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Home My WebLink About2026 03 23 Regular 500 - 2025 Annual Comprehensive Financial Report (ACFR)REGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | MARCH 23, 2026 REGULAR MEETING TITLE 2025 Annual Comprehensive Financial Report (ACFR) SUMMARY The Annual Comprehensive Financial Report for the Fiscal Year Ended September 30th 2025 was prepared and will be presented by the City's external auditors Purvis, Gray and Company, LLP. The Annual Comprehensive Financial Report (ACFR) is prepared and presented to give the City Commission, citizens, and other users a greater understanding of the City's financial standing. Additionally, Florida Statues requires that all general purpose local governments publish a complete set of financial statements annually. The 2025 Annual Comprehensive Financial Report will be submitted to the Government Finance Officers Association for consideration of their Certificate of Achievement award as we believe it conforms to the program's stringent requirements. FUNDING SOURCE RECOMMENDATION Staff recommends the City Commission accept the Annual Comprehensive Financial Report as presented for the Fiscal Year Ended September 30th 2025. 175 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 City of Winter Springs, Florida 176 City of Winter Springs, Florida ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended September 30, 2025 Prepared by: Finance Department 177 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS i I. INTRODUCTORY SECTION Table of Contents ........................................................................................................................ i-iii Letter of Transmittal ................................................................................................................. iv-vii Certificate of Achievement ........................................................................................................... viii List of Principal Officials .................................................................................................................ix Organizational Chart ...................................................................................................................... x II. FINANCIAL SECTION Independent Auditor’s Report.................................................................................................... 1-3 Management’s Discussion and Analysis ................................................................................... 4-16 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position ...................................................................................................... 17 Statement of Activities........................................................................................................... 18 Fund Financial Statements: Balance Sheet – Governmental Funds .................................................................................... 19 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................ 20 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................ 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................. 22 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: General Fund ...................................................................................................................... 23 Infrastructure Surtax Special Revenue Fund ........................................................................ 24 Solid Waste/Recycling Special Revenue Fund ...................................................................... 25 American Rescue Plan Act Special Revenue Fund……………………………………………… ................ 26 Statement of Net Position – Proprietary Funds .................................................................... 27-28 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ........................................................................................... 29 Statement of Cash Flows – Proprietary Funds ...................................................................... 30-31 Statement of Fiduciary Net Position – Fiduciary Funds .............................................................. 32 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................................ 33 Notes to Financial Statements .............................................................................................. 34-61 178 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS ii Required Supplementary Information Schedule of Changes in the City’s Net OPEB Liability and Related Ratios – Plan Retiree Continuation Insurance Plan .................................................... 62 Schedule of Changes in Net Pension Liability and Related Ratios........................................................................................................................ 63 Schedule of Contributions .................................................................................................... 64-65 Schedule of Investment Returns................................................................................................ 66 Other Supplementary Information Non-Major Governmental Funds: Combining Balance Sheet – Non-Major Governmental Funds............................................ 67-72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds ........................................ 73-78 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: Police Education Fund ..................................................................................................... 79 Special Law Enforcement Trust Fund – Local .................................................................... 80 Transportation Improvement Fund .................................................................................. 81 Transportation Impact Fee Fund ...................................................................................... 82 Police Impact Fee Fund .................................................................................................... 83 Fire Impact Fee Fund ....................................................................................................... 84 Parks Impact Fee Fund ..................................................................................................... 85 Arbor Fund ...................................................................................................................... 86 TLBD Maintenance Fund .................................................................................................. 87 Oak Forest Maintenance Fund ......................................................................................... 88 Special Law Enforcement Trust Fund – Federal ................................................................ 89 Tuscawilla Phase III .......................................................................................................... 90 TLBD Debt Service Fund ................................................................................................... 91 1999 Debt Service Fund ................................................................................................... 92 1999 Construction Fund .................................................................................................. 93 Revolving Rehab Fund ..................................................................................................... 94 Public Facilities Fund ....................................................................................................... 95 Excellence in Customer Service ........................................................................................ 