, 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 Assets for the current and prior year. For more detail see the Statement of Net Assets on page 16. City of Winter Springs Statement of Net Assets As of September 30 Net assets: Governmental Activities 2009 2008 Assets: net of related debt 40,701,446 Current and other assets $27,319,350 $28,457,972 Restricted assets 131,982 106,982 Capital assets 59,420,246 59,175,315 Total assets 86,871,578 87,740,269 Liabilities: Current liabilities 3,463,020 3,250,454 Long term liabilities 20,483,499 21,766,176 Other liabilities 131,982 106,982 Total liabilities 24, 078, 501 25,123, 612 Net assets: Invested in capital assets, net of related debt 40,701,446 39,370,392 Restricted 8,297,953 8,777,937 Unrestricted 13, 793, 678 14, 468, 328 Total net assets $62,793,077 $62,616,657 Business -type Activities Total Primary Government 2009 2008 2009 2008 $ 7,189,454 $ 8,436,378 2,712,173 3,496,270 33,224,163 33,798,318 43,125,790 45,730,966 1,726,889 2,031,349 21, 768, 093 22, 353, 850 674,480 704,368 24,169,462 25,089,567 13, 038, 841 12, 692, 394 2,761,709 2,814,448 3,155,778 5,134,557 $ 18, 956, 328 $ 20, 641, 399 0 $ 34, 508, 804 $ 36, 894, 350 2,844,155 3,603,252 92,644,409 92,973,633 129, 997, 368 133, 471, 235 5,189, 909 8,440,363 42, 251, 592 44,120, 026 806,462 811,350 48,247,963 53,371,739 53,740,287 52,062,786 11, 059, 662 11, 592, 385 16, 949, 456 19, 602, 885 $81,749,405 $83,258,056 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analvsis (Continued Statement of Changes in Net Assets. The following table reflects the Statement of Changes in Net Assets for the current and prior year. For more detailed information see the Statement of Activities on page 17. Note that the government's total net assets decreased by $1,508,651 or 2% in fiscal year 2009. The previous fiscal year, 2008, net assets decreased by $932,553. Governmental activities increased net assets by $176,420 in fiscal year 2009 compared to an increase of $813,540 in 2008. The smaller increase in net assets is due to decreased property tax revenue, and decreased expenditures. Business -type activities decreased net assets by $1,685,071 in fiscal year 2009 compared to a decrease of $1,746,093 in 2008. Following the Changes in Net Assets table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business -type activities as well as the revenue "source" for each. Additional information regarding the changes in fund balance of the governmental and business - type activities can be found in the section entitled Financial Analysis of Government's Funds on page 11. Note that the first graph depicts governmental program- specific revenues and expenses. For this graph the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Net Assets. (Continued) City of Winter Springs Changes in Net Assets For the Year Ended September 30 Governmental Activities Business -type Activities Total Primary Government 2009 2008 2009 2008 2009 2008 Revenues: 6,856,549 7,195, 997 11, 298, 434 6,280,597 5,694,096 2,554,636 Program revenues: 6,135 442,679 (1,508,651) (932,553) 1,691,206 2,188,772 Charges for services $ 6,029,778 $ 7,747,409 $ 8,671,243 $ 8,899,046 $ 14,701,021 $ 16,646,455 Operating grants and (1,508,651) (932,553) 62,616,657 61,803,117 20,641,399 22,387,492 contributions 41,451 207,833 483,484 - 524,935 207,833 Capital grants and contributions 2,442,293 2,628,580 13,932 223,858 2,456,225 2,852,438 General revenues: Property taxes 5,012,601 7,130,088 - - 5,012,601 7,130,088 Utility taxes 4,105,959 3,975,766 - - 4,105,959 3,975,766 Business tax receipts 70,524 139,726 - - 70,524 139,726 Intergovernmental - unrestricted 2,959,688 3,445,120 - - 2,959,688 3,445,120 Investment income and miscellaneous 613,791 675,395 41,518 197,902 655,309 873,297 Total revenues 21,276,085 25,949,917 9,210,177 9,320,806 30,486,262 35,270,723 Expenses: General government Public safety Physical environment Culture and recreation Interest and other fiscal charges on long -term debt Water and sewer Development services Stormw ate Total expenses Increase in net assets before transfers 5,801,121 6,856,549 7,195, 997 11, 298, 434 6,280,597 5,694,096 2,554,636 2,511,272 958,520 964,798 7,143, 249 7,150, 841 435,832 687,592 1,624,961 1,039,694 5,801,121 6,856,549 7,195, 997 11, 298, 434 6,280,597 5,694,096 2,554,636 2,511,272 Transfers Increase (decrease) in net assets Net assets- October 1 Net assets- September 30 958,520 964,798 7,143, 249 7,150, 841 435,832 687,592 1,624,961 1,039,694 22, 790, 871 27, 325,149 9,204,042 8,878,127 31, 994, 913 36, 203, 276 (1,514,786) (1,375,232) 6,135 442,679 (1,508,651) (932,553) 1,691,206 2,188,772 (1,691,206) (2,188,772) - - 176,420 813,540 (1,685,071) (1,746,093) (1,508,651) (932,553) 62,616,657 61,803,117 20,641,399 22,387,492 83,258,056 84,190,609 $62,793,077 $62,616,657 $ 18,956,328 $20,641,399 $ 81,749,405 $ 83,258,056 0 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Net Assets. (Continued) Governmental Program Specific Revenues and Expenses 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 — 0 General Public Safety Physical Culture& Interest on Government Environment Recreation Long -Term Debt Governmental Revenues by Source Investment Income and Miscellaneous kh%k 3% Revenues Expenses and Grants ibutions i 9 Chargesfor Tavac Services MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Net Assets. (Continued) Business -type Activities Revenues and Expenses 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Business -type Activities Revenues by Source Capital and Operating Grants and Contributions 5% Chargesfor Services 94% 10 Investment Income and Miscellaneous 1% Revenues ■ Expenses Water and Sewer Development Services Stormwater MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Financial Analvsis 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, unreserved 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, 2009, the City of Winter Springs' governmental funds reported combined ending fund balances of $19,497,237, a decrease of $1,641,427 over the prior year. Approximately 93% or $18,121,615 of this total amount constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, 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, unreserved fund balance of the General Fund was $8,543,903, while total fund balance was $8,778,814. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved and total fund balance represent 53% and 54% respectively, of total General Fund expenditures. The decrease in fund balance of the general fund is primarily due to decreased property tax revenue. 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 assets of the Water and Sewer Utility Fund at the end of the year amounted to $2,526,831 and total net assets decreased $799,438. This decrease is due to decreased user charges as well as declining investment income, as well as not receiving any contributed assets in the current year. The Development Services Fund net assets decreased $756,507 to a deficit balance of $58,957 at the end of the fiscal year. The decline in net assets is due to transfers out exceeding operating income. The Stormwater Utility Fund net assets decreased $129,126 to $4,381,662 at the end of the fiscal year. The change in net assets is consistent with previous fiscal years and due to decreases in user charges along with an increase in operating expenses. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in $1,041,769 in additional appropriations from fund balance during the year from an appropriation to fund balance of $72,195 in the original budget to appropriations from fund balance of $969,574 in the final budget. The majority of the increased appropriation can be summarized as follows: • $200,000 decrease in Half Cent Sales Tax • $215,000 decrease in fines and forfeiture income • $220,000 increase in miscellaneous income 11 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) General Fund Budgetary Highlights (Continued) • $70,000 decrease in local business tax • $300,000 increase in public safety expenditures • $140,000 increase in transfers out The actual results of General Fund for the year show an appropriation from fund balance of $322,280 compared to a final budgeted appropriation from fund balance of $969,574. The favorable variance of $647,294 is primarily comprised of the following: • $110,000 unfavorable variance in the half cent sales tax • $350,000 unfavorable variance in investment income • $750,000 favorable variance in total general government expenditures • $350,000 favorable variance in public safety expenditures • $270,000 favorable variance in physical environment expenditures • $200,000 favorable variance in culture and recreation expenditures • $370,000 unfavorable variance in transfers, primarily due to transfers in being less than budgeted. The comparison of budgeted results to actual results for the General Fund is shown on pages 24 -25. Capital Asset and Debt Administration Capital assets. The City of Winter Springs' investment in capital assets for its governmental and business -type activities as of September 30, 2009, amounts to $92,644,409 (net of accumulated depreciation), for a decrease of $329,222 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total decrease in the City of Winter Springs' investment in capital assets for the current fiscal year was 0.4% (a 0.4% increase for governmental activities, and a 1.7% decrease for business -type activities). Major capital asset events during the current fiscal year included the following: • The completion and capitalization of road resurfacing totaling almost $249,000; • The completion and capitalization of signal upgrades to SR 434/ SR 419 totaling $216,000 ($20,000, $22,000 and $174,000 was spent in 2007,2008 and 2009, respectively); • The completion and capitalization of road reconstruction including Moss Rd and Phase III of Winter Springs Boulevard at a cost of $1,253,000 ($1,071,000 and $182,000 was spent in 2008 and 2009, respectively); • The completion and capitalization of the Veterans' Memorial at a cost of almost $147,000 ($108,000 and $39,000 was spent in 2008 and 2009, respectively); • The completion and capitalization of FRDAP #8 Project at Trotwood Park which now includes a splash pad play area as one of its amenities at a cost of $526,000 ($58,000, $12,000 and $456,000 was spent in 2007, 2008 and 2009, respectively); • The completion and capitalization of the project to improve the SR 434 median hardscape at cost of $40,000 ($9,000 and $31,000 was spent in 2008 and 2009, respectively); 12 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Capital Asset and Debt Administration (Continued) • The completion and capitalization of the installation of the above ground fuel tank at City Hall at a cost of almost $31,000 ($3,000 and $28,000 was spent in 2008 and 2009, respectively); • The completion of water and sewer main projects at a cost of $797,000 ($37,000 and $760,000 was spent in 2008 and 2009, respectively); • The completion of electrical improvements to Water Treatment Plant #3 at a cost $324,000 ($18,000, $102,000, $176,000, $15,000 and $13,000 was spent in 2004, 2006, 2007, 2008 and 2009, respectively); • The completion and capitalization of pipe relining at a cost of $158,000, • The continued construction on road improvements including the Hayes and Tuscora Roads and Vistawilla Drive deceleration lanes at SR 434, intersection improvements at SR 419 / Wade Street and the paving of the Ranchland roadways totaling nearly $404,000; • The continued construction of the sidewalk on Northern Way to Shetland Avenue totaling almost $126,000; • The continued expansion at the Public Works facility to include buildings 6 and 7 totaling $578,000; • The continued construction of the Magnolia Park addition and amphitheater totaling $94,000. Additional information on the City of Winter Springs' capital assets can be found in Note 7 on pages 52 -54 of this report. City of Winter Springs Capital Assets (Net of Depreciation) Land Buildings Improvements other than buildings Machinery and equipment Intangibles Infrastructure Construction in progress Total net assets As of September 30 Governmental Activities Business -type Activities Total Primary Government 2009 2008 9,848,716 9,848,716 8,792,000 9,136,819 8,775,177 8,351,377 1,399,611 1 ,708,622 111,084 174, 079 29,048,744 28,427,672 1,444,914 1 , 528, 030 2009 2008 2009 2008 889,032 2,250,662 11,873 10, 751 5,344,916 5,344,916 $ 15,193,632 $ 15,193,632 289,624 314,768 9,081,624 9,451,587 26,602,905 26,802,027 35,378,082 851,051 889,032 2,250,662 11,873 10, 751 122,957 - - 29,048,744 123,794 436,823 1,568,708 35,153,404 2,597,654 184,830 28, 427, 672 1.964.853 $ 59,420,246 $ 59,175,315 $ 33,224,163 $ 33,798,317 $ 92,644,409 $ 92,973,632 Long -term debt. At September 30, 2009, the City of Winter Springs had total debt outstanding of $44,778,049, a decrease of $1,477,360 from $46,255,409 at September 30, 2008. Total bonded debt of the City at the end of the current fiscal year was $37,546,421, for a decrease of $1,725,853 over the prior year. This amount does not include accreted interest of $4,941,906. Of the total amount of bonded debt, $2,925,000 comprises debt backed by the full faith and credit of the government and $1,935,000 is special assessment debt for which the government is liable in the event of default by the property owners subject to the assessment. The remainder of the City of Winter Springs' bonded debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 13 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Caaital Asset and Debt Administration (Continued Other than principal payments, there were no changes in the structure of the City's bonded debt during fiscal year 2009. 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 of Winter Springs' long -term debt can be found in Notes 8 and 9 on pages 54 -60 of this report. City of Winter Springs Long Term Debt As of September 30 Governmental Activities Business -type Activities Total Primary Government 2009 2008 2009 2008 2009 2008 Improvement Refunding Revenue Bonds, Series 1999 $ 5,133, 970 $ 5,188, 970 $ Water & Sewer Refunding - - 230,216 285,700 Revenue Bonds, Series 4,262,198 - - 116,852 2000 - - Special Assessment - Revenue Bonds, Series 2001 1,935,000 1,990,000 Water & Sewer Refunding Revenue Bonds, Series 2001 - - Water & Sewer Refunding Revenue Bonds, Series 2002 - - Limited General Obligation Bonds, Series 2002 2,925,000 3,000,000 Improvement Refunding Revenue Bonds, Series 2003 7,420,000 8,045,000 Capital Improvement Revenue Note, Series 2004A 354,669 405,169 Capital Improvement Revenue Note, Series 2004 655,965 719,918 Capital Improvement Revenue Note, Series 2006 230,216 285,700 Accreted Interest Payable 2,505,107 2,179,893 Capital Lease 116,852 227,786 Compensated Absences 679,808 899,743 Other Post Employment Benefits 56,241 - Adjustments for Issuance Discounts and Deferred - $ - $ 5,133, 970 $ 5,188, 970 6,674,191 6,724,191 6,674,191 6,724,191 - - 1,935,000 1,990,000 4,500,000 4,755,000 4,500,000 4,755,000 9,730,000 10, 405, 000 9,730,000 10, 405, 000 2,925,000 3,000,000 7,420,000 8,045,000 - - 354,669 405,169 - - 655,965 719,918 - - 230,216 285,700 2,436,799 2,082,305 4,941,906 4,262,198 - - 116,852 227,786 175,212 182,621 855,020 1,082,364 20,759 - 77,000 - Refunding Costs (52,872) (57,620) (718,868) (778,267) (771,740) (835,887) Total $ 21, 959, 956 $ 22, 884, 559 $22,818,093 $ 23, 370, 850 $ 44, 778, 049 $ 46, 255, 409 14 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Economic Factors and Next Year's Budaets and Rates Primarily as a result of economic conditions and the continued effects of Amendment One, there was a 10% decline in the tax year 2009 /fiscal year 2010 final gross taxable property value which was both budgeted and realized. During fiscal year 2010, the City levied an operating millage rate of 2.4714 and a voted debt millage rate of 0.1100 which remained constant from fiscal year 2009. As a result of the fire consolidation, a Municipal Service Taxing Unit rate (MSTU) of 2.3299 was also levied by Seminole County for fire services related to the 2010 fiscal year. The Amendment One highlights as approved by the Florida electorate on January 29, 2008 are as follows: • Doubling of the Homestead Exemption from $25,000 to $50,000; • Allowance of up to $500,000 of accumulated Save - Our -Homes exemption can be transferred (portability) from an existing homestead property to a newly purchased one; • Creation of a new exemption for the first $25,000 of assessed value for tangible personal property; and, • 10% cap per year on the increase of the assessed value of a non - homestead property (effective fiscal year 2010). The City considered many factors during the preparation of the fiscal year 2010 budget. In addition to property tax revenue reductions, large reductions in intergovernmental revenues and interest earnings were also anticipated. Faced with an approximate $1.7 million budget shortfall in the General Fund, budget - balancing strategies of selected personnel reorganizations, utilization of General Fund reserves for capital expenditures and implementation of zero -based budgeting were employed. As a result, a 2010 budget was approved and adopted which maintained current service levels without utilization of reserves for operating purposes and without an increase in operating or voted debt service millage rates. The economic downturn continues in the housing market and is directly correlated with impact fees and those revenues in the Development Services fund. The impact fee funds have seen a steady downward revenue trend but have aggressively countered by curtailing and /or delaying capital projects. The Development Services Fund budget anticipates the necessity for a short - term loan from the General Fund in order to cure a projected 2010 deficit which is consistent with the 2010 budget. The revenue trend is anticipated to be slightly upward as the fiscal year progresses. Future alternative options are presently being examined and evaluated. At the end of fiscal year 2009, the rate study undertaken by the Water and Sewer Utility Fund was completed. The requisite public hearings culminated in water and sewer rate increases which were implemented in October 2009. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs' finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is also available at the City of Winter Springs' website located at www.winterspringsfl.org 15 This page intentionally left blank. 0 ' U . �C D� BASIC FINANCIAL STATEMENTS This page intentionally left blank. / U ��R -- � i GOVERNMENT -WIDE FINANCIAL STATEMENTS This page intentionally left blank. `�O`tT��S`' S 0) ,4 u CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS September 30, 2009 ASSETS Cash and cash equivalents Investments Receivables, net Internal Balances Inventories - at cost Prepaid costs Restricted assets: Cash and cash equivalents Investments Bond issuance costs Pension assets Capital Assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Receivables, long -term Total Assets Governmental Business -type Activities Activities Total LIABILITIES Accounts payable and accrued expenses Due to other governments Accrued interest payable Unearned revenues Liabilities payable from restricted assets Noncurrent liabilities: Due within one year Due in more than one year Total liabilities $ 5,268,704 $ 1,394,168 $ 6,662,872 14,527,163 4,255,255 18,782,418 4,402,967 1,255,368 5,658,335 33,966 (33,966) - 5,371 19,811 25,182 229,540 823 230,363 131,982 674,480 806,462 - 2,037,693 2,037,693 172,288 297,995 470,283 5,673 - 5,673 11,293,630 5,468,710 16,762,340 48,126,616 27,755,453 75,882,069 2,673,678 - 2,673,678 86,871,578 43,125,790 129,997,368 1,102, 097 257,878 1,359,975 569,654 - 569,654 249,979 419,011 668,990 64,833 - 64,833 131,982 674,480 806,462 1,476,457 1,050,000 2,526,457 20,483,499 21,768,093 42,251,592 24,078,501 24,169,462 48,247,963 NET ASSETS invested in capital assets, net of related debt Restricted for: Capital projects Debt Service Renewal and replacement Physical environment Public safety Unrestricted Total net assets 40,701,446 13,038,841 53,740,287 4,870,436 - 4,870,436 1,140,711 2,037,693 3,178,404 - 686,812 686,812 2,249,090 37,204 2,286,294 37,716 - 37,716 13,793,678 3,155,778 16,949,456 $ 62,793,077 $ 18,956,328 $ 81,749,405 The accompanying Notes to Financial Statements are an integral part of these statements. 16 This page intentionally left blank. U � �C0RD'pi CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF ACTIVITIES For The Year Ended September 30, 2009 Business -type activities: Water and sewer 7,143,249 7,339,140 - 13,932 - 209,823 209,823 Net (Expense) Revenue and Changes in Net Assets 435,832 269,073 - - - (166,759) Program Revenue Stormwater Primary Government - (78,447) (78,447) Total business -type activities Operating Capita[ Grants (35,383) (35,383) Total primary government $ 31,994,913 $ 14,701,021 $ 524,935 $ 2,456,225 Charges for Grants and and Governmental Business -type Functions /Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities - 5,012,601 Utility taxes 4,105,959 - General Government $ 5,801,121 $ 2,005,951 $ - $ 1,337 $ (3,793,833) $ - $ (3,793,833) Public Safety 7,195,997 589,413 1,380 10,928 (6,594,276) - (6,594,276) Physical environment 6,280,597 3,139,109 40,071 2,230,028 (871,389) - (871,389) Culture and Recreation 2,554,636 295,305 - 200,000 (2,059,331) - (2,059,331) Interest on Long -term debt 958,520 - - - (958,520) - (958,520) Total governmental activities 22,790,871 6,029,778 41,451 2,442,293 (14,277,349) - (14,277,349) Business -type activities: Water and sewer 7,143,249 7,339,140 - 13,932 - 209,823 209,823 Development services 435,832 269,073 - - - (166,759) (166,759) Stormwater 1,624,961 1,063,030 483,484 - - (78,447) (78,447) Total business -type activities 9,204,042 8,671,243 483,484 13,932 - (35,383) (35,383) Total primary government $ 31,994,913 $ 14,701,021 $ 524,935 $ 2,456,225 (14,277,349) (35,383) (14,312,732) General revenues: Property taxes 5,012,601 - 5,012,601 Utility taxes 4,105,959 - 4,105,959 Business tax receipts 70,524 - 70,524 Intergovernmental - unrestricted 2,959,688 - 2,959,688 Investment income and miscellaneous 613,791 41,518 655,309 Transfers 1,691,206 (1,691,206) - Total general revenues and transfers 14,453,769 (1,649,688) 12,804,081 Change in net assets 176,420 (1,685,071) (1,508,651) Net assets - beginning 62,616,657 20,641,399 83,258,056 Net assets - ending $ 62,793,077 $ 18,956,328 $ 81,749,405 The accompanying Notes to Financial Statements are an integral part of these statements. 