Loading...
HomeMy WebLinkAbout2006 03 27 Regular Item 300 Comprehensive Annual Financial Report COMMISSION AGENDA ITEM 300 CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X March 27,2006 Meeting MGR / DEPT. Authorization REQUEST: The Finance Department is requesting City Commission acceptance of the Comprehensive Annual Financial Report (CAFR), as presented, for the fiscal year ended September 30,2005. PURPOSE: The presentation by the City Auditors of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2005. CONSIDERATIONS: The CAFR is prepared to give the City Commission and the citizens a greater understanding of the City's financial standing than can be obtained through the financial statements. RECOMMENDATION: Acceptance of the CAFR, as presented, for the fiscal year ended 9/30/05, by the City Commission. ATTACHMENTS: Comprehensive Annual Financial Report for the fiscal year ended 9/30/05 including the audited financial statements and the audit opinion. COMMISSION ACTION: City of Winter Springs Florida Comprehensive Annual Financial Report For the Year Ended September 30, 2005 - City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30,2005 Prepared by: Finance Department This page intentionally left blank. INTRODUCTORY SECTION This section contains the following subsections: · Table of Contents · Letter of Transmittal · GFOA Certificate of Achievement · List of Principal Officers · Organizational Chart This page intentionally left blank. CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2005 I. Introductory Section: Table of Contents Letter of Transmittal GFOA Certificate of Achievement List of Principal Officials Organizational Chart II. Financial Section: Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Public Service Tax Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Emergency and Disaster Relief Services Special Revenue Fund Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements Required Supplementary Information PaQe i-iii iv-vii viii ix x 1-2 3-16 17 18 19 20 21 22-23 24 25 26-27 28 29-30 31 32 33-58 59 III. CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - Continued Year Ended September 30, 2005 II. Financial Section - Continued: Combining and Individual Fund Statements and Schedules: Major Governmental Fund: Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual: TLBD Debt Service Fund Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds Debt Service Funds Capital Project Funds Capital Assets Used in the Operation of Governmental Funds: Schedule by Function and Activity Statistical Section: Government-Wide Information: Government-Wide Expenses By Function Government-Wide Revenues Fund Information: General Governmental Expenditures by Function General Governmental Revenues by Source Property Tax Levies and Collections Assessed and Estimated Value of Taxable Property, Net of Exemptions Property Tax Rates, Direct and Overlapping Governments Schedule of Ten Largest Taxpayers Special Assessment Billings and Collections Legal Debt Margin Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt To Total General Governmental Expenditures Computation of Direct and Overlapping General Obligation Debt Revenue Bond Coverage, Water and Sewer Bonds Demographic Statistics Property Values and Construction Miscellaneous Statistical Data ii Paqe 60 61-66 67-73 74-90 91-95 96-101 102 1 03-1 04 1 05-1 06 107-108 1 09-11 0 111 112-113 114 115 116 117 118 119 120 121 122 123 124 CITY OF WINTER SPRINGS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - Continued Year Ended September 30, 2005 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 Report on Compliance with Requirements Applicable to the Major Program and Internal Control over Compliance in Accordance with OMS Circular A-133 Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs - Federal Awards Management Comments and Responses iii Paqe 125-126 127-128 129 130 131 132-135 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 March 15,2006 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, 2005. 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 benefits, 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, we assert that, to the best of our knowledge and belief, 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, 2005, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was a reasonable basis for rendering an unqualified opinion that the City of Winter Springs' financial statements for the fiscal year ended September 30, 2005, 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 complement this letter of transmittal and should be read in conjunction with it. iv 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 areas in the country. The City currently has a land area of 14.78 square miles and a population of approximately 33,300. The City operates according to a Council/Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four-year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City's Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day-to-day operations of the government, and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police and fire 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 Development Services, 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 of Winter Springs' fiscal year. The appropriated budget is prepared by fund (e.g., general fund), department (e.g., fire department) and division (e.g., prevention division). 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 Service Tax Fund, and the Emergency and Disaster Relief Fund, these comparisons are presented on pages 22-25 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 60. 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. The City's total assessed valuation for real and personal property (net of exemptions) increased 8.6% from the prior year and 109.4% since fiscal year 1995. The increase in valuations and millage resulted in an increased total tax levy of $532,946 over last year and $4,082,753 since 1995. The City's population has increased 30% from that of ten years ago. Local indicators still point to a continued trend of growth as the City works with builders, developers and residents for both commercial and residential development. This increased v growth helps the City maintain a moderate property tax rate, which was at 4.5500 mills during fiscal year 2005 (tax year 2004) and includes 0.2500 mills of voted debt service for Central Winds General Obligation debt. Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) during fisGal year 2004. 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 fixed document but a flexible, dynamic document that may change to reflect changing priorities, opportunities, costs, or different financing approaches. Relevant Financial Policies. The City has a policy to maintain at all times an Unreserved General Fund 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 fund balance may be authorized by the Commission for a General Fund purpose which may potentially reduce the Unreserved General Fund 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. Major Initiatives. During fiscal year 2006, the City anticipates the following projects: · begin construction of the Public Works/Utilities Compound of approximately 33,000 square feet and a total price of $3,968,325. Construction is expected to take 15 months; · begin expansion of City Hall by approximately 5,000 square feet and a total price of $934,500. Construction is expected to take 9 months; · begin year two of a three year Records Management Project for public records documents and research; · begin working with FEMA on closing out approximately $7.4 million of project worksheets relating to 2004 Hurricanes Charley, Frances and Jeanne; · complete a compensation study to update pay classifications and ranges; · begin year two of a four year Pension Plan enhancement program, by adding 1.5% to the employer contribution to reduce the amortization period from 30 years to 15 years as well as adding a 1.0% retroactive benefit for service prior to October 1, 2000; and, · consider potential funding for Phase II of the Town Center project with James Doran and Company. Awards and Acknowledgements 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, 2004. This was the fifth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. vi 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's requirements and we will be submitting it to the GFOA to determine its eligibility for a certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the finance department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. 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 unfailing support for maintaining the highest standards of professionalism in the management of the City of Winter Springs' finances. Respectfully submitted, Ronald W. McLemore City Manager Michelle Greco, CPA Finance Director vii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30,2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director viii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2005 ELECTED OFFICIALS MAYOR DEPUTY-MAYOR/COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER APPOINTED OFFICIALS CITY MANAGER CITY CLERK FINANCE DIRECTOR INFORMATION SERVICES GENERAL SERVICES POLICE CHIEF FIRE CHIEF UTILITY/PUBLIC WORKS DIRECTOR COMMUNITY DEVELOPMENT DIRECTOR PARKS AND RECREATION DIRECTOR LEGAL COUNSEL Anthony Garganese Brown, Garganese, Weiss & D'Agresta, P.A. FINANCIAL ADVISOR David Moore Public Financial Management AUDITORS McDirmit, Davis & Company, LLC ix John F. Bush Michael S. Blake Donald Gilmore Joanne Krebs Sally McGinnis Robert S. Miller Ronald McLemore Andrea Lorenzo-Luaces Michelle Greco Joanne Dalka Vacant Daniel Kerr Timothy Lallathin Kipton Lockcuff Randy Stevenson Chuck Pula City of Winter Springs Organizational Chart Citizens of Winter Springs Mayor and City Commission Advisory Boards City Manager City Attorney City Clerk Information Services Finance Director, Community Development Director, Fire Chief, Police Chief, Public Works/Utility Director, Parks & Recreation Director,General Services Director -Administration - Accounting -Debt Mgt. -Treasury Mgt. - Meter Svc. -Budgeting - Administration - Administration -Comp Plannning - Fire/Rescue -Land Mgt. -Fire Prevention -Permit & Insp. -EMS -Urban Beautification - Administration - Administration -Records -Stormwater -Communications -Transportation -Patrol -Engineering - Investigations - Water Mgt. -Code Enforcement Water Wastewater - Administration - Administration -Civic/Senior - HR -Parks/Field Mnt. -Risk Mgt. - Athletics - Purchasing -Rec. Programs -Concession Svc. *The City Manager is appointed by the Commission. *The City Clerk 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 City Commission and work under the direction of the City Commission. x This page intentionally left blank. FINANCIAL SECTION This page intentionally left blank. MCDIRMIT III DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT The 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, 2005, 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 business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of September 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the general fund, the public service tax special revenue fund, and the emergency and disaster relief services 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. SUTE 635' ORLA'-'DO, FLORIDA 32801 TELEPHONE 407-843-5406. FAX 407-649-9339 . EMAIL: INFO@MCDIRMITDAVIS.COM 1 In accordance with Government Auditing Standards, we have also issued a report dated January 6, 2006 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 is not a required part of the basic financial statements but is 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 nonmajor 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, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of the City of Winter Springs, Florida. The combining and individual non major fund financial statements and schedules and the schedule of expenditures of federal awards 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. McDirmit Davis & Company LLC January 6, 2006 2 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, 2005. 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 $67,793,519 (net assets). Of this amount, $17,519,249 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. · The government's total net assets increased by $3,304,965 or almost 5%. · As of the close of the current fiscal year, the City of Winter Springs' governmental funds reported combined ending fund balances of $17,287,668. Approximately 92% of this total amount, or $15,936,656, 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 $5,479,342, or 32% of total general fund expenditures. · The City of Winter Springs' total debt decreased by $6,889,399 (13%) during the current fiscal year. The decrease was the result of principal payments on existing debt. · The City received $7,127,760 in reimbursements for the Emergency and Disaster Relief Fund from the Federal Emergency Management Agency (FEMA) and the State of Florida (State) for much of the expense related to the 2004 hurricane season. At September 30,2005 a total of $8,058,181 in expenses have been charged to this fund. The City borrowed $5,000,000 on September 30, 2004 to cover these costs in anticipation of reimbursement from FEMA and the State and the loan was paid off on August 22, 2005. 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 is 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 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 3 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, 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 has no component units. The Water and Sewer Utility, the Stormwater Utility and Development Services function as departments of the City of Winter Springs, and therefore have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 17-18 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Winter Springs maintains 32 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 Service Tax Special Revenue Fund, Emergency and Disaster Relief Special Revenue Fund and TLBD Debt Service Fund, all four of which are considered to be major funds. Data from the other 28 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. 4 The City of Winter Springs adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison statements have been provided for the General Fund, the Public Service Tax Special Revenue Fund, and the Emergency and Disaster Relief Special Revenue Fund to demonstrate compliance with this budget on pages 22-25. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund and the nonmajor funds on pages 60-101. The basic governmental fund financial statements can be found on pages 19-25 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, Storm water Utility and Development Services department. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility and Development Services. The basic proprietary fund financial statements can be found on pages 26-30 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City 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 31- 32 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 33-58 of this report. Required Supplementary Information (RSI). RSI can be found on page 59 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 60-101 of this report. Government-wide Financial Analvsis 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 $67,793,519 at the close of the most recent fiscal year. Slightly over half ($38,043,689 or 56%) 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. 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 5 $12,230,581 (18%). The remaining balance of unrestricted net assets ($17,519,249 or 26%) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2005, 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 years. For more detail see the Statement of Net Assets on page 17. Assets: Current and other assets Restricted assets Capital assets Total assets Liabilities: Current liabilities Long term liabilities Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets City of Winter Springs Statement of Net Assets As of September 30 Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 $21,588,839 $26,794,042 $8,379,954 $9,759,888 $29,968,793 $36,553,930 106,982 106,982 3,341,139 3,409,812 3,448,121 3,516,794 47,723,544 47,891,987 35,158,605 35,838,048 82,882,149 83,730,035 69,419,365 74,793,011 46,879,698 49,007,748 116,299,063 123,800,759 2,574,511 6,198,197 1,755,542 1,898,572 4.330,053 8,096,769 20,609,965 26,619,128 22,767,726 23,694,374 43,377,691 50,313,502 106,982 106,982 690,818 794,952 797,800 901,934 23,291,458 32,924,307 25,214,086 26,387,898 48,505,544 59,312,205 26,522,810 9,730,482 9,874,615 $46,127,907 20,797,797 6,943,310 14,127,597 $41,868,704 11,520,879 2,500,099 7,644,634 $21,665,612 11,360.639 2,347,310 8,911,901 $22,619,850 38,043,689 12,230,581 17,519,249 $67,793,519 32,158,436 9,290,620 23,039,498 $64,488,554 Statement of Changes in Net Assets. The following table reflects the Statement of Changes in Net Assets for the current and prior years. For more detailed information see the Statement of Activities on page 18. Note that total net assets increased by $3,304,965 in fiscal year 2005, compared to an increase of $4,711,685 in fiscal year 2004. Governmental activities increased net assets by $4,259,203 in fiscal year 2005 compared to an increase of $2,889,911 in 2004. Business-type activities decreased net assets by $954,238 in fiscal year 2005 compared to an increase of $1,821,774 in 2004. The Water and Sewer fund benefited from $453,435 in capital contributions from developers. 