96 III. STATISTICAL SECTION Financial Trends Net Position by Component ...................................................................................................... 97 Changes in Net Position ....................................................................................................... 98-99 Governmental Activities Tax Revenues by Source.................................................................... 100 Fund Balances of Governmental Funds ................................................................................... 101 Changes in Fund Balances of Governmental Funds ........................................................... 102-103 179 CITY OF WINTER SPRINGS, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS iii Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property ................................................................................................................. 104 Property Tax Rates, Direct and Overlapping Governments ...................................................... 105 Special Assessment Billings and Collections ............................................................................. 106 Principal Property Taxpayers ................................................................................................... 107 Property Tax Levies and Collections ........................................................................................ 108 Debt Capacity Legal Debt Margin ................................................................................................................... 109 Ratio of Net General Obligation - Debt to Assessed Value and Net General Obligation Per Capita ....................................................................... 110 Ratio of Outstanding Debt by Type .......................................................................................... 111 Direct and Overlapping Governmental Activities Debt ............................................................. 112 Pledged-Revenue Coverage.............................................................................................. 113-114 Demographic and Economic Information Demographic and Economic Statistics ..................................................................................... 115 Principal Employers................................................................................................................. 116 Operating Information Budgeted Full-Time Equivalent City Government Employees by Function ........................................................................................................ 117 Operating Indicators by Function ............................................................................................ 118 Capital Asset Statistics by Function ......................................................................................... 119 Other Reports Schedule of Expenditures of Federal Awards ........................................................................... 120 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................ 121-122 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance ............................................................................... 123-125 Schedule of Findings and Questioned Costs ..................................................................... 126-127 Management Letter ......................................................................................................... 128-129 Independent Accountant’s Report on Compliance with Florida Statute Section 218.415 – Investments of Public Funds ............................................ 130 180 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 iv February 27, 2026 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: It is with great pleasure that we present to you the City of Winter Springs, Florida Annual Comprehensive Financial Report for the fiscal year ended September 30, 2025. Florida Statutes, Chapter 166.241 and the rules of the Florida Auditor General, Chapter 10.550 require that all general-purpose local governments publish a complete set of financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP) and that they be audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants. Management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs’ financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs’ comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of Winter Springs’ financial statements have been audited by Purvis Gray, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2025 are free of material misstatement. The independent audit involved examination of evidence, on a test basis, supporting the amounts and disclosures in the financial statements; assessment of the accounting principles used and significant estimates made by management; and an evaluation of the overall financial statement presentation. Based upon the audit, the independent auditor concluded that reasonable basis existed to render an unmodified opinion that the City of Winter Springs’ financial statements for the fiscal year ended September 30, 2025 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. The City of Winter Springs’ Management’s Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. 181 v Profile of the Government The City of Winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. The City currently has a land area of approximately 13.3 square miles and a population of approximately 39,000. The City operates according to a Council/Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four- year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City’s Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day-to-day operations of the government and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational facilities, activities and cultural events. The City maintains both a Water and Sewer Utility Fund, a Stormwater Utility Fund, and a Development Services Fund, which function, in essence, as departments of the City of Winter Springs and therefore have been included as an integral part of the City of Winter Springs’ financial statements. The annual budget serves as the foundation for the City of Winter Springs’ financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Commission for review on or before July 1st. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget-to-actual comparisons are provided in this report for each individual governmental fund. The General Fund, the Infrastructure Surtax Fund, the Solid Waste/Recycling Fund and the American Recovery Act Fund, are presented on pages 23-26 as part of the basic financial statements for the governmental funds. The non-major governmental funds’ budget comparisons are presented in the governmental fund subsection of this report which starts on page 79. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Seminole County has adopted a one-cent local government infrastructure sales tax which will be in effect from January 1, 2025 through December 31, 2034. The intent of this legislation is to improve the infrastructure of the Seminole County public school system and other public infrastructure within the County and its municipalities. Per the interlocal agreement, 3.83% of net revenues are to be distributed to the City of Winter Springs. The distribution for FY25 was in excess of $2.5M and is estimated to be $3M for FY26. Approximately 82% of the City’s tax base is comprised of residential properties with a small amount of retail office and light industrial developments. