HomeMy WebLinkAbout2005 03 14 Regular 500 Comprehensive Annual Financial Report for Fiscal Year Ended September 30, 2004
COMMISSION AGENDA
ITEM 500
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
March 14, 2005
Meeting
MGR f~EPT
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, 2004.
PURPOSE:
The presentation by the City Auditors of the Comprehensive Annual Financial Report for the
fiscal year ended September 30, 2004.
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 9/30/04, by the City
Commission.
ATTACHMENTS:
Comprehensive Annual Financial Report for the fiscal year ended 9/30/04 including the audited
financial statements and the audit opinion.
COMMISSION ACTION:
City of Winter Springs, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
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For The Year Ended September 30,2004
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Prepared by: Finance Department
INTRODUCTORY SECTION
This section contains the following subsections:
· Table of Contents
· Letter of Transmittal
· GFOA Certificate of Achievement
· List of Principal Officers
· Organizational Chart
CITY OF WINTER SPRINGS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2004
Paqe
I.
Introductory Section:
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement
List of Principal Officials
Organizational Chart
i-iii
iv-ix
x
xi
xii
II.
Financial Section:
Independent Auditor's Report
Management's Discussion and Analysis
1-2
3-18
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets 19
Statement of Activities 20
Fund Financial Statements:
Balance Sheet - Governmental Funds 21
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 23
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General Fund 24-25
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - Public Service Tax Special
Revenue Fund 26
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - Emergency and Disaster Relief
Services Special Revenue Fund 27
Statement of Net Assets - Proprietary Funds 28-29
Statement of Revenues, Expenses and Changes in
Fund Net Assets - Proprietary Funds 30
Statement of Cash Flows - Proprietary Funds 31-32
Statement of Fiduciary Net Assets - Fiduciary Funds 33
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 34
Notes to Financial Statements 35-60
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CITY OF WINTER SPRINGS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2004
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
III.
Statistical Section:
Government-Wide Information:
Government-Wide Expenses 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 Bonded Debt
To Total General Governmental Expenditures
Computation of Direct and Overlapping General Obligation Debt
Revenue Bond Coverage
Demographic Statistical Data
Property Values and Construction
Miscellaneous Statistical Data
II
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61
62-68
69-75
76-92
93-98
99-1 06
107
1 08-1 09
11 0-111
112-113
114-115
116
117-118
119
120
121
122
123
124
125
126
127
128
129
CITY OF WINTER SPRINGS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2004
Paqe
IV.
Other Reports:
Report on Compliance and on Internal Control over Financial
Reporting 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 OMB 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
132-133
134
135
136
137-141
130-131
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CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708-2799
Telephone (407) 327-1800
March 14, 2005
To the Honorable Mayor and 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, 2004.
For the third consecutive year our report has been formatted to comply with the new
financial reporting model developed by the Governmental Accounting Standards Board
(GASB) Statement 34, Basic Financial Statements-and Management's Discussion and
Analysis-for State and Local Governments. The new financial reporting model
completely changes the format of the City's financial statements. It is intended to
improve financial reporting by incorporating significant additional information not
previously available in public sector financial reporting.
In addition to the fund-by-fund financial information previously presented in the City's
financial statements, the new model has a number of key features as follows:
~ Government-wide financial reporting - The government-wide statements present a.
clear picture of the government as a single, unified entity. These new statements
complement rather than replace traditional fund-based financial statements. Included
in the government-wide statements is a "Statement of Net Assets", that provides the
total net equity of the City including capital assets and debt, and the "Statement of
Activities", that shows the cost of providing government services.
~ Long-term focus for governmental activities - Traditional "fund" financial statements
focus on near-term inflows, outflows and balances of spendable financial resources
and are prepared using the "modified" accrual method of accounting. The
government-wide statements have been prepared with a long-term focus using the
"full" accrual basis of accounting. A reconciliation report is provided as a key to
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understanding the changes between the two reporting methods. The most significant
differences between the two types of reporting methods relate to the recordation of
capital assets (including prior expenditures for infrastructure) and debt in the
government-wide statements. The use of separate account groups to record general
fixed assets and general long-term debt were eliminated.