17 This page intentionally left blank. U . FUND FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2009 Assets: Cash and cash equivalents Investments Receivables, net inventories, at cost Due from other funds Prepaid expenses Special assessments receivable Restricted assets: Cash and cash equivalents Total assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Retainage payable Due to other funds Payable to other governments Deferred revenue Unearned revenue Payable from restricted assets Total liabilities Fund balances: Reserved: Inventories and prepaid costs Debt service Unreserved, reported in: General fund Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances 131,982 - - - $ 9,623,562 $ 143,195 $ 4,825,881 $ 1,120,554 $ 137,268 $ - $ 217,596 $ 177,098 512,413 - - - 143,195 - - - - 3,233,890 - 63,085 - - 131.982 - - - 844,748 143,195 3,451,486 177,098 234,911 8,543,903 - - - - 1,374,395 8,778,814 - 1,374,395 $ 9,623,562 $ 143,195 $ 4,825,881 943,456 943,456 $ 1,120,554 The accompanying Notes to Financial Statements are an integral part of these statements. 18 Special Revenue Public & Road Communications Improvements Solid General Fund Service Tax Fund Waste /Recycling $ 1,931,214 $ - $ 170,836 $ 266,515 7,031,866 - 544,747 849,840 116,428 143,195 4,110,298 4,199 5,371 - - - 177,161 - - 229,540 - - - 131,982 - - - $ 9,623,562 $ 143,195 $ 4,825,881 $ 1,120,554 $ 137,268 $ - $ 217,596 $ 177,098 512,413 - - - 143,195 - - - - 3,233,890 - 63,085 - - 131.982 - - - 844,748 143,195 3,451,486 177,098 234,911 8,543,903 - - - - 1,374,395 8,778,814 - 1,374,395 $ 9,623,562 $ 143,195 $ 4,825,881 943,456 943,456 $ 1,120,554 The accompanying Notes to Financial Statements are an integral part of these statements. 18 TLBD Debt Service $ 125,343 67,258 1,610 1,880,000 Other Governmental Funds $ 2,774,796 6,033,452 27,237 793,678 Total Governmental Funds $ 5,268,704 14,527,163 4,402,967 5,371 177,161 229,540 2,673,678 - - 131,982 $ 2,074,211 $ 9,629,163 $ 27,416,566 $ 389 $ 1,880,000 1,880,389 35,105 $ 567,456 - 512,413 22,228 22,228 - 143,195 569,654 569,654 793,678 5,907,568 1,748 64,833 - 131,982 1,422,413 7,919,329 - - 234,911 193,822 946,889 1,140,711 - - 8,543,903 - 4,406,224 6,724,075 - 2,853,637 2,853,637 193,822 8,206,750 19,497,237 $ 2,074,211 $ 9,629,163 $ 27,416,566 19 This page intentionally left blank. V cn �L D� CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS September 30, 2009 Total fund balance, governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Other long -term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Bond issuance costs, which are expenditures in the funds, are deferred and amortized over the life of the bond. The cumulative net pension contribution in excess of the annual required contribution is presented as an asset on the statement of net assets. Net Assets of Governmental Activities in the Statement of Net Assets $ 19,497,237 59,420,246 5,907,568 (22,209,935) 172,288 5,673 $ 62,793,077 The accompanying Notes to Financial Statements are an integral part of these statements. 20 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 Revenues: Taxes: Property taxes Utility taxes Business tax receipts Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees /assessments Investment income Miscellaneous Total revenues General Fund Public & Communications Service Tax Road I mprovements Fund Solid Waste /Recycling Expenditures: Current: General government Public safety Physical environment, Culture and recreation Debt Service: Principal Interest and fiscal charges Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures $ 4,798,972 $ - $ - $ - - 4,105,959 - - 70,524 - - - 54,146 - - 99,839 2,898,752 - 1,002,906 73,994 553,460 _ - 2,370,637 248,482 - - - 40,056 (869) 389 3,492 279,994 - - 2,426 8,944,386 4,105,090 1 2,550,388 5,796,262 - - - 6,790,41 5 - - - 1,077,211 - 35,224 2,246,491 2,111, 908 - - - 110,936 10,553 119,735 140,196 40,258 16,197,473 865,757 - 900,981 2,246,491 (7,253,087) 4,105,090 102,314 303,897 Other Financing Sources (Uses) Transfers in 7,079,093 - - - Transfers out (148,286) (4,111,478) (2,525) (268,894) Total other financing sources(uses) 6,930,807 (4,111,478) (2,525) (268,894) Net Change in Fund Balances (322,280) (6,388) 99,789 35,003 Fund Balances - Beginning 9,101,094 6,388 1,274,606 908,453 Prior Period Adjustment - - - - Fund Balances - Ending $ 8,778,814 $ - $ 1,374,395 $ 943,456 The accompanying Notes to Financial Statements are an integral part of these statements. 21 Other TLBD Debt Governmental Service Funds Total Governmental Funds $ - $ 213,629 $ 5,012,601 - - 4,105,959 - - 70,524 - 1,836,992 1,990,977 - 731,859 4,707,511 - 30,711 2,954,808 - 49,423 297,905 56,030 819,423 875,453 99,299 71,721 214,088 13,328 103,086 398,834 168,657 3,856,844 20,628,660 7,645 5,803,907 - 43,484 6,833,899 5,496 1,329,921 4,694,343 - - 2,111,908 55,000 924,937 100,156 528,909 - 2,356 - 75,207 - 1,086,957 - 456,280 160,652 4,455,696 1,090,872 639,618 122,091 215,403 1,952,714 496,538 23,961,293 8,005 (598,852) (3,332,63 1,292,417 8,371,510 (2,149,121) (6,680,304) (856,704) 1,691,206 8,005 (1,455,556) (1,641,427) 185,817 9,282,225 20,758,583 - 380,081 380,081 $ 193,822 $ 8,206,750 $ 19,497,237 22 This page intentionally left blank. o` 'O� CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL. FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2009 Net change in fund balances - total governmental funds: $ (1,641,427) Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period 280,192 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade -ins and disposals) is to decrease net assets (35,262) The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of the principal of long -terns debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long -term debt and related items 1,090,872 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds 734,584 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year (88,028) Pension expenses recorded in the statement of activities which are in excess of the annual required pension contribution are considered to be assets and not expenses of the period 5,673 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds. (170,184) Change in net assets of governmental activities $ 176,420 The accompanying Notes to Financial Statements are an integral part of these statements. 23 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUND STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Taxes: Property Taxes Business tax receipts $ 4,791,529 170,000 4,961,529 $ 4,791,529 100,000 4,891,529 Permits and fees: Permits Franchise fees Intergovernmental revenues: Sales tax State revenue sharing Other state shared revenue Federal grants Charges for services: Concession stand receipts Program activity fees Rental and other Fines and forfeitures Investment income Miscellaneous Total revenues 32,000 40,000 72,000 2,252,028 995,117 44,500 3,291,645 60,000 263,800 301,047 624,847 32,000 40,000 72,000 2,056,011 875,733 40,000 10,803 2,982,547 92 263,800 311,623 575,515 570,000 355,294 393,000 393,000 Actual Amounts $ 4,798,972 70,524_ 4,869,496 23,175 30,971 54,146 1,943,887 906,988 36,113 11,764 2,898,752 558 237,978 314,924 553,460 Variance with Final Budget - Positive (Negative) $ 7,443 (29,476) (22,033) (8,825) (9,029) T (17,854) (112,124) 31,255 (3,887) 961 (83,795) 466 (25,822) 3,301 (22,055) 248,482 (106,812) 40,056 (352,944) 12,000 236,856 279,994 43,138 9,925,021 9,506,741 8,944,386 (562,355) The accompanying Notes to Financial Statements are an integral part of these statements. 24 25 Variance with Final Budget - Actual Positive Budgeted Amounts _ Amounts (Negative) Original Final Expenditures Current: General government: Executive $ 764,348 $ 851,358 $ 813,918 $ 37,440 General government 719,795 463,799 392,035 71,764 Finance 1,208,180 1,286, 804 1,185,237 101,567 General services 1,027,367 976,068 842,029 134,039 Information systems 1,145,719 1,244,560 1,058,773 185,787 Community development 1,783,900 1,841,518 1,624,005 217,513 6,649,309 6,664,107 5,915,997 748,110 Public Safety: Police 7,097,164 7,345,488 6,991,646 353,842 Fire 13,530 63,530 60,453 3,077 7,110,694 7,409,018 7,052,099 356,919 Physical enviornment: Public works 1,279,135 1,349,391 1,077,211 272,180 Culture and recreation: Parks and recreation 2,315,473 2,356,720 2,152,166 204,554 Total expenditures 17,354,611 17,779,236 16,197,473 1,581,763 Excess (Deficiency) of Revenues Over Expenditures (7,429,590) (8,272,495) (7,253,087) 1,019,408 Other Financing Sources (Uses) Transfers in 7,607,466 7,548,761 7,079,093 (469,668) Transfers out (105,6 (245,8 (148,286} 97,554 Net other financing sources 7,501,785 7,302,921 6,930,807 (372,114) Net Change in Fund Balances 72,195 (969,574) (322,280) 647,294 Fund Balances - Beginning 9,101,094 9,101,094 9,101,094 - Fund Balances - Ending $ 9,173,289 $ 8,131,520 $ 8,778,814 $ 647,294 25 This page intentionally left blank. o` U �C 1Dp' CITY OF WINTER SPRINGS, FLORIDA PUBLIC & COMMUNICATIONS SERVICE TAX SPECIAL. REVENUE FUND STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Taxes: Utility taxes Investment income(loss) Total revenues Expenditures: Current: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Actual Amounts Variance with Final Budget - Positive (Negative) $ 4,128,500 $ 4,122,112 $ 4,105,959 $ (16,153) - - (8 (869) 4,128,500 4,122,112 4,105,090 (17,02 4,128, 500 4,122,112 4,105,090 (17, 022) (4,128,500) (4,128,500) (4,111,478) 17,022 (4,128,_500) (4,128,500) (4,111,478) 17,022 (6,388) (6,388) - 6,388 6,388 6,388 - $ 6,388 $ - $ - $ The accompanying Notes to Financial Statements are an integral part of these statements. 26 This page intentionally left blank. U . CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE FUND STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: intergovernmental revenues Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending (354,465) (2,5241 (2,525)_ (1) {354,465) (2,524) (2,525) (735,065) (802,513) 99,789 902,302 1,274,606 1,274,606 1,274,606 - $ 539,541 $ 472,093 $ 1,374,395 $ 902,302 The accompanying Notes to Financial Statements are an integral part of these statements. 27 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 3,696,000 $ 136,000 $ 1,002,906 $ 866,906 8,400 8,400 389 (8,011) 3,704,400 144,400 1,003,295 858,895 10,000 10,000 35,224 (25,224) 4,075,000 934,389 865,757 68,632 4,085,000 944,389 900,981 43,408 (380,600) (799,989) 102,314 902,303 (354,465) (2,5241 (2,525)_ (1) {354,465) (2,524) (2,525) (735,065) (802,513) 99,789 902,302 1,274,606 1,274,606 1,274,606 - $ 539,541 $ 472,093 $ 1,374,395 $ 902,302 The accompanying Notes to Financial Statements are an integral part of these statements. 27 This page intentionally left blank. v � CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2009 Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 2,265,500 2,285,000 2,246,491 38,509 2,265,500 2,285,000 2,246,491 38,509 406,500 273,000 303,897 30,897 (279,121) 273,694 26{ 8, 894) 4 (279,121) (273,694) (268,894) 4,800 127,379 (694) 35,003 35,697 908,453 908,453 908,453 - $ 1,035,832 $ 907,759 $ 943,456 $ 35,697 The accompanying Notes to Financial Statements are an integral part of these statements. 28 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final Revenues: Permits and fees $ 105,000 $ 95,000 $ 99,839 $ 4,839 Intergovernmental revenues 150,000 75,000 73,994 (1,006) Charges for services 2,400,000 2,371,000 2,370,637 (363) Investment income 15,000 15,000 3,492 (11,508) Miscellaneous 2,000 2,000 2,426 426 Total revenues 2,672,000 2,558,000 2,550,388 (7,612) Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 2,265,500 2,285,000 2,246,491 38,509 2,265,500 2,285,000 2,246,491 38,509 406,500 273,000 303,897 30,897 (279,121) 273,694 26{ 8, 894) 4 (279,121) (273,694) (268,894) 4,800 127,379 (694) 35,003 35,697 908,453 908,453 908,453 - $ 1,035,832 $ 907,759 $ 943,456 $ 35,697 The accompanying Notes to Financial Statements are an integral part of these statements. 28 This page Intentionally left blank. �L 1 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS September 30, 2909 Assets Current assets: Cash and cash equivalents Investments Receivables, net Inventories Prepaid Expenses Restricted cash and cash equivalents Total current assets Non- current assets: Restricted investments Bond issuance costs Capital Assets: Land, buildings and equipment Construction in Progress Less Accumulated depreciation Total capital assets (net of accumulated depreciation) Total non - current assets Total assets Liabilities Current Liabilities: Accounts payable Accrued liabilities Compensated absences Customer deposits payable Due to other funds Revenue bonds payable - current Accrued interest payable Total current liabilities Non- current liabilities: Revenue bonds payable Accreted interest payable Other non - current liabilities Total non - current liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Restricted for renewal and replacement Restricted for other purposes Unrestricted Total net assets Business -type Activities - Enterprise Funds Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total $ 477,947 $ $ 182,210 $ 660,157 3,674,242 581,013 4,255,255 1,255,368 - - 1,255,368 19,811 - - 19,811 - 823 - 823 1,408,491 - - 1,408,491 6,835,859 823 763,223 7,599,905 2,037,693 - - 2,037,693 297,995 - - 297,995 52,965,150 132,983 7,015,473 60,113,606 123,794 - - 123,794 (23,558,539) (124,608) (3,330,090) (27,013,237) 29,530,405 8,375 3,685,383 33,224,163 31,866,093 8,375 3,685,383 35,559,851 38,701,952 9,198 4,448,606 43,159,756 103,938 395 26,146 130,479 93,498 12,902 20,999 127,399 141,551 16,873 16,788 175,212 674,480 - 674,480 - 33,966 - 33,966 1,015,000 - - 1,015,000 419,011 - - 419,011 2,447,478 64,136 63,933 2,575,547 19,170,323 - - 19,170,323 2,436,799 - - 2,436,799 13,729 4,019 3,011 20,759 21,620,851 4,019 3,011 21,627,881 24,068,329 68,155 66,944 24,203,428 9,345,083 8,375 3,685,383 13,038,841 2,037,693 - - 2,037,693 686,812 - - 686,812 37,204 - - 37,204 2,526,831 (67,332) 696,279 3,155,778 $ 14,633,623 $ (58,957) $ 4,381,662 $ 18,956,328 The accompanying Notes to Financial Statements are an integral part of these statements. 29 This page intentionally left blank. v S ' 0 U CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended September 30, 2009 Operating Revenues: User charges Other revenue Total operating revenues Operating Expenses: Salaries and benefits Materials and supplies Depreciation and amortization Other operating expenses Total Operating Expenses Operating income (loss) Nonoperating Revenue (Expenses): Investment income Interest expense Operating grant Accreted interest expense Proceeds from auction and insurance Gain (loss) on disposal of capital assets Total non - operating revenue (expenses) Income (loss) before contributions and transfers Capital contributions: Connection fees Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending Business -type Activities - Enterprise Funds Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total $ 7,339,140 $ 268,779 $ 1,050,655 $ 8,658,574 - 294 12,375 12,669 7,339,140 269,073 1,063,030 8,671,243 2,364,881 335,454 496,159 3,196,494 875,506 3,616 809,526 1,688,648 1,640,933 13,951 237,383 1,892,267 996,357 82,811 81,893 1,161,061 5,877,677 435,832 1,624,961 7,938,470 1,461,463 (166,759) (561,931) 732,773 20,525 1,989 2,560 25,074 (910,921) - - (910,921) - - 483,484 483,484 (354,494) - - (354,494) 14,844 - 1,600 16,444 (157) - - (157) (1,230,203) 1,989 487,644 (740,570) 231,260 (164,770) (74,287) (7,797) 13,932 - - 13,932 17,259 25,653 55,064 97,976 (1,061,889) (617,390) (109,903) (1,789,182) (799,438) (756,507) (129,126) (1,685,071) 15,433,061 697,550 4,510,788 20,641,399 $ 14,633,623 $ (58,957) $ 4,381,662 $ 18,956,328 The accompanying Notes to Financial Statements are an integral part of these statements. 30 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2009 Cash Flows from Operating Activities: Receipts from customers Payments to suppliers Payments to employees Net cash provided (used) by operating activities Cash Flows from Non - Capital Financing Activities: Transfers in Transfers out Increase in due to other funds Grant revenues Net cash provided by non- capital financing activities Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets Proceeds from insurance Acquisition of capital assets Principal paid on revenue bonds & leases Interest paid on revenue bonds Connection fees Net cash provided by capital and related financing activities Cash Flows from Investing Activities: Sale of investments Investment income Net cash provided by investing activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - End Classified As: Cash and cash equivalents Restricted cash Total Business -type Activities - Enterprise Funds Water and Sewer Utility Development Stormwater Fund Services F und Utility Fund Tota $ 7,059,518 $ 269,073 $ 1,063,030 $ 8,391,621 (2,157,324) (94,157) (927,881) (3,179,362) (2,356,495) (326,101) (488,946) (3,171,542) 2,545,699 (151,185) (353,797) 2,040,717 17,259 25,653 55,064 97,976 (1,061,889) (617,390) (109,903) (1,789,182) - 33,966 - 33,966 _ - 483,484 483,484 (1,044,630) (557,771) 428,645 (1,173,756) 8,588 - 8,588 6,256 1,600 7,856 (1,059,816) (1,531) (236,392) (1,297,739) (980,000) - - (980,000) (871,309) - (871,309) 13,932 - 13,932 (2,882,349) (1,531) (234,792) (3,118,672) (3,663,831) - (581,013) (4,244,844) 20,525 1,989 2,560 25,074 (3,643,306) 1,989 (578,453) (4,219,770) (5,024,586) (708,498) (738,397) (6,471,481) 6,911,024 708,498 920,607 8,540,129 $ 1,886,438 $ - $ 182,210 $ 2,068,648 477,947 - 182,210 660,157 1,408,491 - - 1,408,491 $ 1,886,438 $ - $ 182,210 $ 2,068,648 The accompanying Notes to Financial Statements are an integral part of these statements. 31 Enterprise Funds Water and Sewer utility Development Stormwater F und Se F utility Fund Total Reconciliation of Operating Income(Loss) to Net Cash Provided(Used) by Operating Activities Operating income (loss) Adjustments Not Affecting Cash: Depreciation and amortization $ 1,461,463 $ (166,759) $ (561,931) $ 732,773 1,640,933 13,951 Change in Assets and Liabilities: Decrease in accounts receivable Increase in inventories Decrease in prepaid costs Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Decrease in retainage payable Decrease in customer deposits Increase (decrease) in accrued compensated absences Increase in OPEB obligation Total adjustments (249,734) 447 447 - - (823) (270,527) (6,907) 6,153 2,454 (15,381) - (29,888) - (11,496) 2,880 13,729 4,019 (556,697) 1,623 237,383 1,892,267 (249,734) Net Cash Provided (Used) By Operating Activities $ 2,545,699 $ (151,185) $ (353,797) $ 2,040,717 32 447 - (823) (36,462) (313,896) 2,995 11,602 - (15,381) - (29,888) 1,207 (7,409) 3,011 20,759 (29,249) (584,323) Net Cash Provided (Used) By Operating Activities $ 2,545,699 $ (151,185) $ (353,797) $ 2,040,717 32 This page intentionally left blank. U � �� L i CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2009 Assets: Cash and cash equivalents Receivables: Plan members contributions Investments, at fair value: Common funds - equity Common funds - bonds Total Investments Total assets Defined Benefit Pension Trust Fund $ 3}2,009 87,907 10,806,520 6,087,443 16,893,963 17,323,879 Liabilities Net Assets: Held in trust for pension benefits $ 17,323,879 The accompanying Notes to Financial Statements are an integral part of these statements. 33 This page intentionally left blank. u ��CoR[ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2009 Defined Benefit Pension Trust Fund Additions: Contributions: Employer $ 1,781,197 Plan Members 306,420 Total contributions 2,087,617 Investment income: Net appreciation in fair value of investments 184,839 Interest 163,200 Net investment income 348,039 Total additions 2,435,656 Deductions: Benefits 617,274 Administrative expenses 116,982 Total deductions 734,256 Change in net assets 1,701,400 Net assets - beginning 15 ,622,479 Net assets - ending $ 17,323,879 The accompanying Notes to Financial Statements are an integral part of these statements. 34 This page intentionally left blank. U �L Di NOTES TO FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies: A. 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. 35 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. 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. 36 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds: Major Governmental Funds The 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. The Public and Communications Service Tax Special Revenue Fund accounts for collections of utility taxes charged on electric, water and gas services as well as telecommunications service taxes. Proceeds are used to pay annual debt service and monies not required to pay debt service are transferred to the general fund. The Road Improvements Special Revenue Fund accounts for collected one -cent sales tax revenues to be used for transportation- related improvements. The Solid Waste /Recycling Special Revenue Fund accounts for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. The TLBD Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Non -Major Governmental Fund Types Special Revenue Funds account for specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes. Debt Service Funds account for the accumulation of resources for and the payment of principal and interest on certain long -term debt. Capital Projects Funds account for financial resources segregated for the acquisition or construction of major capital facilities. Major Proprietary Funds The Water and Sewer Utility Fund is 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. The Development Services Fund is used to account for the operations of the City's building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. The Stormwater Utility Fund is 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. Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private- sector guidance. 38 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) As a general rule the effect of interfund activity has been eliminated from the government - wide financial statements. Exceptions to this general rule are other charges between the City's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. 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 three months or less from the date of acquisition. Investments of the City are reported at fair value. The City's investments consist of investments authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes. 39 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 2. 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 fund balance reserve account 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. 