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2024- 2025 fiscal year (tax year 2024), the gross taxable value reflects an increase of 7.26% from the prior year. During fiscal year 2024-2025 (tax year 2024), the City increased the operating millage rate from 2.41 to 2.62. At the local level, revenues such as review and permit fees, investment income and communication services tax continue to hold steady, while state sales tax revenues have plateaued after a post COVID spike. 182 vi New construction in Winter Springs has been robust for the past several years. Hickory Grove Townhomes (132 units) anticipated completion is the end of 2026 and the approval of approximately 85 units at Blake Commons. Commercial projects currently in the pipeline include Chau Medical Plaza (Phase 2), Greenway Kia North (Retrofit), ACE Hardware, Chick-Fil-A, The Learning Experience and 7 Brew. Seminole County Public School system is the 13th largest in the state and widely recognized as a Premier National School District. It boasts an above average graduation rate and is ranked #1 in STEM. Winter Springs is home to four elementary schools, one middle and one high school and one charter school. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. The Winter Springs Police Department continues to provide exemplary policing and customer service with increased sworn officer positions, new technology and equipment enhancements, and prioritizing officer wellness. The department also coordinates several events to promote positive interaction with the community and bridge the gap between law enforcement and its residents, such as the Citizens Advisory Committee, National Night Out, Community Youth Outreach, Citizens Police Academy and annual school supply drive, which provides school supplies to hundreds of children within our community. The City continues to invest in our excellent parks and recreation areas with numerous upgrades including, a new pavilion at Trotwood Park, and ADA accessibility enhancements at Trotwood Park, Central Winds Park, and Torcaso Park. The City of Winter Springs continues to offer its citizens the highest quality services and community events. These community seasonal events include Egg-Citing Egg Hunt, Arbor Day with free tree giveaways, Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran’s Day Ceremony, Winter Wonderland Parade, and Winter Wonderland of Lights. The City’s Sports Partnerships include traditional sports such as Babe Ruth Baseball/Softball, Florida Kraze Krush Soccer. Our very popular summer camp program offers affordable day camp options and spectacular field trips. These events and programs enhance not only residents’ quality of life but also our sense of community. Additionally, the Parks and Recreation Department continues to engage with community partners and sponsors to generate additional revenue that assists in offsetting operating costs. One highlight of these efforts is the recent naming rights agreement with AdventHealth for the exclusive naming rights of the recently opened pickleball courts at Central Winds Park. Winter Springs continues to benefit from meaningful investment in our community by both small local businesses and large regional industries. These partnerships reflect a shared commitment to enhancing quality of life for residents, supporting public spaces, and strengthening the long term vitality of our city Long-term financial planning. The Fiscal Year 2026 Adopted Budget incorporated and transmitted a 5-year Capital Improvements Plan (CIP) for fiscal years 2026 through 2030. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement with the year of intended purchase/ commencement; annual expenditure; and method of financing. Each year, the plan is reviewed to ensure that all necessary capital improvements are incorporated into the budget process. It should be noted however, that the CIP is not a static document but a flexible and dynamic one that may change to reflect changing priorities, opportunities, costs, or financing approach. Relevant Financial Policies. In fiscal year 2025, the City implemented GASB 101 Compensated Absences, which updates accounting for leave benefits (Vacation, Sick, PTO). Major Initiatives. The City’s primary capital focus is currently on the design and construction of two new Water Reclamation Facilities and Stormwater Infrastructure revitalization. The City continues its effort in safety improvements across its parks and through ongoing sidewalk replacements, and road resurfacing. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its Annual Comprehensive 183 vii Financial Report for the fiscal year ended September 30, 2024. This was the twenty third year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In closing, we would like to express our appreciation to all members of the finance department who assisted and contributed to its preparation. Other City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult. Appreciation must also be expressed to the City’s auditors whose suggestions and attention to detail enhanced the quality of this report. Finally, we would also like to express appreciation to the Mayor and the City Commission for their support and for maintaining high standards of professionalism in the management of the City of Winter Springs’ finances. Respectfully submitted, Kevin Sweet Holly Queen City Manager Finance Director 184 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 Executive Director/CEO viii 185 ix CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2025 ELECTED OFFICIALS MAYOR Kevin McCann DEPUTY MAYOR / COMMISSIONER Cade Resnick COMMISSIONER Paul Diaz COMMISSIONER Victoria Bruce COMMISSIONER Sarah Baker COMMISSIONER Mark Caruso CITY MANAGER Kevin Sweet CITY CLERK Christian Gowan LEGAL COUNSEL Anthony Garganese Garganese, Weiss & D’Agresta, P.A. DEPARTMENT DIRECTORS ADMIN SERVICES & OPERATIONS Brian Dunigan COMMUNITY DEVELOPMENT Terrilyn Rolle FINANCE Holly Queen FACILITIES & CAPITAL PROJECTS Leonard Hartman POLICE CHIEF Matthew Tracht UTILITY & PUBLIC WORKS Clete Saunier COMMUNICATIONS Matthew Reeser 186 Citizens of Winter Springs Mayor and City Commissioners Finance Police Department Community Development City Attorney Communications Advisory Boards · Accounting · Debt Management · Budgeting · Payroll/Benefits · Purchasing · Contracts · Meter Services · Treasury Management · Utility Business Services · Records · Crime Scene Technicians · Patrol · Investigations · Code Enforcement · Planning · Land Management · Building Permits/Insp. · Business Tax Receipts · Economic Development Administrative Services & Operations · Human Resources · Risk Management · Information Technology · Parks Maintenance · Urban Beatification · Community Events · Recreation Programs · Civic/Senior Center Facilities & Capital Projects · Facility Maintenance · Capital Improvement Plan · Capital Project Construction · Custodial Services City Manager Public Works & Utilities · Roads (ROW) · Engineering · Sidewalks · Stormwater · Fleet Maintenance · Solid Waste · Water Conservation · Water/ Wastewater Operations · Public Communications · Social Media · City Website · Marketing · Emergency Alerts · Media Inquiries 187 FINANCIAL SECTION 188 INDEPENDENT AUDITOR’S REPORT 189 1 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida (the City), as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of September 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund, infrastructure surtax (formerly road improvements) special revenue fund, solid waste/recycling special revenue fund, and the American Rescue Plan Act special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We have conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 190 2 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. ■ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. ■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. ■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents (collectively, the required supplementary information), be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. 