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. 6 Note that the first graph depicts governmental program specific revenues and expenses. For this graph, the revenue does not include property taxes, franchise fees, utility taxes, intergovernmental revenue, investment income or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. City of Winter Springs Changes in Net Assets For The Year Ended September 30 Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Revenues: Program revenues: Charges for services $4,117,424 $4,259,323 $9,017,924 $8,926,979 $13,135,348 $13,186,302 Operating grants and contributions 2,176,595 5,411,505 348,496 2,525,091 5,411,505 Capital grants and contributions 1,961,764 2,291,352 975,463 2,179,893 2,937,227 4,471,245 General revenues: Property taxes 6,198,427 5,652,828 6,198,427 5,652,828 Franchise fees and utility taxes 4,983,802 4,807,571 4,983,802 4,807,571 Intergovernmental 3,680,669 3,243,038 3,680,669 3,243,038 Investment income and miscellaneous 686,636 586,681 272,225 141,008 958,861 727,689 Total revenues 23,805,317 26,252,298 10,614,108 11,247,880 34,419,425 37,500,178 Expenses: General government 5,786,288 5,420,691 5,786,288 5,420,691 Public safety 9,137,638 8,702,799 9,137,638 8,702,799 Physical environment 5,560,719 8,779,414 5,560,719 8,779,414 Culture and recreation 2,264,817 1,988,881 2,264,817 1,988,881 Interest on long- term debt 763,608 764,363 763,608 764,363 Water and Sewer 6,000,248 5,716,912 6,000,248 5,716,912 Storm water 627,509 744,511 627,509 744,511 Development Services 973,633 670,922 973,633 670,922 Total expenses 23,513,070 25,656,148 7,601,390 7,132,345 31,114,460 32,788,493 Increase in net assets before transfers 292,247 596,150 3,012,718 4,115,535 3,304,965 4,711,685 Transfers 3,966,956 2,293,761 (3,966,956) (2,293,761) Increase (decrease) in net assets 4,259,203 2,889,911 (954,238) 1,821,774 3,304,965 4,711,685 Net assets - October 1 (restated) 41,868,704 38,978,793 22,619,850 20,798,076 64,488,554 59,776,869 Net assets - September 30 $46,127,907 $41,868,704 $21,665,612 $22,619,850 $67,793,519 $64,488,554 7 I Governmental Program Specific Revenues and Expenses Governmental Revenues by Source Business-type Activities Revenues and Expenses Business-Type Activities Revenues by Source Financial Analysis of the Government's Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Winter Springs' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs' financing requirements. In particular, 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, 2005, the City of Winter Springs' governmental funds reported combined ending fund balances of $17,287,668, an increase of $4,055,723 over the prior year. Approximately 92% or $15,936,656 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 $5,479,342, while total fund balance reached $5,851,348. 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 32% and 34% respectively, of total General Fund expenditures. The fund balance of the City of Winter Springs' General Fund increased by $695,321 during the current fiscal year. An increase in tax revenues of $549,830 was more than offset by increased spending. The City's expenditures for general government increased by $155,128, largely due to special litigation efforts associated with a lawsuit against Seminole County relating to Charter and annexation issues. Information systems expenditures increased by $427,677, largely due to the special projects, records management project and KIVA/GIS special project. Approximately one-half of the Information Systems expenditures were paid for by other funds as transfers into the General Fund. Public Works expenditures increased $212,903 as a result of fiscal year 2004 staffing at less than full coverage as well as the addition of a City Engineer in fiscal year 2005. Parks and Recreation expenditures increased due to new Community Events, such as the Orlando Philharmonic Concerts and the Tree Lighting Ceremony. Community Development expenditures increased due to a new Maintenance Worker in the Urban Beautification division, which was moved to Community Development mid- fiscal year 2005, as well as a new vehicle. These costs will be partially offset by a grant received by the Department of Forestry which will be received in fiscal year 2006. Last fiscal year the Emergency and Disaster Relief Fund was established to capture the costs of preparation for and cleanup after three hurricanes that passed through Central Florida In August and September 2004. As of September 30,2005 a total of $8,058,181 was charged to this fund, primarily for the removal and monitoring of storm related debris. To date the City has been reimbursed $7,127,760, which is comprised of $6,769,027 from FEMA and $358,733 from the State. The City temporarily financed the cost of the hurricanes by borrowing $5,000,000 on September 30, 2004. As reimbursements were received by FEMA and the State, principal and interest payments 10 were made with the final payment made on August 22, 2005. The City is currently trying to finalize all payments to vendors associated with this effort. Once all vendor payments are complete, the City will work with FEMA to close out the large project submittals as required by FEMA guidelines. The close-out process may be slightly delayed due to expenses being denied by FEMA that have been appealed by the City. Between July 21 and September 22, 2005, the City has submitted the following four appeals to FEMA: · Stump grinding expense in the amount of $10,500; · Bagged debris expense in the amount of $22,225; · Stump removal expense in the amount of $237,680; and, · Private roads and/or gated community debris removal expense in the amount of $586,855. The City has yet to receive a response on any of the four appeals to FEMA. Once a determination has been received from FEMA on the appeals, the City may submit for the required final inspections and the Emergency and Disaster Relief Fund may be closed. 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 $6,542,536, and total net assets decreased $785,992 from $17,456,239 at September 30, 2004 to $16,670,247 at the end of the current fiscal year. The results for fiscal year 2005 include $453,435 in capital assets contributed by developers. This fund had an increase in net assets in fiscal 2004 of $1,747,039, which included $1,436,546 in capital assets contributed by developers. A three-year phased rate increase was implemented in July 2002 with the final phase of the increase occurring in July 2004. Rates were not changed in fiscal year 2005. A new rate study is planned for fiscal year 2007. The Development Services Fund net assets decreased $153,524 from $935,362 at September 30, 2004 to $781,838 at the end of the current fiscal year. This fund was established in fiscal year 2003. Prior to 2003, this activity was captured in the General Fund. The decrease in net assets for the current fiscal year is lower then the prior year's change in net assets, due in part to a reduction in permit revenues due to the repeal of permit and inspection fees for repair and maintenance associated with the 2004 hurricanes as well as certain new construction projects being moved into fiscal year 2006. A rate study was performed in fiscal year 2003 with the inception of this fund. The rates in this fund were adjusted in August 2005 with the adoption of Resolution 2005-29. The Stormwater Utility Fund net assets decreased $14,722 from $4,228,249 at September 30, 2004, to $4,213,527 at the end of the current fiscal year. This decrease in net assets is inconsistent with the prior year's decrease in net assets of $167,615 due mainly to a rate increase of 69% in June 2005. 11 General Fund Budgetarv Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in an increase of $322,333 in the appropriation from fund balance from $32,364 per the original budget to $354,697 in the final budget. The majority of the increased appropriation can be summarized as follows: · $350,000 increase in half-cent sales tax revenues. · $139,578 increase in transfers from Electric Franchise Fee Fund. · $258,290 supplemental appropriation for Parks and Recreation projects that were carried forward into fiscal year 2005 from fiscal year 2004. · $187,000 supplemental appropriation for special litigation efforts associated with a lawsuit with Seminole County relating to Charter and annexation issues. · $81,750 supplemental appropriation for Compensated Absences. · $185,000 supplemental appropriation for KIVA special projects that is off set by an increase in transfers of $185,000 from Development Services. · $406,000 supplemental appropriation for transfers out to Stormwater Utility Fund which is offset by an increase in transfers in of $406,000 from Stormwater for an advance of the Natural Resources and Conservation Service grant funding to pay for creek clearing projects. The actual results of the General Fund for the year show an appropriation to fund balance of $695,321 compared to a final budgeted appropriation from fund balance of $354,697. The favorable variance of $1,050,018 is primarily comprised of the following: · $387,654 favorable variance in Information Systems as a result of Special Projects, Records Management project and KIVA/GIS project slower than anticipated completion. This favorable variance was greatly offset by reduced transfers of approximately $220,000 from other funds. · $189,765 favorable variance in Fire resulted primarily from firefighters who did not realize their budgeted position upgrades and/or paramedic incentives and to a lesser extent from vacancies throughout the year in Operations. · $186,577 favorable variance in Parks and Recreation resulted from $74,870 in budgeted expenditures that were rolled over to fiscal year 2006; Concessions keeping expenditures under budget by $20,200; and summer youth program under budget by $22,000 which was offset by a respective revenue reduction. · $100,000 favorable variances in both Finance and General Services due to position vacancies throughout the year. The comparison of budgeted results to actual results for the General Fund is shown on pages 22-23. Capital Asset and Debt Administration Capital assets. The City of Winter Springs' investment in capital assets for its governmental and business-type activities as of September 30, 2005 amounts to $82,882,149 (net of accumulated depreciation), for a decrease of $847,886 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total decrease in the City of Winter Springs' investment in capital assets for the current fiscal 12 year was 1.0% (a 0.4% decrease for governmental activities and a 1.9% decrease for business-type activities). Major capital asset events during the current fiscal year included the following: · completion and capitalization of the Pedestrian Bridge project totaling $182,543; · completion and capitalization of the State Road 419/Moss Road Turn Lane project totaling $160,048 ($1,460 of which was spent in 2003; $10,837 of which was spent in 2004); · completion and capitalization of the police headquarters expansion totaling $216,586 ($16,461 of which was spent in 2003; $181,660 of which was spent in 2004); · construction of Tuscawilla Road drainage totaling $133,170 (near completion); · capitalization of contributed water and sewer lines totaling $453,435; and, · continued construction of Well #4 totaling $145,602. Additional information on the City of Winter Springs' capital assets can be found in Note 6 on pages 47-49 of this report. City of Winter Springs Capital Assets (Net of Depreciation) As of September 30 Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Land $9,760,401 $9,748,766 $5,344,916 $5,344,663 $15,105,317 $15,093,429 Buildings 3,242,258 3,188,302 386,846 411,989 3,629,104 3,600,291 Improvements other than buildings 8,064,698 7,898,099 28,030,207 28,812,945 36,094,905 36,711,044 Machinery and equipment 2,432,732 2,636,797 937,414 1,026,556 3,370,146 3,663,353 Infrastructure 22,779,423 23,020,471 22,779,423 23,020,471 Construction in progress 1,444,032 1,399,552 459,222 241,895 1,903,254 1,641,447 Total $47,723,544 $47,891,987 $35,158,605 $35,838,048 $82,882,149 $83,730,035 Long-term debt. At September 30, 2005, the City of Winter Springs had total debt outstanding of $45,361,759, down $6,889,399 from $52,251,158 at September 30, 2004. Total bonded debt of the City at the end of the current fiscal year was $43,999,833, for a decrease of $1,440,852 over the prior year. Of the amount of total bonded debt, $3,205,000 comprises debt backed by the full faith and credit of the government and $2,135,000 is special assessment debt for which the government is liable in the event of 13 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 (Le., revenue bonds). Other than principal payments, there were no changes in the structure of the City's bonded debt during fiscal year 2005. During this fiscal year the City added no new debt and paid off the following note: · Capital Improvement Revenue Note Series 2004 B in the amount of $5,000,000 with funds received from both the Federal Emergency Management Agency (FEMA) and the State of Florida. Both the City of Winter Springs' Water and Sewer Utility and General Obligation debt maintain underlying ratings of "A+" and "AA", respectively, from Standard & Poor's. 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 7 and 8 on pages 49-54 of this report. (The remainder of this page intentionally left blank.) 14 City of Winter Springs Long Term Debt As of September 30 Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Improvement Refunding Revenue Bonds, Series 1999 $6,368,970 $6,783,970 $6,368,970 $6,783,970 Water & Sewer Refunding Revenue Bonds, Series 2000 $6,864,191 $6,899,191 6,864,191 6,899,191 Special Assessment Revenue Bonds, Series 2001 2,135,000 2,180,000 2,135,000 2,180,000 Water & Sewer Refunding Revenue Bonds, Series 2001 5,450,000 5,665,000 5,450,000 5,665,000 Water & Sewer Refunding Revenue Bonds, Series 2002 12,280,000 12.865,000 12,280,000 12,865,000 Limited General Obligation Bonds, Series 2002 3,205,000 3,270,000 3,205,000 3,270,000 Improvement Refunding Revenue Bonds, Series 2003 8,725,000 8,870,000 8,725,000 8.870,000 Capital Improvement Revenue Note, Series 2004 224,730 284,907 224,730 284,907 Capital Improvement Revenue Notes, Series 2004 A 509,454 575,907 509,454 575,907 Capital Improvement Revenue Note, Series 2004 B 5,000,000 5,000,000 Obligation Under Utility Agreement 164,000 164,000 Capital Lease 104,443 206,017 64,082 104,443 270,099 Compensated Absences 377,883 370,512 145,416 145,047 523,299 515,559 Adjustments for Issuance Discounts and Deferred Refunding Costs (71,863) (76,611 ) (956,465) (1,015,864) (1,028,328) (1,092,475) Total $21,578,617 $27,464,702 $23,783,142 $24,786,456 $45,361,759 $52,251,158 15 Economic Factors and Next Year's Budgets and Rates The City considered many economic factors during the preparation of the fiscal year 2006 budget. Historically, the City has enjoyed increases in intergovernmental revenues which have been used to offset increases in the cost of City-provided services. Because only modest increases in intergovernmental revenues were expected in fiscal year 2006, expenditure budgets were constrained. Approximately 70% of the General Fund's 2006 budget is attributable to personnel costs. This is an arena that requires significant budget dollars just to account for the annual increases due to merit, health insurance, and pension (graduated increase of 1.5% in 2006). With this in mind, in order to add six new police officers and one new fire inspector, it was necessary to increase the operating millage from 4.30 to 4.6126. Reflected in the 2005-2006 budget adopted on September 26, 2005 is an appropriation to fund balance of $10,720. The Central Winds voted debt service millage rate for fiscal year 2006 was reduced from 0.2500 to 0.1374. 