3. Inventories and Prepaid Items All inventories are valued at cost using the first -in /first -out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when purchased. .s CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 4. Restricted Assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. In accordance with GASB Statement 51, beginning balance of capital assets has been restated to include intangible assets which had been acquired prior to September 30, 2008. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 30 Improvements 20 -50 Infrastructure 30 -50 Intangible assets 3 -10 Equipment 3 -10 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity (Continued) 6. 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 are generally liquidated by the General Fund. 7. 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 assets. Bond premiums and discounts (including deep- discount or capital appreciation bonds), as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 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. 8. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 2 - Prior Period Adjustment: Beginning fund balance in the Transportation Impact Fee Fund has been adjusted for the effects of impact fee credits previously recorded in the fund statements in error. As a result, fund balance at beginning of year was increased by $380,081. There was no effect on revenue or expenditures of the prior year. Note 3 - Reconciliation of Government -Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net assets - governmental activities as reported in the government - wide statement of net assets. 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 ($22,209,935) difference are as follows: Bonds payable Less: Issuance discount (to be amortized as interest expense) Add: Issuance premium (to be amortized as interest expense) Less: Deferred charge on refunding (to be amortized as interest expense) Accreted interest payable Notes payable Capital lease payable Accrued interest payable Other post employment benefits Compensated absences Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $(17,413,970) 16,987 (62,674) 98,559 (2,505,107) (1,240,850) (116,852) (249, 979) (56,241) (679, 808 $(22,209,935 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 3 - Reconciliation of Government -Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities (Continued) 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 assets 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 $280,192 difference are as follows: Capital outlay $ 2,867,389 Depreciation expense (2,587,197) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 280,192 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 assets. Also, governmental funds report the effect of issuance costs, 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 $1,090,872 difference are as follows: Debt issued or incurred: Principal repayment Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 1,090,872 $ 1,090,872 .. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 3 - Reconciliation of Government -Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities (Continued) Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($170,184) difference are as follows: Compensated Absences $ 219,935 Amortization of issuance costs (14,976) Amortization of bond discounts (4,748) Accrued interest payable 11,060 Other post employment benefits (56,241) Accreted interest payable 3( 25,214 Net adjustment to decrease net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities 170 184) Note 4 - Stewardship, Compliance, and Accountability: A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. 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 1S 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 completed 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. 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 4 - Stewardship, Compliance, and Accountability (Continued): A. Budgetary Information (Continued) 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. B. Deficit Net Assets The Development Services fund had a deficit net asset balance of $58,957 at September 30, 2009. Note 5 - Deposits and Investments: Deposits At year -end, the carrying amount of the City's deposits was $2,989,940 and the bank balance was $1,517,838. Petty cash funds of $1,310 are not on deposit with a financial institution, and fiduciary fund cash of $342,009 held by the pension fund is not in the City's bank. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories ". Investments The City's investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LG I P) 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. Interest bearing time deposit or savings accounts 6. Repurchase agreements 7. Commercial paper 8. Bankers' acceptances 9. State and /or local government taxable and /or tax- exempt debt 10. Registered investment companies (money market mutual funds) 11. Intergovernmental investment pool Ent CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 5 - Deposits and Investments (Continued): Investments (continued) The City's investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poors (S & P) rating of AAm or AAm -G. Investments in commercial paper and bankers' acceptances must berated, 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 "AX by S & P for long -term debt, or rated at least "MIG -2" by Moody's and "SP -2" by S & P for short -term debt. Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2009, 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, 2009, 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. 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 5 - Deposits and Investments (Continued): Investments (continued) Additional Investment Information During 2009, the City withdrew all of the funds invested in Pool A of the State Board of Administration (SBA) Local Government Investment Pool and is withdrawing funds from Fund B as they become available. The SBA is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements for a 2a -7 like fund for the Florida Prime Fund. Therefore, the pool account balance can be used as fair value for financial reporting. Fund B is accounted for as a fluctuating NAVPOOL, not a 2a -7 like money market fund. It is important to note that due to the lack of an actively traded market for Fund B securities, their "market value" is an estimate of current liquidation value that has been determined through a collaborative process among various pricing experts and sources in the marketplace. Investments held by the City at September 30, 2009 are detailed below. Investments Weighted Credit Average Fair Value Rating Maturity Local Government Investment Pool (Fund B) Local Government Investment Pool (Fund B) Fidelity Institutional Money Market Government Portfolio US Treasury Notes US Government Supported Corporate debt Federal Agency Discount Note Federal Agency Bond Note Fidelity Institutional Money Market Government Portfolio Columbia US Treasury Money Market $ 555,703 Not rated 7 to 9 years 16,128 Not rated 7 to 9 years 4,478,084 AAAm 58 days 1,305,255 TSY 138 days 4,563,899 AAA 1.36 years 4,510,774 A -1+ 22.5 days 7,846,787 AAA 336 days 716,495 AAAm 58 days 1,305,070 Not rated $ 25,298,195 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 5 - Deposits and Investments (continued): Investments: Pension Funds The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Interest bearing time deposit or savings accounts 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. State of Florida Local Government Surplus Fund (SBA) 6. Commercial paper 7. Bankers' acceptances 8. State and /or local government taxable and /or tax - exempt debt 9. Intergovernmental investment pool 10. Common and preferred stocks, commingled funds, mutual funds, bonds and structured mortgage or asset backed securities 11. Real Estate and real estate securities 12. Repurchase agreements 13. Foreign securities 14. Registered investment companies (money market mutual funds) The investments held by the City's Pension Trust Fund at September 30, 2009 are detailed below: Investments Weighted Average Fair Value Maturity (Years) Stocks Bonds Total Investments Cash and Cash Equivalents Total Cash and Investments $ 10,806,520 N/A 6,087,443 4.58 years 16,893,963 342.009 $ 17,235,972 i • CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 5 - Deposits and Investments (continued): Investments: Pension Funds (continued) Credit Risk The City's Trust investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing commercial paper, the long -term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers' acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and /or Revenue Bonds of state or local government taxable or tax - exempt debt be rated A, for long -term debt, by a nationally recognized rating service or rated "MIG -2" or "SP -2 ", for short term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of "Al" by Standard & Poor's (S &P) or "P1" by Moody's Investor Services ( Moody's); fixed income securities be investment grade as measured by S &P or Moody's; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2008, 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, 2009, there were no security investments in the Trust that were over their respective limitations. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 5 - Deposits and Investments (continued): Investments: Pension Funds (continued) 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, so 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 6 - Receivables: Receivables as of yearend for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Uncollectible Accounts Net Receivable $ 116,428 $5.985,423 143,195 4,110,298 4,199 1,610 (36,158) 1,255,368 (290,930) 27,237 $ (327,088) $5.658,335 There is an amount of $3,233,890 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,673,678 that are not available to liquidate liabilities of the current period. These receivables totaling $5,907,568 are reported as deferred revenue in the governmental funds balance sheet. 51 Accounts Funds Receivable General $ 116,428 Public & Communications Service Tax Special Revenue 143,195 Road Improvements Special Revenue 4,110,298 Solid Waste /Recycling Special Revenue 4,199 TLBD Debt Service 1,610 Water & Sewer Utility 1,291,526 Nonmajor Governmental 318,167 Allowance Uncollectible Accounts Net Receivable $ 116,428 $5.985,423 143,195 4,110,298 4,199 1,610 (36,158) 1,255,368 (290,930) 27,237 $ (327,088) $5.658,335 There is an amount of $3,233,890 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $2,673,678 that are not available to liquidate liabilities of the current period. These receivables totaling $5,907,568 are reported as deferred revenue in the governmental funds balance sheet. 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 7 - Capital Assets: Capital asset activity for the year ended September 30, 2009 was as follows: Capital assets, being depreciated Buildings Restated 57,875 - Beginning Ending 11,356,290 Balance Increases Decreases Balance Governmental activities: Intangible assets 672,215 Capital assets, not being depreciated: - 672,215 Land $ 9,848,716 $ - $ - $ 9,848,716 Construction in Progress 1,528,030 2,413,051 (2,496,167) 1,444,914 Total capital assets, not being 1,695,224 - depreciated 11,376,746 2,413,051 (2,496,167) 11,293,630 Capital assets, being depreciated Buildings 12,143,940 57,875 - 12,201,815 Improvements 11,356,290 816,748 - 12,173,038 Intangible assets 672,215 - - 672,215 Machinery and equipment 6,314,511 367,014 (191,033) 6,490,492 Infrastructure 51,443,733 1,695,224 - 53,138,957 Total capital assets, being depreciated 81,930,689 2,936,861 (191,033) 84,676,517 Less accumulated depreciation for: Buildings (3,007,121) (402,694) - (3,409,815) Improvements (3,004,913) (392,948) - (3,397,861) Intangible assets (498,136) (62,995) - (561,131) Machinery and equipment (4,605,889) (654,408) 169,416 (5,090,881) Infrastructure (23,016,061) (1,074,152) (24,090,213) Total accumulated depreciation (34,132,120) (2,587,197) 169,416 (36,549,901) Total capital assets, being depreciated, net 47,798,569 349,664 (21,617) 48,126,616 Governmental activities capital assets, net $ 59,175,315 $ 2,762,715 $ (2,517,784) 59,420,246 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 7 - Capital Assets (Continued): Restated Beginning Ending Balance Increases Decreases Balance Business -type activities: Capital assets, not being depreciated Land $ 5,344,916 $ - $ - $ 5,344,916 Construction in Progress 436,823 966,490 (1,279,519) 123,794 Total capital assets, not being - (88,912) Machinery and equipment (2,655,304) (241,309) depreciated 5,781,739 966,490 (1,279,519) 5,468,710 Capital assets, being depreciated: Buildings 759,515 - - 759,515 Improvements 48,948,324 1,416,533 - 50,364,857 Intangible assets 92,585 8,200 - 100,785 Machinery and equipment 3,544,336 203,485 (204,288) 3,543,533 Total capital assets, being depreciated 53,344,760 1,628,218 (204,288) 54,768,690 Less accumulated depreciation for Buildings (444,747) (25,144) - (469,891) Improvements (22,146,297) (1,615,655) - (23,761,952) Intangible assets (81,834) (7,078) - (88,912) Machinery and equipment (2,655,304) (241,309) 204,131 (2,692,482) Total accumulated depreciation (25,328,182) (1,889,186) 204,131 (27,013,237) Total capital assets, being depreciated, net 28,016,578 (260,968) (157) 27,755,453 Business -type activities capital assets, net $ 33,798,317 $ 705,522 $ (1,279,676) 33,224,163 53 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 7 - Capital Assets (Continued): Depreciation expense was charged to functions /programs as follows: Governmental activities: General government Public safety Physical environment Culture and recreation Total depreciation expense - governmental activities Business -type activities: Water and sewer Development services Stormwater Total depreciation expense - business -type activities $ 226,263 342,850 1,553,409 464.675 $ 2,587,197 $ 1,620,404 13,951 237,383 $ 1,871,738 For the business -type activities, total depreciation expense does not equal increases to accumulated depreciation due to asset transfers from the general fund to the water and sewer utility fund. The City has restated the beginning balance for capital assets to include intangible assets in accordance with GASB Statement No. 51. Total net assets were not affected as a result of this restatement. All intangible assets had previously been included as a part of Machinery and Equipment totals. Note 8 - Leases: Capital Leases - The City has entered into lease agreements as lessee for financing the acquisition of several police vehicles. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. Included in the capitalized amount is $36,528 of modifications to the leased vehicles in order to make them operational for police purposes. The assets acquired through capital leases are as follows: Governmental Assets - Activities Machinery & equipment $ 477,996 Less: accumulated depreciation (276,830 Total $ 201,166 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 8 - Leases (Continued): The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2009 were as follows: Governmental Activities Year Ending September 30, 2010 $ 121,487 Total minimum lease payments 121,487 Less: Amount representing interest (4,635 Net present value $ 116,852 Note 9 - Long -Term Debt: Revenue Bonds 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 $16,172,299. For the fiscal year, principal and interest paid on this series was $141,085 and total pledged revenue was $5,929,665. The 2001 Special Assessment Bonds are secured by a first lien and pledge of assessments levied on the property within the assessed area as well as the first $160,000 of half -cent sales tax received by the City each year. The total principal and interest remaining to be paid on this series is $3,169,702. For the fiscal year, principal and interest paid on this series was $154,725 and total pledged revenue was $313,501. The 2003 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $8,755,470. For the fiscal year, principal and interest paid on this series was $876,723 and total pledged revenue was $5,929,665. 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 $21,721,907. For the fiscal year, principal and interest paid on this series was $206,303 and total pledged net revenue was $2,078,291. The 2001 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 $5,974,052. For the fiscal year, principal and interest paid on this series was $469,390 and total pledged net revenue was $2,078,291. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 9 - Long -Term Debt (Continued): Revenue Bonds (Continues The 2002 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 $12,608,485. For the fiscal year, principal and interest paid on this series was $1,155,830 and total pledged net revenue was $2,078,291. The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year end, are as follows: Governmental Activities Improvement Refunding Interest Balance Rates and Original September 30, Dates Matun Amount 2009 Revenue Bonds - Series 1999 10/1/1999 (excludes $2,505,107 of accreted 3.25-5.25% to interest on capital appreciation bonds) (411 & 1011) 10/1/2029 L $ 5,133,970 10/1/2002 Special Assessment 3.4-5,25% to Revenue Bonds - Series 2001 (411 & 1011) 10/1/2029 2,265 4QQ 1,935,000 Improvement Refunding Revenue Bonds - Series 2003 Total 10/1/2004 2.0-3.7% to (411 & 1011) 10/11/2018 $ 8.&7.0.000 7,420,000 14.488 F 970 Business-Type Activities Water and Sewer Refunding Revenue Bonds - Series 2000 10/1/2002 (excludes $2,436,799 of accreted 4.5-5.5% to interest on capital appreciation bonds) (411 & 1011) 10/1/2030 9$69.191 $ 6,674,191 1011/2002 Water and Sewer Refunding 4.0-5,0% to Revenue Bonds - Series 2001 (411 & 1011) 10!112021 6.065.000 4,500,000 10/1/2003 Water and Sewer Refunding 3.0-5.25% to Revenue Bonds - Series 2002 (411 & 1011) 101112020 �13,980,M 9,730,000 Total $20 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 9 - Long -Term Debt (Continued): Revenue Bonds (Continued) 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 2010 2011 2012 2013 2014 2015 -2019 2020 -2024 2025 -2029 2030 -2031 $ 775,000 $ 415,311 #NIA 389,968 *N/A 361,974 #NIA 331,135 *N/A 296,605 5,450,000 1,320,019 2,345,465 4,830,581 2,028,548 5,139,081 379,957 523,828 #NIA $ 13,608,502 $ 1,015,000 $ 810.216 1,060,000 765,647 1,105,000 718,016 1,160,000 666,538 1,215,000 611,398 7,045,000 2,046,931 4,046,066 5,709,934 2,042,981 7,968,450 2,215,144 103,125 $ 20,904,191 $ 19,400,255 General Obligation Bonds During 2003, the City issued limited general obligation bonds for the acquisition of property to expand Central Winds Park. These bonds are payable from and secured by a pledge of the faith, credit and taxing power of the City, provided that the levy of ad valorem taxes by the City in each year for the payment of debt service on the Series 2003 Bonds shall not exceed one quarter (114) of one mil on all of the taxable property in the City. The total principal and interest remaining to be paid on this series is $4,895,787. For the fiscal year, principal and interest paid on this series was $223,433 and total pledged revenue was $213,629. General obligation bonds currently outstanding are as follows: Interest Balance Rates and Original September Dates Majq[L Amount 30, 2009 Governmental Activities Limited General Obligation 2.0 - 5.375% 7/1/03- Bonds - Series 2002 (111 & 711) 711133 $3,400,000 $2,925,000 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 9 - Long -Term Debt (Continued): General Obligation Bonds Continued Annual debt service requirements to maturity for the general obligation bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2010 $ 75,000 $ 145,508 2011 80,000 142,508 2012 85,000 139,208 2013 85,000 135,638 2014 90,000 131,069 2015 -2019 535,000 578,356 2020 --2024 685,000 428,500 2025 -2029 880,000 238,980 2030 -2031 410,000 31,020 $ 2,925,000 $ 1,970,787 Notes Payable The City issued the 2004 Capital Improvement Revenue Note for an amount not to exceed $2,500,000. Advances on this note during fiscal year 2004 were $600,000 was repaid during fiscal year 2004. An advance of $750,000 occurred in fiscal year 2008 for the construction of the Senior Center Expansion and Therapy Pool project. No additional advances were eligible for withdrawal after February 28, 2008. The City issued the Capital Improvement Revenue Note, Series 2004A, in the amount of $575,907 for the purpose of refinancing the Capital Improvement Revenue Note, Series 20008, in the amount of $495,907 and to finance $80,000 cost of completing construction of additional landscaping and irrigation along the Oak Forest subdivision wall. The City covenants to designate payments received from Oak Forest special assessments to pay debt service on this note. The City issued a Special Assessment Revenue Note Series 2006, in the amount of $430,000 to provide financing for the Tuscawilla Lighting and Beautification Project, Phase 11. The City paid off $1,337 of this with prepaid assessments during the year ended September 30, 2009. The Special Assessment Revenue Note Series 2006 is secured by a first lien and pledge of assessments levied on the property within the assessed area. The total principal and interest remaining to be paid on this series is $286,412. For the fiscal year, principal and interest paid on this series was $66,823 and total pledged revenue was $30,679. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL. STATEMENTS September 30, 2009 Note 9 - Long -Terra Debt (Continued): Notes Payable Continued Notes payable outstanding at year end are as follows: Capital Improvement Revenue Note, Series 2004A - Interest only payable each June 1 and December 1 until July 1, 2010 when entire balance is due. Note anticipated to be rolled into a new debt instrument at that time. Interest is 4.22 %. Principal payments of $50,500 were made in fiscal year 2009. Special Assessment Revenue Note, Series 2006 - Principal payable annually beginning July 1, 2007 and interest payable semi - annually on January 1 and July 1. Maturity is July 1, 2021 and interest is 4.10 %. Principal payments of $55,484 were made in fiscal year 2009. 