191 3 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 27, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. February 27, 2026 Gainesville, Florida 192 MANAGEMENT’S DISCUSSION AND ANALYSIS 193 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 4 As management of the City of Winter Springs, Florida, we offer readers of the City of Winter Springs’ financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2025. Financial Highlights ■ The assets and deferred outflows of the City of Winter Springs exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $182,271,056 (net position). Of this amount, $48,337,369 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors. ■ As a result of the current year’s activities, the government’s total net position increased by $20,946,016 or 12.98% from the prior year. ■ As of the close of the current fiscal year, the City of Winter Springs’ governmental funds reported combined ending fund balances of $47,361,776. Approximately 19% of this total amount, $8,983,299, is available for spending at the government’s discretion (unassigned fund balance). ■ At the end of the current fiscal year, unassigned fund balance for the general fund was $8,983,299 or 39% of total general fund expenditures. ■ As a result of current year’s activities, the City of Winter Springs’ total debt decreased by $2,840,589 (12%). Overview of the Financial Statements The financial statements focus on both the City of Winter Springs as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the City of Winter Springs’ accountability. This discussion and analysis are intended to serve as an introduction to the City of Winter Springs’ basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs’ finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City of Winter Springs’ assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Winter Springs is improving or declining. 194 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 5 The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Winter Springs that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Winter Springs include general government, public safety, physical environment, and culture and recreation. The business-type activities of the City of Winter Springs include a Water and Sewer Utility, Stormwater Utility , and Development Services. The government-wide financial statements include only the City of Winter Springs itself (known as the primary government). The City of Winter Springs had no component units. The Water and Sewer Utility, the Stormwater Utility, and Development Services function as departments of the City of Winter Springs, and, therefore, have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 17-18 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Winter Springs can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 195 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 6 The City of Winter Springs maintains 22 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund, Infrastructure Surtax (previously Road Improvements) Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and American Rescue Plan Act Fund, all four of which are considered to be major funds. Data from the other 18 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non- major governmental funds is provided in the form of combining statements on pages 67-78. The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Infrastructure Surtax Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and American Rescue Plan Act Special Revenue Fund to demonstrate compliance with this budget on pages 23-26. Budgetary comparison schedules have been provided for the non-major funds on pages 79-96. The basic governmental fund financial statements can be found on pages 19-22 of this report. Proprietary Funds The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility, and Development Services. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 27-31 of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Winter Springs’ own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 32-33 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 34-61 of this report. Required Supplementary Information (RSI) RSI can be found on pages 62-66 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds are presented after this. Combining and individual fund statements and schedules can be found on pages 67- 96 of this report. 196 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 7 Government-Wide Financial Analysis Statement of Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Winter Springs, assets and deferred outflows of resources exceeded liabilities and deferred inflows by $182,271,056 at the close of the most recent fiscal year. Of the City of Winter Springs’ net position, $102,459,143 or 56% reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related outstanding debt used to acquire those assets. The City of Winter Springs uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Winter Springs’ investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net position subject to external restrictions as to how it may be used totals $31,474,544 (17%). The remaining balance of unrestricted net position, $48,337,369 (27%), may be used to meet the government’s ongoing obligations to citizens and creditors. At September 30, 2025, the City of Winter Springs is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business- type activities. This was also the case at the close of the prior fiscal year. The following table reflects the condensed Statement of Net Position for the current prior year. For more detail, see the Statement of Net Position on page 17. Statements of Net Position as of September 30: 2025 2024 2025 2024 2025 2024 Assets Current and Other Assets 60,873,320$ 62,346,034$ 50,780,932$ 46,750,281$ 111,654,252$ 109,096,315$ Restricted Assets 161,172 153,736 856,156 822,189 1,017,328 975,925 Capital Assets 70,691,093 60,461,571 42,534,699 41,911,821 113,225,792 102,373,392 Total Assets 131,725,585 122,961,341 94,171,787 89,484,291 225,897,372 212,445,632 Deferred Outflows of Resources Deferred Charge on Refunding - - 5,274 6,328 5,274 6,328 Deferred Outflow of Pension and OPEB 398,259 638,948 96,720 155,172 494,979 794,120 Total Deferred Outflows of Resources 398,259 638,948 101,994 161,500 500,253 800,448 Liabilities Current Liabilities 5,337,136 11,295,061 2,198,778 2,536,850 7,535,914 13,831,911 Long-Term Liabilities 9,308,645 9,648,038 14,726,782 16,538,988 24,035,427 26,187,026 Other Liabilities 159,081 151,645 607,196 611,416 766,277 763,061 Total Liabilities 14,804,862 21,094,744 17,532,756 19,687,254 32,337,618 40,781,998 Deferred Inflows of Resources Deferred Inflow of Leases 3,738,480 3,884,556 - - 3,738,480 3,884,556 Deferred Inflow of Pension and OPEB 6,477,391 5,836,942 1,573,080 1,417,544 8,050,471 7,254,486 Total Deferred Inflows of Resources 10,215,871 9,721,498 1,573,080 1,417,544 11,788,951 11,139,042 Net Position Net Investment in Capital Assets 67,984,486 57,732,797 34,474,657 32,849,569 102,459,143 90,582,366 Restricted 25,848,968 22,069,483 5,625,576 5,473,452 31,474,544 27,542,935 Unrestricted 13,269,657 12,981,767 35,067,712 30,217,972 48,337,369 43,199,739 Total Net Position 107,103,111$ 92,784,047$ 75,167,945$ 68,540,993$ 182,271,056$ 161,325,040$ Business-Type Governmental Activities Activities Total 197 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 8 Statements of Changes in Net Position The following table reflects the Statement of Changes in