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 available at the City of Winter Springs' website located at: www. winterspringsfl. org. 16 BASIC FINANCIAL STATEMENTS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS September 30, 2005 Primary Government Governmental Business-type Activities Activities Total Assets: Cash and cash equivalents $ 17,110,651 $ 5,697,368 $ 22,808,019 Investments 1,209,563 1,209,563 Receivables, net 800,013 1,081,069 1,881,082 Inventories - at cost 22,024 11,845 33,869 Due from other governments 310,089 310,089 Prepaid costs 350,397 350,397 Restricted assets: Cash and cash equivalents 106,982 1,446,491 1,553,473 Investments 1,894,648 1,894,648 Bond issuance costs 232,200 380,109 612,309 Capital assets not being depreciated 11,204,433 5,804,138 17,008,571 Capital assets being depreciated, net of accumulated depreciation) 36,519,111 29,354,467 65,873,578 Receivables, long-term 2,763,465 2,763,465 Total Assets 69,419,365 46,879,698 116,299,063 Liabilities: Accounts payable and other current liabilities 1,267,613 365,869 1,633,482 Matured bonds and interest payable 1,360,673 1,360,673 Accrued interest payable 300,353 300,353 Unearned revenue 37,893 37,893 Liabilities payable from restricted assets 106,982 690,818 797,800 Noncurrent liabilities: Due within one year 968,652 29,000 997,652 Due in more than one year 20,609,965 22,767,726 43,377,691 Total Liabilities 23,291,458 25,214,086 48,505,544 Net Assets: Invested in capital assets, net of related debt 26,522,810 11,520,879 38,043,689 Restricted for: Capital projects 7,500,663 7,500,663 Debt service 979,006 1,894,648 2,873,654 Other purposes 1,250,813 605,451 1,856,264 Unrestricted 9,874,615 7,644,634 17,519,249 Total Net Assets $ 46,127,907 $ 21,665,612 $ 67,793,519 The accompanying Notes to Financial Statements are an integral part of these statements. 17 City of Winter Springs, Florida STATEMENT OF ACTIVITIES For The Year Ended September 30,2005 CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2005 Special Revenue Emergency Other Total Public and Disaster TLBD Governmental Governmental General Service Tax Relief Debt Service Funds Funds Assets: Cash and cash equivalents $ 6,072,893 $ $ 140,563 $ 104,807 $10,792,388 $17,110,651 Receivables, net 390,604 128,895 1 ,485 279,029 800,013 Inventories, at cost 22,024 22,024 Due from other governments 310,089 310,089 Due from other funds 128,895 128,895 Prepaid costs 349,982 415 350,397 Special assessments receivable 2,090,000 563,311 2,653,311 Mortgage receivable 110,154 110,154 Restricted assets: Cash and cash equivalents 106,982 106,982 Total Assets $ 7,071 ,380 $ 128,895 $ 450,652 $ 2,196,292 $11,745,297 $ 21,592,516 Liabilities and Fund Balances: Accounts payable $ 371,650 $ $ 19,096 $ $ 170,776 $ 561,522 Accrued liabilities 706,091 706,091 Due to other funds 128,895 128,895 Deferred revenue 2,090,000 673,465 2,763,465 Unearned revenue 35,309 2,584 37,893 Payable from restricted assets 106,982 106,982 Total Liabilities 1,220,032 128,895 19,096 2,090,000 846,825 4,304,848 Fund balances: Reserved: Inventories and prepaid costs 372,006 372,006 Debt service 106,292 872,714 979,006 Unreserved, reported in: General fund 5,479,342 5,479,342 Special revenue funds 431,556 4,362,180 4,793,736 Capital projects funds 5,663,578 5,663,578 Total fund balances 5,851,348 431,556 106,292 10,898,472 17,287,668 Total Liabilities and Fund Balances $ 7,071 ,380 $ 128,895 $ 450,652 $2,196,292 $11,745,297 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not 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 life of bond Net assets of governmental activities 47,723,544 2,763,465 (21,878,970) 232,200 $ 46,127,907 The accompanying Notes to Financial Statements are an integral part of these statements. 19 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 Special Revenue Emergency Other Total Public and Disaster TLBD Governmental Governmental General Service Tax Relief Debt Service Funds Funds Revenues: Taxes and special assessments $ 6,241,075 $3,504,158 $ $ 45,000 $ 2,069,473 $ 11,859,706 Licenses and permits 200,091 457,872 657,963 Intergovernmental revenues 4,392,588 7,127,760 1,500,245 13,020,593 Charges for services 490,427 2,053,487 2,543,914 Fines and forfeitures 241,891 53,775 295,666 Investment income 217 ,235 3,899 109,905 242,415 573,454 Miscellaneous 146,558 5,154 292,717 444,429 Total revenues 11,929,865 3,504,158 7,131,659 160,059 6,669,984 29,395,725 Expenditures: Current: General government 3,984,887 5,284 1,612,959 5,603,130 Public safety 8,427,334 211,831 8,639,165 Physical environment 1,794,856 2,042,557 7,385 458,775 4,303,573 Culture and recreation 1,903,404 3,078 1,906,482 Debt service: Principal retirement 101,574 5,000,000 45,000 751,630 5,898,204 Interest and fiscal charges 5,820 44,625 107,964 612,231 770,640 Capital outlay: General government 326,331 326,331 Public safety 152,692 253,048 405,740 Physical environment 4,247 935,587 939,834 Culture and recreation 466,709 47,150 513,859 Total expenditures 17,167,854 5,284 7,087,182 160,349 4,886,289 29,306,958 Excess (Deficiency) of Revenues Over Expenditures (5,237,989) 3,498,874 44,477 (290) 1,783,695 88,767 Other Financing Sources (Uses) Transfers in 6,026,354 3,707,011 9,733,365 Transfers out (93,044 ) (3,498,874) (2,174,491 ) ( 5, 766,409) Net other financing sources (uses) 5,933,310 (3,498,874 ) 1,532,520 3,966,956 Net Change in Fund Balances 695,321 44,4 77 (290) 3,316,215 4,055,723 Fund Balances - Beginning 5,156,027 387,079 106,582 7,582,257 13,231,945 Fund Balances - Ending $ 5,851,348 $ $ 431,556 $ 106,292 $ 10,898,472 $ 17,287,668 The accompanying Notes to Financial Statements are an integral part of these statements. 20 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, 2005 Amounts reported for the governmental activities in the statement of activities (page 16) are different because: Net change in fund balances - total governmental funds (page 22) $ 4,055,723 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. This is the amount by which capital outlays exceeded depreciation in the current period. ( 48,043) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and disposals) is to decrease net assets. (120,400) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net 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. 5,898,204 FEMA revenue reported in the funds in the current year must be eliminated from the statement of activities since revenue was recognized in the prior year. (5,201,565) Special assessment revenue and mortgage receivable collections reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year. (309,401 ) 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. (15,315) Change in net assets of governmental activities (page 20) $ 4,259,203 The accompanying Notes to Financial Statements are an integral part of these statements. 21 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, 2005 Budgeted Amounts Original Final Actual Amounts Variance With Final Budget Positive (Negative) Revenues: Taxes: Property taxes $ 6,126,765 $ 6,126,765 $ 6,198,427 $ 71,662 Franchise taxes 34,600 34,600 42,648 8,048 6,161,365 6,161,365 6,241,075 79,710 Licenses and permits: Permits 66,200 66,200 49,609 (16,591) Occupational licenses 100,600 100,600 150,482 49,882 166,800 166,800 200,091 33,291 Intergovernmental revenues: Sales tax 2,095,751 2,445,751 2,446,852 1,101 State revenue sharing 1,014,200 1,014,200 1,075,644 61 ,444 Other state shared revenue 709,000 722,069 661 ,446 (60,623) Other county shared revenue 55,386 55,386 68,386 13,000 Federal grants 75,000 118,950 140,260 21,310 3,949,337 4,356,356 4,392,588 36,232 Charges for services: Concession stand receipts 90,000 90,000 85,949 (4,051) Program activity fees 218,100 220,100 210,759 (9,341) Rental and other 144,800 144,800 193,719 48,919 452,900 454,900 490,427 35,527 Fines and forfeitures: Fines and forfeitures 255,000 255,000 241,891 (13,109) Investment income 96,789 156,789 217,235 60,446 Miscellaneous 2,500 27,700 146,558 118,858 Total revenues 11,084,691 11,578,910 11,929,865 350,955 The accompanying Notes to Financial Statements are an integral part of these statements. 22 Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: Current: General government: Executive $ 601,533 $ 618,884 $ 602,559 $ 16,325 General government 346,350 617,421 603,582 13,839 Finance 1,018,881 1,019,426 918,827 100,599 General services 701,374 711,374 609,095 102,279 Information systems 1,234,979 1,521,477 1 ,133,823 387,654 Community development 415,451 557,091 443,332 113,759 4,318,568 5,045,673 4,311,218 734,455 Public safety: Police 5,195,745 5,212,502 5,184,487 28,015 Fire 3,626,835 3,692,698 3,502,933 189,765 8,822,580 8,905,200 8,687,420 217,780 Physical environment: Public works 1,908,151 1,911,242 1,799,103 112,139 Culture and recreation: Parks and recreation 2,187,241 2,556,690 2,370,113 186,577 Total expenditures 17,236,540 18,418,805 17,167,854 1,250,951 Excess (Deficiency) of Revenues Over Expenditures (6,151,849) (6,839,895) (5,237,989) 1,601,906 Other Financing Sources (Uses) Transfers in 6,140,590 6,912,428 6,026,354 (886,074) Transfers out (21,105) (427,230) (93,044) 334,186 Net other financing sources (uses) 6,119,485 6,485,198 5,933,310 (551,888) Net Change in Fund Balance (32,364) (354,697) 695,321 1,050,018 Fund Balances - Beginning 5,156,027 5,156,027 5,156,027 Fund Balances - Ending $ 5,123,663 $ 4,801,330 $ 5,851,348 $ 1,050,018 The accompanying Notes to Financial Statements are an integral part of these statements. 23 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA PUBLIC SERVICE TAX SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Final Actual Amounts Variance With Final Budget Positive (Negative) Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ 3,546,856 $ 3,546,856 $ 3,504,158 $ (42,698) 3,546,856 3,546,856 3,504,158 ( 42,698) Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Total expenditures 5,284 (5,284) 5,284 (5,284 ) Excess (Deficiency) of Revenues Over Expenditures 3,546,856 3,546,856 3,498,874 (47,982) Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) (3,546,856) (3,546,856) (3,546,856) (3,546,856) (3,498,874) (3,498,874) 47,982 47,982 Net Change in Fund Balance Fund Balances - Beginning Fund Balances - Ending $ $ $ $ The accompanying Notes to Financial Statements are an integral part of these statements. 24 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA EMERGENCY AND DISASTER RELIEF SERVICES SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Final Actual Amounts Variance With Final Budget Positive (Negative) Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ $ $ 8,744,175 7,127,760 (1,616,415) 3,899 3,899 8,744,175 7,131,659 (1,612,516) Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Total expenditures 2,215,254 2,042,557 172,697 6,820,000 96,000 9,131,254 5,000,000 44,625 7,087,182 1,820,000 51,375 2,044,072 Excess (Deficiency) of Revenues Over Expenditures (387,079) 44,4 77 431,556 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance (387,079) 44,4 77 431,556 Fund Balances - Beginning Fund Balances - Ending $ 387,079 387,079 $ 387,079 $ 387,079 431,556 $ 431,556 The accompanying Notes to Financial Statements are an integral part of these statements. 25 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS September 30, 2005 Business-type Activities - Enterprise Funds Water and Development Storm water Sewer Utility Services Utility Fund Fund Fund Total $ 4,636,928 $ 763,651 $ 296,789 $ 5,697,368 1,209,563 1,209,563 959,069 122,000 1,081,069 11,845 11,845 1,446,491 1 ,446,491 8,263,896 763,651 418,789 9,446,336 1,894,648 1,894,648 380,109 380,109 48,607,549 133,836 6,107,339 54,848,724 326,052 133,170 459,222 (17,668,263) (82,132) (2,398,946) (20,149,341) 31,265,338 51,704 3,841,563 35,158,605 33,540,095 51,704 3,841,563 37,433,362 41,803,991 815,355 4,260,352 46,879,698 Assets Current assets: Cash and cash equivalents Investments Receivables, net Inventories Restricted cash and cash equivalents Total current assets Noncurrent 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 noncu rrent assets Total assets The accompanying Notes to Financial Statements are an integral part of these statements. 26 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Liabilities Current liabilities: Accounts payable $ 109,805 $ 3,851 $ 20,834 $ 134,490 Accrued liabilities 62,797 10,256 6,307 79,360 Retainage payable 23,986 11,617 35,603 Compensated absences 117,939 19,410 8,067 145,416 Customer deposits payable 690,818 690,818 Revenue bonds payable - current 870,000 870,000 Accrued interest payable 490,673 490,673 Total current liabilities 2,366,018 33,517 46,825 2,446,360 Noncurrent liabilities: Revenue bonds payable 22,767,726 22,767,726 Total noncurrent liabilities 22,767,726 22,767,726 Total liabilities 25,133,7 44 33,517 46,825 25,214,086 Net Assets Invested in capital assets, net of related debt 7,627,612 51,704 3,841,563 11,520,879 Restricted 2,500,099 2,500,099 Unrestricted 6,542,536 730,134 371,964 7,644,634 Total net assets $ 16,670,247 $ 781,838 $ 4,213,527 $ 21,665,612 The accompanying Notes to Financial Statements are an integral part of these statements. 27 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS For The Year Ended September 30, 2005 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Operating Revenues: User charges $ 7,255,495 $ 999,652 $ 742,219 $ 8,997,366 Other revenue 8,623 11,935 20,558 Total operating revenues 7,255,495 1,008,275 754,154 9,017,924 Operating Expenses: Salaries and benefits 1,781,093 421,129 202,977 2,405,199 Materials and supplies 723,553 8,782 485,344 1,217,679 Depreciation and amortization 1,556,884 17,404 235,891 1,810,179 Other operating expenses 850,368 180,194 49,421 1,079,983 Total operating expenses 4,911,898 627,509 973,633 6,513,040 Operating income (loss) 2,343,597 380,766 (219,479) 2,504,884 Nonoperating Revenue (Expenses): Investment income 242,409 22,055 7,761 272,225 I nterest expense (1,063,680) (1,063,680) Operating Grant 348,496 348,496 Gain (loss) on disposal of capital assets (24,670) (24,670) Total nonoperating revenue (expense) (845,941) 22,055 356,257 (467,629) Income (loss) before contributions and transfers 1,497,656 402,821 136,778 2,037,255 Capital contributions: Connection fees 358,028 358,028 Developers 617,435 617,435 Transfers in 77,639 21,105 98,744 Transfers out (3,336,750) (577,450) (151,500) (4,065,700) Change in net assets (785,992) (153,524) (14,722) (954,238) Total Net Assets - Beginning 17,456,239 935,362 4,228,249 22,619,850 Total Net Assets - End $ 16,670,247 $ 781,838 $ 4,213,527 $ 21,665,612 The accompanying Notes to Financial Statements are an integral part of these statements. 28 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2005 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Cash Flows from Operating Activities: Receipts from customers $ 7,085,233 $ 1,008,275 $ 754,154 $ 8,847,662 Payments to suppliers (1,801,120) (190,736) (520,969) (2,512,825) Payments to employees (1 ,781 ,759) (419,792) (203,142) (2,404,693) Net cash provided by operating activities 3,502,354 397,747 30,043 3,930,144 Cash Flows from Non-Capital Financing Activities: Operating Grants 226,496 226,496 Transfers in 77,639 21,105 98,744 Transfers out (3,336,750) (577,450) (151,500) (4,065,700) Net cash provided (used) by non-capital financing activities (3,259,111 ) (556,345) 74,996 (3, 740,460) Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets 821 821 Acquisition of capital assets (538,196) (2,896) (141,171) (682,263) Principal paid on revenue bonds & leases (899,082) (899,082) Interest paid on revenue bonds (1,019,607) (1,019,607) Developers Agreement 164,000 164,000 Connection fees 358,028 358,028 Net cash provided (used) by capital and related financing activities (1,934,036) (2,896) (141,171) (2,078,103) Cash Flows from Investing Activities: Sale of investments 397,846 397,846 Investment income 260,025 22,055 7,761 289,841 Net cash provided by investing activities 657,871 22,055 7,761 687,687 Net Increase (Decrease) in Cash and Cash Equivalents (1,032,922) (139,439) (28,371 ) (1,200,732) Cash and Cash Equivalents - Beginning 7,116,341 903,090 325,160 8,344,591 Cash and Cash Equivalents - End $ 6,083,419 $ 763,651 $ 296,789 $ 7,143,859 Classified As: Cash and cash equivalents $ 4,636,928 $ 763,651 $ 296,789 $ 5,697,368 Restricted cash 1,446,491 1,446,491 Total $ 6,083,419 $ 763,651 $ 296,789 $ 7,143,859 The accompanying Notes to Financial Statements are an integral part of these statements. 