2004 Capital improvement Revenue Note — Interest only payable each June 1 and December 1. Interest is variable, tied to LIBOR, and was 0.2473% at September 30, 2009. Maturity is June 1, 2027. Anticipated payoff in June 2023. Principal payments of $63,953 were made in fiscal year 2009. $ 354,669 230,216 655,965 1.2 Annual debt service requirements to maturity for notes payable are as follows: Year Ending September 30 2010 2011 2012 2013 2014 2015 -2019 2020 -2021 2025 -2029 Governmental Activities Principal Interest $ 373,605 19,711 20,518 21,358 22,233 125,592 1,867 655.966 $ 26,884 10,405 9,586 8,733 7,845 24,580 8,189 4.867 $ 1,240,850 $ 101,089 59 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 9 - Long -Term Debt (Continued): Notes Payable {Continued} The debt service requirement to maturity schedule for notes payable assumes that only interest is paid on the Capital Improvement Revenue Note, Series 2004 with principal being paid in the year the note matures as required by government accounting standards. The City's practice, however, has been to budget and appropriate funds for principal and interest payments each fiscal year. Changes in Lone -Term Liabilities Long -term liability activity for the year ended September 30, 2009 was as follows: • I, Beginning Due Within Balance Additions Reductions Ending Balance one Year Governmental activities: Bonds payable - Revenue bonds $ 13,233,970 $ - $ (680,000) $ 12,553,970 $ 720,000 Special assessment debt with government commitment 1,990,000 - (55,000) 1,935,000 55,000 Limited general obligation bonds 3,000,000 - (75,000) 2,925,000 75,000 Less deferred amounts: Issuance discounts (17,748) - 761 (16,987) - Issuance premiums 69,638 - (6,964) 62,674 - On refunding (109,510) - 10,951 (98,559) - Total bonds payable 18,166,350 - (805,252) 17,361,098 850,000 Accreted interest payable 2,179,893 325,214 - 2,505,107 - Notes payable - Capital improvement notes 1,410,787 - (169,937) 1,240,850 373,605 Capital lease 227,786 - (110,934) 116,852 116,852 Other post employment benefits - 56,241 - 56,241 - Compensated absences 899,743 679,808 (899,743) 679,808 136,000 Governmental activity long- term liabilities $ 22,884,559 $ 1,061,263 $ (1,985,866) $ 21,959,956 $ 1,476,457 Business -type activities: Bonds payable - Revenue bonds 21,884,191 $ - $ (980,000) $ 20,904,191 $ 1,015,000 Less deferred amounts: Issuance discounts (25,371) 1,064 (24,307) - On refunding (752,896) - 58,335 (694,561) - Total bonds payable 21,105,924 - (920,601) 20,185,323 1,015,000 Accreted interest payable 2,082,305 354,494 - 2,436,799 - Other post employment benefits - 20,759 - 20,759 - Compensated absences 182,621 175,212 (182,621) 175,212 35,000 Governmental activity long- term liabilities $ 23,370,850 $ 550,465 $ (1,103,222) $ 22,818,093 $ 1,050,000 • I, CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 10 - Interfund Receivables, Payables and Transfers: The composition of interfund balances as of September 30, 2009 is as follows: Receivable Fund Payable Fund Amount Public and Communications Service Tax Special General Revenue Fund $ 143,195 General Development Services Fund X956 � 1'7,161 The accounts payable to the general fund represents the public service tax at year end after all debt service payments have been made that are available to be transferred to the general fund. InterFund transfers for the year ended September 30, 2009 are summarized below: $ 7,079,093 $ 1,292,417 $ 17,259 $ 25,653 $ 55,064 $ 8, 469,486 61 Transfers In Other Water and Governmental Sewer Utility Development Stormwater Transfers Out General Fund Funds Fund Services Fund Utility Fund Total General Fund $ - $ 93,019 $ 11,259 $ 25,653 $ 18,355 $ 148,286 Public & Communications Service Tax Special Revenue Fund 3,609,478 502,000 - - - 4,111,478 Road Improvements Special Revenue Fund 2,525 - - - 2,525 Solid Waste /Recycling Special Revenue Fund 135,794 133,100 - - - 268,894 Other Governmental Funds 1,584,823 564,298 - - - 2,149,121 Water and Sewer Utility Fund 1,025,180 - - 36,709 1,061,889 Development Services Fund 617,390 - - - 617,390 Stormwater Utility Fund 103,903 - 6,000 - - 109,903 $ 7,079,093 $ 1,292,417 $ 17,259 $ 25,653 $ 55,064 $ 8, 469,486 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 10 - Interfund Receivables, Payables and Transfers (continued): Interfund transfers for the year ended September 30, 2009 are detailed below: Recipient fund Amount Purpose Transfers from Electric Franchise Fee and Public & Communications Service Tax Special Revenue Funds to pay Debt Service expenses on the Improvement Refunding 1999 Debt Service Fund $ 146,000 Revenue Bonds, Series 1999. Transfers from Electric Franchise Fee and Public & Communications Service Tax Special Revenue Funds to pay Debt Service expenses on the Improvement Refunding 2003 Debt Service Fund 858,000 Revenue Bonds, Series 2003. Transfer from General Fund to pay Debt Service expenses on the Line of Credit for 2004 Capital Projects Debt Service the Senior Center Expansion and Therapy Fund 50,000 Pool Transfer from General Fund for share of Development Services personnel cost associated with Community Development Development Services Fund 25,653 functions. Transfer from Water and Sewer Utility Fund for Utility Billing division budget, fair share portion of General Fund expenses, such as human resources, purchasing, finance, etc., special projects, Kiva project, records management project and operator General Fund 1,025,180 expenses. Transfer from Development Services Fund for indirect costs, administration, fire prevention, Community Development (crossover costs), Information Services special projects, Kiva project and records General Fund 617,390 management project expenses. 62 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 10 - Interfund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from Solid Waste /Recycling Special Revenue Fund for administration, franchise fees and Information Services records General Fund 135,794 management project. Transfer from TLBD Phase I Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 60,029 expenses. Transfer from Oak Forest Maintenance Special Revenue Fund for City Clerk, Beautification Coordinator and insurance General Fund 12,926 expenses. Transfer from Public & Communications Service Tax Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, Series 1999 and Series General Fund 3,609,478 2003. Transfer from Fire Assessment Fee Fund to General Fund 189,707 fund a portion of the Fire Department. Transfer from Electric Franchise Fee Special Revenue Fund balance in fund after payment of Debt Service expenses on the Improvement Refunding Revenue Bonds, General Fund 1,321,620 Series 1999 and Series 2003. Transfer from Road improvements Special Revenue Fund for project coordinator General Fund 2,525 services. 63 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 10 - Interfund Receivables, Payables and Transfers (continued): Recipient fund Amount Purpose Transfer from 1999 Construction Capital Project Fund for project coordinator General Fund 541 services. Transfer from Stormwater Utility Fund for administration, special projects, Kiva project General Fund 103,903 and records management project expenses. Transfer from Oak Forest Capital Projects Oak Forest Debt Service Fund 15,537 Fund of residual equity Transfer from 1999 Construction Capital Veterans Memorial Fund 796 Projects Fund Transfer from Hazard Mitigation Grant Program Capital Project Fund excess Park Impact Fee Fund 1,329 funding of City match on grant. Transfer from Senior Center Expansion and Therapy Pool Fund to return previous funding from Park Impact as the Senior Center expansion costs utilized line of credit Park Impact Fee Fund 3,411 proceeds. Transfer from Hazard Mitigation Grant Program Capital Project Fund to return previously submitted matching grant funds for a project which was subsequently Police Impact Fee Fund 3,424 cancelled. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL. STATEMENTS September 30, 2009 Note 10 - Interfund Receivables, Payables and Transfers (continued ): Recipient fund Amount Purpose Storm Reserve Special Revenue Fund Stormwater Utility Fund Stormwater Utility Fund TLBD Phase 11 Debt Service Fund Trotwood Park Improvements Capital Project Fund Water and Sewer Utility Fund Water and Sewer Utility Fund Transfer from Solid Waste /Recycling Special Revenue Fund for future emergency storm 133,100 cleanup expenses. Transfer from General Fund ten percent of 18,355 engineering expenses less consulting fees. Transfer from Water and Sewer Utility Fund for twenty percent of engineering expenses 36,709 less consulting fees. Transfer of residual equity from TLBD Phase 37,801 11 Capital Projects Fund. Transfer from General Fund for Trotwood 33,019 Park improvements. Transfer from Stormwater Utility Fund for 6,000 administration fees. 11,259 Transfer assets from General Fund. $8,469,486 Note 11 - Defined Benefit Pension Plan: Plan Description The City maintains a single - employer defined benefit pension plan that provides retirement benefits to all 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. 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, 17 firefighters elected to remain in the City's pension plan, 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 plan provisions and amendments. Any recommendations are then taken back to the Commission for final approval. 65 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 11 - Defined Benefit Pension Plan {Continued }: Summary of Significant Accounting _Principles The Plan's financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The City's contributions are recognized when due and formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. All Plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price on the government's balance sheet date. Securities without an established market are reported at estimated fair value. Funding Policy The contribution requirements of plan members and the City are established and may be amended by the Board of Trustees of the Plan. Plan members are required to contribute 3% of their salary to the Plan, which amounted to $306,120, for the year ended September 30, 2009. The City is required to contribute at an actuarially determined rate; the rate from the most recent actuarial valuation as of October 1, 2007 for the year ended September 30, 2008 is 15,11% of covered payroll. The City's contribution for the year ended September 30, 2009 was $1,781,197, which is 15.1% of covered payroll. Administration costs and fees attributable to the plan are paid out of the plan and amounted to $116,982 in 2009. Membership in the Defined Benefit Plan consisted of the following as of the most recent valuation date, October 1, 2007: Retirees and beneficiaries receiving benefits 26 Terminated plan members entitled to but not receiving benefits 86 Active plan members: Vested 208 Non - vested 51 371 .. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 11 w Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation — The City has not received the actuarial valuation for the year ended September 30, 2009. The annual pension cost, net pension obligation and required contribution for September 30, 2009, were not determined as part of the actuarial valuation of the plan dated October 1, 2007. As discussed on the previous page, in 2009 the City used 15.1% of covered payroll as the annual required contribution in order to calculate the annual pension cost. The following shows the annual pension cost and the net pension asset (contributions in excess of requirements) as of September 30, 2009: Annual Required Contribution Interest on Net Pension Obligation (NPO) Adjustment to Annual Required Contribution Annual Pension Cost City Contributions Made Increase/(Decrease) in NPO Net Pension Asset, beginning of year Net Pension Asset, end of year Three Year Trend Information — Fiscal Annual 101.8 Year Pension Actual Ending Cost (APC Contribution 9/30/2007 1,810,230 1,843,147 9/30/2008 2,004,975 2,009,085 9/30/2009 1,781,197 1,781,197 $ 1,781,651 (454) 1,781,197 (1,781,197) (5,673) $ (5,673) Percentage Net of APC Pension Contributed Obligation 101.8 (1,563) 100.2 (5,673) 100.0 (5,673) As of October 1, 2007, the most recent actuarial valuation date, the Plan was 77.2% funded. The actuarial accrued liability for benefits was $20,114,326 and the actuarial value of assets was $15,526,572, resulting in an unfunded actuarial liability (UAAL) of $4,587,354. The covered payroll (annual payroll of active employees covered by the plan) was $11,190,013, and the ratio of the UAAL. to the covered payroll was 41.0 %. The schedule of funding progress, 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 are increasing or decreasing over time relative to the actuarial accrued liability for benefits. The schedule of employer contributions is also presented and shows the extent to which the city has funded the actuarially determined annual required contribution (ARC) over time. The amount legally required as of September 30, 2009 to be reserved for the Plan is $17,323,879. 67 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note I I - Defined Benefit Pension Plan (Continued): Actuarial Methods and Assumptions - The following is a summary of the actuarial methods and significant actuarial assumptions used in the latest actuarial valuation dated October 1, 2007. The plan was amended October 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 of 2.0% by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008 to 3.0 %. Assumptions: Investment Earnings 8% compounded annually Salary Increases /inflation 3% annually Post - retirement Benefit Increases 0% Mortality Table 1983 Group Annuity Male Mortality Table, with women ages set back two years Normal Form Life annuity with payments for life of participant Retirement Age Later of age 60 or 10 years of service on the valuation date. A 1.5% expense load is added to make allowance for 30 year unreduced benefit provision with LTD disability program. Turnover/Termination Forfeiture Assumed to occur at rates approximating 11.62% at age 25 graded down to 0.16% at age 60 and over (T -8 withdrawal table). Actuarial Valuation: Frequency Annual Funding /Cost Method Aggregate Entry Age Normal Frozen Initial Liability Amortization Method Level Percentage of Projected Payroll plus amortization of past service frozen initial liability Amortization Period 30 Years Closed Asset Valuation Method Long Range Yield .: CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL. STATEMENTS September 30, 2009 Note 12 - Other Post Employment Benefits: In accordance with Florida Statutes Section 112.0809, 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 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 one retiree currently receiving benefits. 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. The first actuarial report for the City's Retiree Continuation Insurance plan was prepared as of July 1, 2009. At that point in time, the unfunded actuarial accrued liability (UAAL) for benefits was $505,000 and funded ratio was 0 %. The covered payroll was $9,230,000 and the ratio of the UAAL to covered payroll was 5.5 percent. The annual required contribution and Net OPEB Obligation for the fiscal year ended September 30, 2009 is as follows: Annual required contribution $ 93,000 Interest on net OPEB Obligation - Adjustment to annual required contribution - Annual OPEB Cost 93,000 Employer Contributions (16,000) Increase in Net OPEB Obligation 77,000 Net OPEB Obligation (beginning of year) - Net OPEB Obligation (end of year) $ 77,000 Summary of Actuarial Methods & Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, normally presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The schedule of funding progress includes only one year so multi -year comparison is not available for this period. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 12 - Other Post Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions Continued 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. Actuarial Cost Method- The projected unit credit cost method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. For this purpose, employees were assumed to have been hired at the earlier of current age or age 32. Decrements - Mortality- Sex - distinct mortality rates set forth in the RP -2000 mortality table to annuitants and non - annuitants. Disability Sex - distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4 rates were used for police officers, Class 1 rates were used for all other employees. Permanent Withdrawal from Active Status- Sex - distinct withdrawal rates set forth in the Scale 155 table. Retirement- Retirement was assumed to occur as at age 55 for police officers and at age 60 for all other employees Investment Return (Discount Rate)- 4.0% per annum (includes inflation at 2.75% per annum) Health care Costs Trend Rates- The cost of covered medical services has been assumed to increase in accordance with the following rates, compounded annually: Year Increase 2010 10.00% Year Increase Year Increase 8.00% 2018 6.00% 2014 2011 9.50% 2015 2012 9.00% 2016 2013 8.50% 2017 7.50% 2019 5.00% 7.00% and later 6.50% Implied Subsidy (Not Eligible for Medicare) -The implied subsidy for a 62 -year old retiree and his spouse for the period July 1, 2009 through June 30, 2010 is assumed to be $3,300 per year and $4,800 per year, respectively. Implied Subsidy (Dental Insurance) -There is no implied subsidy for dental insurance since it is assumed that the dental insurance costs for covered individuals do not increase with age. 70 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Implied Subsidy (Dental Insurance) -There is no implied subsidy for dental insurance since it is assumed that the dental insurance costs for covered individuals do not increase with age. Note 12 - Other Post Employment Benefits (Continued): Age- Related Morbidity -The cost of covered medical services has been assumed to increase with age at the rate of 3.5% per annum. Retiree contributions- Retirees electing post - employment healthcare coverage have been assumed to make monthly contributions equal to the premium charged to the active employees and retiree contributions are assumed to increase in accordance with the healthcare cost trend assumption. Medical Plan Choice- Retirees have been assumed to elect coverage under the "AETNA ALT A" plan Future Participation Rates- 10% of eligible employees are assumed to elect healthcare coverage for themselves until age 65 upon retirement or disability; of the retirees election healthcare coverage, 80% of males and 50% of females are assumed to elect coverage for their spouses until age 65. COBRA Assumption- Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience, we assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. Summary of Benefits Other Post - Employment Benefits (OPEBs)- The City of Winter Springs provides optional post - employment healthcare and dental insurance coverage to eligible individuals. Eligible Individuals- Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans- Eligible individuals may choose healthcare coverage under the "AETNA HMO" plan, under the "AETNA ALT J A" plan, or under the "AETNA HIGH B" plan. Required Monthly Premium for Post - Employment Healthcare Coverage- Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children or family coverage. 71 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL_ STATEMENTS September 30, 2009 Note 13 - 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 fund financials. Note 14 - Risk Management: The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; job - related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance. There has been no significant reduction in insurance coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. Note 15 - 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. Subsequent to year end, the City received notice from FEMA that their grant for Hurricane Charley was being closed out resulting in an under -run of approximately $1,700,000 that the City owed back to FEMA, primarily for debris removal on private roads. The City recorded a liability of $569,654 on the financials related to this and is disputing the balance. 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. 72 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2009 Note 15 - Commitments and Contingencies (Continued); Commitments Under Construction Contracts - At September 30, 2009, the City had entered into construction contracts in the amount of $231,136. Transportation impact Fee Credits - The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2009, credit balances for future impact fees total approximately $380,081. 73 REQUIRED SUPPLEMENTARY INFORMATION CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2009 Defined Benefit Pension Trust Fund Schedule of Funding Progress Schedule of Employer Contributions Annual Actuarial Fiscal Required UAAL as a Percentage Actuarial Accrued Actual of ARC Ending % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) ( c) (b -a) / c 10/1/2002 $ 6,620,248 $ 9,128,522 $ 2,508,274 72.5% $ 6,586,077 38.1% 10/1/2003 7,279,048 9,771,594 2,492,546 74.5 8,094,829 30.8 10/1/2004 8,134, 588 10, 931, 774 2,797,186 74.4 8,982,189 31.1 10/1/2005 9,716,089 13,178,485 3,462,396 73.7 9,659,446 35.8 10/1/2006 11,951,383 16,042,749 4,091,366 74.5 10,489,087 39.0 10/1/2007 15, 526, 572 20,114, 326 4,587,754 77.2 11,190, 013 41.0 Schedule of Employer Contributions 74 Annual Fiscal Required Percentage Year Contribution Actual of ARC Ending (ARC) Contribution Contributed 9/30/2003 $ 761,269 $ 903,748 118.7% 9/30/2004 1,156, 923 1,013,379 87.6 9/30/2005 1,424,101 1,260,627 88.5 9/30/2006 1,564,228 1,505,020 96.2 9/30/2007 1,807,722 1,843,147 102.0 9/30/2008 2,005,100 2,009,085 100.2 74 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2009 Retiree Continuation Insurance Plan Schedule of Funding Progress ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Percentage Annual Required of ARC Net Pension Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2009 $ 93,000 17.0% $ 77,000 75 Actuarial UAAL as a Actuarial Accrued % of Actuarial Value of Liability (AAL) Unfunded Funded Covered Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b -a) (a /b) ( c) (b -a) / c 7/1/2009 $ - $ 505,000 $ 505,000 0.0% $ 9,230,000 5.5% ** initial valuation date Schedule of Contributions from Employers and Other Contributing Entities Percentage Annual Required of ARC Net Pension Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2009 $ 93,000 17.0% $ 77,000 75 This page intentionally left blank. 