Net Position for the current and prior year. For more detailed information, see the Statement of Activities on page 18. As a result of the current year’s activities, the government’s total net position increased by $20,946,016 or 12.98% from the prior year. The previous fiscal year, 2024, net position increased by $17,050,252. Governmental activities increased net position by $14,319,064 in fiscal year 2025 compared to an increase of $5,048,448 in 2024. The increase in net position for fiscal year 2025 is more than the prior year’s increase, primarily due to the ongoing capital infrastructure projects being funded by ARPA. In the prior year, these expenses were incurred through a transfer out of approximately $10 million, whereas in the current year these were recorded expenditures in the ARPA fund and were eliminated at the governmental activities level. Business-type activities increased net position by $6,626,952 in fiscal year 2025 compared to an increase of $12,001,804 in 2024. This decrease in the change in net position from the prior year was almost entirely due to a one-time transfer from the General Fund for infrastructure improvement projects that did not reoccur in fiscal year 2025. This transfer accounted for approximately $9.25 million of the $12,001,804 increase in fiscal year 2024. However, the lack of that transfer in the current year was offset by an approximate $2.9 million in additional charges for services, due to a combination of both rate and usage increases. Following the table below is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business-type activities, as well as the revenue “source” for each. Additional information regarding the changes in fund balance of the governmental and business -type activities can be found in the section entitled Financial Analysis of the Government’s Funds on pages 12-13. Note that the first graph depicts governmental program-specific revenues and expenses. For this graph, the revenue does not include property taxes, utility taxes, business tax receipts, intergovernmental revenue, investment income, or miscellaneous revenue. This chart is intended to show the amount of program expenses funded by specific program revenues. 198 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 9 Changes in Net Position for the years ended September 30: 2025 2024 2025 2024 2025 2024 Revenues Program Revenues: Charges for Services 8,877,693$ 7,687,746$ 19,683,541$ 16,757,033$ 28,561,234$ 24,444,779$ Operating Grants and Contributions 7,528,521 10,251,757 1,839,598 - 9,368,119 10,251,757 Capital Grants and Contributions 4,807,290 4,084,198 458,580 276,177 5,265,870 4,360,375 General Revenues: Property Taxes 9,435,614 8,031,892 - - 9,435,614 8,031,892 Utility Taxes 5,973,760 5,416,598 - - 5,973,760 5,416,598 Business Tax Receipts 117,429 144,280 - - 117,429 144,280 Intergovernmental - Unrestricted 4,808,996 4,910,769 - - 4,808,996 4,910,769 Investment Income and Miscellaneous 2,785,987 4,554,965 2,063,000 3,444,559 4,848,987 7,999,524 Total Revenues 44,335,290 45,082,205 24,044,719 20,477,769 68,380,009 65,559,974 Expenses General Government 7,915,600 8,403,577 - - 7,915,600 8,403,577 Public Safety 8,588,005 9,680,559 - - 8,588,005 9,680,559 Physical Environment 9,462,719 8,643,543 - - 9,462,719 8,643,543 Culture and Recreation 3,658,802 3,630,227 - - 3,658,802 3,630,227 Interest on Long-Term Debt 376,266 427,119 - - 376,266 427,119 Water and Sewer - - 13,502,756 14,129,939 13,502,756 14,129,939 Development Services - - 1,935,483 1,869,308 1,935,483 1,869,308 Stormwater - - 1,994,362 1,725,450 1,994,362 1,725,450 Total Expenses 30,001,392 30,785,025 17,432,601 17,724,697 47,433,993 48,509,722 Excess (Decrease) in Net Position Before Transfers 14,333,898 14,297,180 6,612,118 2,753,072 20,946,016 17,050,252 Transfers (14,834) (9,248,732) 14,834 9,248,732 - - Increase (Decrease) in Net Position 14,319,064 5,048,448 6,626,952 12,001,804 20,946,016 17,050,252 Net Position, Beginning 92,784,047 87,735,599 68,540,993 56,539,189 161,325,040 144,274,788 Net Position, Ending 107,103,111$ 92,784,047$ 75,167,945$ 68,540,993$ 182,271,056$ 161,325,040$ Business-Type Governmental Activities Total 199 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 10 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 General Government Public Safety Physical Environment Culture & Recreation Interest on Long-Term Debt Governmental Program Specific Revenues and Expenses Revenues Expenses Intergovernmental 11% Charges for Services 20% Investment Income and Miscellaneous 6% Business Tax Receipts 0% Operating Grants and Contributions 17% Capital Grants and Contributions 11% Taxes 35% Governmental Revenues by Source 200 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 11 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Water and Sewer Development Services Stormwater Business-Type Activities Revenues and Expenses Revenues Expenses Capital Grants and Contributions 2% Operating Grants and Contributions 8% Investment Income and Miscellaneous 8% Charges for Services 82% Business-Type Activities Revenues by Source 201 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 12 Financial Analysis of the Government’s Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City of Winter Springs’ governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs’ financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of September 30, 2025, the City of Winter Springs’ governmental funds reported combined ending fund balances of $47,361,776 an increase of $1,220,816 over the prior year. Approximately 19%, or $8,983,299, of this total amount constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is non-spendable, restricted, committed, or assigned to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, capital projects, inventories, and prepaid costs. The General Fund is the chief operating fund of the City of Winter Springs. At the end of the current fiscal year, unassigned fund balance of the General Fund was $8,983,299, while total fund balance was $10,496,021. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned and total fund balance represents 39% and 46%, respectively, of total General Fund expenditures. The decrease in fund balance of ($1,421,620) is the result of reallocating savings from original budget to provide for a transfer to the Stormwater Fund for capital infrastructure needs in the amount of approximately $2 million. The Infrastructure Surtax Special Revenue Fund balance increased $2,465,437 due to a reduction in capital expenditures for infrastructure projects and the reimbursement of grant expenditures that were paid out of this fund. It was transferred in from the Stormwater Fund in the current year. The Solid Waste/Recycling Special Revenue Fund balance increased by $558,298. This increase is due to the increase in solid waste rates offset by the increase in landfill disposal costs. The American Rescue Plan Act Special Revenue Fund balance increased by $180,070. This increase is primarily due to investment earnings relating to market performance. Proprietary Funds The City of Winter Springs’ proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Unrestricted net position of the Water and Sewer Utility Fund at the end of the year amounted to $31,698,066, and total net position increased by $5,104,305 to $59,956,061. The increase in net position in fiscal year 2025 is less than the prior fiscal year’s increase, primarily due to the one-time transfer from the General Fund for infrastructure needs, the increase for current year is primarily driven by increase in rates and usage and a continued focus on capital projects. 