29 Business-type Activities - Enterprise Funds Water and Development Stormwater Sewer Utility Services Utility Fund Fund Fund Total Reconciliation of Operating Income (Loss) to Net Cash Provided By Operating Activities Operating income (loss) $ 2,343,597 $ 380,766 $ (219,479) $ 2,504,884 Adjustments Not Affecting Cash: Depreciation 1,536,355 17,404 235,891 1,789,650 Amortization 20,529 20,529 Change in Assets and Liabilities: Increase in accounts receivable (66,128) (66,128) Increase in inventories (2,695) (2,695) Decrease in prepaid costs 2,370 337 2,707 Increase (decrease) in accounts payable (75,618) (2,097) 2,179 (75,536) Increase (decrease) in accrued liabilities 137 (18) 18 137 Increase in retainage payable 12,744 11,617 24,361 Decrease in customer deposits (104,134) (104,134) Decrease in utility agreement obligation (164,000) (164,000) Increase (decrease) in accrued compensated absences (803) 1,355 (183) 369 Total adjustments 1,158,757 16,981 249,522 1,425,260 Net Cash Provided by Operating Activities $ 3,502,354 $ 397,747 $ 30,043 $ 3,930,144 Noncash Investing, Capital and Financing Activities: Contributed capital assets $ 453,435 $ $ $ 453,435 Decrease in fair value of investments 17,616 17,616 30 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND September 30, 2005 Defined Benefit Pension Trust Fund Assets: Cash and cash equivalents Receivables: Plan members contributions Investments, at fair value: Common funds - equity Common funds - bonds Total investments Total assets $ 173,367 34,803 7,677,786 3,400,124 11,077,910 11,286,080 Liabilities Net Assets: Held in trust for pension benefits $ 11,286,080 The accompanying Notes to Financial Statements are an integral part of these statements. 31 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2005 Defined Benefit Pension Trust Fund Additions: Contributions: Employer Plan members Total contributions $ 951,133 458,841 1,409,974 Investment income: Net appreciation in fair value of investments Interest Net investment income 1,045,035 52,977 1,098,012 Total additions 2,507,986 Deductions: Benefits Administrative expenses Total deductions 132,697 68,752 201,449 Change in Net Assets 2,306,537 Net Assets - Beginning 8,979,543 Net Assets - End $ 11,286,080 The accompanying Notes to Financial Statements are an integral part of these statements. 32 This page intentionally left blank. NOTES TO FINANCIAL STATEMENTS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2005 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. 33 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government-Wide and Fund Financial Statements The government-wide financial statements (ie., 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. 34 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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 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 Emergency and Disaster Relief Special Revenue Fund was established to capture the costs of the work done to prepare for and recover from the unusually active and costly hurricane season. 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. 35 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Non-Maior 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. Maior 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 accounts for the operation and maintenance of the City's stormwater system. 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. 36 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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 new 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. The City implemented Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosure, for fiscal year 2005. The effect of this statement is the inclusion of new disclosures for deposit and investment risk. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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" (Le., the current portion of interfund loans) or "advances to/from other funds" (Le., 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. 38 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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, in accordance with Chapter 274.02, Florida Statutes, as assets with an initial, individual cost of $750 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. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Buildings Improvements Infrastructure Equipment Years 30 20-50 30-50 3-10 39 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 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, 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. 40 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 2 - 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 $21,878,970 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) Notes payable Capital lease payable Accrued interest payable Compensated absences Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $(20,433,970) 20,032 (90,529) 142,360 (734,184 ) (104,443 ) (300,353) (377.883) $ (21.878.970) 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 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 $48,043 difference are as follows: Capital outlay Depreciation expense Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities 41 $2,249,092 (2,297.135) $ (48.043) CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 2 - 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 "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 $5,898,204 difference are as follows: Principal repayment $5,898.204 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $5,898.204 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 $15,315 difference are as follows: Compensated absences Amortization of issuance costs Amortization of bond discounts Accrued interest payable $ (7,371) (14,976) (4,748) 11.780 Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $(15.315) 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 3 - 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. 1. On or before July 1 st of each year, the City Manager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1 st. 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 participate. 3. On or before September 30th 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. 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. Excess of Expenditures Over Appropriations For the year ended September 30, 2005, expenditures exceeded appropriations in the Special Law Enforcement Trust Special Revenue Fund by $116, the Medical Transport Special Revenue Fund by $58,079, and the Electric Franchise Fee Special Revenue Fund by $209. These overexpenditures were funded by greater than anticipated revenues. 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 4 - Deposits and Investments: Deposits At year-end, the carrying amount of the City's deposits was $3,772,280 and the bank balance was $2,632,588. Petty cash funds of $2,110 are not on deposit with a financial institution, and fiduciary fund cash of $173,367 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. U.S. Government securities 2. U.S. Government Agency securities 3. Federal Instrumentalities (U.S. Government sponsored agencies) 4. Interest bearing time deposit or savings accounts 5. Repurchase agreements 6. Commercial paper 7. Bankers' acceptances 8. State and/or local government taxable and/or tax-exempt debt 9. Registered investment companies (money market mutual funds) 10. Intergovernmental investment pool The State Board of Administration Local Government Investment Pool (SBA) is an investment pool administered by the State of Florida. Investments held in the SBA consist of U.S. Treasury obligations, short-term federal agency obligations, repurchase agreements and commercial paper. These short-term investments are included as cash equivalents and are stated at cost, which approximates fair value. 44 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 4 - Deposits and Investments (Continued): Investments (Continued) Investments made by the City at September 30, 2005 are summarized below. Defined benefit pension plan investments, other than $7,677,786 in mutual funds investing in equity securities, are included below: State Board of Administration US Government Agency Securities US Treasury Pension Plan Investments: Intermediate Bond Fund High Grade Bond Fund Weighted Fair Value Credit Ratinq Average Maturity (Years) $21,297,357 Unrated < 90 days 1,209,563 Aaa/AAA 1.17 1,184,393 aa/AAAm < 90 days 681 ,405 TSY 6.0 2,718.719 TSY 6.7 $27.091 ,437 Credit Risk 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 be rated, at a minimum, "P-1" by Moody's Investors Services and "A-1" by S & P. Investment in state and/or local government taxable and/or tax-exempt debt must be rated at least "Aa" by Moody's and "AA" by S & P for long-term debt, or rated at least "MIG-2" by Moody's and "SP-2" by S & P for short-term debt. Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public 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, 2005, all of the city's bank deposits were in qualified public depositories. 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 4 - Deposits and Investments (Continued): Custodial Credit Risk (Continued) 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, 2005, 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. Note 5 - Receivables: Receivables as of year end 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 Accounts Receivable Net Receivable General Fund $ 390,604 $ $ 390,604 Public Service Tax Fund 128,895 128,895 TLBD Debt Service Fund 1 ,485 1 ,485 Water & Sewer Utility Fund 1,095,993 (136,924) 959,069 Other Governmental Funds 492,132 (213,103) 279,029 Stormwater Utility Fund 122,000 122,000 $2.231.109 $(350.027) $1.881.002 In addition to receivables detailed above, there is a mortgage receivable in a nonmajor capital projects fund that is not considered to be available to liquidate liabilities of the current period. This mortgage receivable amount of $110,154 is reported as deferred revenue in the governmental funds balance sheet. There are also special assessment receivables that are not available to liquidate liabilities of the current period. These receivables totaling $2,653,311 are reported as deferred revenue in the governmental funds balance sheet. 46 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2005 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $ 9,748,766 $ 11,635 $ $ 9,760,401 Construction in progress 1 ,399.552 1.288.966 (1 ,244.486) 1.444,032 Total capital assets, not being depreciated 11.148,318 1 .300,601 (1 ,244.486) 11 ,204.433 Capital assets, being depreciated: Buildings 5,244,681 232,329 5,477,010 Improvements 9,440,583 521,930 (14,863) 9,947,650 Machinery and equipment 6,873,770 827,263 (353,388) 7,347,645 Infrastructure 42.473,090 611.455 43.084,545 Total capital assets, being depreciated 64,032.124 2.192.977 (368,251 ) 65,856.850 Less accumulated depreciation for: Buildings (2,056,379) (178,373) (2,234,752) Improvements (1,542,484) (340,576) 108 (1,882,952) Machinery and equipment (4,236,975) (925,681 ) 247,743 (4,914,913) Infrastructure (19.452,617) (852,505) (20,305,122) Total accumulated depreciation (27,288.455) (2,297,135) 247.851 (29,337,739) Total capital assets, being depreciated, net 36,743,669 (104.158) (120.400) 36.519,111 Governmental activities capital assets, net $ 47.891,987 $ 1.196,443 $(1.364.886) $ 47.723.544 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 6 - Capital Assets (Continued): Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $ 5,344,663 $ 253 $ $ 5,344,916 Construction in progress 241 ,895 379.660 (162,333) 459.222 Total capital assets, not being depreciated 5,586.558 379.913 (162,333) 5,804,138 Capital assets, being depreciated: Buildings 755,778 755,778 Improvements 44,831,743 698,554 45,530,297 Machinery and equipment 2,979,373 290,974 (52,614) 3,217,733 Total capital assets, being depreciated 48,566,894 989,528 (52,614) 49,503.808 Less accumulated depreciation for: Buildings (343,789) (25,143) (368,932) Improvements (16,018,798) (1,481,292) (17,500,090) Machinery and equipment (1,952,817) (372,829) 45,327 (2.280,319) Total accumulated depreciation (18,315,404) (1 ,879,264) 45,327 (20,149,341 ) Total capital assets, being depreciated, net 30,251 ,490 (889,736) (7,287) 29,354,467 Business-type activities capital assets, net $ 35,838,048 $ (509.823) $ (169.620) $ 35.158.605 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 $ 194,097 686,354 1,059,621 357,063 $2,297.135 Business-type activities: Water and sewer Development services Stormwater Total depreciation expense - business-type activities 48 1,536,355 17 ,404 235,891 $1.789.650 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 6 - Capital Assets (Continued): Increases in accumulated depreciation for business-type activities includes accumulated depreciation on assets transferred from governmental activities, therefore total increases is not the same as depreciation expense disclosed above. Note 7 - 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. The assets acquired through capital leases are as follows: Governmental Activities Assets - Machinery & equipment Less: accumulated depreciation Total $ 491,374 ( 450,365) $ 41,009 The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2005 were as follows: Governmental Activities Year Endinq September 30. 2006 Total minimum lease payments Less: Amount representing interest Net present value $107.394 107,394 (2.951 ) $104.443 49 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued Note 8 - Long-Term Debt: Revenue Bonds September 30, 2005 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 original amount of revenue bonds issued in prior years is described below. The Special Assessment Revenue Bonds issued in 2001 are payable from and secured by a first lien and pledge of assessments levied on property within the assessed area as well as the first $160,000 of half-cent sales tax received by the City each year. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the government must provide resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. Revenue bonds outstanding at year end are as follows: Governmental Activities Improvement Refunding Revenue Bonds - Series 1999 Special Assessment Revenue Bonds - Series 2001 Improvement Refunding Revenue Bonds - Series 2003 Total Business-Tvpe Activities Water and Sewer Refunding Revenue Bonds - Series 2000 Water and Sewer Refunding Revenue Bonds - Series 2001 Water and Sewer Refunding Revenue Bonds - Series 2002 Total Interest Rates and Dates 3.25 - 5.25% (4/1 & 10/1) 3.4 - 5.25% (4/1 & 10/1) .2.0 - 3.7% (4/1&10/1) 4.5 - 5.5% (4/1 & 10/1) 4.0 - 5.0% (4/1 & 10/1) 3.0 - 5.25% (4/1&10/1) 50 Maturitv Original Amount Balance September 30,2005 10/1/99 to 10/1/29 $ 7,998.970 $ 6,368,970 10/1/02 to 10/1/29 $ 2,265,000 2,135,000 10/1/04 to 10/1/18 $ 8,870,000 8,725,000 $ 17.228,970 10/1/02 to 10/1/30 $ 6,969.191 $ 6.864,191 10/1/02 to 10/1/21 $ 6,065,000 5,450,000 10/1/03 to 10/1/20 $13,980.000 12.280,000 $24,594.191 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 8 - 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 2006 635,000 500,349 870,000 991,586 2007 670,000 474,232 895,000 960,222 2008 700,000 450,087 945,000 927,198 2009 735,000 429,652 980,000 890,597 2010 775,000 405,867 1,015,000 851,523 2011-2015 4,505,000 1,573,636 5,810,000 3,571,814 2016-2020 4,962,880 2,363,006 7,405,000 2,043,930 2021-2025 2,264,998 4,933,170 2,877,016 5,709,934 2026-2030 1,981,092 4,181,726 1,922,175 7,968,449 2030-2034 1 ,875,000 103,125 $17,228.970 $15,311.725 $24,594,191 $24.018,378 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 (1/4) of one milan all of the taxable property in the City. General obligation bonds currently outstanding are as follows: Interest Rates and Original Dates Maturitv Amount Balance September 30.2005 Governmental Activities Limited General Obligation Bonds - Series 2002 2.0- 5.375% 7/1/03- (1/1 & 7/1) 7/1/31 $3.400.000 $3.205.000 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 8 - Long-Term Debt (Continued): General ObliQation Bonds (Continued) Annual debt service requirements to maturity for the general obligation bonds are as follows: Year Ending September 30, Governmental Activities Principal Interest 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2034 65,000 70,000 70,000 75,000 75,000 435,000 565,000 720,000 920,000 210,000 $3,205,000 Notes Pavable 155,552 153,472 151,023 148,433 145,508 674,653 550,875 394,250 194,980 10.520 $2.579.266 The 2004 Capital Improvement Revenue Note is for amount not to exceed $2,500,000. Advances on this note during fiscal year 2004 were $600,000, so the City still has $1,900,000 available to borrow. There were no advances during fiscal year 2005. 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 2000B, 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. 