4i,xv T eR 0 U COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. a4 so U N �LoR1Di MAJOR GOVERNMENTAL FUNDS Debt Service Fund TLBD Debt Service Fund - This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue. This page intentionally left blank. ��'N U � �C Di CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Variance with Final Budget - Actual Positive Amounts (Negative $ 165,800 $ 165,800 $ 56,030 $ (109,770) 3,025 880 99,299 98,419 - - 13,328 13,328 168,825 166,680 168,657 1,977 10,366 9,066 5,496 3,570 55,000 55,000 55,000 - 100,200 100,156 100,156 - 165,566 164,222 160,652 3,570 3,259 2,458 8,005 5,547 3,259 2,458 8,005 5,547 185,817 185,817 185,817 - $ 189,076 $ 188,275 $ 193,822 $ 5,547 76 This page intentionally left blank. V � �t 4RIDi NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund - This fund is used to account for the costs of educational expenses for police officers. It is funded by a portion of the collections from fines and forfeitures. Special Law Enforcement - This fund was established to receive revenues from local Trust Fund - Local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. Transportation - Revenues in this fund are derived from Local Option Improvement Fund Gasoline Tax distribution. Proceeds are to be used for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee - This fund is used to account for collected impact fees on Fund new development to defray the cost of future road construction as a result of growth. Police 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 police service due to future 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 to defray the cost of capital investment needed to develop and improve the parks due to future growth. Public Buildings Impact Fee - This fund is used to account for collected impact fees on Fund new development to defray the cost of capital investment needed to maintain public buildings due to future growth. Medical Transport Services - This fund is used to receive revenues generated from fees Fund charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. Arbor Fund - This fund is used to account for arbor revenues. This revenue source is used to maintain a level of plantings in the City. NONMAJOR GOVERNMENTAL FUNDS - Continued Special Revenue Funds - Continued TLBD Maintenance Fund - This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and II of project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance - This fund is used to account for collected special Fund assessments for maintenance related to the Oak Forest subdivision wall. Emergency and Disaster - This fund is used to account for costs of preparation for Relief Fund and cleanup after the hurricanes of 2004. Special Law Enforcement - This fund was established to receive revenues from Trust Fund - Federal federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes. Such purposes may include drug education programs such as DARE. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Homeowners Associations such as streetlighting and Signage Fund signage. Storm Reserve Fund - This fund is used to account for reserves set aside from monthly Solid Waste /Recycling fees to cleanup from future storms. Electric Franchise Fee Fund - This fund is used to account for proceeds of electric franchise fees. These proceeds are used to pay annual debt service. Any excess monies not used to pay debt service are transferred to the General Fund. Fire Assessment Fee Fund - This fund is used to account for collected special assessments for fire operation expenses. The proceeds are transferred to the General Fund to offset fire operations expenses. Veteran's Memorial Fund - This fund is used to account for funds collected to pay for engraving honoree's name in the granite Memorial Name Stand and the on -going maintenance and operation of the Veteran's Memorial. HOA Projects - - This fund is used to account for costs of projects for Streetlighting and Signage Homeowners Associations such as streetlighting and Fund (Non - escrow) signage for non - interest bearing projects. NONMAJOR GOVERNMENTAIL. FUNDS - Continued Debt Service Funds 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. 2003 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue. Oak Forest Debt Service - This fund is used to account for the accumulation of Fund resources and payment of principal and interest for the 2000 note payable (Oak Forest portion). Central Winds G.O. Debt - This fund is used to account for accumulation of resources Service Fund and payment of principal and interest for the 2002 limited general obligation bond. 2004 Capital Projects Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the Capital Improvement Revenue Note Series 2004. TLBD Phase II Debt - This fund is used to account for the accumulation of and payment of principal and interest for the Service Fund resources TLBD Phase 11 Improvements. This page intentionally left blank. .t1�NT'�fi' S 04 '°� NONMAJOR GOVERNMENTAL FUNDS - Continued Capital Projects Funds 1999 Construction Capital - This fund was established for the acquisition and Projects Fund construction of City - owned Capital Improvements. Oak Forest Capital - This fund was established to account for construction of Projects Fund the Oak Forest subdivision wall. Revolving Rehab Capital - This fund was established to provide loans for Projects Fund rehabilitation projects within the City. City Hall Expansion Capital - This fund was established to account for expansion of City Projects Fund Hall. TLBD Phase it - This fund was established to account for the construction Improvements Capital of the TLBD Phase II Improvements. Projects Fund Hazard Mitigation Grant - This fund was established to account for projects paid for Program Capital Projects through the Hazard Mitigation Grant Program. Fund Senior Center Expansion Capital Projects Fund Trotwood Improvements Capital Projects Fund Utility /Public Works Facility Capital Projects Fund This fund was established to account for the Senior Center Expansion and Therapy Pool project. This fund was established to account for the construction of the Trotwood Park Improvements. This fund was established to account for construction of additional public facilities. CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2009 Liabilities and Fund Balances Accounts payable $ - $ 548 $ 16,812 $ 3,112 Retainage payable - - - - Due to other governments - - - - Deferred revenue - - - - Unearned revenue - - - - Total liabilities - 548 16,812 3,112 Fund balances: Reserved for Debt service - - - - Unreserved 18,582 19,134 447,224 825,961 Total fund balances 18,582 19,134 447,224 525,961 Total liabilities and fund balances $ 18,582 $ 19,682 $ 464,036 $ 529,073 77 Special Revenue Special Law Police Enforcement Transportation Transportation Education Trust Fund- Improvement Impact Fee Fund Local Fund Fund Assets: Cash and cash equivalents $ 4,174 $ 4,699 $ 110,783 $ 126,309 Investments 13,308 14,983 353,253 402,764 Receivables, net 1,100 - - - Special assessments receivable - - - - Total assets $ 18,582 $ 19,682 $ 464,036 $ 529,073 Liabilities and Fund Balances Accounts payable $ - $ 548 $ 16,812 $ 3,112 Retainage payable - - - - Due to other governments - - - - Deferred revenue - - - - Unearned revenue - - - - Total liabilities - 548 16,812 3,112 Fund balances: Reserved for Debt service - - - - Unreserved 18,582 19,134 447,224 825,961 Total fund balances 18,582 19,134 447,224 525,961 Total liabilities and fund balances $ 18,582 $ 19,682 $ 464,036 $ 529,073 77 Special Revenue 125,096 983,699 7,510 125,096 983,699 7,510 $ 125,096 $ 983,699 $ 7,510 374,533 374,533 $ 374,533 (Continued) WE Public Buildings Police Impact Fire Impact Parks Impact impact Fee Fee Fund Fee Fund Fee Fund Fund $ 29,865 $ 234,846 $ 1,793 $ 89,415 95,231 748,853 5,717 285,118 $ 374,533 $ 7,510 $ 983,699 $ 125,096 125,096 983,699 7,510 125,096 983,699 7,510 $ 125,096 $ 983,699 $ 7,510 374,533 374,533 $ 374,533 (Continued) WE CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL. FUNDS September 30, 2009 Assets; Cash and cash equivalents Investments Receivables, net Special assessments receivable Total assets Liabilities and Fund Balances Accounts payable Retainage payable Due to other governments Deferred revenue Unearned revenue Total liabilities Fund balances: Reserved for Debt service Unreserved Total fund balances Total liabilities and fund balances Special Revenue Medical TLBD Transport Maintenance Services Fund Arbor Fund Fund $ 136,917 $ 59,156 $ 94,194 436,586 188,630 300,356 17,538 - 5,070 $ 591,041 $ 247,786 $ 399,620 $ - $ - $ 3,819 1,748 1,748 3 591,041 246,038 395,801 591,041 246,038 395,801 $ 591,041 $ 247,786 $ 399,620 79 Special Revenue $ 2,435 $ Emergency and Special Law HOA Projects - Oak Forest Disaster Relief Enforcement Trust Streetlighting and Maintenance Fund Fund Fund - Federal Sinage Fund (Continued) $ 7,945 $ 172,020 $ 3,467 $ 1,320 25,334 548,523 11,054 4,209 826 - - - $ 5,529 $ 14,521 $ 720,543 $ 34,105 $ 2,435 $ 5,887 - 569,654 - - 2,435 575,541 - - 31,670 145,002 14,521 5,529 31,670 145,002 14,521 5,529 $ 34,105 $ 720,543 $ 14,521 $ 5,529 (Continued) :M CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2009 Special Revenue Liabilities and Fund Balances Accounts payable $ - $ 121 $ 74 $ 32,808 Retainage payable - - - - Due to other governments - - - 569,654 Deferred revenue - - - - Unearned revenue - - - 1,748 Total liabilities - 121 74 604,210 Fund balances: Reserved for Debt service - - - - Unreserved 427,085 23,760 24,038 4,406,224 Total fund balances 427,085 23,760 24,038 4,406,224 Total liabilities and fund balances $ 427,085 $ 23,881 $ 24,112 $ 5,010,434 81 Storm Veterans Fire Reserve Memorial Assessment Fund Fund Fund Total Assets: Cash and cash equivalents $ 101,961 $ 5,701 $ 5,756 $ 1,190,321 Investments 325,124 18,180 18,356 3,795,579 Receivables, net - - - 24,534 Special assessments receivable - - - - Total assets $ 427,085 $ 23,881 $ 24,112 $ 5,010,434 Liabilities and Fund Balances Accounts payable $ - $ 121 $ 74 $ 32,808 Retainage payable - - - - Due to other governments - - - 569,654 Deferred revenue - - - - Unearned revenue - - - 1,748 Total liabilities - 121 74 604,210 Fund balances: Reserved for Debt service - - - - Unreserved 427,085 23,760 24,038 4,406,224 Total fund balances 427,085 23,760 24,038 4,406,224 Total liabilities and fund balances $ 427,085 $ 23,881 $ 24,112 $ 5,010,434 81 Debt Service 2003 Debt Service Fund 1999 Debt Service Fund Oak Forest Debt Service Fund Central Winds GO Debt Service Fund $ 765,266 $ 117,722 $ 1,701 $ 8,363 - 1,038 5,425 26,666 - 822 1,581 - - 507,400 - $ 765,266 $ 118,760 $ 515,348 $ 36,610 765,266 765,266 $ - $ 1,145 $ - 507,400 - 508,545 - 118,760 1 18,760 6,803 36,610 6,803 36,610 $ 765,266 $ 118,760 $ 515,348 $ 36,610 (Continued) IN CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2009 Debt Service Assets: 2004 Capital Projects Debt TLBD Phase II Service Fund Debt Service Fund Total Cash and cash equivalents $ 1,747 $ 3,006 $ 897,805 Investments 5,569 9,585 48,283 Receivables, net - 300 2,703 Special assessments receivable - 286,278 793,678 Total assets $ 7,316 $ 299,169 $ 1,742,469 Liabilities and Fund Balances Accounts payable $ - $ 757 $ 1,902 Retainage payable - - - Due to other governments - - - Deferred revenue - 286,278 793,678 Unearned revenue - - - Total liabilities - 287,035 795,580 Fund balances: Reserved for Debt service 7,316 12,134 946,889 Unreserved - - - Total fund balances 7,316 12,134 946,889 Total liabilities and fund balances $ 7,316 $ 299,169 $ 1,742,469 Capital Projects 1999 Construction Fund Revolving Rehab Fund City Hall Expansion Public Fund Facilities Fund $ 214,797 $ 240,803 $ 2,438 $ 228,632 684,923 767,852 7,776 729,039 $ 899,720 $ 1,008,655 $ 10,214 $ 957,671 $ 345 $ 50 $ - $ - - - 22,228 345 50 - 22,228 899,375 1,008,605 10,214 935,443 899,375 1,008,605 10,214 935,443 $ 899,720 $ 1,008,655 $ 10,214 $ 957,671 (Continued) A CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2009 Capital Projects Nonmajor Total Governmental Funds Assets: Cash and cash equivalents $ 686,670 $ 2,774,796 Investments 2,189,590 6,033,452 Receivables, net - 27,237 Special assessments receivable - 793,678 Total assets $ 2,876,260 $ 9,629,163 Liabilities and Fund Balances Accounts payable $ 395 $ 35,105 Retainage payable 22,228 22,228 Due to other governments - 569,654 Deferred revenue - 793,678 Unearned revenue - 1,748 Total liabilities 22,623 1,422,413 Fund balances: Reserved for Debt service Unreserved Total fund balances - 946,889 2,853,637 7,259,861 2,853,637 8,206,750 Total liabilities and fund balances $ 2,876,260 $ 9,629,163 M . 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U �C� dpi CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 0 Special Revenue Special Law Transportation Police Education Enforcement Trust Improvement Transportation Fund F und- Loca Fund Impact Fee Fund Revenues: Taxes: Property taxes $ _ $ $ $ - Permits and fees - Intergovernmental revenues - - 492,538 - Charges for services - - 12,805 - Fines and forfeitures 15,519 26,371 - - Impact feeslassessments - - - Investment income - 183 1,312 2,141 Miscellaneous 346 - - - Total revenues 15,865 26,554 506,655 2,141 Expenditures: Current: General government - - - - Public safety 1,790 19,619 - - Physical environment - - 111,765 Culture and recreation - - - Debt Service: Principal - - Interest and fiscal charges - - Capital Outlay: General government - - Public safety - 37,494 - - Physical environment - - 283,446 46,234 Culture and recreation - - - - Total expenditures 1,790 57,113 395,211 46,234 Excess (Deficiency) of Revenues Over Expenditures 14,075 (30,559) 111,444 (44,093) Other Financing Sources (Uses): Transfers in - _ _ Transfers out _ - - Total other financing sources(uses) - Net Change in Fund Balances 14,075 (30,559) 111,444 (44,093) Fund Balances - Beginning 4,507 49,693 335,780 189,973 Prior Period Adjustment - - - 380,081 Fund Balances - Ending $ 18,582 $ 19,134 $ 447,224 $ 525,961 0 Special Revenue Medical Police Impact Fire impact Fee Parks Impact Public Buildings Transport Fee Fund Fund Fee Fund impact Fee Fund Services Fund Arbor Fund 13,286 - - 22,770 17,906 - - 2,025 513 3,657 21 1,393 2,032 507 - - 1,468 - 513 3,657 21 1,393 21,406 38,588 1,000 - - 5,170 - - 36,021 8,167 9,167 _ - 5,170 36,021 (8,654) 3,657 21 1,393 16,236 2,567 3,424 4,740 3,424 - 4,740 - - (5,230) 3,657 4,761 1,393 16,236 2,567 130,326 980,042 2,749 373,140 574,805 243,471 $ 125,096 $ 983,699 $ 7,510 $ 374,533 $ 591,041 $ 246,038 (Continued) i CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal Interest and fiscal charges Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - Beginning Prior Period Adjustment Fund Balances - Ending Special Revenue TLBD Oak Forest Emergency and Special Law Maintenance Maintenance Disaster Relief Enforcement Trust Fund Fund Fund Fund - Federal - - 5,508 523,056 53,232 - - 2,496 207 2,689 200 14,255 5,035 - - 539,807 58,474 2,689 5,708 - - 14,937 485,517 38,560 578,608 - _ 29,546 44,483 578,608 38,560 485,517 54,290 19,914 (575,919) (38,775) (60,029) (12,926) - (60,029) (12,926) (5,739) 6,988 (575,919) (38,775) 401,540 24,682 720,921 53,296 $ 395,801 $ 31,670 $ 145,002 $ 14,521 Z I Special Revenue HOA Projects - HOA Projects - Streetlighting and Sinage Storm Reserve Veterans Memorial Streetlighting and Sinage Fire Assessment Fund Fund Fund Fund (Non-escrow) Fund _ 96,551 - - - 209,800 21 1,348 64 7 554 - 3,027 10,900 19,610 - 21 20,926 10,964 19,617 210,354 511 - - - 968 _ 74,425 - - - _ - 2,356 - _ 19,617 19,617 968 2,867 74,425 - 21 (53,499) 8,097 - 209,386 - 133,100 796 - - - - (189,707) _ 133,100 796 (189,707) 21 79,601 8,893 19,679 5,508 347,484 14,867 4,359 $ 24,038 23,760 $ 427,085 $ $ 5,529 $ (Continued) 89 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 Special Revenue Debt Service •% Electric 2003 Debt 1999 Debt Franchise Fee Total Service F und Service Fund Revenues: Taxes: Property taxes $ - $ - $ - $ Permits and fees 1,823,706 1,836,992 - Intergovernmental revenues - 531,859 - Charges for services - 30,719 - Fines and forfeitures - 49,423 - Impact feestassessments - 786,088 - Investment income - 19,345 1,371 246 Miscellaneous - 54,641 - - Total revenues 1,823,706 3,309,059 1,371 246 Expenditures: Current: General government 86 597 - - Public safety - 43,484 - Physical environment - 1,324,896 Culture and recreation - - - - Debt Service: - Principal - - 625,000 55,000 Interest and fiscal charges - - 251,723 86,586 Capital Outlay: General government - 2,356 - - Public safety - 75,207 - - Physical environment - 349,297 - - Culture and recreation - - - Total expenditures 86 1,795,837 876,723 141,586 Excess (Deficiency) of Revenues Over Expenditures 1,823,620 1,513,222 (875,352) (141,340) other Financing Sources (Uses): Transfers in - 142,060 858,000 146,000 Transfers out (1,823,620) (2,086,282) - - Total other financing sources(uses) (1,823,620) (1,944,222) 858,000 1.46,000 Net Change in Fund Balances (431,000) (17,352) 4,660 Fund Balances - Beginning - 4,457,143 782,618 114,100 Prior Period Adjustment - 380,081 - - Fund Balances - Ending $ - $ 4,406,224 $ 765,266 $ 118,760 •% Debt Service 2004 Capital Oak Forest Debt Central Winds GO Projects Debt TLBD Phase 11 Debt Service Fund Debt Service Fund Service Fund Service Fund Total $ $ 213,629 $ - $ - $ 213,629 14,864 - 18,471 33,335 22,196 590 146 12,634 37,183 22,038 - - 10,250 32,288 59,098 214,219 146 41,355 316,435 _ _ 1,132 1,132 5,025 - - 5,025 50,500 75,000 63,953 55,484 924,937 16,351 148,863 14,047 11,339 528,909 1,460,003 67,955 78,000 223,863 71,876 (12,778) (9,644) (77,854) (26,600) (1,143,568) 15,537 - 60,000 37,801 1,117,338 37,801 1,117, 338 60,000 - 15,537 2,759 (9,644) (17, 854) 11,201 (26,230) 4,044 46,254 25,170 933 973,119 $ 12,134 $ 946,889 7,316 $ 36,610 $ $ 6,803 (Continued) 91 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 92 Capital Projects 1999 City Hall Construction Oak Forest Revolving Rehab Expansion Fund Fund Fund Fund Revenues: Taxes: Property taxes $ $ - $ - $ - Permits and fees - - Intergovernmental revenues - - - Charges for services - Fines and forfeitures - - - Impact feeslassessments - - Investment income 4,694 14 3,754 38 Miscellaneous 13,177 - 2,980 - Total revenues 17,871 14 6,734 38 Expenditures: Current: General government - - 5,916 - Public safety - - - Physical environment - - - Culture and recreation - - - - Debt Service: Principal - Interest and fiscal charges - - Capital Outlay: General government - - Public safety - - Physical environment 136,919 - Culture and recreation - - - Total expenditures 136,919 - 5,916 - Excess (Deficiency) of Revenues Over Expenditures (119,048) 14 818 38 Other Financing Sources (Uses): Transfers in - - - Transfers out (1,337) (15,537) Total other financing sources(uses) (1,337) (15,537) Net Change in Fund Balances (120,385) (15,523) 818 38 Fund Balances - Beginning 1,019,760 15,523 1,007,787 10,176 Prior Period Adjustment - - - - Fund Balances - Ending $ 899,375 $ - $ 1,008,605 $ 10,214 92 Capital Projects TLBD Phase 11 Hazard Mitigation Senior Center Trotwood Public Facilities Improvements Fund Grant Program Fund Expansion Fund Improvement Fund Fund 200,000 78 77 138 461 5,939 78 77 138 200,461 5,939 78 - 600,741 456,280 - - 456,280 600,741 77 (594,802) 1,530,245 $ 935,443 (Continued) 138 (255,819) (594,802) 93 (37,801) (4,753) (3,411) - (37,801) (4,753) (3,411) 33,019 (37,723) (4,676) (3,273) (222,800) 37,723 4,676 3,273 222,800 (594,802) 1,530,245 $ 935,443 (Continued) 138 (255,819) (594,802) 93 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2009 Excess (Deficiency) of Revenues Over Expenditures (968,506) (598,852) Other Financing Sources (Uses): Transfers in Capital Projects 1,292,417 Transfers out (62,839) Nonmajor Total other financing sources(uses) (29,820) Governmental Total Funds Revenues: (1,455,556) Fund Balances - Beginning Taxes: 9,282,225 Prior Period Adjustment Property taxes $ $ 213,629 Permits and fees Fund Balances - Ending 1,836,992 Intergovernmental revenues 200,000 731,859 Charges for services - 30,711 Fines and forfeitures - 49,423 Impact fees/assessments - 819,423 Investment income 15,193 71,721 Miscellaneous 16,157 103,086 Total revenues 231,350 3,856,844 Expenditures: Current: General government 5,916 7,645 Public safety - 43,484 Physical environment 1,329,921 Culture and recreation - aebt Service: - Principal 924,937 Interest and fiscal charges _ 528,909 Capital Outlay: General government 2,356 Public safety - 75,207 Physical environment 737,660 1,086,957 Culture and recreation 456,280 456,280 Total expenditures 1,199,856 4,455,696 Excess (Deficiency) of Revenues Over Expenditures (968,506) (598,852) Other Financing Sources (Uses): Transfers in 33,019 1,292,417 Transfers out (62,839) (2,149,121) Total other financing sources(uses) (29,820) (856,704) Net Change in Fund Balances (998,326) (1,455,556) Fund Balances - Beginning 3,851,963 9,282,225 Prior Period Adjustment - 380,081 Fund Balances - Ending $ 2,853,637 $ 8,206,750 94 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 95 Variance with Final Budgeted Amounts Budget - Positive Original Final Actual Amounts (Negative) Revenues: Fines and forfeitures $ 20,000 $ 20,000 $ 15,519 $ (4,481) Investment income 70 70 - (70) 346 Miscellaneous Total revenues - 20,070 - 20,070 346 15,865 (4,205) Expenditures: Current: Public Safety 20,000 20,000 1,790 18,210 Total expenditures 20,000 20,000 1,790 18,290 Excess (Deficiency) of Revenues Over 70 14,075 14,005 Expenditures 70 Net change in fund balances 70 70 14,075 14,005 Fund balances - beginning 4,507 4,507 4,507 $ 18,582 - $ 14,005 Fund balances - ending $ 4,577 $ 4,577 95 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund balances . beginning Fund balances - ending Variance with Final Budgeted Amounts Budget - Positive Original Final Actual Amounts (Negative) $ - $ 13,528 $ 26,371 $ 12,843 450 450 183 (267) 450 13,978 26,554 12,576 22,500 23,786 19,619 4,167 - 36,961 37,494 (533) 22,500 60,747 57,113 3,634 (22,050) (46,769) (30,559) 16,210 (22,050) (46,769) (30,559) 16,210 49,693 49,693 49,693 - $ 27,643 $ 2,924 $ 19,134 $ 16,210 M. CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT FUND SCHEDULE OF REVENUES, _EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 97 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Intergovernmental revenues $ 495,000 $ 462,810 $ 492,538 $ 29,728 Charges for services 12,020 12,020 12,805 785 Investment income 3,350 3,350 1,312 (2,038) Total revenues 510,370 478,180 506,655 28,475 Expenditures: Current: Physical environment 182,100 194,100 111,765 82,335 Capital Outlay Physical environment 330,700 318,700 283,446 35,254 Total expenditures 512,800 512,800 395,211 117,589 Excess (Deficiency) of Revenues Over Expenditures (2,430) (34,620) 111,444 146,064 Other Financing Sources (uses) Transfers out (100,000) - - - Total other financing sources and uses (100,000) - - - Net change in fund balances (102,430) (34,620) 111,444 146,064 Fund balances - beginning 335,780 