~ Management's Discussion and Analysis (MD&A) - Generally accepted accounting
principles (GAAP) require that management provide a narrative introduction,
overview, and analysis to accompany the basic financial statements in the form of an
MD&A. The MD&A provides "financial highlights" and interprets the financial
reports by analyzing trends and by explaining changes, fluctuations and variances in
the financial data. In addition, the MD&A are intended to disclose any known
significant events or decisions that affect the financial condition of the City. This
letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City of Winter Springs' MD&A can be found immediately
following the report of the independent auditors.
~ Major funds - The new reporting model includes an emphasis on the City's major
funds as shown inthe governmental fund statements. Nonmajor funds are aggregated
in the government-wide statements; however detail can be found for the nonmajor
funds in the traditional fund statements.
~ Expanded budgetary focus - Under the new model, budgetary information IS
presented for both the original and the final amended budget.
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, 2004, 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
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independent auditor concluded that there was a reasonable basis for rendering an
unqualified opinion that the City of Winter Springs' [mancial statements for the fiscal
year ended September 30, 2004, 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.
Profile of the Government
The City, 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 14.77 square miles
and a population of approximately 33,000.
The City operates according to a Council/Manager form of government, with an
appointed City Manager, five elected City Commissioners and a separately elected
Mayor. The governing body is responsible, among other things, for 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 and a Stormwater Utility, which function, in essence, as
d~partments 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 council 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., EMS). 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 24-27 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 61.
VI
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 7.8% from
the prior year and 105.2% since fiscal year 1994. The increase in valuations and millage
resulted in an increased total tax levy of $937,293 over last year and $3,604,407 since
1994. The City's population has increased 33% from that often 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 growth helps the
City maintain a moderate property tax rate, which was at 4.5500 mills during fiscal year
2004 (tax year 2003) and includes 0.2500 mills of voted debt service for Central Winds
General Obligation debt.
Long-telm financial planning. The City Commission updated and adopted a 5-year
Capital Improvements Plan (ClF) during fiscal year 2004. The ClF 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 ClF is
reviewed to ensure incorporation of all necessary capital improvements. It should be noted;
however, that the ClF is not a fixed document but a flexible, dynamic document that may
change to reflect changing priorities, opportunities, costs, or different financing approaches.
Cash management policies and practices. The City administers a cash management and
investment program that seeks to maximize, in order of priority, the preservation of funds,
liquidity and interest earnings over its cash and investments. Cash resources of the
individual funds are combined to form a pool of cash and investments. The average cash
and investment pool balance during the year (not including pension funds) was
$24,029,685 and the average investment earnings rate was 1.3%. Investment income
includes the change in the fair value of investments. During the year monies were invested
in U.S. Agencies and Treasuries, Federal Home Loan bonds, commercial paper, fixed
income mutual funds and the State Board of Administration Local Government Investment
Pool in accordance with the City's Investment Policy. Pension Fund assets were primarily
invested in equity and bond funds in accordance with the City's Investment Policy for
Retirement Funds. The average of Pension Fund assets during the year was $7,991,513
and the average investment gain was 13.05% due to an increase in the fair value of
investments.
Risk Management. During the ordinary course of its operations, the City is exposed to
various risks of losses. The City maintains commercial insurance coverage in amounts that
vii
management deems adequate to protect and safeguard the assets of the City. ill the opinion
of the City's management and legal counsel, legal claims and litigation are not anticipated
to have a material impact on the financial position of the City.
Pension and other post-retirement benefits. The City of Winter Springs sponsors a
single-employer defined benefit pension plan for its employees. Each year, an independent
actuary engaged by the pension plan calculates the amount of the Annual Required
Contribution (ARC) that the City of Winter Springs must make to the pension plan to
ensure that the plan will be able to fully meet its obligations to retired employees on a
timely basis. ill addition to the City's contribution, employees make a 3% contribution of
gross salary. Total actual contributions made during fiscal year 2004 were 88% of the fiscal
year 2004 ARC. At September 30, 2004, cumulative payments to the plan since inception
were $175,246 over the cumulative ARC. The City has funded 74.5% of its actuarial
accrued liability for pension benefits. A three-year trend shows this funded ratio (assets
over liability) has steadily increased from 69.9% to 74.5%. The unfunded actuarial liability
as of October 1, 2003 was $2,492,546. The remaining unfunded actuarial liability is being
systematically funded over 30 years beginning October 1, 2000 as part of the ARC
calculated by the actuary. The City of Winter Springs does not provide any post-retirement
health or dental benefits for retirees or their dependents.