52 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 8 - Long-Term Debt (Continued): Notes Pavable (Continued) Notes payable outstanding at year end are as follows: Capital Improvement Revenue Note, Series 2004- Payable interest only until June 1, 2008 when principal payments will also be due. Interest is variable, tied to Libor, and was 3.5071 % at September 30, 2005. Capital Improvement Revenue Note, Series 2004A - Payable interest only until July 1, 2010 when entire balance is due. Interest is 4.22%. Annual debt service requirements to maturity for notes payable are as follows: Year Ending September 30, 2006 2007 2008 2009 2010 53 $224,730 509.454 $734,184 Governmental Activities Principal Interest $ 224,730 509,454 $734.184 $ 29,381 29,381 26,753 21,499 16.124 $123,138 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 8 - Long-Term Debt (Continued): ChanQes in LonQ- Term Liabilities Long-term liability activity for the year ended September 30, 2005 was as follows: Due Within Beginning Ending One Year Balance Additions Reductions Balance Governmental activities: Bonds payable - Revenue bonds $ 15,653,970 $ $ (560,000) $15,093,970 $ 590,000 Special assessment debt with government commitment 2,180,000 (45,000) 2,135,000 45,000 Limited general obligation bonds 3,270,000 (65,000) 3,205,000 65,000 Less deferred amounts: Issuance discounts (20,793) 761 (20,032) Issuance premiums 97,493 (6,964 ) 90,529 On refunding (153,311 ) 10,951 (142,360) Total bonds payable 21,027,359 (665,252) 20.362,107 700,000 Notes payable - Capital improvement Notes 5,860,814 (5,126,630) 734,184 88,209 Capital lease 206,017 (101,574) 104,443 104,443 Compensated absences 370,512 7,371 377,883 76,000 Governmental activity long-term liabilities $ 27 464 702 $ 7,371 $ (5 893.456) $21.578 617 $968.652 Business-type activities: Bonds payable - Revenue bonds $ 25,429,191 $ $ (835,000) $24,594,191 $870,000 Less deferred amounts: For issuance discount (29,627) 1,064 (28,563) On refunding (986.237) 58.335 (927.902) Total bonds Payable 24,413,327 (775,601 ) 23,637,726 870,000 Obligation under utility agreement 164,000 (164,000) Capital lease 64,082 (64,082) Compensated absences 145,047 369 145.416 29.000 Business-type activity long-term liabilities $ 24.786.456 $ 369 $ l1.003.683) $23.783 142 $899 000 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 9 - Interfund Receivables, Payables and Transfers: The composition of interfund balances as of September 30, 2005 is as follows: Receivable Fund General Payable Fund Public Service Tax Amount $128,895 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 general fund. Interfund transfers for the year ended September 30, 2005 consisted of the following: Transfer In General Nonmajor Water and Development Fund Governmental Sewer Services Total Transfer Out: General Fund $ $ $71,939 $21,105 $ 93,044 Public Service Tax Special Revenue Fund 3,005,999 492,875 3,498,874 Nonmajor Governmental 1,175,012 999,479 2,174,491 Water and Sewer 1,157,093 2,179,657 3,336,750 Development Services Fund 577,450 577,450 Stormwater Utility 110,800 35.000 5.700 151,500 Total $6 026 354 $3 707 011 $77,639 $21 105 $9832109 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) move receipts restricted to debt service from the funds as debt service payments become due. Note 10 - 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. The Board of Trustees of the plan are appointed by the City Commission to establish and amend all plan provisions. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 10 - Defined Benefit Pension Plan (Continued): Summary of SiQnificant AccountinQ 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 $458,841 for the year ended September 30, 2005. The City is required to contribute at an actuarially determined rate; the current rate is 12.9% of covered payroll. The City's contribution for the year ended September 30, 2005 was $951,133. Membership in the Defined Benefit Plan consisted of the following at October 1, 2004: Retirees and beneficiaries receiving benefits Terminated plan members entitled to but not receiving benefits Active plan members: Vested Non-vested 12 71 183 56 322 Annual Pension Cost and Net Pension Obligation - The City has contributed the Annual Required Contribution (ARC) since inception of the plan on October 1, 1997, and thus has not had or needed to report, a Net Pension Obligation (NPO). 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 10 - Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation (Continued) Three Year Trend Information - Fiscal year ended 9/30/03 9/30/04 9/30/05 Annual Pension Cost (APC) $658,735 749,863 951 ,133 Percentage of APC Contributed 100% 100% 100% 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, 2004. The plan was amended 09tober 1, 2004 to increase the benefit formula percentage for service prior to October 1, 2000 by .25% increments each year beginning October 1, 2005 through the plan year beginning October 1, 2008. Assumptions: Investment Earnings Salary Increases - Inflation Postretirement Benefit Increases Mortality Table Actuarial Valuation: Frequency Cost Method Amortization Method 8% 3% 0% 1983 Group Annuity Mortality Table Amortization Period Asset Valuation Method Annual Frozen Entry Age Level Percentage of Projected Payroll 30 Years Open Long Range Yield Method 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2005 Note 11 - 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 solution 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 12 - 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 13 - Contingent Liabilities: 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. 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. Note 14 - Commitments: At September 30, 2005, the City had entered into construction contracts in the amount of $291,624. 58 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended September 30, 2005 Schedule of Fundinq Proqress Actuarial UAAL as Actuarial Accrued Unfunded a % of Actuarial Value of (AAL) AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) ( a/b) (c) (b-a) /c 10/1/99 $ 745,460 $ 2,120,844 $1,375,384 35.1% $5,143,401 26.7% 10/1/00 4,933,945 7,701,059 2,767,114 64.1 5,324,680 52.0 10/1/01 5,829,453 8,402,821 2,573,368 69.9 6,569,263 39.2 10/1/02 6,620,248 9,128,522 2,508,274 72.5 6,586,077 38.1 10/1/03 7,279,048 9,771,594 2,492,546 74.5 8,094,829 30.8 10/1104 8,134,588 10,931,774 2,797,186 74.4 8,982,189 31.1 Schedule of Contributions from the Employer Fiscal Year Annual Required Percentage of Ended Contribution (ARC) ARC Contribution 9/30/00 $254,646 100% 9/30/01 556,318 100% 9/30/02 605,058 100% 9/30/03 658,735 100% 9/30/04 749,863 100% 9/30/05 951 ,133 100% 59 This page intentionally left blank. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. TLBD Debt Service Fund MAJOR GOVERNMENTAL FUNDS Debt Service - 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. 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, 2005 Budgeted Amounts Original Final Actual Amounts Variance With Final Budget Positive (Negative) Revenues: Taxes and special assessments Investment income Miscellaneous Total revenues $ 155,185 $ 1,200 156,385 Expenditures: Current: Physical environment Debt service: Principal retirement Interest and fiscal charges Total expenditures 6,900 45,000 108,000 159,900 Excess (Deficiency) of Revenues Over Expenditures (3,515) Other Financing Sources (Uses) Transfers in Net other financing sources (uses) Net Change in Fund Balance (3,515) Fund Balances - Beginning Fund Balances - Ending $ 106,582 103,067 $ 60 155,185 1,200 $ 45,000 109,905 5,154 160,059 $ (110,185) 108,705 5,154 3,674 156,385 7,600 7,385 215 45,000 108,000 160,600 45,000 107,964 160,349 36 251 (4,215) (290) 3,925 (4,215) (290) 3,925 106,582 102,367 106,582 106,292 $ $ 3,925 This page intentionally left blank. Police Education Fund Special Law Enforcement Trust Fund Transportation Improvement Fund Recreation Acquisition Fund Streetlighting Fund Solid Waste Fund Electric Franchise Fee Fund Transportation Impact Fee Fund Police Impact Fee Fund Fife Impact Fee Fund NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds - 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. - This fund was established to receive revenues 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. - Revenues in this fund are derived from Local Option 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. - This fund was established to record funds received from new developers for the acquisition of land for recreational purposes in lieu of land donated by these developers for recreational purposes. - This fund was established to record proceeds of a special streetlighting assessment from the Country Club Village subdivision. Proceeds are used to pay for lighting and administrative costs. - This fund is used to account 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. - 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. - This fund is used to account for collected impact fees on new development to defray the cost of future road construction as a result of growth. - 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. - 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. NONMAJOR GOVERNMENTAL FUNDS - Continued Parks Impact Fee Fund Public Building Impact Fee Fund Medical Transport Fund Arbor Fund TLBD Maintenance Fund Oak Forest Maintenance Fund Road Improvement Fund 2003 Debt Service Fund 1999 Debt Service Fund Oak Forest Debt Service Fund Central Winds Debt Service Fund Special Revenue Funds - Continued - 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. - This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain public buildings due to future growth. - This fund is used to receive revenues generated from fees charged for paramedic services. The proceeds from this fund are used to pay for the incremental costs related to providing these services. - This fund is used to account for arbor revenues. This revenue source is used to maintain a level of plantings in the City. This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District. - This fund is used to account for collected special assessments for maintenance related to the Oak Forest subdivision wall. - This fund is used to account for collected one-cent sales tax revenues to be used for transportation-related improvements. Debt Service Funds - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue. - This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue. - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2000 note payable (Oak Forest portion). - This fund is used to account for accumulation of resources and payment of principal and interest for the 2002 limited general obligation bond. NONMAJOR GOVERNMENTAL FUNDS - Continued 2004 Capital Projects Debt Service Fund 1999 Construction Fund TLBD Improvement Fund Oak Forest Capital Fund Revolving Rehab Capital Projects Fund Public Facilities Capital Projects Fund City Hall Expansion Capital Projects Fund Debt Service Funds - Continued - This fund is used to account for the accumulation of resources and payment of principal and interest for the Capital Improvement Revenue Note Series 2004. Capital Projects Funds - This fund was established for the acquisition and construction of City - owned Capital Improvements. - This fund was established to account for construction of improvements to the Tuscawilla Lighting and Beautification District. - This fund was established to account for construction of the Oak Forest subdivision wall. - This fund was established to provide loans for rehabilitation projects within the City. - This fund was established to account for construction of public facilities. - This fund was established to account for expansion of City Hall. CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2005 Special Revenue Police Special Law Transportation Recreation Education Enforcement Improvement Acquisition Fund Trust Fund Fund Fund Assets: Cash and cash equivalents $ 62,921 $ 11,991 $ 380,141 $ 18.671 Receivables 1,882 Due from other governments Prepaid costs 350 Special assessment receivable Mortgage receivable Total Assets $ 65,153 $ 11,991 $ 380,141 $ 18,671 Liabilities and Fund Balances: Liabilities: Accounts payable $ 395 $ $ 3,502 $ Due to other funds Deferred revenue Unearned revenue Total Liabilities 395 3,502 Fund Balances: Reserved Unreserved 64,758 11,991 376,639 18,671 Total Fund Balances 64,758 11,991 376,639 18,671 Total Liabilities and Fund Balances $ 65,153 $ 11,991 $ 380,141 $ 18,671 61 Special Revenue Transportation Police Fire Parks Public Bldg Solid Waste Impact Impact Impact Impact Impact Fund Fee Fund Fee Fund Fee Fund Fee Fund Fee Fund $ 413,921 $ 962,127 $ 20,658 $ 458,896 $ 273,342 $ 33,365 100,000 $ 413,921 $ 1,062,127 $ 20,658 $ 458,896 $ 273,342 $ 33,365 $ 131,163 $ 11,303 $ $ $ $ 131,163 11,303 282,758 1,050,824 20,658 458,896 273,342 33,365 282,758 1,050,824 20,658 458,896 273,342 33,365 $ 413,921 $ 1,062,127 $ 20,658 $ 458,896 $ 273,342 $ 33,365 (Continued) 62 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2005 Special Revenue Medical TLBD Oak Forest Transport Arbor Maintenance Maintenance Fund Fund Fund Fund Assets: Cash and cash equivalents $ 90,867 $ 254,823 $ 347,497 $ 24,150 Receivables 169,553 2,584 2,062 591 Due from other governments Prepaid costs Special assessment receivable Mortgage receivable Total Assets $ 260,420 $ 257,407 $ 349,559 $ 24,741 Liabilities and Fund Balances: Liabilities: Accounts payable $ 4,812 $ $ 5,343 $ 3,088 Due to other funds Deferred revenue Unearned revenue 2,584 Total Liabilities 4,812 2,584 5,343 3,088 Fund Balances: Reserved Unreserved 255,608 254,823 344,216 21,653 Total Fund Balances 255,608 254,823 344,216 21,653 Total Liabilities and Fund Balances $ 260,420 $ 257,407 $ 349,559 $ 24,741 63 Special Revenue Debt Service 64 CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2005 Debt Service Capital Projects 2004 Capital 1999 TLBD Projects Debt Construction Improvement Service Fund Total Fund Fund Assets: Cash and cash equivalents $ 22,037 $ 870,364 $ 2,042,652 $ 28,263 Receivables 2,357 Due from other governments Prepaid Costs Special assessment receivable 563,311 Mortgage receivable Total Assets $ 22,037 $ 1,436,032 $ 2,042,652 $ 28,263 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ 7 $ 555 $ 8,515 Due to other funds Deferred revenue 563,311 Unearned revenue Total Liabilities 563,318 555 8,515 Fund Balances: Reserved 22,037 872.714 Unreserved 2,042,097 19,748 Total Fund Balances 22,037 872,714 2,042,097 19.748 Total Liabilities and Fund Balances $ 22,037 $ 1,436,032 $ 2,042,652 $ 28,263 65 Capital Projects Total Oak Forest Revolving Public Facilities City Hall Exp Nonmajor Capital Rehab Capital Capital Capital Governmental Fund Projects Fund Projects Fund Projects Fund Total Funds $ 45,305 $ 815,851 $ 2,701,609 $ 40,996 $ 5,674,676 $ 10,792,388 279,029 65 65 415 563,311 110,154 110,154 110,154 $ 45,305 $ 926,070 $ 2,701,609 $ 40,996 $ 5,784,895 $ 11,745,297 $ 1,500 $ 593 $ $ $ 11,163 $ 170,776 110,154 110,154 673,465 2,584 1,500 110,747 121,317 846,825 872,714 43,805 815,323 2,701,609 40,996 5,663,578 10,025,758 43,805 815,323 2,701,609 40,996 5,663,578 10,898,472 $ 45,305 $ 926,070 $ 2,701,609 $ 40,996 $ 5,784,895 $ 11,745,297 66 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal retirement 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 Net other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances. Ending Police Education Fund $ 24,874 2,442 27,316 36,410 28,652 65,062 (37,746) (37,746) $ 102,504 64,758 Special Revenue SpeCial Law Transportation Enforcement Improvement Trust Fund Fund $ $ 562,960 28,901 14,205 1,017 29,918 577,165 18,175 62,815 212,771 18,175 275,586 11 ,743 301,579 (400,000) (400,000) 11,743 (98,421 ) $ 248 11,991 475,060 $ 376,639 67 Recreation Acquisition Fund $ 577 577 3,078 3,078 (2,501 ) (2,501 ) $ 21,172 18,671 Special Revenue Electric Trans portation Police StreeUighting Solid Waste Franchise Impact Impact Fund Fund Fee Fund Fee Fund Fee Fund $ $ $ 1,436,996 $ $ 192,319 21 ,450 1,687,411 9,383 991 26,605 748 3,250 1,700,044 1,437,987 218,924 22,198 1,958 1,553,813 57,255 18,464 188,619 1,958 1,553,813 245,874 18,464 (1,958) 146,231 1,437,987 (26,950) 3,734 (200) (124,758) (1,437,987) (22,042) (200) (124,758) (1,437,987) (22,042) (2,158) 21,473 (26,950) (18,308) 2,158 261,285 1,077,774 38,966 $ $ 282,758 $ $ 1,050,824 $ 20,658 (Continued) 68 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 Special Revenue Fire Parks Public Bldg Medical Impact Impact Impact Transport Fee Fund Fee Fund Fee Fund Fund Revenues: Taxes and special assessments $ $ $ $ Licenses and permits 37,129 144,753 24,323 Intergovernmental revenues 13,000 Charges for services 366,076 Fines and forfeitures Investment income 12,018 6,451 865 2,140 Miscellaneous Total revenues 49,147 151,204 25,188 381,216 Expenditures: Current: General government Public safety 157,246 Physical environment Culture and recreation Debt