202 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 13 The Development Services Fund net position decreased as a result of current year activities by ($678,990) to $4,486,186 at the end of the fiscal year. The decrease in net position is more than the prior fiscal year’s decrease due to a decrease in investment earnings and an increase in contract services for legal and inspection services. The Stormwater Utility Fund net position increased as a result of current fiscal year activities by $2,201,637 to $10,725,698 at the end of the fiscal year. This increase in net position in fiscal year 2025 is primarily due to the transfer from the General Fund for infrastructure needs for approximately $2 million. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in an increase to appropriation from fund balance of ($163,324). The changes from original budget to final budget were focused on using favorable expenditure variances and transferring those to the Stormwater Fund and Public Facilities Fund to be used for upcoming infrastructure projects. The actual results of the General Fund for the year show an appropriation from fund balance of ($1,421,620) compared to a final budgeted appropriation from fund balance of ($2,197,724). The favorable variance of $776,104 is comprised of favorable revenue and expenditure variances. The favorable expenditure variance of $315,582 is displayed in the departmental cost centers below: Executive $ 12,663 General Government 12,740 Finance and Administrative Services 74,225 Information Services 190,327 Community Development 93,562 Police (324,790) Public Works 110,089 Parks and Recreation 146,766 Total $ 315,582 This favorable variance is represented by the following expenditure categories as both amounts and percentages of budget: Payroll $ (74,783) (0.27%) Other Operating 835,681 2.98% Capital (445,316) (1.59%) Total $ 315,582 The comparison of budgeted results to actual results for the General Fund is shown on page 23. Capital Asset and Debt Administration Capital Assets The City of Winter Springs’ investment in capital assets for its governmental and business -type activities as of September 30, 2025, amounts to $113,225,792 (net of accumulated depreciation), for an increase of $10,852,400 over the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, intangibles, park facilities, roads, highways, and bridges. The total increase in the City of Winter Springs’ investment in capital assets for the current fiscal year was 10.60% (a 16.92% increase for governmental activities, and a 1.49% increase for business-type activities). 203 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 14 Major capital asset events during the current fiscal year included the following: ■ The purchases: • New equipment for urban beautification at a cost of $175,770 • Speed Trailers for Police Department in the amount of $38,325 • Replacement vehicles for the police department at a cost of approximately $727,198 • Public Safety Workstation / Office Furniture Replacement $104,647 • Closed Captioning Hardware for City Commission Meetings $58,780 • New equipment for the parks department at a cost of approximately $229,189 • IT hardware replacement in the amount of $159,956 • Fleet Shop Wheel Alignment machine $59,384 • Replacement of Public Works Trucks in the amount of $145,151 • Wastewater Treatment Plant Belt Filter Press Refurbishment $275,450 • Purchase of new sewer & vac truck in the amount of $692,832 • Acquisition of mobile pumps for lift stations at a cost of $389,044 • Replacement of vehicles for water and sewer field crew in the amount of $30,133 • Relining of pipes for the water and sewer operations at a cost of approximately $328,981 • Purchase of new vehicle for Construction Inspector in the amount of $30,456 ■ The completion and capitalization of the following projects: • Gee Creek at Moss Park Erosion Control Project $884,669 • Sidewalk Replacements City Wide $253,055 • Highlands Glen Drainage Repairs $82,244 • Hayes Road Repair from Hurricane Milton $135,753 • Orange Ave Road Repair and Storm Drains from Hurricane Milton $37,213 • City Hall Stormwater Retention Pond Repairs $148,117 • Lake Audubon Control Structure Repair $37,011 • Stormwater rehabilitation city wide at a cost of approximately $1,134,703 • Orange Ave Pipe Relining $72,648 • Resurfacing streets throughout the City at a cost of approximately $986,505 • Lift Station 5E Emergency Repair $197,227 • West Waste Water Plant Inlet Valve Replacement (Hurricane Ian) $641,394 • Water Treatment Plant 1 Anion Vessel Refurbishment $454,670 • Lift Station Pump replacements in the amount of $271,070 • Water Reclamation clarifier replacement parts in the amount of $28,855 ■ Beginning and continued construction on the following projects: • Water Treatment Plant 3 Power Reliability at a cost of approximately $500,000 • Lift Station 7 West Reconstruction of approximately $3,800,000 • East Waste Water Plant Design of approximately $2,600,000 • Winding Hollow turn lane at a cost of approximately $1,500,000 Additional information on the City of Winter Springs’ capital assets can be found in Note 6 on pages 47- 48 of this report. 204 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 15 Long-Term Debt At September 30, 2025, the City of Winter Springs had total debt outstanding of $20,434,806, a decrease of $2,840,589 from $23,275,395 at September 30, 2024. Total bonded debt of the City at the end of the current fiscal year was $3,243,268. This amount does not include accreted interest of $10,435,829. The City of Winter Springs’ bonded debt represents bonds and notes are secured solely by specified revenue sources. There are no limitations placed on the amount of debt the City may issue either by the City’s charter, code of ordinances, or by the Florida State Statutes. Additional information on the City’s long-term debt can be found in Note 7 on pages 48-51 of this report. The above information does not include the interfund loan balances related to the repayment of the general obligation note. Economic Factors and Next Year’s Budgets and Rates The operating millage rate remained at 2.6200 mills for fiscal year 2026, after being increased in 2025 for the first time in many years. The gross property tax values in Winter Springs increased in fiscal year 2025 by 7.8% and have increased by approximately 6.0% in fiscal year 2026. 2025 2024 2025 2024 2025 2024 Land 10,341,976$ 10,341,976$ 7,170,177$ 7,170,177$ 17,512,153$ 17,512,153$ Buildings 6,285,643 6,671,146 1,137,434 1,187,504 7,423,077 7,858,650 Improvements 8,454,691 6,806,042 25,730,208 22,392,053 34,184,899 29,198,095 Machinery and Equipment 3,885,219 3,038,138 7,301,377 6,017,675 11,186,596 9,055,813 Subscription Assets 496,243 376,034 134,432 336,081 630,675 712,115 Intangibles - - 5,943 23,480 5,943 23,480 Infrastructure 32,313,967 31,965,094 - - 32,313,967 31,965,094 Construction in Progress 8,913,354 1,263,141 1,055,128 4,784,851 9,968,482 6,047,992 Total Capital Assets 70,691,093$ 60,461,571$ 42,534,699$ 41,911,821$ 113,225,792$ 102,373,392$ Business-Type Governmental Activities Activities Total 2025 2024 2025 2024 2025 2024 Improvement Refunding Revenue Bonds, Series 1999 1,321,092$ 1,633,505$ -$ -$ 1,321,092$ 1,633,505$ Water and Sewer Refund Revenue Bonds, Series 2000 - - 1,922,176 2,383,125 1,922,176 2,383,125 Special Assessment Revenue Notes, Series 2011 612,569 725,890 - - 612,569 725,890 Revenue Refunding Note Series 2020 - - 2,468,956 2,609,956 2,468,956 2,609,956 State Revolving Fund Loans - - 3,674,184 3,966,302 3,674,184 3,966,302 Accreted Interest Payable 4,238,879 4,863,961 6,196,950 7,092,656 10,435,829 11,956,617 Total Long-Term Debt 6,172,540$ 7,223,356$ 14,262,266$ 16,052,039$ 20,434,806$ 23,275,395$ Business-Type Governmental Activities Activities Total 205 CITY OF WINTER SPRINGS, FLORIDA Management’s Discussion and Analysis SEPTEMBER 30, 2025 16 The General Fund’s fiscal year 2025 adopted an expenditure budget of $26,691,028 (inclusive of transfers) that marked an increase of 10.6% from the previous year. For the fiscal year 202 6, the adopted expenditure budget is $26,539,195, a decrease of 0.6% from fiscal year 2025. The total combined expenditure budget of fiscal year 2026 of $80,425,846 (inclusive of transfers) is $10,313,494 or 14.71% more than the adopted budget of fiscal year 2025. Requests for Information This financial report is designed to provide a general overview of the City of Winter Springs’ finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1126 East State Road 434, Winter Springs, Florida 32708. The Annual Comprehensive Financial Report is also available at the City of Winter Springs’ website located at www.winterspringsfl.org. 206 BASIC FINANCIAL STATEMENTS 207 Governmental Business-Type Activities Activities Total Assets Cash and Cash Equivalents 2,472,006$ 2,459,504$ 4,931,510$ Investments 48,604,065 45,453,608 94,057,673 Receivables, Net 1,291,666 772,817 2,064,483 Due from Other Governments - 1,210,740 1,210,740 Lease Receivable 4,358,459 - 4,358,459 Inventories, at Cost 17,555 54,527 72,082 Prepaid Costs 190,572 7,317 197,889 Restricted Assets: Cash and Cash Equivalents 161,172 856,156 1,017,328 Receivables, Long-Term 552,570 - 552,570 Net Pension Asset 3,386,427 822,419 4,208,846 Capital Assets: Capital Assets Not Being Depreciated 19,255,330 8,225,305 27,480,635 Capital Assets Being Depreciated, Net of Accumulated Depreciation 51,435,763 34,309,394 85,745,157 Total Assets 131,725,585 94,171,787 225,897,372 Deferred Outflows of Resources Deferred Charge on Refunding - 5,274 5,274 Deferred Outflow of Pension and OPEB 398,259 96,720 494,979 Total Deferred Outflows of Resource 398,259 101,994 500,253 Liabilities Accounts Payable and Accrued Expenses 2,752,080 2,169,829 4,921,909 Due to Other Governments 36,519 - 36,519 Retainage Payable 257,550 - 257,550 Unearned Revenue 2,290,987 - 2,290,987 Accrued Interest Payable - 28,949 28,949 Liabilities Payable from Restricted Assets 159,081 607,196 766,277 Non-Current Liabilities: Due Within One Year 2,523,360 2,453,208 4,976,568 Due in More than One Year 6,785,285 12,273,574 19,058,859 Total Liabilities 14,804,862 17,532,756 32,337,618 Deferred Inflows of Resources Deferred Inflows of Leases 3,738,480 - 3,738,480 Deferred Inflows of Pension and OPEB 6,477,391 1,573,080 8,050,471 Total Deferred Inflows of Resources 10,215,871 1,573,080 11,788,951 Net Position Net Investment in Capital Assets 67,984,486 34,474,657 102,459,143 Restricted for: Capital Projects 6,270,401 - 6,270,401 Renewal and Replacement - 847,259 847,259 Building Fund - 3,955,898 3,955,898 Physical Environment 16,046,867 - 16,046,867 Public Safety 145,273 - 145,273 Pension Assets 3,386,427 822,419 4,208,846 Unrestricted 13,269,657 35,067,712 48,337,369 Total Net Position 107,103,111$ 75,167,945$ 182,271,056$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2025 See accompanying notes. 17 208 Operating Capital Business- Charges for Grants and Grants and Governmental Type Function/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government Governmental Activities: General Government 7,915,600$ 3,114,620$ -$ -$ (4,800,980)$ -$ (4,800,980)$ Public Safety 8,588,005 117,977 - 70,223 (8,399,805) - (8,399,805) Physical Environment 9,462,719 5,268,968 7,528,521 4,718,752 8,053,522 - 8,053,522 Culture and Recreation 3,658,802 376,128 - 18,315 (3,264,359) - (3,264,359) Interest on Long-Term Debt 376,266 - - - (376,266) - (376,266) Total Governmental Activities 30,001,392 8,877,693 7,528,521 4,807,290 (8,787,888) - (8,787,888) Business-Type Activities: Water and Sewer 13,502,756 17,237,786 - 458,580 - 4,193,610 4,193,610 Development Services 1,935,483 1,057,351 - - - (878,132) (878,132) Stormwater 1,994,362 1,388,404 1,839,598 - - 1,233,640 1,233,640 Total Business-Type Activities 17,432,601 19,683,541 1,839,598 458,580 - 4,549,118 4,549,118 Total Primary Government 47,433,993$ 28,561,234$ 9,368,119$ 5,265,870$ (8,787,888) 4,549,118 (4,238,770) General Revenues Property Taxes 9,435,614 - 9,435,614 Utility Taxes 5,973,760 - 5,973,760 Business Tax Receipts 117,429 - 117,429 Intergovernmental - Unrestricted 4,808,996 - 4,808,996 Investment Income and Miscellaneous 2,785,987 2,063,000 4,848,987 Transfers (14,834) 14,834 - Total General Revenues and Transfers 23,106,952 2,077,834 25,184,786 Changes in Net Position 14,319,064 6,626,952 20,946,016 Net Position, Beginning of Year 92,784,047 68,540,993 161,325,040 Net Position, End of Year 107,103,111$ 75,167,945$ 182,271,056$ CITY OF WINTER SPRINGS, FLORIDA Program Revenue Net (Expense) Revenue and Changes in Net Position Primary Government FOR THE YEAR ENDED SEPTEMBER 30, 2025 STATEMENT OF ACTIVITIES See accompanying notes. 18 209 Infrastructure American Other Total General Surtax Solid Waste/Rescue Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Assets Cash and Cash Equivalents 392,439$ 633,811$ 112,553$ 268,026$ 1,065,177$ 2,472,006$ Investments 10,169,975 11,713,962 2,080,172 4,953,605 19,686,351 48,604,065 Receivable, Net 122,321 - 541,893 - 627,452 1,291,666 Leases Receivable 4,358,459 - - - - 4,358,459 Inventories, at Cost 17,555 - - - - 17,555 Prepaids 189,072 - - - 1,500 190,572 Special Assessments Receivable - - - - 552,570 552,570 Advances to Other Funds 29,807 - - - - 29,807 Restricted Assets: Cash and Cash Equivalents 159,081 - - - 2,091 161,172 Total Assets 15,438,709 12,347,773 2,734,618 5,221,631 21,935,141 57,677,872 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities Accounts Payable 480,479 42,953 313,062 844,453 543,004 2,223,951 Accrued Liabilities 528,129 - - - - 528,129 Unearned Revenue - - - 2,290,987 - 2,290,987 Retainage Payable - - - 185,269 72,281 257,550 Advances from Other Funds - - - - 29,807 29,807 Due to Other Governments 36,519 - - - - 36,519 Payable from Restricted Assets 159,081 - - - - 159,081 Total Liabilities 1,204,208 42,953 313,062 3,320,709 645,092 5,526,024 Deferred Inflows of Resources Deferred Inflows from Leases 3,738,480 - - - - 3,738,480 Unavailable Revenue - Grants - - - - 499,022 499,022 Unavailable Revenue - Special Assessments - - - - 552,570 552,570 Total Deferred Inflows of Resources 3,738,480 - - - 1,051,592 4,790,072 Fund Balances Non-Spendable 236,434 - - - 1,500 237,934 Restricted - 12,304,820 - - 10,157,721 22,462,541 Committed - - 577,787 - 3,057,557 3,635,344 Assigned 1,276,288 - 1,843,769 1,900,922 7,021,679 12,042,658 Unassigned 8,983,299 - - - - 8,983,299 Total Fund Balances 10,496,021 12,304,820 2,421,556 1,900,922 20,238,457 47,361,776 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 15,438,709$ 12,347,773$ 2,734,618$ 5,221,631$ 21,935,141$ 57,677,872$ Special Revenue SEPTEMBER 30, 2025 GOVERNMENTAL FUNDS BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA See accompanying notes. 19 210 Total Fund Balance, Governmental Funds 47,361,776$ Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.70,691,093 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.1,051,592 Deferred inflows and outflows of resources related to pension and OPEB are not recognized in the governmental funds; however, they are recorded in net position under full accrual accounting.(6,079,132) Net pension assets are not recognized in the governmental fund; however, they are recorded in net position under full accrual accounting.3,386,427 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.(8,261,785) Other postemployment benefit liabilities are not available in the current period and, therefore, are not reported in the funds.