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, 2003. This was the fourth 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.
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.
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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,
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Ronald W. McLemore
City Manager
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Michelle Greco, CPA
Finance Director
IX
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, 2003
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 fmancial reporting.
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President
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Executive Director
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CITY OF WINTER SPRINGS, FLORIDA
LIST OF PRINCIPAL OFFICIALS
September 30, 2004
ELECTED OFFICIALS
MAYOR
DEPUTY-MAYOR/COMMISSIONER
COMMISSIONER
COMMISSIONER
COMMISSIONER
COMMISSIONER
John F. Bush
Robert S. Miller
Sally McGinnis
Michael S. Blake
Donald Gilmore
David McLeod
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
Ronald McLemore
Andrea Lorenzo-Luaces
Michelle Greco
Joanne Dalka
Vacant
Daniel Kerr
Timothy Lallathin
Kipton Lockcuff
Vacant
Chuck Pula
LEGAL COUNSEL
Anthony Garganese
Brown, Garganese, Weiss & D'Agresta, P.A.
FINANCIAL ADVISOR
David Moore
Public Financial Management
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AUDITORS
McDirmit, Davis & Company, LLC
Citizens
of
Winter Springs
Mayor
and
City
Commission
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Advisory Boards City Manager City Attorney
City Clerk Information Services
I I I I I I
Finance Director Community Development Fire Chief Police Chief Public WorkslUtility Parks & Recreation General Services
Director Director Director Director
. Administration
. Accounting
. Debt Mgt.
'Treasury Mgt.
'Meter Svc.
. Budgeting
City of Winter Springs
Organizational Chart
. Administration
'Comp Plannning
. Land Mgt.
'Permit & Insp.
. Administration
. FirelRescue
'Fire Prevention
'EMS
. Administration . Administration
'Records 'Stormwater
'Communications 'Transportation
'Patrol 'Engineenng
'Investigations 'Water Mgt.
'Code Enforcement Water
Wastewater
. Administration . Administration
'Civic/Senior 'RR
'ParksIField 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.
xii
FINANCIAL SECTION
MCDIRMIT III DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Commission
City of Winter Springs, Florida
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, 2004, 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, 2004, and the respective changes in financial position and cash flows, where
applicable, thereof and the respective budgetary comparisons for the general fund and the public
service tax 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. ROBI!\SO!\ STREET. SL'lTE 635 . ORLA'JDO, FLORIDA 3280 I
TELEI'HO-':E 407-843-5406' FAX 407-649-9339 . EMAIL:'I!\F00.\KDIRMITDA VIS.CO\l
\lE\1BERS: PRI\ ~ TE CO\1P\~IES PR.\CTlCE SECTION' AMERICAN hSTITUTE OF CERTIFIED I'LiBLlC ACCOL~TA~ TS . FLORIDA I~STlTUE OF CERTIFIED PUBLIC ACCOUNT ANT S
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In accordance with Government Auditing Standards, we have also issued a report dated
January 25, 2005 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. That report is an integral part of. an audit performed 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 on pages 3 through 18 is not a required part of the
basic financial statements but is supplemental information required by the Governmental
Auditing Standards Board. 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 nonmajor 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.
1JtP!1Umit ~ & tMnp~LLc'
January 25, 2005
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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, 2004. 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-ix of this report.
Financial Hiahliahts
· The assets of the City of Winter Springs exceeded its liabilities at the close of
the most recent fiscal year by $64,488,554 (net assets). Of this amount, $23,039,498
(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 $4,711,685 or almost 8%.
· As of the close of the current fiscal year, the City of Winter Springs'
governmental funds reported combined ending fund balances of $13,231,945.
Approximately 91% of this total amount, or $12,093,842 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 $4,892,156, or 30% of total general fund expenditures.
· The City of Winter Springs' total debt increased by $3,583,191 (7%) during the
current fiscal year. The increase was the result of temporary financing to cover the costs
to prepare for and recover from three hurricanes.
· The City established a new fund called the Emergency and Disaster Relief
Fund to capture the costs to prepare for and recover from the unusually active and costly
hurricane season. At September 30, 2004 a total of $5,970,999 in expenses have been
charged to this fund. The City borrowed $5,000,000 to cover these costs in anticipation
of reimbursement from FEMA.
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'
3