Service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety 59,699 146,233 Physical environment Culture and recreation 47,150 Total expenditures 59,699 47,150 303,479 Excess (Deficiency) of Revenues Over Expenditures (10,552) 104,054 25,188 77.737 Other Financing Sources (Uses): Transfers in Transfers out (44,063) (26,320) (14,600) Net other financing sources (uses) (44,063) (26,320) (14,600) Net Change in Fund Balances (10,552) 59,991 (1,132) 63,137 Fund Balances - Beginning 469,448 213,351 34,497 192,471 Fund Balances. Ending $ 458,896 $ 273,342 $ 33,365 $ 255,608 69 Special Revenue TLBD Oak Forest Road Arbor Maintenance Maintenance Improvement Fund Fund Fund Fund Total $ $ 222,316 $ 38,605 $ $ 1,697,917 37,898 457,872 924,285 1,500,245 2,053,487 53,775 6,282 13,297 970 5,951 102,925 1,600 5,867 45,780 235,613 39,575 930,236 5,872,088 17,585 288,079 26,555 1,555,771 211,831 452,289 3,078 253,048 422,251 823,641 47,150 17,585 288,079 26,555 422,251 3,346,808 28,195 (52,466) 13,020 507,985 2,525,280 (41,819) (5,622) (42,900) (2,160,311 ) (41,819) (5,622) (42,900) (2,160,311 ) 28,195 (94,285) 7,398 465,085 364,969 226,628 438,501 14,255 428,893 3,997,211 $ 254,823 $ 344,216 $ 21,653 $ 893,978 $ 4,362,180 (Continued) 70 CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 2003 Debt Service Fund 1 999 Debt Service Fund Debt Service Oak Forest Debt Service Fund Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 145,000 276,485 415,000 150,331 421,485 565,331 Excess (Deficiency) of Revenues Over Expenditures (421,485) (565,331 ) Other Financing Sources (Uses): Transfers in Transfers out Net otherfinancing sources (uses) 404,550 581,200 404,550 581,200 Net Change in Fund Balances (16,935) 15,869 Fund Balances - Beginning Fund Balances - Ending 306,276 289,341 $ $ 495,665 511,534 71 $ $ 12,596 24,646 21,984 59,226 6,486 66,453 21,620 94,559 (35,333) (35,333) 38,168 2,835 Central Winds Debt Service Fund $ 358,960 5,063 364,023 65,000 157,869 222,869 141,154 141,154 $ (94,187) 46,967 Debt Service 2004 Capital Projects Debt Service Fund Total 1999 Construction Fund Capital Projects TLBD Improvements Fund Oak Forest Capital Fund $ $ 371,556 $ $ $ 307 30,016 21,984 423,556 54,916 5,146 60,062 1,366 2,873 307 1,366 2,873 32,755 6,486 60,177 5,926 751,630 612,231 41,970 64,732 66,103 1,370,347 41,970 32,755 64,732 (65,796) (946,791) 18,092 (31,389) (61,859) 66,105 1,051,855 66,105 1,051,855 309 105,064 18,092 (31,389) (61,859) 21,728 767,650 2,024,005 51,137 105,664 $ 22,037 $ 872,714 $ 2,042,097 $ 19,748 $ 43,805 (Continued) 72 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2005 Capital Projects Total Revolving Public Facilities City Hall Exp. Nonmajor Rehab Capital Capital Capital Governmental Projects Fund Projects Fund Projects Fund Total Funds Revenues: Taxes and special assessments $ $ $ $ $ 2,069,473 Licenses and permits 457,872 I ntergovernmental revenues 1,500,245 Charges for services 2,053,487 Fines and forfeitures 53,775 Investment income 16,4 70 33,353 496 109,474 242,415 Miscellaneous 259,720 264,866 292,717 Total revenues 276,190 33,353 496 374,340 6,669,984 Expenditures: Current: General government 24,433 57,188 1,612,959 Public safety 211,831 Physical environment 458,775 Culture and recreation 3,078 Debt Service: Principal retirement 751,630 Interest and fiscal charges 612,231 Capital outlay: General government Public safety 253,048 Physical environment 5,244 111,946 935,587 Culture and recreation 47,150 Total expenditures 24,433 5,244 169,134 4,886,289 Excess (Deficiency) of Revenues Over Expenditures 251,757 28,109 496 205,206 1,783,695 Other Financing Sources (Uses): Transfers in 2,614,656 40,500 2,655,156 3,707,011 Transfers out (14,180) (14,180) (2,174,491 ) Net other financing sources (uses) 2,600,476 40,500 2,640,976 1,532,520 Net Change in Fund Balances 251,757 2,628,585 40,996 2,846,182 3,316,215 Fund Balances - Beginning 563,566 73,024 2,817,396 7,582,257 Fund Balances - Ending $ 815,323 $ 2,701,609 $ 40,996 $ 5,663,578 $ 10,898,472 73 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALACES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 74 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ $ $ 65,000 1,200 22,000 1,200 28,901 23,200 1,017 29,918 66,200 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 1,000 18,059 18.,175 10,000 11,000 18,059 18,175 Excess (Deficiency) of Revenues Over Expenditures 55,200 5,141 11,743 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance 55,200 5,141 11 ,743 Fund Balances. Beginning 248 248 248 Fund Balances. Ending $ 55,448 $ $ 5,389 11,991 $ 6,602 75 Variance with Final Budget- Positive (Negative) 6,901 (1,200) 1,017 6,718 (116) (116) 6,602 6,602 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ $ 508,069 508,069 562,960 6,000 6,400 520,469 6,000 6,400 520,469 14,205 577,165 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 104,600 104,600 62,815 206,800 258,881 212,771 311,400 363,481 275,586 Excess (Deficiency) of Revenues Over Expenditures 209,069 156,988 301,579 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) (400,000) (400,000) (400,000) (400,000) (190,931 ) (400,000) (400,000) Net Change in Fund Balance (243,012) (98,421 ) Fund Balances - Beginning 475,060 475,060 475,060 Fund Balances - Ending $ 284,129 $ 232,048 $ 376,639 $ 144,591 76 Variance with Final Budget- Positive (Negative) $ 54,891. 8,205 (6,400) 56,696 41,785 46,110 87,895 144,591 144,591 CITY OF WINTER SPRINGS, FLORIDA RECREATION ACQUISITION SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement 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 Net other financing sources (uses) Net Change in Fund Balance Fund Balances - Beginning Fund Balances - Ending For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final $ $ $ 175 175 577 175 175 577 3,078 3,078 3,078 3,078 175 (2,903) (2,501 ) 175 (2,903) (2,501) 21,172 21,172 21,172 $ 21,347 $ 18,269 $ 18,671 77 Variance with Final Budget- Positive (Negative) $ 402 402 402 402 $ 402 CITY OF WINTER SPRINGS, FLORIDA STREETLlGHTING SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government 1,938 1,959 1,958 Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 1,938 1,959 1,958 Excess (Deficiency) of Revenues Over Expenditures (1,938) (1,959) (1,958) Other Financing Sources (Uses) Transfers in Transfers out (200) (200) (200) Net other financing sources (uses) (200) (200) (200) Net Change in Fund Balance (2,138) (2,159) (2,158) Fund Balances - Beginning 2,158 2,158 2,158 Fund Balances - Ending $ 20 $ (1 ) $ $ 78 CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues Charges for services 1,660,000 1,660,000 1,687,411 27,411 Fines and forfeitures Investment income 10,000 10,000 9,383 (617) Miscellaneous 3,250 3,250 Total revenues 1,670,000 1,670,000 1,700,044 30,044 Expenditures: Current: General government 1,500,430 1,555,655 1,553,813 1,842 Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 1,500,430 1,555,655 1,553,813 1,842 Excess (Deficiency) of Revenues Over Expenditures 169,570 114,345 146,231 31,886 Other Financing Sources (Uses) Transfers in Transfers out (129,565) (129,565) (124,758) 4,807 Net other financing sources (uses) (129,565) (129,565) (124,758) 4,807 Net Change in Fund Balance 40,005 (15,220) 21,473 36,693 Fund Balances - Beginning 261,285 261,285 261,285 Fund Balances. Ending $ 301,290 $ 246,065 $ 282,758 $ 36,693 79 CITY OF WINTER SPRINGS, FLORIDA ELECTRIC FRANCHISE FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ 1,298,200 $ 1,436,996 $ 1,436,996 $ 782 991 1,298,200 1,437,778 1,437,987 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures 1,298,200 1,437,778 1,437,987 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) (1,298,200) (1,437,778) (1,437,987) (1,298,200) (1,437,778) (1,437,987) Net Change in Fund Balance Fund Balances - Beginning Fund Balances - Ending $ $ $ 80 Variance with Final Budget- Positive (Negative) 209 209 209 (209) (209) $ CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ $ 240,000 240,000 192,319 13,500 13,500 26,605 253,500 253,500 218,924 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 25,000 57,284 57,255 500,000 613,843 188,619 525,000 671,127 245,874 Excess (Deficiency) of Revenues Over Expenditures (271,500) (417,627) (26,950) Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance (271,500) (417,627) (26,950) Fund Balances - Beginning 1,077,774 1,077,774 1,077,774 Fund Balances. Ending $ 806,274 $ 660,147 $ 1,050,824 $ 81 Variance with Final Budget- Positive (Negative) $ (47,681) 13,105 (34,576) 29 425,224 425,253 390,677 390,677 390,677 CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits 30,000 21,500 21,450 (50) Intergovernmental revenues Charges for services Fines and forfeitures Investment income 748 748 Miscellaneous Total revenues 30,000 21,500 22,198 698 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety 18,464 18,464 Physical environment Culture and recreation Total expenditures 18,464 18,464 Excess (Deficiency) of Revenues Over Expenditures 30,000 3,036 3,734 698 Other Financing Sources (Uses) Transfers in Transfers out (21,680) (22,042) (22,042) Net other financing sources (uses) (21,680) (22,042) (22,042) Net Change in Fund Balance 8,320 (19,006) (18,308) 698 Fund Balances - Beginning 38,966 38,966 38,966 Fund Balances - Ending $ 47,286 $ 19,960 $ 20,658 $ 698 82 CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits 35,000 35,000 37,129 2,129 Intergovernmental revenues Charges for services Fines and forfeitures Investment income 6,000 6,000 12,018 6,018 Miscellaneous Total revenues 41 ,000 41,000 49,147 8,147 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety 60,800 60,800 59,699 1,101 Physical environment Culture and recreation Total expenditures 60,800 60,800 59,699 1,101 Excess (Deficiency) of Revenues Over Expenditures (19,800) (19,800) (10,552) 9,248 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance (19,800) (19,800) (10,552) 9,248 Fund Balances - Beginning 469,448 469,448 469,448 Fund Balances. Ending $ 449,648 $ 449,648 $ 458,896 $ 9,248 83 CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits 100,000 100,000 144,753 44,753 Intergovernmental revenues Charges for services Fines and forfeitures Investment income 500 500 6,451 5,951 Miscellaneous Total revenues 100,500 100,500 151,204 50,704 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation 127,317 47,150 80,167 Total expenditures 127,317 47,150 80,167 Excess (Deficiency) of Revenues Over Expenditures 100,500 (26,817) 104,054 130,871 Other Financing Sources (Uses) Transfers in Transfers out (43,340) (44,063) (44,063) Net other financing sources (uses) (43,340) (44,063) (44,063) Net Change in Fund Balance 57,160 (70,880) 59,991 130,871 Fund Balances - Beginning 213,351 213,351 213,351 Fund Balances. Ending $ 270,511 $ 142,471 $ 273,342 $ 130,871 84 CITY OF WINTER SPRINGS, FLORIDA PUBLIC BUILDING IMPACT FEE SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ $ $ 44,450 24,450 24,323 865 44,450 24,450 25,188 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures 44,450 24,450 25,188 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) (42,292) ( 42,292) (26,320) (26,320) (26,320) (26,320) (1,132) Net Change in Fund Balance 2,158 (1,870) Fund Balances - Beginning 34,497 34,497 34,497 Fund Balances - Ending $ 36,655 $ 32,627 $ 33,365 $ 85 Variance with Final Budget- Positive (Negative) $ (127) 865 738 738 738 738 CITY OF WINTER SPRINGS, FLORIDA MEDICAL TRANSPORT SPECIAL REVENUE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues 13,000 13,000 Charges for services 200,000 205,000 366,076 161,076 Fines and forfeitures Investment income 4,000 4,000 2,140 (1,860) Miscellaneous Total revenues 204,000 222,000 381,216 159,216 Expenditures: Current: General government Public safety 87,500 99,080 157,246 (58,166) Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety 135,400 146,320 146,233 87 Physical environment Culture and recreation Total expenditures 222,900 245,400 303,479 (58,079) Excess (Deficiency) of Revenues Over Expenditures (18,900) (23,400) 77,737 101,137 Other Financing Sources (Uses) Transfers in Transfers out (14,600) (14,600) (14,600) Net other financing sources (uses) (14,600) (14,600) (14,600) Net Change in Fund Balance (33,500) (38,000) 63,137 101,137 Fund Balances - Beginning 192,471 192,471 192,471 Fund Balances. Ending $ 158,971 $ 154,471 $ 255,608 $ 101,137 86 CITY OF WINTER SPRINGS, FLORIDA ARBOR SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits 15,040 15,040 37,898 22,858 Intergovernmental revenues Charges for services Fines and forfeitures Investment income 400 400 6,282 5,882 Miscellaneous 1,500 1,600 100 Total revenues 15,440 16,940 45,780 28,840 Expenditures: Current: General government Public safety Physical environment 12,000 58,500 17,585 40,915 Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment 129,000 Culture and recreation Total expenditures 141,000 58,500 17,585 40,915 Excess (Deficiency) of Revenues Over Expenditures (125,560) (41,560) 28,195 69,755 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance (125,560) (41,560) 28,195 69,755 Fund Balances - Beginning 226,628 226,628 226,628 Fund Balances. Ending $ 101,068 $ 185,068 $ 254,823 $ 69,755 87 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ 219,000 $ 219,000 $ 222,316 $ 3,316 Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income 4,750 4,750 13,297 8,547 Miscellaneous Total revenues 223,750 223,750 235,613 11,863 Expenditures: Current: General government Public safety Physical environment 396,800 396,800 288,079 108,721 Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 396,800 396,800 288,079 108,721 Excess (Deficiency) of Revenues Over Expenditures (173,050) (173,050) (52,466) 120,584 Other Financing Sources (Uses) Transfers in Transfers out (50,517) (53,019) (41,819) 11,200 Net other financing sources (uses) (50,517) (53,019) (41,819) 11,200 Net Change in Fund Balance (223,567) (226,069) (94,285) 131,784 Fund Balances - Beginning 438,501 438,501 438,501 Fund Balances - Ending $ 214,934 $ 212,432 $ 344,216 $ 131,784 88 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ 39,060 $ 39,060 $ 38,605 $ (455) Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income 200 200 970 770 Miscellaneous Total revenues 39,260 39,260 39,575 315 Expenditures: Current: General government Public safety Physical environment 32,951 32,951 26,555 6,396 Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 32,951 32,951 26,555 6,396 Excess (Deficiency) of Revenues Over Expenditures 6,309 6,309 13,020 6,711 Other Financing Sources (Uses) Transfers in Transfers out (7,864) (7,507) (5,622) 1,885 Net other financing sources (uses) (7,864) (7,507) (5,622) 1,885 Net Change in Fund Balance (1,555) (1,198) 7,398 8,596 Fund Balances - Beginning 14,255 14,255 14,255 Fund Balances. Ending $ 12,700 $ 13,057 $ 21,653 $ 8,596 89 CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30,2005 90 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement 145,000 145,000 145,000 Interest and fiscal charges 277,500 277,500 276,485 1,015 Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 422,500 422,500 421,485 1,015 Excess (Deficiency) of Revenues Over Expenditures (422,500) (422,500) (421,485) 1,015 Other Financing Sources (Uses) Transfers in 404,550 404,550 404,550 Transfers out Net other financing sources (uses) 404,550 404,550 404,550 Net Change in Fund Balance (17,950) (17,950) (16,935) 1,015 Fund Balances - Beginning 306,276 306,276 306,276 Fund Balances - Ending $ 288,326 $ 288,326 $ 289,341 $ 1,015 91 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement 415,000 415,000 415,000 Interest and fiscal charges 151,000 151,000 150,331 669 Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 566,000 566,000 565,331 669 Excess (Deficiency) of Revenues Over Expenditures (566,000) (566,000) (565,331 ) 669 Other Financing Sources (Uses) Transfers in 581,200 581,200 581,200 Transfers out Net other financing sources (uses) 581,200 581,200 581,200 Net Change in Fund Balance 15,200 15,200 15,869 669 Fund Balances - Beginning 495,665 495,665 495,665 Fund Balances - Ending $ 510,865 $ 510,865 $ 511,534 $ 669 92 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ 58,000 $ 58,000 $ 12,596 $ (45,404) Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income 300 300 24,646 24,346 Miscellaneous 21,984 21,984 Total revenues 58,300 58,300 59,226 926 Expenditures: Current: General government Public safety Physical environment 5,900 6,600 6,486 114 Culture and recreation Debt service: Principal retirement 33,060 66,453 66,453 Interest and fiscal charges 18,945 21,621 21,620 Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 57,905 94,674 94,559 115 Excess (Deficiency) of Revenues Over Expenditures 395 (36,374) (35,333) 1,041 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) Net Change in Fund Balance 395 (36,374) (35,333) 1,041 Fund Balances - Beginning 38,168 38,168 38,168 Fund Balances - Ending $ 38,563 $ 1,794 $ 2,835 $ 1,041 93 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS DEBT SERVICE FUND SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Budgeted Amounts Original Actual Amounts Final Revenues: Taxes and special assessments Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues $ 356,207 $ 356,207 $ 358,960 $ 600 600 5,063 356,807 356,807 364,023 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement Interest and fiscal charges Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 65,000 157,950 65,000 157,950 65,000 157,869 222,950 222,950 222,869 Excess (Deficiency) of Revenues Over Expenditures 133,857 133,857 141 ,154 Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources (uses) (147,560) (147,560) (147,560) (13,703) (147,560) Net Change in Fund Balance (13,703) 141,154 Fund Balances. Beginning (94,187) (107,890) $ (94,187) (107,890) $ (94,187) Fund Balances. Ending $ 46,967 $ 94 Variance with Final Budget- Positive (Negative) 2,753 4,463 7,216 81 81 7,297 147,560 147,560 154,857 154,857 CITY OF WINTER SPRINGS, FLORIDA 2004 CAPITAL PROJECTS DEBT SERVICE FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Investment income 307 307 Miscellaneous Total revenues 307 307 Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt service: Principal retirement 75,744 59,619 60,177 (558) Interest and fiscal charges 7,401 6,486 5,926 560 Capital outlay: General government Public safety Physical environment Culture and recreation Total expenditures 83,145 66,105 66,103 2 Excess (Deficiency) of Revenues Over Expenditures (83,145) (66,105) (65,796) 309 Other Financing Sources (Uses) Transfers in 107,312 66,105 66,105 Transfers out Net other financing sources (uses) 107,312 66,105 66,105 Net Change in Fund Balance 24,167 309 309 Fund Balances - Beginning 21,728 21,728 21,728 Fund Balances - Ending $ 45,895 $ 21,728 $ 22,037 $ 309 95 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES. BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final. Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 30,000 30,000 54,916 24,916 Miscellaneous 5,146 5,146 Total revenues 30,000 35,146 60,062 24,916 Expenditures: Current: General government Capital Outlay: General government Public safety Physical environment 1,800,000 1,832,163 41.970 1,790,193 Culture and recreation Total expenditures 1,800,000 1,832,163 41,970 1,790,193 Excess (Deficiency) of Revenues Over Expenditures (1,770,000) (1,797,017) 18,092 1,815,109 Other Financing Sources (Uses) Transfers in Transfers out Note issued Net other financing sources (uses) Net Change in Fund Balance (1,770,000) (1,797,017) 18,092 1,815,109 Fund Balances - Beginning 2,024,005 2,024,005 2,024,005 Fund Balances - Ending $ 254,005 $ 226,988 $ 2,042,097 $ 1,815,109 96 CITY OF WINTER SPRINGS, FLORIDA TLBD IMPROVEMENT CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 200 200 1,366 1,166 Miscellaneous Total revenues 200 200 1,366 1,166 Expenditures: Current: General government 32,755 32,755 Capital Outlay: General government Public safety Physical environment 51,437 18,582 18,582 Culture and recreation Total expenditures 51,437 51,337 32,755 18,582 Excess (Deficiency) of Revenues Over Expenditures (51,237) (51,137) (31,389) 19,748 Other Financing Sources (Uses) Transfers in Transfers out Note issued Net other financing sources (uses) Net Change in Fund Balance (51,237) (51,137) (31,389) 19,748 Fund Balances - Beginning 51,137 51,137 51,137 Fund Balances - Ending $ (1 00) $ $ 19,748 $ 19,748 97 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 300 300 2,873 2,573 Miscellaneous Total revenues 300 300 2,873 2,573 Expenditures: Current: General government Capital Outlay: General government Public safety Physical environment 105,765 105,765 64,732 41 ,033 Culture and recreation Total expenditures 105,765 105,765 64,732 41 ,033 Excess (Deficiency) of Revenues Over Expenditures (105,465) (105,465) (61,859) 43,606 Other Financing Sources (Uses) Transfers in Transfers out Note issued Net other financing sources (uses) Net Change in Fund Balance (105,465) (105,465) (61,859) 43,606 Fund Balances - Beginning 105,664 105,664 105,664 Fund Balances - Ending $ 199 $ 199 $ 43,805 $ 43,606 98 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB CAPITAL POJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 16,000 16,4 70 470 Miscellaneous 240,000 260,146 259,720 (426) Total revenues 240,000 276,146 276,190 44 Expenditures: Current: General government 46,245 24,433 21,812 Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures 46,245 24,433 21,812 Excess (Deficiency) of Revenues Over Expenditures 240,000 229,901 251,757 21,856 Other Financing Sources (Uses) Transfers in 8,000 Transfers out Note issued Net other financing sources (uses) 8,000 Net Change in Fund Balance 248,000 229,901 251,757 21,856 Fund Balances - Beginning 563,566 563,566 563,566 Fund Balances. Ending $ 811,566 $ 793,467 $ 815,323 $ 21,856 99 CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 33,353 33,353 Miscellaneous Total revenues 33,353 33,353 Expenditures: Current: General government Capital Outlay: General government Public safety Physical environment 3,214,656 500,000 5,244 494,756 Culture and recreation Total expenditures 3,214,656 500,000 5,244 494,756 Excess (Deficiency) of Revenues Over Expenditures (3,214,656) (500,000) 28,109 528,109 Other Financing Sources (Uses) Transfers in 2,614,656 2,614,656 2,614,656 Transfers out (14,180) (14,180) Note issued 600,000 Net other financing sources (uses) 3,214,656 2,600,476 2,600,476 Net Change in Fund Balance 2,100,476 2,628,585 528,109 Fund Balances. Beginning 73,024 73,024 73,024 Fund Balances. Ending $ 73,024 $ 2,173,500 $ 2,701,609 $ 528,109 100 CITY OF WINTER SPRINGS, FLORIDA CITY HALL EXPANSION CAPITAL PROJECTS FUND SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2005 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments $ $ $ $ Intergovernmental Investment income 496 496 Miscellaneous Total revenues 496 496 Expenditures: Current: General government Capital Outlay: General government 40,500 40,500 Public safety Physical environment Culture and recreation Total expenditures 40,500 40,500 Excess (Deficiency) of Revenues Over Expenditures (40,500) 496 40,996 Other Financing Sources (Uses) Transfers in 40,500 40,500 Transfers out Note issued Net other financing sources (uses) 40,500 40,500 Net Change in Fund Balance 40,996 40,996 Fund Balances - Beginning Fund Balances - Ending $ $ $ 40,996 $ 40,996 101 This page intentionally left blank. CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY For The Year Ended September 30, 2005 Public Safety Physical Environment Culture And Recreation Prior Year Function Not Available Total General Government Land $ - $ - $ 281,626 $ 3,682,379 $ 5,796,396 $ 9,760,401 Buildings 1,823,848 3,141,788 115,550 395,824 5,477,010 Improvements 32,989 185,104 2,480,624 7,248,933 9,947,650 Machinery & equipment 1,359,239 4,156,522 1,059,792 772,092 7,347,645 Infrastructure 43,084,545 43,084,545 Construction in progress 1,024,509 419,523 1,444,032 Total $ 3,216,076 $ 7,483,414 $ 48,046,646 $ 12,518,751 $ 5,796,396 $ 77,061,283 Deletions Balance and Balance 09-30-04 Additions Transfers 09-30-05 General Government $ 3,019,682 $ 258,069 $ 61,675 $ 3,216,076 Public Safety 7,070,338 504,620 91,544 7,483,414 Physical Environment 47,297,217 1,536,004 786,575 48,046,646 Culture & Recreation 11,996,809 1,033,432 511,490 12,518,751 Prior year function not available 5,796,396 5,796,396 Total $ 75,180,442 $ 3,332,125 $ 1,451,284 $ 77,061,283 102 This page intentionally left blank. STATISTICAL SECTION The statistical schedules differ from other financial statement presentations because they generally disclose more than one fiscal year and may present non-accounting data, such as social and economic data and financial trends of the City. This page intentionally left blank. STATISTICAL SECTION LIST OF SCHEDULES Government-Wide Expenses by Function Government-Wide Revenues General Governmental Expenditures by Function General Governmental Revenues by Source Property Levies and Collections Assessed and Estimate Value of Taxable Property, Net of Exemptions Property Tax Rates, Direct and Overlapping Governments Schedule of Ten Largest Taxpayers Special Assessment Billings and Collections Legal Debt Margin Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt per Capita Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures Computation of Direct and Overlapping General Obligation Debt Revenue Bond Coverage, Water and Sewer Bonds Demographic Statistics Property Values and Construction Miscellaneous Statistical Data CITY OF WINTER SPRINGS, FLORIDA GOVERNMENT - WIDE EXPENSES BY FUNCTION Last Ten Fiscal Years Fiscal General Public Physical Culture and Year Government Safety Environment Recreation 1996 * * * * 1997 * 1998 * * * * 1999 * * 2000 * * * * 2001 * 2002 5,177,508 6,838,109 2,746,869 1,629,128 2003 4,639,843 7,870,237 2,765,010 1,746,602 2004 5,420,691 8,702,799 8,779,414 1,988,881 2005 5,786,288 9,137,638 5,560,719 2,264,817 * Data not available prior to the implementation of GASB 34. 103 Interest on Long-term Debt Water and Sewer Development Services Stormwater Loss on Disposition of Capital Assets Total 104 CITY OF WINTER SPRINGS, FLORIDA GOVERNMENT - WIDE REVENUES Last Ten Fiscal Years Fiscal Year Charges For Services Operating Grants and Contributions Capital Grants and Contributions Taxes Intergov- ernmental 1996 * * * * * 1997 * * * * * 1998 * * * * * 1999 * * * * * 2000 * * * * * 2001 * * * * * 2002 10,316,290 111,003 945,286 9,275,951 4,783,271 2003 12,013,963 24,973 2,327,936 9,822,413 5,228,541 2004 13,186,302 5,411,505 4,471,245 10,460,399 3,243,038 2005 13,135,348 2,525,091 2,937,227 11,182,229 3,680,669 * Data not available prior to the implementation of GASB 34. 105 Investment Income & Miscellaneous Total * * * * * * * * * * * * 546,134 25,977,935 635,467 30,053,293 586,681 37,359,170 686,636 34,147,200 106 CITY OF WINTER SPRINGS, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal General Public Physical Year Government Safety Environment 1996 1,522,378 3,684,567 1,153,694 1997 1,950,449 4,108,319 1,084,121 1998 2,591,811 4,725,544 1,159,944 1999 2,726,281 5,355,195 1,119,185 2000 3,039,087 5,807,995 1,762,780 2001 3,483,821 6,407,678 1,923,892 2002 4,996,156 6,616,299 3,638,893 2003 4,611,253 8,004,429 4,070,977 2004 4,860,732 8,034,575 7,992,775 2005 5,603,130 8,639,165 4,303,573 (1) This schedule includes expenditures of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. 107 Culture and Capital Debt Recreation Outlay Service Total (1) 753,557 1,516,789 1,012,325 9,643,310 814,125 2,454,088 963,044 11,374,146 843,115 2,705,800 967,605 12,993,819 1,042,556 1,792,208 2,057,757 14,093,182 1,200,702 4,347,463 978,819 17,136,846 1,301,005 1,111,782 1,477,381 15,705,559 1,928,853 4,909,258 1,553,083 23,642,542 2,635,168 362,081 2,057,487 21,741,395 1,693,526 4,752,276 2,506,610 29,840,494 1,906,482 2,185,764 6,668,844 29,306,958 108 CITY OF WINTER SPRINGS, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years Licenses Inter- Charges Fiscal And Governmental For Fines and Year Taxes Permits Revenues Services Forfeitures 1996 5,234,145 949,701 2,183,187 206,210 178,234 1997 5,406,995 990,4 77 2,290,120 687,152 208,667 1998 5,967,375 943,220 2,583,849 742,766 183,714 1999 6,298,975 1,762,848 2,918,244 914,748 249,206 2000 7,322,542 931,588 3,261,472 1,073,902 298,357 2001 7,791,759 758,367 3,430,537 825,621 415,896 2002 9,631,943 1,423,945 5,317,393 2,168,901 330,339 2003 10,121,036 811,442 5,918,049 2,307,260 369,024 2004 11,090,047 931,816 5,664,330 2,432,193 310,666 2005 11,859,706 657,963 13,020,593 2,543,914 295,666 (1) This schedule includes revenues of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. 109 Investment Misc. Income Income Total (1) 429,517 595,403 9,776,397 454,922 641,202 10,679,535 447,343 737,539 11,605,806 383,955 927,367 13,455,343 597,515 13,676 13,499,052 597,612 131,010 13,950,802 447,497 129,027 19,449,045 425,172 372,552 20,324,535 343,271 243,410 21,015,733 573,454 ' 444,429 29,395,725 110 This page intentionally left blank. CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Percentage of Total Tax Levy Current Tax Delinquent Tax Total Tax Total Collections Fiscal Year (1 ) Collections (2 ) Collections (2) Collections To Tax Levy 1996 2,769,752 2,670,643 9,896 2,680,539 96.78% 1997 2,882,773 2,786,845 4,636 2,791,481 96.83% 1998 3,074,799 2,960,328 7,678 2,968,006 96.53% 1999 3,215,932 3,097,939 25,225 3,123,164 97.12% 2000 3,453,596 3,333,199 2,817 3,336,016 96.60% 2001 3,771,445 3,618,281 7,288 3,625,569 96.13% 2002 4,467,419 4,270,430 7,277 4,277,707 95.80% 2003 5,277,940 5,084,586 13,475 5,098,061 96.59% 2004 6,215,233 (3) 5,982,757 7,284 5,990,041 96.38% 2005 6,748,179 (3) 6,493,143 11 ,360 6,504,503 96.39% (1 ) Gross taxes before discount of 1 % - 4%, depending on month paid; Source: Seminole County Property Appraiser (2) Source: Seminole County Tax Collector (3) Includes .2500 mills of voted debt service for Central Winds General Obligation Debt 111 CITY OF WINTER SPRINGS, FLORIDA ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY NET OF EXEMPTIONS Last Ten Fiscal Years (Amounts Expressed in Thousands) Centrally Assessed and Real Property Personal Property Fiscal Tax Assessed Estimated Assessed Estimated Year Year Value Actual Value Value Actual Value 1996 1995 935,813 959,556 24,141 24,760 1997 1996 992,796 1,001,788 26,362 26,601 1998 1997 1,061,983 1,061,983 27,701 27,701 1999 1998 1,127,792 1,149,603 31,494 32,104 2000 1999 1,254,009 1,264,122 34,604 34,883 2001 2000 1,324,389 1,354,181 40,568 41 ,481 2002 2001 1,499,344 1,534,641 45,241 46,306 2003 2002 1,642,170 1,655,413 43,759 44,112 2004 2003 1,826,228 1,869,220 45,709 46,785 2005 2004 2,007,577 2,029,906 49,733 50,286 Source: Seminole County Property Appraiser's Office 112 Ratio of Total Assessed Exem ptions Totals to Total Real and Personal Assessed Estimated Estimated Property Value Actual Value Actual Value 211,837 748,117 984,316 76.00% 220,230 798,928 1,028,389 77.69% 235,565 854,119 1,089,684 78.38% 253,253 906,033 1,181,707 76.67% 315,632 972,981 1,299,005 74.90% 299,567 1,065,390 1,395,662 76.34% 359,845 1,184,740 1,580,947 74.94% 418,960 1,266,969 1,699,497 74.55% 505,952 1,365,985 1,916,005 71.29% 574,194 1,483,116 2,080,192 71.30% 113 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (Amounts Expressed in Millage) (Tax Levies per $1,000 of Assessed Valuation) St. John's City of Winter Springs Seminole County Seminole County School Board River Water Fiscal Debt Debt Debt Management Year Operating Service Total Operating Service Total Operating Service Total District Total 1996 3.7023 0.0000 3.7023 5.1638 0.2134 5.3772 9.2690 1.0680 10.3370 0.4820 19.8985 1997 3.6083 0.0000 3.6083 5.1638 0.2251 5.3889 9.3880 0.9200 10.3080 0.4820 19.7872 1998 3.6000 0.0000 3.6000 5.1638 0.1987 5.3625 9.1560 0.8800 10.0360 0.4820 19.4805 1999 3.5495 0.0000 3.5495 5.1579 0.1234 5.2813 9.1020 0.8160 9.9180 0.4820 19.2308 2000 3.5495 0.0000 3.5495 4.9989 0.1170 5.1159 8.7850 0.7560 9.5410 0.4820 18.6884 2001 3.5400 0.0000 3.5400 4.9989 0.1083 5.1072 8.6550 0.6900 9.3450 0.4720 18.4642 2002 3.7708 0.0000 3.7708 4.9989 0.2208 5.2197 8.5230 0.6390 9.1620 0.4620 18.6145 2003 4.1658 0.0000 4.1658 4.9989 0.2086 5.2075 8.4790 0.5210 9.0000 0.4620 18.8353 2004 4.3000 0.2500 4.5500 4.9989 0.1910 5.1899 8.2410 0.4950 8.7360 0.4620 18.9379 2005 4.3000 0.2500 4.5500 4.9989 0.1721 5.1710 8.1270 0.3850 8.5120 0.4620 18.6950 Source: Seminole County Tax Collector's Office 114 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS September 30,2005 Taxable Assessed Percentage of Valuation as of 2004 Total Taxable Taxpayer Type of Business Tax Roll (1) Value 1 Golf Terrace, Limited Property Management $ 24,106,550 1.63% 2 Courtney Springs LP Property Management 13,422,588 0.91% 3 Florida Power Corporation Electric Utility 12,142,123 0.82% 4 Capital Green I LLC Retail Center 7,622,520 0.51% 5 United Dominion Realty Trust Property Management 7,374,613 0.50% 6 Tuscawilla Cay LLC & Tusc 54th LLC Developer 5,369,612 0.36% 7 Hacienda Village Co-op Inc. Property Management 4,785,669 0.32% 8 Bellsouth Telecommunications Utility 4,036,251 0.27% 9 Bright House Networks Utility 3,330,628 0.22% 10 Engle Homes/Orlando Inc. Builder 2,600,010 0.18% Total taxable assessed valuation of 10 largest taxpayers 84,790,564 5.72% Total taxable assessed valuation of other taxpayers 1,398,325,686 94.28% Total taxable assessed valuation of all taxpayers $ 1,483,116,250 100.00% Source: Seminole County Property Appraiser's Office (1) The tax levy for the fiscal year ended September 30,2005 is based on the 2004 assessed values. 