335,780 335,780 - F'und balances -ending $ 233,350 $ 301,160 $ 447,224 $ 146,064 97 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund balances - beginning Prior period adjustment Fund balances - ending Actual Amounts Variance with Final Budget - Positive (Negative) $ 654,700 $ - $ - $ - 7,750 7,750 2,141 (5,609) 662,450 7,750 2,141 (5,609) 30,000 30,000 30,000 285,000 66,000 46,234 19,766 315,000 96,000 46,234 49,766 347,450 (88, 250) (44,093) 44,157 347,450 (88, 250) (44,093) 44,157 189,973 189,973 189,973 - - - 380,081 380,081 $ 537,423 $ 101,723 $ 525,961 $ 424,238 .; CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) Revenues: Impact fees /assessments Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending $ 89,000 $ - 2,800 2,800 91,800 2,800 513 513 (2,287) (2,287) 8,710 - 1,000 (1,000) 16,427 16,427 8,167 8,260 25,137 16,427 9,167 7,260 66,663 (13,627) (8,654) 4,973 - 3,424 3,424 - - 3,424 3,424 - 66,663 (10,203) (6,230) 4,973 130,326 130,326 130,326 - $ 196,989 $ 120,123 $ 125,096 $ 4,973 .. CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Charges for services Investment income Total revenues Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Original Final Actual Amounts $ 200,000 $ - $ - 17,200 3,200 3,657 217,200 3,200 3,657 217,200 3,200 3,657 217,200 3,200 3,657 Variance with Final Budget - Positive (Negative) 457 457 457 457 Net change in fund balances Fund balances - beginning Fund balances - ending 980,042 980,042 980,042 - $ 1,197,242 $ 983,242 $ 983,699 $ 457 100 CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Impact fees/assessments Investment income Total revenues Budgeted Amounts Original Final $ 187,200 $ - 1,300 188,500 Actual Amounts 21 21 Variance with Final Budget - Positive (Negative) Expenditures: Capital Outlay Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 50,000 50,000 138,500 21 21 4,742 4,740 (2) - 4,742 4,740 (2) 138,500 4,742 4,761 19 2,749 2,749 2,749 - $ 141,249 $ 7,491 $ 7,510 $ 19 101 CITY OF WINTER SPRINGS, FLORIDA PUBLIC BUILDINGS IMPACT FEE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 102 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 126,000 $ - $ - $ - Investment income 7,100 1,100 1,393 293 Total revenues 133,100 1,100 1,393 293 Excess (Deficiency) of Revenues Over Expenditures 133,100 1,100 1,393 293 Net change in fund balances 133,100 1,100 1,393 293 Fund balances - beginning 373,140 373,140 373,140 - Fund balances - ending $ 506,240 $ 374,240 $ 374,533 $ 293 102 CITY OF WINTER SPRINGS, FLORIDA MEDICAL TRANSPORT SERVICES FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 103 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Charges for services $ - $ - $ 17,906 $ 17,906 Investment income 10,200 2,200 2,032 (168) Miscellaneous - - 1,468 1,468 Total revenues 10,200 2,200 21,406 19,206 Expenditures: Current: Public Safety 5,354 5,354 5,170 184 Total expenditures 5,354 5,354 5,170 184 Excess (Deficiency) of Revenues Over Expenditures 4,846 (3,154) 16,236 19,390 Net change in fund balances 4,846 (3,154) 16,236 19,390 Fund balances - beginning 574,805 574,805 574,805 - Fund balances -ending $ 579,651 $ 571,651 $ 591,041 $ 19,390 103 CITY OF WINTER SPRINGS, FLORIDA ARBOR FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 104 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Permits and fees $ 16,200 $ 16,200 $ 13,286 $ (2,914) Intergovernmental revenues 142,000 25,000 22,770 (2,230) Fines and forfeitures 750 750 2,025 1,275 Investment income 2,500 2,500 507 (1,993) Total revenues 161,450 44,450 38,588 (5,862) Expenditures: Current: Physical environment 17,490 42,490 36,021 6,469 Capital Outlay Physical environment 2,000 2,000 - 2,000 Total expenditures 19,490 44,490 36,021 8,469 Excess (Deficiency) of Revenues Over Expenditures 141,960 (40) 2,567 2,607 Net change in fund balances 141,960 (40) 2,567 2,607 Fund balances - beginning 243,471 243,471 243,471 - Fund balances - ending $ 385,431 $ 243,431 $ 246,038 $ 2,607 104 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Expenditures: Current: Physical environment 509,475 523,730 485,517 38,213 Total expenditures 509,475 523,730 485,517 38,213 Excess (Deficiency) of Revenues Over Expenditures 16,975 16,975 54,290 37,315 Other Financing Sources (Uses) Variance with Transfers out (63,000) (60,030) Final Budget - Total other financing sources and uses Budgeted Amounts (60,030) Positive Original Final Actual Amounts (Negative) Revenues: Fund balances - beginning 401,540 401,540 Impact fees /assessments $ 520,000 $ 520,000 $ 523,056 $ 3,056 Investment income 6,450 6,450 2,496 (3,954) Miscellaneous - 14,255 14,255 - Total revenues 526,450 540,705 539,807 (898) Expenditures: Current: Physical environment 509,475 523,730 485,517 38,213 Total expenditures 509,475 523,730 485,517 38,213 Excess (Deficiency) of Revenues Over Expenditures 16,975 16,975 54,290 37,315 Other Financing Sources (Uses) Transfers out (63,000) (60,030) (60,029) 1 Total other financing sources and uses (63,000) (60,030) (60,029) 1 Net change in fund balances (46,025) (43,055) (5,739) 37,316 Fund balances - beginning 401,540 401,540 401,540 Fund balances - ending $ 355,515 $ 358 $ 395,801 $ 37,316 105 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ 52,940 $ 52,940 $ 53,232 $ 292 420 420 207 (213) 5,035 5,035 - 63,360 58,395 58,474 79 40,988 46,023 38,560 7,463 40,988 46,023 38,560 7,463 12,372 12,372 19,914 7,542 (13,200) (12,927) (12,926) 1 (13,200) (12,927) (12,926) 1 (828) (555) 6,988 7,543 24,682 24,682 24,682 - $ 23,854 $ 24,127 $ 31,670 $ 7,543 106 CITY OF WINTER SPRINGS, FLORIDA EMERGENCY AND DISASTER RELIEF FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Variance with Final Budget - Positive (Negative) $ (111) (111) 25,892 25,892 25,781 25,781 $ 25,781 107 Budgeted Amounts Original Final Actual Amounts Revenues: Investment income $ 11,000 $ 2,800 $ 2,689 Total revenues 11,000 2,800 2,689 Expenditures: Current: Physical environment - 604,500 578,608 Total expenditures - 604,500 578,608 Excess (Deficiency) of Revenues Over Expenditures 11,000 (601,700) (575,919) Net change in fund balances 11,000 (601,700) (575,919) Fund balances - beginning 720,921 720,921 720,921 Fund balances - ending $ 731,921 $ 119,221 $ 145,002 Variance with Final Budget - Positive (Negative) $ (111) (111) 25,892 25,892 25,781 25,781 $ 25,781 107 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund balances - beginning Fund balances - ending 300 300 Actual Amounts $ 4,800 $ 5,508 300 200 14,500 16,715 5,708 Variance with Final Budget - Positive (Negative) $ 708 (100) 608 14,937 1,778 - 29,421 29,546 (125) 14,500 46,136 44,483 1,653 (14,200) (41,036) (38,775) 2,261 (14,200) (41,036) (38,775) 2,261 53,296 53,296 53,296 - $ 39,096 $ 12,260 $ 14,521 $ 2,261 M61:3 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING AND SINAGE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 109 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 50 $ 50 $ 21 $ L2 9) Total revenues 50 50 21 (29) Expenditures: Current: General government 5,757 5,558 - 5,558 Total expenditures 5,757 5,558 - 5,558 Excess (Deficiency) of Revenues Over Expenditures (5,707) (5,508) 21 5,529 Net change in fund balances (5,707) (5,508) 21 5,529 Fund balances - beginning 5,508 5,508 5,508 - Fund balances - ending $ (199) $ - $ 5,529 $ 5,529 109 CITY OF WINTER SPRINGS, FLORIDA STORM RESERVE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 110 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Intergovernmental revenues $ - $ 96,550 $ 16,551 $ 1 Investment income 6,100 1,100 1,348 248 Miscellaneous - 3,028 3,027 (1) Total revenues 6,100 20,678 20,926 248 Expenditures: Current: Physical environment - 74,804 74,425 379 Total expenditures - 74,804 74,425 379 Excess (Deficiency) of Revenues Over Expenditures 6,100 (54,126) (53,499) 627 Other Financing Sources (Uses) Transfers in 138,000 133,000 133,100 100 Total other financing sources and uses 138,000 133,000 133,100 100 Net change in fund balances 144,100 78,874 79,601 727 Fund balances • beginning 347,484 347,484 347,484 - Fund balances - ending $ 491,584 $ 426,358 $ 427,085 $ 727 110 CITY OF WINTER SPRINGS, FLORIDA VETERANS MEMORIAL FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Miscellaneous Total revenues Expenditures: Current: General government Capital Outlay General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ - $ - $ 64 $ 64 - 9,000 10,900 1,900 - 9,000 10,964 1,964 - 1,186 511 675 - 2,356 2,356 - 3,542 2,867 675 - 5,458 8,097 2,639 796 796 - 6,254 14,867 14,867 $ 14,867 $ 21,121 796 796 8,893 14,867 $ 23,760 2,639 $ 2,639 111 CITY OF WINTER SPRINGS, FLORIDA HOA PROJECTS - STREETLIGHTING AND SINAGE FUND (NON - ESCROW) SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Miscellaneous Total revenues Expenditures: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund balances - beginning Fund balances - ending Budgeted Amounts Original Final 20,800 20,800 - 20,800 19,617 1,183 20,800 19,617 1,183 Variance with Final Budget - Positive Actual Amounts (Negative) $ 7 $ 7 19,610 (1,190) 19,617 (1,183) 112 CITY OF WINTER SPRINGS, FLORIDA FIRE ASSESSMENT FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 113 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 283,721 $ 283,721 $ 209,800 $ (73,921) Investment income - - 554 554 Total revenues 283,721 283,721 210,354 (73,367) Expenditures: Current: Public Safety 1,500 1,500 968 532 Total expenditures 1,500 1,500 968 532 Excess (Deficiency) of Revenues Over Expenditures 282,221 282,221 209,386 (72,835) Other Financing Sources (Uses) Transfers out (283,721) (283,721) (189,707) 94,014 Total other financing sources and uses (283,721) (283,721) (189,707) 94,014 Net change in fund balances (1,500) (1,500) 19,679 21,179 Fund balances - beginning 4,359 4,359 4,359 - Fund balances - ending $ 2,859 $ 2,859 $ 24,038 $ 21,179 113 CITY OF WINTER SPRINGS, FLORIDA ELECTRIC FRANCHISE FEE SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 114 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Taxes: Property taxes $ 1,720,000 $ 1,823,621 $ 1,823,706 $ 85 Investment income - - - - Total revenues 1,720,000 1,823,621 1,823,706 85 Expenditures: Current: General government - - 86 (86) Total expenditures - - 86 (86) Excess (Deficiency) of Revenues Over Expenditures 1,720,000 1,823,621 1,823,620 (1) Other Financing Sources (Uses) Transfers out (1,720,000) (1,823,621) (1,823,620) 1 Total other financing sources and uses (1,720,000) (1,823,621) (1,823,620) 1 Net change in fund balances - _ - - Fund balances - beginning - - - - Fund balances - ending $ - $ - $ - $ - 114 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 10,000 $ 1,000 $ 1,371 $ 371 Miscellaneous - - - - Total revenues 10,000 1,000 1,371 371 Expenditures: Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 625,000 625,000 625,000 - 253,250 253,250 251,723 1,527 878,250 878,250 876,723 1,527 (868,250) (877,250) (875,352) 1,898 858,000 858,000 858,000 858,000 858,000 858,000 - (10,250) (19,250) (17,352) 1,898 782,618 782,618 782,618 - $ 772,368 $ 763,368 $ 765,266 $ 1,898 115 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 116 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 1,500 $ 500 $ 246 $ (254) Total revenues 1,500 500 246 (254) Expenditures: Debt Service: Principal 55,000 55,000 55,000 - Interest and other charges 87,300 87,300 86,586 714 Total expenditures 142,300 142,300 141,586 714 Excess (Deficiency) of Revenues Over Expenditures (140,800) (141,800) (141,340) 460 Other Financing Sources (Uses) Transfers in 146,000 146,000 146,000 - Total other financing sources and uses 146,000 146,000 146,000 - Net change in fund balances 5,200 4,200 4,660 460 Fund balances - beginning 114,100 114,100 114,100 - Fund balances - ending $ 119,300 $ 118,300 $ 118,760 $ 460 116 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICES FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES _ BUDGET AND ACTUAL For The Year Ended September 30, 2009 117 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) Revenues: Impact fees /assessments $ 58,650 $ 58,650 $ 14,864 $ (43,786) investment income 125 125 22,196 22,071 Miscellaneous - - 22,038 22,038 Total revenues 58,775 58,775 59,098 323 Expenditures: Current: Physical environment 5,222 5,222 5,025 197 Debt Service: Principal 55,300 50,860 50,500 360 Interest and other charges 16,750 19,250 16,351 2,899 Total expenditures 77,272 75,332 71,876 3,456 Excess (Deficiency) of Revenues Over Expenditures (18,497) (16,557) (12,778) 3,779 Other Financing Sources (Uses) Transfers in 17,477 15,537 15,537 - Total other financing sources and uses 17,477 15,537 15,537 - Net change in fund balances (1,020) (1,020) 2,759 3,779 Fund balances - beginning 4,044 4,044 4,044 - Fund balances - ending $ 3,024 $ 3,024 $ 6,803 $ 3,779 117 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS GO DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Taxes: Property taxes Investment income Total revenues Expenditures: Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Actual Amounts Variance with Final Budget - Positive (Negative) $ 213,267 $ 212,067 $ 213,629 $ 1,562 2,400 600 590 (10) 215,667 212,667 214,219 1,552 75,000 149,000 224,000 (8,333) 75,000 149,000 75,000 148,863 223,863 (9,644) 137 137 (8,333) 224,000 (11,333) (11,333) 1,689 (9,644) 1,689 Fund balances - beginning 46,254 46,254 46,254 - Fund balances - ending $ 37,921 $ 34,921 $ 36,610 $ 1,689 118 CITY OF WINTER SPRINGS, FLORIDA 2004 CAPITAL PROJECTS DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Total revenues Expenditures: Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending 119 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ 230 $ 230 $ 146 $ (84) 230 230 146 (84) 40,000 65,952 63,953 1 ,999 40,000 14,048 14,047 1 80,000 80,000 78,000 2,000 (79,770) (79,770) (77,854) 1,916 60,000 60,000 60,000 - 60,000 60,000 60,000 - (19,770) (19,770) (17,854) 1,916 25,170 25,170 25,170 - $ 5,400 $ 5,400 $ 7,316 $ 1,916 119 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Impact fees /assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Ne gative) $ 40,600 $ 40,600 $ 18,471 $ (22,129) 150 150 12,634 12,484 - - 10,250 10,250 40,750 40,750 41,355 605 1,256 1,256 1,132 124 18,550 56,351 55,484 867 12,550 12,550 11,339 1,211 32,356 70,157 67,955 2,202 8,394 (29,407) (26,600) 2,807 - 37,801 37,801 - - 37,801 37,801 - 8,394 8,394 11,201 2,807 933 933 933 - $ 9,327 $ 9,327 $ 12,134 $ 2,807 120 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Miscellaneous Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) $ 7,400 $ 7,400 $ 4,694 $ (2,706) - 13,177 13,177 - 7,400 20,577 17,871 (2,706) 1,290,950 1,027,541 136,919 890,622 1,290,950 1,027,541 136,919 890,622 (1,283,550) (1,006,964) (119,048) 887,916 300,000 - - - (12,000) (1,337) (1,337) - 288,000 (1,337) (1,337) - (995,550) (1,008,301) (120,385) 887,916 1,019,760 1,019,760 1,019,760 - $ 24,210 $ 11,459 $ 899,375 $ 887,916 121 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 122 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 130 $ 14 $ 14 $ - Total revenues 130 14 14 - Excess (Deficiency) of Revenues Over Expenditures 130 14 14 - Other Financing Sources (Uses) Transfers out (17,477) (15,537) (15,537) - Total other financing sources and uses (17,477) (15,537) (15,537) - Net change in fund balances (17,347) (15,523) (15,523) - Fund balances - beginning 15,523 15,523 15,523 - Fund balances - ending $ (1,824) $ - $ - $ - 122 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) Revenues: Investment income Miscellaneous Total revenues Expenditures: Current: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Not change in fund balances Fund balances - beginning Fund balances - ending $ 15,500 $ 3,000 - 2,980 15,500 5,980 $ 3,754 2,980 6.734 $ 754 754 10,220 13,200 5,916 7,284 10,220 13,200 5,916 7,284 5,280 (7,220) 818 8,038 5,280 (7,220) 818 8,038 1,007,787 1,007,787 1,007,787 - $ 1,013,067 $ 1,000,567 $ 1,008,605 $ 8,038 123 CITY OF WINTER SPRINGS, FLORIDA CITY HALL EXPANSION FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Miscellaneous Total revenues Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Original Final Actual Amounts $ 38 38 $ 38 Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Positive (Negative) 38 38 38 - - 38 38 10,176 10,176 10,176 - $ 10,176 $ 10,176 $ 10,214 $ 38 124 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE 11 IMPROVEMENTS FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 125 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 280 $ 78 $ 78 $ - Total revenues 280 78 78 Expenditures: Capital Outlay General government 37,525 - - - Total expenditures 37,525 - - - Excess (Deficiency) of Revenues Over Expenditures (37,245) 78 78 - Other Financing Sources (Uses) Transfers out - (37,801) (37,801) - Total other financing sources and uses - (37,801) (37,801) - Net change in fund balances (37,245) (37,723) (37,723) - Fund balances - beginning 37,723 37,723 37,723 - Fund balances - ending $ 478 $ - $ - $ - 125 CITY OF WINTER SPRINGS, FLORIDA HAZARD MITIGATION GRANT PROGRAM FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Revenues: Investment income Total revenues Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Budgeted Amounts Positive Orlginal Final Actual Amounts (Negative} $ 50 $ 78 $ 77 $ (1) 50 78 77 (1) 50 78 77 (1) (4,754) (4,753) 1 (4,754) (4,753) 1 50 (4,676) (4,676) 4,676 4,676 4,676 $ 4,726 $ - $ - 126 CITY OF WINTER SPRINGS, FLORIDA SENIOR CENTER EXPANSION FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 127 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 50 $ 139 $ 138 $ (1) Total revenues 50 139 138 ( Excess (Deficiency) of Revenues Over Expenditures 50 139 138 (1) Other Financing Sources (Uses) Transfers out - (3,412) (3,411) 1 Total other financing sources and uses - (3,412) (3,411) 1 Net change in fund balances 50 (3,273) (3,273) - Fund balances - beginning 3,273 3,273 3,273 - Fund balances - ending $ 3,323 $ - $ - $ ' 127 CITY OF WINTER SPRINGS, FLORIDA TROTWOOD IMPROVEMENT FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 Budgeted Amounts Original Final Revenues: Intergovernmental revenues Investment income Total revenues Expenditures: Capital Outlay Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending Variance with Final Budget - Positive Actual Amounts (Negative) $ 200,000 $ 200,000 $ 200,000 $ - - 386 461 75 200,000 200,386 200,461 75 467,627 473,186 456,280 16,906 467,627 473,186 456,280 16,906 (267,627) (272,800) (255,819) 16,981 - 50,000 33,019 (16,981) - 50,000 33,019 (16,981) (267,627) (222,800) (222,800) - 222,800 222,800 222,800 - $ (44,827) $ - $ - $ r CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2009 129 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) Revenues: Investment income $ 8,000 $ 8,000 $ 5,939 $ (2,061) Total revenues 8,000 8,000 5,939 (2,061) Expenditures: Capital Outlay Physical environment 1,746,218 1,538,245 600,741 937,504 Total expenditures 1,746,218 1,538,245 600,741 937,504 Excess (Deficiency) of Revenues Over Expenditures (1,738,218) (1,530,245) (594,802) 935,443 Other Financing Sources (Uses) Transfers in 200,000 - Total other financing sources and uses 200,000 - Net change in fund balances (1,538,218) (1,530,245) (594,802) 935,443 Fund balances - beginning 1,530,245 1,530,245 1,530,245 - Fund balances - ending $ (7,973) $ - $ 935,443 $ 935,443 129 This page intentionally left blank. U N STATISTICAL SECTION This page intentionally left blank. P U) STATISTICAL SECTION This part of the City of Winter Springs' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall health. Contents An Financial Trends 130 These schedules contain trend information to help the reader understand how the government's financial performance and well -being have changed over time. Revenue Capacity 137 These schedules contain information to help the reader assess the government's most significant local revenue. Debt Capacity 142 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. There are no limitations placed upon the amount of debt the City of Winter Springs may issue by either the City's Charter or the City's Code or by Florida Statutes. Demographic and Economic Information 148 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 150 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This page intentionally left blank. U � CITY OF WINTER SPRINGS, FLORIDA NET ASSETS BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total govern mental activities net assets Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets * $ 8,321 $ 10,108 Fiscal Year $ 11,521 $ 11,763 $ 12,679 $ 12,692 $ 13,039 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * ' $ 19,983 $ 22,686 $ 20,798 $ 26,523 $ 29,401 $ 37,530 $ 39,371 $ 40,701 * - 6,274 6,943 9,730 11,078 8,714 8,778 8,298 * * 16,059 10,019 14,128 9,875 13,666 17,432 14,468 13,794 $ 36,042 $ 38,979 $ 41,869 $ 46,128 $ 54,145 $ 63,676 $ 62,617 $ 62,793 * $ 8,321 $ 10,108 $ 11,361 $ 11,521 $ 11,763 $ 12,679 $ 12,692 $ 13,039 * * 2,778 2,324 2,347 2,500 2,612 2,735 2,814 2,762 * 7,760 8,366 8,912 7,645 9,555 8,721 5,135 3,156 $ 18,859 $ 20,798 $ 22,620 $ 21,666 $ 23,930 $ 24,135 $ 20,641 $ 18,957 ' * $ 28,304 $ 32,794 $ 32,159 $ 38,044 $ 41,164 $ 50,209 $ 52,063 $ 53,740 * 2,778 8,598 9,290 12,230 13,690 11,449 11,592 11,060 * 23,819 18,385 23,040 17,520 23,221 26,153 19,603 16,950 $ 54,901 $ 59,777 $ 64,489 $ 67,794 $ 78,075 $ 87,811 $ 83,258 $ 81,750 Note * Information not available prior to implementation of GASB Statement 34. 