115 CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Tax Fiscal Year Year Oak Forest Assessments Assessments Billed Collected (1) Difference 1999 2000 $ $ $ 2000 2001 82,651 79,689 2,962 2001 2002 82,225 80,062 2,163 2002 2003 82,678 78,809 3,869 2003 2004 83,344 80,400 2,944 2004 2005 99,595 97,388 2,207 (1) Includes prepayments. Tuskawilla Lighting and Beautification (TLBD) Assessments Assessments Billed Collected (1) Difference $ 459,438 $ 442,916 $ 16,522 232 (232) 459,090 446,121 12,969 393,704 376,256 17,448 391,976 377,978 13,998 390,204 379,601 10,603 Special Assessment Debt Issued: Oak Forest June 2000 (Refinanced in June of 2004) TLBD May 2001 116 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30,2005 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. 117 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 (3) Bonded (2) Gross (4) Net Debt to Net Bonded Fiscal (1 ) Assessed Bonded Less Debt Bonded Assessed Debt per Year Population Value Debt Service Fund Debt Value Coverage 1996 26,474 748,117,000 0.000% 1997 27,466 798,928,000 0.000% 1998 28,404 854,119,000 0.000% 1999 29,220 906,033,000 0.000% 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 (1) Source: East Central Florida Regional Planning Council or University of Florida Bureau of Economic and Business Research (2) Source: The Assessed and Estimated Value of Taxable Property table in this section (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 118 CITY OF WINTER SPRINGS, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT (1) TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Last Ten Fiscal Years (3) (2) Total Ratio of Total General Debt Service to Fiscal Debt Governmental General Governmental Year Principal Interest Service Expenditures Expenditures 1996 9,643,310 0.000% 1997 11,374,146 0.000% 1998 12,993,819 0.000% 1999 14,093,182 0.000% 2000 17,136,846 0.000% 2001 15,705,559 0.000% 2002 55,625 55,625 23,642,542 0.235% 2003 65,000 160,755 225,755 21,741,395 1.038% 2004 65,000 159,455 224,455 29,840,494 0.752% 2005 65,000 157,869 222,869 29,306,958 0.760% (1) Special assessment debt with government commitment are excluded (2) Excludes bond issuance and other costs (3) Includes expenditures of General, Special Revenue, Debt Service and Capital Projects Funds 119 CITY OF WINTER SPRINGS, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30,2005 Jurisdiction Net General Obligation Debt Outstanding Applicable to City of Winter Springs Percent (1) Amount Seminole County $ 30,000,000 6.99% $ 2,097,000 Seminole County School Board 6.99% Total Overlapping Debt 30,000,000 2,097,000 Total Direct Debt (1 ) 3,205,000 3,205,000 Total Direct and Overlapping Debt $ 33,205,000 $ 5,302,000 (1) The City of Winter Springs has a "limited" general obligation bond that is being repaid through a levy not to exceed on quarter of one mil on all taxable property in the City. Source: Seminole County Finance Department Seminole County Public School Board 120 CITY OF WINTER SPRINGS, FLORIDA REVENUE BOND COVERAGE WATER AND SEWER BONDS Last Ten Fiscal Years Net Direct Available Fiscal Operating For Debt Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage 1996 5,269,291 2,336,777 2,932,514 415,000 1,358,416 1,773,416 1.65 1997 5,613,413 2,517,191 3,096,222 435,000 1,346,020 1,781,020 1.74 1998 5,924,112 2,696,506 3,227,606 455,000 1,405,724 1,860,724 1.73 1999 6,999,692 3,312,000 3,687,692 710,000 1,436,131 2,146,131 1.72 2000 6,511,101 3,191,228 3,319,873 750,000 1,397,292 2,147,292 1.55 2001 6,493,205 3,438,641 3,054,564 930,000 1,383,337 2,313,337 1.32 2002 6,376,430 3,840,397 2,536,033 420,000 1,251,116 1,671,116 1.52 2003 7,000,193 3,992,489 3,007,704 780,000 1,046,997 1,826,997 1.65 2004 7,895,705 4,968,307 2,927,398 805,000 1,020,472 1,825,472 1.60 2005 7,855,932 4,862,108 2,993,824 835,000 1,006,910 1,841,910 1.63 (1) Revenues include investment income, connection fees, and other income (2) Direct operating expenses excludes depreciation and interest expense but includes operating transfers out 121 CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN YEARS Seminole County School Unemployment Fiscal Year Population (1) Enrollment (2) Rate (3) 1996 26,474 3,390 3.3% 1997 27,466 3,988 3.1% 1998 28,404 5,967 2.6% 1999 29,220 5,711 2.6% 2000 30,860 5,776 2.6% 2001 31,666 6,421 4.1% 2002 32,082 6,508 5.0% 2003 32,572 7,413 5.1% 2004 32,955 7,476 3.9% 2005 33,321 7,492 2.5% (1) Source: East Central Florida Regional Planning Councilor University of Florida Bureau of Economic and Business Research (2) Source: Seminole County Public School Board (3) Source: U.S. Bureau of Labor Statistics 122 CITY OF WINTER SPRINGS, FLORIDA PROPERTY VALUES AND CONSTRUCTION LAST TEN FISCAL YEARS (VALUES ARE IN THOUSANDS) Commercial Additions/ Residential Construction (1) Construction (1) Alterations ( 1 ) Number of Units Single Multi Total Year Family Family Value Value Value Value 1996 335 2 43,550 655 5,445 49,650 1997 327 0 50,428 449 3,603 54,480 1998 337 56,760 1,331 4,410 62,501 1999 418 42 123,290 4,898 6,580 134,768 2000 285 45,773 6,967 1,189 53,929 2001 163 16 31,775 3,403 1,039 36,217 2002 135 0 30,057 7,467 1,196 38,720 2003 263 0 63,120 19,800 2,274 85,194 2004 200 .39,974 8,806 2,644 51,424 2005 19 116 18,751 626 32,869 52,246 (1) Source: City of Winter Springs Building Department 123 CITY OF WINTER SPRINGS MISCELLANEOUS STATISTICAL DATA Date of Incorporation City Charter Adopted Form of Government Commission Composed of Areas of City Miles of Streets Fire Protection: Stations Firefighters and Officers Police Protection: Stations Sworn Officers Recreation and Culture: Number of Community Parks Number of Neighborhood Parks Number of Mini Parks Number of Park Acres City Water System: Number of customers Daily Average Consumption Miles of Water Mains Plant Capacity-All Plants Deep wells Number of fire hydrants City Sewer System: Treatment Facility Charge Current Average Flow Miles of Sanitary Sewer Lines September 30, 2005 Building Permits Issued-Fiscal year 2005 City Employees: Classified Service Exempt Part-time 124 1959 1972 Commission-City Manager 5 Members 14.78 Square miles 100.51 miles 3 50 1 64 5 6 1 265 12,104 3.977 MGD 158.90 12 MGD 7 964 4.212 MGD 2.297 MGD 106.97 3,382 226 55 22 REPORTS ON INTERNAL CONTROL AND COMPLIANCE This page intentionally left blank. MCDIRMIT III 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 The Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the basic financial statements of the City of Winter Springs, Florida, as of and for the year ended September 30, 2005, and have issued our report thereon dated January 6, 2006. 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 of Winter Springs, Florida's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters - As part of obtaining reasonable assurance about whether the City of Winter Springs, Florida's basic 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 that are required to be reported under Government Auditing Standards. However, we noted certain immaterial instances of noncompliance that we have reported to management of the City of Winter Springs, Florida, in a separate letter and dated January 6,2006. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET, SL:1TE 635 . ORLA'JDO FLORIDA 3280 I TELEPHO"iE 407-843-5406' FAX 407-649-9339 . EMAIL: INFO@MCD;RMITDAVIS.COM 125 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. McDirmit Davis & Company LLC January 6, 2006 126 MCDIRMIT III DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Mayor and City Commissioners City of Winter Springs, Florida Compliance 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, 2005. The City of Winter Springs' 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 state project is 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 OMS Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards, and OMS 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, 2005. MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET. SUITE 635 . ORLA'JDO, FLORIDA 3280 I TELEPHO'JE 407-843-5406' FAX 407-649-9339. EMAIL: II\FO@MCDIRMITDAVIS.COM 127 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 and to test and report on internal control over compliance in accordance with OMS Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major state program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 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. McDirmit Davis & Company, LLC January 6, 2006 128 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2005 Pass-through Federal Grantor/Pass-throuoh Federal Entitv Federal Grantor/Prooram title CFDA No. Number Expenditures U. S. Department of Homeland Security: Federal Emergency Management Agency Public Assistance Grants 97.036 $1,828,321 U.S. Federal Emergency Management Agency: Assistance to Firefighters Grant 83.554 43,950 U.S. Department of Agriculture: Natural Resources Conservation Service Watershed Protection and Flood Protection Grant 10.904 348,496 U. S. Department of Justice: Office of Community Oriented Policing Services- Homeland Security Overtime Program 16.710 4,779 Universal Hiring Award 16.710 91,531 Office of Justice Programs- Local Law Enforcement Block Grant 16.592 5,569 Total U.S. Department of Justice 101.879 U.S. Department of the Interior: Pass-through program from Florida Department of Environmental Protection Land and Water Conservation Program 15.916 12-00442 200,000 Total expenditures of federal awards $2.522.646 See accompanying Notes to Schedule of Expenditures of Federal Awards. 129 CITY OF WINTER SPRINGS, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2005 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 OMS Circular A- 133, 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. 130 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS- FEDERAL AWARDS Year Ended September 30, 2005 A. Summary of Auditor's Findings 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of Winter Springs, Florida. 2. No instances of noncompliance material to the financial statements of the City of Winter Springs, Florida were disclosed during the audit. 3. The auditor's report on compliance for the major federal award for the City of Winter Springs, Florida, expresses an unqualified opinion. 4. The program tested as major program included the following: Federal Proaram U.S. Department of Homeland Security Public Assistance Grant CFDA No. 97.036 5. The threshold for distinguishing Type A and Type B programs/projects was $500,000 for major federal awards. 131 This page intentionally left blank. MCDIRMIT III DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS MANAGEMENT COMMENTS The Honorable Mayor and City Commissioners City of Winter Springs, Florida In planning and performing our audit of the basic financial statements of the City of Winter Springs, Florida, for the year ended September 30, 2005, we considered its internal control to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on internal control. The following findings and recommendations, which resulted from our consideration of internal control, are submitted to assist in improving procedures and controls. In addition, this report includes other disclosures required by Rules of the Auditor General, State of Florida. 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. We have issued our Report on Compliance and Internal Control over Financial Reporting, in accordance with Government Auditing Standards, Report on Compliance and Internal Control over Compliance in accordance with OMS Circular A-133, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated January 6 2006, should be considered in conjunction with this management letter. This management letter is intended solely for the information of the City of Winter Springs, Florida and management, and the State of Florida Office of the Auditor General and federal awarding agencies and is not intended to be and should not be used by anyone other than those specified parties. McDirmit Davis & Company,LLC January 6, 2006 MCDIRMIT DAVIS & COMPANY, LLC 605 E. ROBINSON STREET. SLITE 635' ORLA'JDO FLORIDA 3280 I TELEPHONE 407-843-5406' FAX 407-649-9339. EMAIL: INFO@MCD;RMITDAVIS.COM 132 A. Status of Prior Year Comments 1. Bond Compliance As noted in the previous year comments, the City has not met the requirement that at least 85% of the Improvement Refunding Revenue Bonds, Series 1999, proceeds be expended within three years of the issue date of July 8, 1999. At September 30, 2004, approximately 80% of the bond proceeds had been spent. Recommendation We recommend that the City continue to invest remaining proceeds only at a yield restricted to bond yield rate and commit to spend the remaining proceeds as soon as possible. Corrective Action The City only spent $41,970 in 2005, and still has not met the 85% requirement. Therefore, we will repeat this comment under current year comments. B. Current Year Comments 1. Bond Compliance As noted under prior year comments, the City still has not met the requirement to spend 85% of Improvement Refunding Revenue Bonds, Series 1999. Recommendation We recommend that the City continue to invest remaining proceeds only at a yield restricted to bond yield rate and commit to spend the remaining proceeds as soon as possible. C. Comments Required by the Rules of the Auditor General 1. The financial report filed with the Department of Banking and Finance pursuant to Section 218.32(1 )(b), Florida Statutes, is in agreement in all material respects with the annual financial audit report for the same period. 2. The City has not met any of the conditions described in Section 218.503(1) Florida Statutes. 3. The City of Winter Springs, Florida was created by the Laws of Florida 59-1614. There were no component units identified by the City. 4. The City of Winter Springs, Florida has complied with Section 218.415, Florida Statutes, regarding the investment of public funds. 5. As required by the Rules of the Auditor General, Section 10.554 (g)(6)c and 10.556(8), we applied financial condition assessment procedures. 133 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 March 15, 2006 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, 2005 was well received by both the City Manager and the Finance Department. The comment represents an opportunity for improvement, which will be pursued in fiscal year 2006. Below is our response to your management comment as required by the Rules of the Auditor General of the State of Florida. Bond Compliance We concur with the recommendation. Funds have been in essence "yield restricted" due to the low investment rate environment, but we realize this environment is quickly changing. Construction delays unfortunately have come into play; however, the City is committed to spending the remaining bond proceeds as soon as possible and will make every effort to do so. The attached letter from Kipton Lockcuff, Utility/Public Works Director, dated January 30, 2006, explains in detail the reasons for project delays as well as the timeframe for spending the bond proceeds. Sincerely, Ronald W. McLemore City Manager Michelle Greco Finance Director 134 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 Fax (407) 327-6695 January 30, 2006 TO: Michelle Greco, CPA, Finance Director VIS: Ronald W. McLemore, City Manager ~ FROM: Kipton Lockcuff, P.E. Utility/Public Works Director / RE: Status 1999 Construction & 2000 Construction Funds The 1999 Construction Fund remains open primarily due to the long design/construction timeframe of the Village Walk project also known as the 434 Improvements Project. Much of this is outside the control of the City due to it being a Seminole County managed FDOT project. This project was one of the primary uses for the 1999 Construction Fund bond proceeds. However, the City was able to obtain substantial financial participation from FDOT and we reallocated the remaining funds to the Town Center Trail and Magnolia Park projects. We did not want to expend those funds until such time as the Village Walk was completed to our satisfaction. The 434 Improvement Project was substantially complete as of December 2005 and we are preparing to bid the Town Center Trail Project this quarter. The Magnolia Park will likely not be completed until the FY 2006/2007 budget due to wetlands issues that are being worked through. The remaining 2000 Construction Fund (Utility) proceeds will largely be expended this fiscal year with the exception of the Spine Road and 434 Water Main projects which should be completed in early 2007. The Well #4 project is underway and UtilityIPublic Works Compound will be under construction by April 2006 with the $1,979,656 allocated for this project expended by the end of this fiscal year. File 135