130 CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET ASSETS Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Expenses Governmental activities: General government Public safety Physical environment Culture and recreation Interest and other fiscal charges on long -term debt Total governmental activities expenses Business -type activities: Water and Sewer Development Services Stormwater Total business -type activities expenses Program Revenues Governmental activities: Charges for services: General govemment Public safety Physical environment Culture and recreation Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water and Sewer Development Services Stormwater Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total government program revenues Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * * $ 5,177 $ 4,640 $ 5,421 $ 5,786 $ 7,732 $ 8,452 $ 6,857 $ 5,801 * 6,838 7,870 8,703 9,138 10,016 10,726 11,299 7,196 * 2,747 2,765 8,779 5,561 2,038 2,390 5,694 6,281 * 1,629 1,747 1,989 2,265 2,393 2,739 2,511 2,554 * 857 1,404 764 763 709 683 965 959 * 17,248 18,426 25,656 23,513 22,888 24,990 27,326 22,791 * * 5,438 5,508 5,717 6,000 6,239 6,522 7,151 * - 552 744 627 679 860 687 * 529 630 671 974 831 983 1,040 * * $ 5,967 $ 6,690 $ 7,132 $ 7,601 $ 7,749 $ 8,365 833 * * $ 1,793 $ 1,986 $ 1,924 $ 1,985 $ 472 $ 376 $ 2,008 * * 619 664 782 720 1,207 1,054 930 * 1,540 742 721 589 3,485 3,435 4,529 * * 275 337 833 823 949 765 281 * 111 25 5,411 2,177 168 115 208 * * 423 664 2,291 1,962 2,459 6,484 2,628 ' * 4,761 4,418 11,962 8,256 8,740 12,229 10,584 * 5,676 6,142 7,026 7,256 7,837 7,589 7,252 * - 1,539 2 1,324 1,008 2,482 923 573 * * 413 604 577 754 1,149 1,070 1,074 * * - - - 348 69 - - * 522 1,663 2,180 975 1,329 1,176 224 * 6,611 9,948 11,107 10,341 12,866 10,758 9,123 * $ 11,372 $ 14,366 $ 23,069 $ 18,597 $ 21,606 $ 22,987 $ 19,707 7,143 436 $ 2,006 589 3,139 295 41 2,442 8,512 7,339 269 1,063 483 14 9,168 $ 17,680 131 Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2049 Net (expense)lrevenue Governmental activities Business -type activities Total government net expense ' $ (12,487) $ (14,008) $ (13,694) $ (15,257) $ (14,148) $ (12,761) $ (16,742) $ (14,279) * * 644 3,258 3,975 2,740 5,117 2,393 245 (36) * $ (11,843) $ (10,750) $ (9,719) $ (12,517) $ (9,031) $ (10,368) $ (16,497) $ (14,315) General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes Utility taxes Business tax receipts Intergovernmental revenues - unrestricted Investment income and miscellaneous Loss on disposal of capital assets Transfers ' Total governmental activities ' Business -type activities: $ 4,278 $ 5,057 $ 5,653 $ 6,198 $ 7,383 $ 8,266 $ 7,130 * 4,998 4,765 4,807 4,984 5,751 5,841 3,976 3 (2,852) (2,188) - - - - 140 4 * 4,783 5,229 3,243 3,681 3,971 3,752 3,445 3 &4 * 576 462 587 687 1,708 1,619 675 * - (57) - - - - - * 1,152 1,489 2,294 3,967 3,352 2,813 2,189 * 15,787 16,945 16,584 19,517 22,165 22,291 17,555 Investment income and miscellaneous * 180 174 Loss on disposal of capital assets * (210) (4) Transfers {1,152) (1,489) Total business -type activities * (1,182) (1,319) Total government $ 14,605 $ 15,626 $ 5,013 4,106 70 2,960 614 1,691 14,454 141 272 500 625 198 42 (2,294) (3,967) (3,352) (2,813) (2,189) (2,153) (3,695) (2,852) (2,188) (1,991) (1,649) $ 14,431 $ 15,822 $ 19,313 $ 20,103 $ 15,564 $ 12,805 Change in Net Assets Governmental activities * * $ 3,300 $ 2,937 $ 2,890 $ 4,260 $ 8,017 $ 9,530 $ 813 $ 175 Business -type activities * * (538) 1,939 1,822 (955) 2,265 205 (1,746) (1,685) Total government $ 2,762 $ 4,876 $ 4,712 $ 3,305 $ 10,282 $ 9,735 $ (933) $ (1,510) Note Information not available prior to implementation of GASB Statement 34. The increase from prior period was caused by 2004 Hurricanes Charley, Frances & Jeanne, and accrued FEMA reimbursement. Z Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety. a f=ranchise fees were classified as Taxes prior to Fiscal year 2008 and were previously shown as Franchise and utility taxes, which is now Utility taxes. Business tax receipts (formerly known as Occupational licenses) were classified as Licenses and permits prior to fiscal year 2008. 132 CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Business Tax Property Tax Franchise Tax' Utility Tax Receipts 2 Total 2000 3,324 1,402 2,074 - 6,800 2001 3,626 1,587 2,493 - 7,706 2002 4,278 1,595 3,403 - 9,276 2003 5,057 1,304 3,461 - 9,822 2004 5,653 1,360 3,447 - 10,460 2005 6,198 1,480 3,504 - 11,182 2006 7,383 1,919 3,832 - 13,134 2007 8,265 1,921 3,920 - 14,106 2008 7,130 - 3,976 140 11,246 2009 5,013 - 4,106 70 9,189 Fiscal Year Taxes included in Unrestricted Intergovernmental Revenues State Revenue Sales Tax Sharing Other Total 2000 1,908 647 86 2,641 2001 1,919 681 86 2,686 2002 2,128 691 131 2,950 2003 2,134 764 136 3,034 2004 2,258 843 142 3,243 2005 2,447 1,076 158 3,681 2006 2,701 1,123 147 3,971 2007 2,443 1,108 201 3,752 2008 2,261 1,021 163 3,445 2009 1,944 907 109 2,960 Note Franchise fees were classified as taxes prior to fiscal year 2008 2 Business tax receipts (formerly known as Occupational licenses) were classified as licenses and permits prior to fiscal year 2008 133 CITY OF WINTER SPRINGS, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General fund Reserved $ 81 $ 217 $ 54 $ 247 $ 264 $ 372 $ 455 $ 468 $ 301 $ 235 Unreserved 3,242 3,213 4,873 5,563 4,892 5,479 7,802 8,631 8,800 8,544 Total general fund $ 3,323 $ 3,430 $ 4,927 $ 5,810 $ 5,'156 $ 5,851 $ 8,257 $ 9,099 $ 9,101 $ 8,779 All other governmental funds Reserved $ 742 $ 1,945 $ 865 $ 499 $ 874 $ 979 $ 1,058 $ 1,108 $ 1,159 $ 1,141 Unreserved, reported in: Special revenue funds 3,792 3,593 4,105 4,437 4,384 4,794 6,770 6,691 6,647 6,724 Capital projects funds 3,313 4,328 3,009 2,841 2,818 5,664 5,830 3,553 3,852 2,854 Total all other governmental funds $ 7,847 $ 9,866 $ 7,979 $ 7,777 $ 8,076 $ 11,437 $ 13,658 $ 11,352 $ 11,658 $ 10,719 134 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) Revenues Taxes Property Franchise 3 utility Special Assessments 2 General Obligation Business Tax 4 Other Licenses and Permits Franchise Fees 3 Other 4 Intergovemmental' Charges for services Fines and forfeitures Impact feeslassessments Investment income Miscellaneous Total revenues Expenditures General government Public safety Physical Environment Culture and recreation Capital outlay Debt service Principal Interest Payments to escrow agent Other charges Total expenditures Excess of revenues over (under) expenditures Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 209 $ 3,324 $ 3,626 $ 4,278 $ 5,057 $ 5,653 $ 6,198 $ 7,384 $ 8,266 $ 6,912 $ 4,799 1,123 1,253 1,313 1,304 1,360 1,480 1,918 1,921 - - 2,074 2,493 3,403 3,461 3,447 3,504 3,832 3,920 3,976 4,106 523 86 356 299 301 319 552 - - - - - - 329 359 220 212 218 214 - - - - 140 71 279 334 282 - _ - - - - - - - - 1,788 1,924 932 758 1,424 812 932 658 2,221 217 157 67 3,261 3,430 5,317 5,918 5,664 13,021 5,369 7,380 7,111 4,707 1,074 826 2,169 2,307 2,432 2,544 3,493 3,536 3,441 2,955 298 416 330 369 311 296 320 326 318 298 - - - - - - - 1,403 2,131 875 597 598 448 425 343 573 1,218 1,477 521 214 14 131 129 372 244 444 546 170 175 399 13,499 13,951 19,449 20,324 21,016 29,396 26,673 28,828 26,888 20,629 3,039 3,484 4,996 4,611 4,861 5,603 5,035 5,780 6,046 5,804 5,808 6,408 6,616 8,004 8,035 8,639 9,164 10,199 10,671 6,834 1,763 1,924 3,639 4,071 7,993 4,304 3,360 4,060 4,266 4,694 1,201 1,301 1,929 2,635 1,693 1,906 1,978 2,002 2,163 2,112 4,347 1,112 4,910 362 4,752 2,186 4,521 9,801 4,740 2,787 345 654 612 926 1,807 5,898 1,153 911 967 1,091 626 735 856 946 700 771 700 693 665 640 8 88 84 186 17 - - 17,137 15,706 23,642 21,741 29,841 29,307 25,928 33,446 29,518 23,962 (3,638) (1,755) (4,193) (1,417) (8,825) 89 745 (4,618) (2,630) (3,333) 135 Other financing sources (uses) Transfers in Transfers out Refunding bonds issued Bonds issued Premium on bonds issued Discount on bonds issued Payments to refunded bond escrow agent Notes issued Refunding note issued Capital leases Sale of capital assets Total other financing sources (uses) Prior Period Fund Balance Adjustment Net change in fund balances Debt service as a percentage of noncapital expenditures 5,752 6,491 6,336 6,687 8,894 9,733 9,999 10,209 10,620 8,372 (4,999) (5,574) (5,185) (5,198) (6,600) (5,766) (6,647) (7,396) (8,432) (6,680) - - 8,870 2,241 3,400 - - - 106 - - - ( - - - - (8,776) - - - 1,620 - 5,680 430 750 - - - 496 - - - 409 - 100 341 - 2,373 3,158 4,528 2,098 8,470 3,967 3,882 3,154 2,938 1,692 722 (574) 380 $ (1,265) $ 2,125 $ (239) $ 681 $ (355) $ 4,056 $ 4,627 $ (1,464) $ 308 $ (1,261) 8.22% 40.59% 8.54% 9.69 % 11,10% 32.61% 9,48% 7,28% 6.59% 8.21% Note Impact Fees classified as lntergovemmentai Revenue prior to fiscal year 2007. 2 Specia€ Assessments classified as Taxes prior to fiscal year 2007. 3 Franchise fees were classified as Taxes prior to fiscal year 2008 Business Tax receipts (formerly known as Occupational Licenses) were classified as Licenses and permits prior to fiscal year 2008 136 CITY OF WINTER SPRINGS, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Mote ' Source: Seminole County Property Appraiser (www.scpafl.org) z Source: Seminole County Tax Collector (www.seminoletax.org) 137 Real Property Total Total Total Estimated Assessed Fiscal Year Residential and Tax Exempt Taxable Direct Actual Value as a Ended Commercial Residential % Commercial % Personal Centrally Real Assessed Tax Rate Taxable Percentage of September 30, Real Property' Property' Residential Property' Commercial Property Property' Value' 2 Value' Actual Value 2000 1,218,447 1,104,670 90.66% 113,777 9.34% 34,604 36 315,632 937,455 3.5495 1,299,005 72.17% 2001 1,324,355 1,196,041 90.31% 128,314 9.69% 40,568 34 299,567 1,065,390 3.5400 1,395,662 76.34% 2002 1,499,314 1,345,412 89.74% 153,902 10.26% 45,241 30 359,845 1,184,740 3.7708 1,580,947 74.94% 2003 1,642,139 1,473,685 89.74% 168,454 10.26% 43,759 31 418,960 1,266,969 4.1658 1,699,497 74.55% 2004 1,826,180 1,652,632 90.50% 173,548 9.50% 45,709 48 505,952 1,365,985 4.5500 1,916,005 71.29% 2008 2,007,522 1,833,417 91.33% 174,105 8.67% 49,733 55 574,194 1,483,116 4.5500 2,080,192 71.30% 2006 2,331,039 2,088,308 89.59% 242,731 10.41% 58,571 33 728,569 1,661,074 4.7500 2,458,480 67.57% 2007 3,131,636 2,792,826 89.18% 338,810 10.82% 67,509 33 1,195,372 2,003,806 4.4019 3,176,939 63.07% 2008 3,519,584 3,161,336 89.82% 358,248 10.18% 63,154 40 1,362,256 2,220,522 3.3518 3,716,575 59.75% 2009 3,238,332 2,847,791 87.94% 390,541 12.06% 63,531 41 1,292,735 2,009,169 2.5814 3,400,519 59.08% Mote ' Source: Seminole County Property Appraiser (www.scpafl.org) z Source: Seminole County Tax Collector (www.seminoletax.org) 137 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING' GOVERNMENTS Last Ten Fiscal Years 2 Note Source: Seminole County Tax Collector (www.seminoletax.org) ' 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 year taxable value. 3 Fire Assessment fee was billed and City Millage rate was reduced for first and final year. 138 Overlapping Rates' St. John's Winter Springs Seminole County School District Water Debt Debt Total Debt Total Manage- County Fire Total Direct Fiscal Operating Service Totai City Operating Service County Operating Service School men# Protection & Overlap - Year Millage Millage Millage Millage Millage Millage Millage Millage Millage District (MSTU) ping Rates 2000 3.5495 0.0000 3.5495 4.9989 0.1170 5.1159 8.7850 0.7560 9.5410 0.4820 0.0000 18.6884 2001 3.5400 0.0000 3.5400 4.9989 0.1083 5.1072 8.6550 0.6900 9.3450 0.4720 0.0000 18.4642 2002 3.7708 0.0000 3.7708 4.9989 0.2208 5.2197 8.5230 0.6390 9.1620 0.4520 0.0000 18.6145 2003 4.1658 0.0000 4.1658 4.9989 0.2086 5.2075 8.4790 0.5210 9.0000 0.4620 MOOD 18.8353 2004 43000 0.2500 4.5500 4.9989 0.1910 5.1899 8.2410 0.4950 8.7360 0.4620 0.0000 18.9379 2005 4.3000 0.2500 4.5500 4.9989 0.1721 5.1710 8.1270 0.3850 8.5120 0.4620 0.0000 18.6950 2006 4,6126 0.1374 4.7500 4.9989 0.2041 5.2030 7.9650 0.0000 7.9650 0.4620 0.0000 18.3800 2007 4,2919 0.1100 4.4019 4.9989 0.1451 5.1440 7.7530 0.0000 7.7530 0.4620 0.0000 17.7609 20083 3.2496 0.1022 3.3518 4.3578 0.1451 4.5029 7.4130 0.0000 7.4130 0.4158 0.0000 15.6835 2009 2.4714 0.1100 2.5814 4.5153 0.1451 4.6604 7.5430 0.0000 7.5430 0.4158 2.3299 17.5305 Note Source: Seminole County Tax Collector (www.seminoletax.org) ' 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 year taxable value. 3 Fire Assessment fee was billed and City Millage rate was reduced for first and final year. 138 CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Tax Fiscal Year Year Oak Forest Assessments Assessments Billed Collected 4 Tuskawilla Lighting and Beautification (TLBD) - Phase I Tuskawilla Lighting and Beautification (TLBD) - Phase I[ Assessments Assessments Assessments Assessments Difference Billed 2 Collected 1 Difference Billed 2 Collected I Difference 1999 2000 $ - $ - $ - $ 459,438 $ 442,916 $ 16,522 $ - 2000 2001 82,651 79,689 2,962 - 232 (232) - - - 2001 2002 82,225 80,062 2,163 459,090 446,121 12,969 - - - 2002 2003 82,678 78,809 3,869 393,704 376,256 17,448 - 2003 2004 83,344 80,400 2,944 391,976 377,978 13,998 2004 2005 99,595 97,388 2,207 390,204 379,601 10,603 - - 2005 2006 99,595 95,977 3,618 390,204 377,175 13,029 - 94,522 (94,522) 2006 2007 99,595 96,117 3,478 390,017 376,343 13,674 248,710 240,475 8,235 2007 2008 116,075 112,355 3,720 714,414 693,075 21,339 42,341 40,959 1,382 2008 2009 116,237 112,228 4,009 714,371 690,915 23,456 42,324 41,236 1,088 Note i Includes prepayments. 2 Beginning in fiscal year 2008, the TLBD Phase I and 11 maintenance assessment were combined and collected as one assessment. TLBD Maintenance and Phase I Capital are shown in the TLBD Pase 1 program amounts. TLBD Phase 11 amount is capital improvement cost only. Specia[ Assessment Debt Issued: Oak Forest .tune 2000 (Refinanced in June of 2004) TLBD Phase] May 2001 TLBD Phase II February 2006; No assessment levied until Fiscal Year 2007. 139 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2009 (amounts expressed in thousands) 2009 2000 Source: Seminole County Property Appraiser (www.scpafl.org) 140 Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Laurel Oaks LLC $ 37,182 1 1.85% $ - - Courtney Springs LLC 23,053 2 1.15% ~ Capital Green I LLC 21,902 3 1.09% - - Progress Energy Florida Corporation 18,915 4 0.94% 8,241 2 0.91% Winter Springs Holdings, Inc 15,921 5 0.79% - - United Dominion Realty Trust 12,172 6 0.61% 6,438 3 0.71% Levitt & Sons of Seminole County 11,244 7 0.56% - - BRI 1813 Villaggio Co -op Inc. 7,902 8 0.39% - - Baxley Robert & Annmarie TRS 6,559 9 0.33% Vistawilla Office Center LLC 6,328 10 0.31% Golf Terrace, LTD - - 10,964 1 1.21% Hacienda Village Co -op Inc. - - 4,994 4 0.55% Seville Chase Development LTD - - 4,578 5 0.51% OR Horton, Inc. - - 3,465 6 0.38% Time Warner Entertainment - - 3,219 7 0.36% Morrison Homes of Florida, Inc. - - 2,580 8 0.28% Florida Country Clubs, Inc. - 2,422 9 0.27% Southern Bell Telephone - - 2,390 10 0.26% Totals $ 161,178 8,02/v $ 49,291 5.44% Source: Seminole County Property Appraiser (www.scpafl.org) 140 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Total Collections to Date Percentage of Amount Levy 3,336,016 96.60% Collected within the Fiscal Year of the 96A3% 4,332,084 96,97% Levy 95.83% 5,990,000 Fiscal Year 6,557,387 97.17% 7,603,347 Collections in Ended Total Tax Levy 7,156,388 Percentage of Subsequent September 30, for Fiscal Year Amount 2 Levy Years 2000 3,453,596 3,333,199 96.51% 2,817 2001 3,771,445 3,618,281 95.94% 7,288 2002 4,467,419 4,324,807 96.81% 7,277 2003 5,277,940 5,048,670 95,66% 9,160 2004 6,215,233 3 5,982,716 96.26% 7,284 2005 6,748,179 3 6,546,002 97.00% 11,385 2006 7,890,100 3 7,591 ,158 96.21% 12,189 2007 8,820,491 3 8,475,408 96.09% 2,214 2008 7,442,693 3 7,145,070 96.00% 11,318 2009 5,186,450 3 5,028,524 96.96% 14,586 Total Collections to Date Percentage of Amount Levy 3,336,016 96.60% 3,625,569 96A3% 4,332,084 96,97% 5,057,830 95.83% 5,990,000 96.38% 6,557,387 97.17% 7,603,347 96,37% 8,477,622 96.11% 7,156,388 96.15% 5,043,110 97,24% Note Gross taxes before discount of 1 %- 4 %, depending on month paid; Source: Seminole County Property Appraiser (www.sopafl.org) 2 Source: Seminole County Tax Collector (www.seminoletax.org) 3 Includes voted debt service not to exceed .25 mills for Central Winds General Obligation Debt 141 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2009 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. 142 CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Bonded Gross Net Debt to Net Bonded Fiscal Assessed Bonded Less Debt Bonded Assessed Debt per Year Population } Value 2 Debt 3 Service Fund 4 Debt Value Capita 2000 30,860 972,981,000 0.000% - 2001 31,666 1,065,390,000 - - - 0.000% - 2002 32,082 1,184,740,000 3,400,000 23,275 3,376,725 0.285% 105 2003 32,572 1,266,969,000 3,335,000 24,260 3,310,740 0.261% 102 2004 32,955 1,365,985,000 3,270,000 53,373 3,216,627 0.235% 98 2005 33,321 1,483,116,250 3,205,000 46,967 3,158,033 0.213% 95 2006 34,621 1,661,074,000 3,140,000 51,743 3,088,257 0.186% 89 2007 34,899 2,003,805,968 3,070,000 47,572 3,022,428 0.151% 87 2008 34,639 2,220,522,082 3,000,000 46,254 2,953,746 0.133% 85 2009 34,340 2,009,169,114 2,925,000 36,610 2,888,390 0.144% 84 Note i Source: Synergos Technologies Inc.: PopStats at .tune 2008; Previous years statistics may have come from multiple sources including East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research and Metro Orlando Economic Development Commission (www.orlandoedc.com). 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 bonds, which were issued in 2002 143 CITY OF WINTER SPRINGS, FLORIDA RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (dollars in thousands, except per capita) Note: Details regarding the city's outstanding debt can be found in the notes to the Financial Statements: Note 9: Long -Term Debt. ' Information is not available. 1 See Demographic and Economic Statistics for personal income and population data. These ratios are calculated using personal income and population. 2 Amounts do not include accreted Interest Payable for 1999 Improvement Refunding Revenue Bonds and 2000 Water and Sewer Refunding Revenue Bonds 144 Governmental Activities Business -Type Activities Fiscal Year Refunding Special Water and Sewer Percentage Ended Revenue Revenue Limited General Assessment Capital Water and Sewer Refunding Capital Total Primary of Personal September 30, Bonds Bonds Ob€igation Bonds Revenue Bonds Leases Revenue Bonds Revenue Bonds 2 Leases Government Income' Per Capita' 2000 1,980 16,379 - - 97 2,544 20,345 41,341 5.26% $1,340 2001 1,597 16,134 - 2,265 71 - 26,929 - 46,996 $1,484 2002 1,277 15,869 3,400 2,265 44 27,014 212 50,081 $1,561 2003 878 16,044 3,335 2,225 320 26,234 142 49,178 $1,510 2004 5.861 15,654 3,270 2,180 206 25,429 64 52,664 $1,598 2005 734 15,094 3,205 2,135 104 24,594 - 45,866 $1,376 2006 479 14,504 3,140 2,427 100 23,724 44,374 4.53% $1,282 2007 439 13,884 3,070 2.354 333 - 22,829 42,909 4.42% $1,230 2008 1,125 13,234 3,000 2,276 228 - 21,884 41,747 4.06% $1,205 2009 1,011 12,554 2,925 2,165 117 20,904 39,676 3.77% $1,155 Note: Details regarding the city's outstanding debt can be found in the notes to the Financial Statements: Note 9: Long -Term Debt. ' Information is not available. 1 See Demographic and Economic Statistics for personal income and population data. These ratios are calculated using personal income and population. 2 Amounts do not include accreted Interest Payable for 1999 Improvement Refunding Revenue Bonds and 2000 Water and Sewer Refunding Revenue Bonds 144 CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2009 (amounts expressed in thousands) Governmental Unit Overlapping Debt: Estimated Estimated Share of Percentage Overlapping Debt Outstanding Applicable 1 Debt Seminole County General Obligation Debt $ 16,270 6.35% $ 1,033 Subtotal, overlapping debt Direct Debt: City of Winter Springs General Obligation Debt 2 2,925 100% 2,925 Total direct and overlapping debt $ 19,195 $ 3,958 Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 4 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 The City of Winter Springs has a 'limited" general obligation bond that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. 145 CITY OF WINTER SPRINGS, FLORIDA PLEDGED- REVENUE COVERAGE Last Teri Fiscal Years General Government 2,074,285 1,123,082 Federal - - - 442,916 Emergency Impact Fees Budget & 3,800,283 Management (Fire, Police, Non -Ad Appropriate Total Public Electric Agency Public Recreation and Valorem Medical (General Fund Revenue Maximum Fiscal Year Service Franchise Half -Cent General Assistance Public Special Transport and Water & Available for Annual Debt Ended Sept 30, Taxes Tax Sales Tax Obligation Grants Facilities) Assessments Revenue Sewer Fund) [Debt Service Service Coverage 2000 2,074,285 1,123,082 160,000 - - - 442,916 - - 3,800,283 1,405,632 2.70 2001 2,492,952 1,253,696 160,000 79,921 61,488 173,335 4,221,392 1,775,599 2.38 2002 3,403,121 1,251,069 160,000 _ 526,183 61,483 173,315 5,575,171 2,083,590 2.68 2003 3,460,992 1,275,670 160,000 - - - 455,065 61,485 173,313 5,586,525 2,144,039 2.61 2004 3,446,874 1,322,280 160,000 328,668 - 328,143 458,378 76,487 339,685 6,460,515 2,417,562 2.67 2005 3,504,158 1,436,996 160,000 358,960 7,127,760 165,203 476,989 - 13,231,066 6,858,968 1.93 2005 3,831,569 1,775,460 160,000 219,736 - 518,072 567,674 - 7,072,511 2,038,741 3.47 2007 3,919,603 1,759,245 160,000 212,077 - 3 - 712,935 30,000 6,793,863 1,751,594 3.88 2008 3,975,766 1,748,477 160,000 217,872 - 846,389 60,000 7,008,504 1,828,176 3.83 2009 4,105,959 1,823,706 160,000 213,629 - 844,379 60,000 7,207,673 2,615,188 2.76 146 CITY OF WINTER SPRINGS, FLORIDA PLEDGED - REVENUE COVERAGE Last Ten Fiscal Years 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. z "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 Data has been restated 147 Water Revenue Bonds Debt Service Requirements Revenue Fiscal Year Gross Operating Available Ended Sept 30, Revenues' E=xpenses Z for Debt Principal Interest Total Coverage 2000 6,078,294 3,191,228 2,887,066 750,000 1,397,292 2,147,292 1.34 2001 6,176,985 3,438,641 2,738,344 930,000 1,383,337 2,313,337 1.18 2002 5,854,262 3,840,397 2,013,865 420,000 1,251,116 1,671,116 1.21 2003 6,309,545 3,992,489 2,317,056 780,000 1,046,997 1,826,997 1.27 2004 7,152,358 4,968,307 2,184,051 805,000 1,020,472 1,825,472 1.20 2005 7,497,904 4,862,108 2,635,796 835,000 1,006,910 1,841,910 1.43 2006 8,257,218 4,888,390 3,368,828 870,000 980,427 1,850,427 1.82 2007 8,084,483 5,163,896 2,920,587 895,000 944,302 1,839,302 1.59 2008 7,415,100 5,365,172 2,049,928 945,000 909,661 1,854,661 1.11 2009 7,376,924 5,298,633 2,078,291 980,000 871,309 1,851,309 1.12 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. z "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 Data has been restated 147 CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Data not available Note ' Source: Metro Orlando Economic Development Commission (www.orlandoedc.com) 2 Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics (data.bls.gov) - Rate for "Orlando" Metropolitan area M; Personal Education Income Level in (amounts Years of expressed in Per Capita Median Formal School Unemploy- Fiscal Year Population thousands) Personal Income' Age' Schooling' Enrollment 2 ment Rate 3 2000 30,860 785,726 25,461 37.2 13.68 5,776 3.0% 2001 31,666 * 6,421 3.5% 2002 32,082 " * 6,508 5.8% 2003 32,572 * " 7,413 5.3% 2004 32,955 * 7,476 4.6% 2005 33,321 * * * * 7,492 3.8% 2006 34,621 979,428 28,290 39.3 13.97 7,342 3.2% 2007 34,899 971,623 27,841 39.8 13.93 7,115 3.6% 2008 34,639 1,028,951 29,705 40 1172 6,804 5.0% 2009 34,340 1,053,173 30,669 403 13.72 6,754 9.7% Data not available Note ' Source: Metro Orlando Economic Development Commission (www.orlandoedc.com) 2 Source: Seminole County Public Schools 3 Source: US Department of Labor, Bureau of Labor Statistics (data.bls.gov) - Rate for "Orlando" Metropolitan area M; CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago Total 2,616 51.29% * Data not available Note ' Per telephone survey of major local businesses 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 4500 FTEs with approximately 647 business establishments as of June 2009. 149 2009' 2000 Percentage z Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Seminole County School Board 1,775 1 34.80% * " City of Winter Springs 234 2 4.59% * " Dearborn Electronics 130 3 2.55% Publix (Winter Springs Town Center) 115 4 2.25% * " Tuscawilla Country Club 113 5 2.22% " Modern Plumbing 80 6 1.57% " United States Post Office 48 7 0.94% " Dittmer Architectural Aluminum 44 8 0.86% " Longwood Kia /Mitsubishi 40 9 0.78% The Grove Counseling Center 37 10 0.73% Total 2,616 51.29% * Data not available Note ' Per telephone survey of major local businesses 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 4500 FTEs with approximately 647 business establishments as of June 2009. 149 CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Note Data not available 1 Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety: Community Development - Building. 2 Police civilians include Emergency communications center operations personnel. 3 FTEs - Full -time Equivalent Units; this statistic replaces part -time employee count starting in Fiscal Year 2005 and these units are included in the appropriate function totals for FY 2005 - 2009. 4 Department was consolidated 10/02/08 with Seminole County Fire Department 150 Full -time Equivalent Employees as of September 30, Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 Development Services' 6 6 8 8 10 10 10 10 5 General Government 36 38 36 37 41 44 44 44 45 Public Safety: Police Sworn Officers 54 59 59 64 64 70 70 70 70 Non sworn officers - - 0 0 0 0 0 Civilians 2 20 20 20 20 20.75 20.75 20.75 20.75 20.75 Fire" Firefighters and officers 38 41 49 50 50 51 51 51 0 Civilians 1 1 1 2 2 2 2 2 0 Public Works 21 22 21 23 23 21 21 21 21 Culture and Recreation 20 19 20 21 32.34 33.67 35.78 36.63 34.07 Utilities 35 36 35 40 42 42 43 45 45 Stormwater 5 6 7 7 7 9 9 9 9 Total 236 248 256 272 292.09 303.42 306.53 309.38 249.82 Part -time Employees 24 24 23 " Part -time FTEs 3 11.09 12.42 14.53 15.38 16.32 Note Data not available 1 Prior to fiscal year 2003, Development Services was included in Governmental activities: Public Safety: Community Development - Building. 2 Police civilians include Emergency communications center operations personnel. 3 FTEs - Full -time Equivalent Units; this statistic replaces part -time employee count starting in Fiscal Year 2005 and these units are included in the appropriate function totals for FY 2005 - 2009. 4 Department was consolidated 10/02/08 with Seminole County Fire Department 150 CITY OF WINTER SPRINGS, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years Function Police Auto accidents Physical arrests Criminal investigations conducted Total calls for service 911 calls received Evidence processed (pieces) Fire' Public education programs Number of emergency calls answered Medical transports Highways and streets Streets paved (mi €es) Streets resurfaced (square yards) Sidewalks /bike paths built or repaired (feet) Culture and recreation Games - BasebalVSoftball Games - Basketball Games - Football Games - Soccer Senior Activities Civic Center & Pavilion Rentals Program Events Fiscal Year 2000 2001 2002 2003 386 383 442 495 508 505 530 444 546 404 882 966 640 588 627 1,128 1,633 1,582 1,708 1,928 454 614 552 437 450 591 551 291 357 464 30,336 30,457 47,550 76,958 83,290 91,904 107,074 125,789 142,202 133,527 5,874 6,077 6,OB7 5,506 5,786 6,931 5,174 5,781 5,248 4,937 * ` * 2,396 2,068 2,436 1,820 1,721 2,221 188 147 136 118 65 61 53 118 56 NIA 2,965 3,264 3,129 2,898 3,426 3,258 3,261 3,338 3,345 NIA 1,011 1,026 1,089 1,008 1,146 1,126 1,159 1,284 1,300 NIA * 0.03 0.36 0.99 0.85 0.00 0.00 0.57 0.00 0.04 39,329 37,778 51,132 40,658 44,257 44,945 23,925 35,537 72,400 43,018 3,932 4,323 3,226 2,345 5,371 3,834 4,159 22,112 5,134 4,486 ` * 1,502 1,643 1,565 1,468 1,521 652 644 606 599 371 ` * * 286 285 298 271 222 1,029 4,010 945 970 1,005 * 817 769 753 899 4,654 1,154 898 1,108 ` 196 245 267 319 379 379 362 x 312 345 312 310 221 205 240 2004 2005 2006 2007 2008 2009 151 Water NEW connections Number of customers Water main breaks Average daily consumption (gallons /per capita) Meter reads Community Development Total permits issued Building inspections Business tax receipts issued Land use amendments & rezonings Permits files createdfreviews initiated General Government Personnel actions processed Worker's Comp Injuries Legal notices published Payroll - Checks Payroll - Direct Deposit Receipts deposited A/P checks issued Purchase orders /EPO's processed 355 156 204 11,921 12,136 11,316 « 125 114 110 1,997 1,773 2,182 3,746 4,378 7,703 S S S 7 11 8 225 29 35 35 * * 4,013 « x 2,969 5,331 Note * Information not available Department was consolidated with Seminole County Fire Department effective 10/02/08 198 132 260 279 179 19 13 12,066 11,903 12,104 12,444 12,514 12,706 12,802 * 6 6 16 13 13 21 106 115 108 126 125 115 1103 x * * 171,167 174,604 175,478 2,846 2,834 4,217 2,805 2,405 2,741 2,808 16,651 16,869 16,669 15,574 9,473 7,278 4,931 * 1,944 1,135 942 14 16 12 4 23 5 9 ' 2,545 3,349 3,408 290 315 360 332 637 500 609 * 14 40 32 41 46 25 * * * 38 41 22 3,493 1,411 301 275 312 337 220 3,795 5,941 7,311 7,524 7,592 7,557 6,210 * 169,556 182,195 192,439 185,716 202,307 186,401 7,975 7,929 7,768 7,914 7,460 7,014 8,829 5,669 6,227 5,737 5,412 5,205 4,772 3,930 152 CITY OF WINTER SPRINGS, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2006 2009 Function Public safety Police: Stations 1 1 1 1 1 1 1 1 1 2 Fleet I • • 75 75 75 79 Fire stations' 2 2 2 2 3 3 3 3 3 3 Highways and streets Streets - paved (miles) 91.90 91.91 92.27 93.26 94.11 94,11 94.11 95.32 95.32 95.32 Streets - unpaved (miles) 6.70 6.67 7.10 7.25 6.40 6.40 7.16 6.40 6.40 6.40 Streetlights ` 1,884 1,901 2,095 2,158 2,158 2,300 Traffic signals 7 7 7 8 9 9 10 10 10 10 Culture and recreation Park acreage 228 255 267.20 267.70 267.70 267.70 267.70 267.70 267.70 Parks - Community 2 5 5 5 5 5 5 6 6 6 Parks - Neighborhood 6 6 6 6 7 7 7 7 7 7 Senior Center 1 1 1 1 1 1 t 1 1 1 Community Center 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles) 143.0 144.3 144.7 150.1 155,1 158.9 160.4 161.7 167.6 167.6 Fire hydrants 880 882 914 929 931 964 975 995 1,000 1,600 Maximum daily capacity (millions of gallons) 12 12 12 12 12 12 12 12 12 12 Deep Wells 7 7 7 7 7 7 8 8 8 8 Sewer Sanitary sewers (miles) 99.80 100.20 100.50 103.31 105.27 106.97 108.30 108.90 135.50 111,57 Storm sewers (miles) ' 91.01 91.56 91.56 91.56 Treatment facility capacity ( millions of gallons) 4112 4.212 4.212 4.212 4.212 4.212 4.212 4,212 4.212 4.212 Current average flow (millions of gallons) 1.813 2,179 2.179 2.343 2.285 2.297 2.243 2,209 2.198 2.142 Note Information not avai #able ' Seminole County is leasing stations per Consolidation Agreement 153 OTHER REPORTS This page intentionally left blank. o� sJ4 'A U � `t R A 1VICDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 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 the financial statements of City of Winter Springs, Florida, as of and for the year ended September 30, 2009, and have issued our report thereon dated February 19, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial„ Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management of employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City's financial statements that is more than inconsequential will not be prevented or detected by the City's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and accordingly would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses, We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 3280 i TELEPHONE 407 -843 -5406 • FAX 407 -649 -9339 • EMAIL: INFO @MCDIRMITDAVIS.COM MI YU4FR : PRIVATE CONIPANIES PRACTICE SE('TU,N • AMERI('AN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA SNSTITUTE OF CERTIFIED PCULK ACCOUNTANTS 154 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the City of Winter Springs in a separate letter dated February 19, 2010. They City's response to our findings identified in our audit is included in this report. We did not audit the City's response, and accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the City Commission and the Auditor General of the State of Florida, and is not intended to be, and should not be used by anyone other than these specified parties. February 19, 2010 155 MCDIRMIT'/// DAvis CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 The Honorable Mayor and City Commissioners City of Winter Springs, Florida Compli We have audited the compliance of the City of Winter Springs, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement, that are applicable to the major federal program for the year ended September 30, 2009. The City of Winter Springs's major federal program is identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal programs are the responsibility of the City of Winter Springs, Florida management. Our responsibility is to express an opinion on the City of Winter Springs, Florida compliance based on our audit. 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 OMB Circular A -133, Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Winter Springs, Florida compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Winter Springs, Florida compliance with those requirements. In our opinion, the City of Winter Springs, Florida, complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended September 30, 2009. MCDIRMIT DAVIS & COMPANY, L LC 605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801 TELEPHONE 407 - 843 -5406 • FAX 407- 649 -9339 • EMAIL: INFO@ MCDIRMITIDAVIS.COM Mr.mmRS: PRSYATL COMPANIES PRACTICF. • AMERICAN INSTITUTE nF Crpi , FrrED PIiFlI.IC ACCOUNTANTS • FLORSDA INSTITLTE OF CURTLFIED PVBLLC ACCOUNTANTS 156 Internal Control Over Compliance The management of the City of Winter Springs, Florida is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Winter Springs, Florida internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion of the effectiveness of the City of Winter Springs, Florida's internal control over compliance. A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management of the City, the Auditor General of the State of Florida and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties. February 19, 2010 157 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2009 Federal Grantor /Pass- through Grantor /Program Title Federal Awards U.S. Department of Agriculture: Natural Resources Conservation Service* Federal Reimbursable CFDA No. Grant Number Expenditures 10-904 69- 4209 -8 -1680 $302,680 69- 42099 -1705 171,627 474,307 U.S. Department of Homeland Security: FEMA Disaster Grant U.S. Department of Justice: Passed through Florida Department of Law Enforcement: Edward Byrne Justice Assistance Grant Total Federal Awards Denotes a major program 97.036 - 22,899 16.738 10,803 158 CITY OF WINTER SPRINGS, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2009 Note 1 - . Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Winter Springs, Florida and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A -133 and Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 159 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30, 2009 A. Summary of Audit Results 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of Winter Springs, Florida. 2. There were no significant deficiencies relating to the audit of the financial statements reported in the 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. 3. No instances of noncompliance material to the financial statements of the City of Winter Springs, Florida were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award program are reported in the Report on Compliance with Requirements Applicable to Each Major Federal Program and On Internal Control Over Compliance in accordance with OMB Circular A -133. 5. The auditor's report on compliance for the major federal award for the City of Winter Springs, Florida, expresses an unqualified opinion. 6. Audit findings relative to the major federal award program for the City of Winter Springs, Florida are reported in Part C of this schedule. 7. Major federal program identified on the Schedule of Expenditures of Federal Awards is as follows: Federal Programs CFDA No. U. S Department of Agriculture 10.904 8. The threshold for distinguishing Type A and Type B programs /projects is $300,000. 9. The City of Winter Springs, Florida did not qualify as a low risk auditee. B. Findings - Financial Statement Audit None reported. C. Findings and Questioned Costs -Major Federal Awards Programs and State Projects None reported. 160 MCDIRMIT /// DAvis CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS MANAGEMENT LETTER Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements of the City of Winter Springs, Florida, as of and for the fiscal year ended September 30, 2009, and have issued our report thereon dated February 19, 2010. We conducted our audit in accordance with United States generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. We have issued our Report on Internal Control over Financial Reporting and on Compliance and Other Matters, as well as the Report on Compliance with Requirements Applicable to each Major Federal Program and Internal Control over Compliance in Accordance with OMB Circular A -133, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedules, which are dated February 19, 2010 should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida, and unless otherwise required to be reported in the report on compliance and internal controls, this letter is required to include the following information. • Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. The recommendations made in the preceding annual financial audit report have been corrected, as detailed in the accompanying pages. • Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the City of Winter Springs, Florida complied with Section 218.415, Florida Statutes. • Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we have some comments, which are discussed in the accompanying page. • Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of contracts and grant agreements or abuse that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. MCDIRMIT DAVIS & COMPANY, LLC 605 E. RowNSON STREET, SUITE 635.ORLANDO, FLORIDA 32801 TELEPHONE 407 -843 -5406 • FAx 407- 649 -9339 • EMAIL: INFO@MCDIRMITDAVIS.COM R1PN9FAS: PRIVATE COMPANIES PRACTICF' SF.CFFUN • AmE.RICAN INSTITUTE OF CERTIFIED PosI.IC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PVBLIC ACCOUNTANT$ 161 Section 10.554(1)(i)5., Rules of the Auditor General, requires based on professional judgment, the reporting of the following matters that are inconsequential to the financial statements, considering both quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions or abuse that have occurred, or were likely to have occurred, and would have an immaterial effect on the financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the financial statements; and (3) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6., 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. Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of Winter Springs, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the City of Winter Springs, Florida for the fiscal year ended September 30, 2009, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2009. We determined that these two reports are in agreement. Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply financial condition assessment procedures. In connection with our audit, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity'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. This management letter is intended solely for the information of the City of Winter Springs, Florida and management, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. I� I► February 19, 2010 162 CITY OF WINTER SPRINGS, FLORIDA COMMENTS AND RECOMMENDATIONS US OF PRIOR YEAR COMMENT Year Ended September 30, 2009 1. Appropriations in Excess of Funds Available Appropriations for the Road Improvements Special Revenue Fund and Hazard Mitigation Capital Projects Fund were in excess of anticipated revenue and prior years' fund balance Recommendation Procedures should be in place for annual budget amendments where appropriations do not exceed anticipated revenue and prior years' fund balance. Corrective Action City has corrected procedures and properly amended budgets. 163 CITY OF WINTER SPRINGS, FLORIDA COMMENTS AND RECOMMENDATIONS CURRENT YEAR COMMENTS Year Ended September, 30, 2009 1. Segregation of Duties Over Payroll Processin We noted that the same person inputs employee hours worked, prints payroll reports, sends payroll information to the bank for disbursement, and has ability to change employee pay rates in the system without review of detailed payroll registers. Recommendation We recommend that the finance director run an audit report in the system to verify that the only changes to pay rates are authorized by Human Resources. We also recommend that a second employee verify that the employees' time entered into the system equals the time cards submitted. Finance director should review payroll register prior to submittal to the bank. 164 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE= ROAD 434 WINTER SPRING$, FLORIDA 32708 -2799 Telephone (407) 327 -9840 March 22, 2010 McDirmit, Davis & Company, LLC 605 E. Robinson Street, Suite 635 Orlando, Florida 32801 Dear Sir or Madam: Your management comment related to fiscal year ended September 30, 2009 was well received by both the City Manager and the f=inance Department. The comment represents an opportunity for improvement to be pursued during fiscal year 2010. Below is our response to your management comment as required by the Rules of the Auditor General of the State of Florida. Segregation of duties over payroll processing As mentioned in your Management Letter the payroll accountant inputs employee hours worked, prints payroll reports, sends payroll Information to the bank for disbursement and has ability to change employee pay rates in the system without review of detailed payroll registers. The auditor recommendation is to have the Finance Director run an audit report in the system to verify that the only changes to pay rates are those that have been authorized by Human Resources. It was further recommended that a second employee verify that time entered into the system reflects the submitted time cards and that the Finance Director should review payroll register prior to submission to the bank. Due to the City's relative small scale, management acknowledges that segregation of duties represents a challenge. It has been determined that an exception report will be developed and implemented in order to identify pay rate changes from one pay period to the next. The veracity of all such changes will be authenticated by Human Resources. Furthermore, a software initiative known as Munis Employee Self Service Is currently being pursued. It includes a Time and Attendance module which will serve to decentralize the Input of employee hours worked. Training is anticipated for the April 2010 timeframe with a June 2010 Implementation date. The approval process related to `time card' submission will be designed to ensure that the time entered into the system reflects that which was submitted to the payroll accountant. Sincerely, Kevin Smi h K y City Manager Intnce Director 165 MCDIRMIT //f DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS Honorable Mayor and City Commissioners City of 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 for the year ended September 30, 2009. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and OMB Circular A -133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 1, 2009. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings 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 of Winter Springs, Florida are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2009. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred, except for the prior period adjustment for impact fee credits discussed in Note 2 to the financial statements. 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 are 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 statement were: Management's estimate for the allowance for doubtful account is based on historical loss levels, and an analysis of the individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate for the allowance for depreciation is based on the estimated useful lives of the capital assets. We evaluated the reasonableness of the useful lives as well as the depreciation methods in determining that it is reasonable in relation to the financial statements taken as a whole. MCDIRMIT DAMS & COMPANY, LLC 605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801 TELEPHONE 407 - 843 -5406 • FAX 407- 649 -9339 • EMAIL: INFO @MCD]RMITI)AVIS.COM MOARE.RS: PRIMM COMPANIES PRACTICE. SFCTION • AkILRICAN INSTITL M Or CERTrFIFD PI;B(.I(' ACCOUNT, 7NTS • FLORIDA INSTITUTE OF CERTIFIED PvBuc ACCOUNTANTS 166 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole, except for the prior period adjustment for impact fee credits discussed in Note 2 to the financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as 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 February 19, 2010. 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 governmental unit'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 governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of management, the City Commission and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, mmmm��� ==� February 19, 2010 167 CITY OF WINTER SPRINGS, FLORIDA 1126 FAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708 -2799 Telephone (407) 327 -1800 March 22, 2010 AFFIDAVIT OF IMPACT FEE COMPLIANCE Impact Fees are assessed in accordance with Chapter 9: Land Development, Article Vlll Impact Fees, of the City of Winter Springs Code of Ordinances. impact fee collections, expenditures and accounting are provided for in separate accounting funds and comply with Florida Statute 163.31801. Kelly Ba agia Interim Finance Director .: This page intentionally left blank. � cn U . �L Di