(1,046,860) Net Position of Governmental Activities in the Statement of Net Position 107,103,111$ CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2025 See accompanying notes. 20 211 Infrastructure American Other Total General Surtax Solid Waste/Recovery Governmental Governmental Fund Fund Recycling Plan Act Funds Funds Revenues Taxes: Property Taxes 9,435,614$ -$ -$ -$ -$ 9,435,614$ Utility Taxes 5,973,760 - - - - 5,973,760 Business Tax Receipts 117,429 - - - - 117,429 Permits and Fees 2,872,975 - - - 1,355 2,874,330 Intergovernmental Revenues 4,892,935 3,633,737 348,484 6,137,207 1,610,133 16,622,496 Charges for Services 900,563 - 4,043,711 - - 4,944,274 Fines and Forfeitures 71,394 - - - 375,682 447,076 Impact Fees/Assessments - - - - 748,583 748,583 Investment Income/(Loss)807,127 447,868 84,019 368,451 850,757 2,558,222 Miscellaneous 159,628 - - - 68,137 227,765 Total Revenues 25,231,425 4,081,605 4,476,214 6,505,658 3,654,647 43,949,549 Expenditures Current: General Government 7,378,312 - - - 4,931 7,383,243 Public Safety 8,744,583 - - - 34,831 8,779,414 Physical Environment 1,374,370 456,666 3,917,916 - 1,678,938 7,427,890 Culture and Recreation 3,097,762 - - - - 3,097,762 Debt Service: Principal 214,799 - - - 425,734 640,533 Interest and Fiscal Charges 16,085 - - - 985,264 1,001,349 Capital Outlay: General Government 242,539 - - - 524,605 767,144 Public Safety 1,324,363 - - - 38,326 1,362,689 Physical Environment 233,128 2,430,632 - 6,325,588 3,135,677 12,125,025 Culture and Recreation 386,956 - - - 102,710 489,666 Total Expenditures 23,012,897 2,887,298 3,917,916 6,325,588 6,931,016 43,074,715 Excess (Deficiency) of Revenues Over Expenditures 2,218,528 1,194,307 558,298 180,070 (3,276,369) 874,834 Other Financing Sources (Uses) Transfers In 714,036 1,271,130 - - 2,715,000 4,700,166 Transfers (Out)(4,715,000) - - - - (4,715,000) Subscription-Based Information Technology Arrangement (SBITA) Proceeds 360,816 - - - - 360,816 Total Other Financing Sources (Uses)(3,640,148) 1,271,130 - - 2,715,000 345,982 Net Change in Fund Balances (1,421,620) 2,465,437 558,298 180,070 (561,369) 1,220,816 Fund Balances, Beginning of Year 11,917,641 9,839,383 1,863,258 1,720,852 20,799,826 46,140,960 Fund Balances, End of Year 10,496,021$ 12,304,820$ 2,421,556$ 1,900,922$ 20,238,457$ 47,361,776$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2025 Special Revenue AND CHANGES IN FUND BALANCES See accompanying notes. 21 212 Net Change in Fund Balances - Total Governmental Funds 1,220,816$ Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This amount is the net effect of the difference between capital outlays and depreciation.10,231,506 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and disposals) is to decrease net position.(1,984) Some revenues reported in the statement of activities do not provide current financial resources and, therefore, are not reported as revenues in governmental funds.499,022 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on the net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.279,717 The payment of accreted interest that was recognized in a prior year is not reported as an expense on the statement of activities.962,587 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year.(113,281) Cash pension contributions reported in the funds differed from the calculated pension expense on the statement of activities and, therefore, changed net position.1,986,170 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in the governmental funds.(745,489) Change in Net Position of Governmental Activities 14,319,064$ CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE YEAR ENDED SEPTEMBER 30, 2025 STATEMENT OF ACTIVITIES See accompanying notes. 22 213 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Property Taxes 9,420,926$ 9,420,926$ 9,435,614$ 14,688$ Utility Taxes 5,397,294 5,847,294 5,973,760 126,466 Business Tax Receipts 90,000 90,000 117,429 27,429 Permits and Fees 2,940,496 2,820,496 2,872,975 52,479 Intergovernmental Revenues 4,996,350 5,094,097 4,892,935 (201,162) Charges for Services 568,954 603,954 900,563 296,609 Fines and Forfeitures 99,600 99,600 71,394 (28,206) Investment Income/(Loss)175,000 775,000 807,127 32,127 Miscellaneous 231,000 357,380 159,628 (197,752) Total Revenues 23,919,620 25,108,747 25,231,425 122,678 Expenditures Current: General Government: Executive 804,191 829,191 816,528 12,663 General Government*(422,054) (802,054) (814,794) 12,740 Finance and Administrative Services 1,763,715 1,743,715 1,669,490 74,225 Information Services 4,706,467 4,254,987 4,064,660 190,327 Community Development 2,765,874 2,063,874 1,970,312 93,562 Public Safety: Police**10,526,468 9,889,695 10,214,485 (324,790) Physical Environment: Public Works 1,789,587 1,717,587 1,607,498 110,089 Culture and Recreation: Parks and Recreation 3,541,780 3,631,484 3,484,718 146,766 Total Expenditures 25,476,028 23,328,479 23,012,897 315,582 Excess (Deficiency) of Revenues Over Expenditures (1,556,408) 1,780,268 2,218,528 438,260 Other Financing Sources (Uses) Transfers In 737,008 737,008 714,036 (22,972) Transfers (Out)(1,215,000) (4,715,000) (4,715,000) - Subscription-Based Information Technology Arrangement (SBITA) Proceeds - - 360,816 360,816 Total Other Financing Sources (477,992) (3,977,992) (3,640,148) 337,844 Net Change in Fund Balances (2,034,400) (2,197,724) (1,421,620) 776,104 Fund Balances, Beginning of Year 9,085,506 11,917,641 11,917,641 - Fund Balances, End of Year 7,051,106$ 9,719,917$ 10,496,021$ 776,104$ **Although it appears the City's police department has expenditures in excess of budgeted appropriations,the budget is still considered to be in compliance with requirements under Florida Statutes as the variance was solely due to recognition of a new SBITA in capital outlay and is entirely offset by SBITA proceeds, which is a non-cash transaction. *The City budgets central service costs paid by the Enterprise Funds to the General Fund through the General Government department. Periodically, this will result in the department reporting a negative actual expense (revenue). Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 23 214 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 750,000$ 3,291,965$ 3,633,737$ 341,772$ Investment Income/(Loss)100,000 100,000 447,868 347,868 Total Revenues 850,000 3,391,965 4,081,605 689,640 Expenditures Current: Physical Environment 25,000 458,231 456,666 1,565 Capital Outlay: Physical Environment 3,500,000 3,068,000 2,430,632 637,368 Total Expenditures 3,525,000 3,526,231 2,887,298 638,933 Excess (Deficiency) of Revenues Over Expenditures (2,675,000) (134,266) 1,194,307 1,328,573 Other Financing Sources (Uses) Transfers In - - 1,271,130 1,271,130 Total Other Financing Sources - - 1,271,130 1,271,130 Net Change in Fund Balances (2,675,000) (134,266) 2,465,437 2,599,703 Fund Balances, Beginning of Year 8,098,998 9,839,383 9,839,383 - Fund Balances, End of Year 5,423,998$ 9,705,117$ 12,304,820$ 2,599,703$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL INFRASTRUCTURE SURTAX SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 24 215 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 55,800$ 55,800$ 348,484$ 292,684$ Charges for Services 3,357,780 3,472,780 4,043,711 570,931 Investment Income/(Loss)25,000 25,000 84,019 59,019 Total Revenues 3,438,580 3,553,580 4,476,214 922,634 Expenditures Current: Physical Environment 3,419,902 3,964,902 3,917,916 46,986 Total Expenditures 3,419,902 3,964,902 3,917,916 46,986 Net Change in Fund Balances 18,678 (411,322) 558,298 969,620 Fund Balances, Beginning of Year 1,902,187 1,836,258 1,863,258 27,000 Fund Balances, End of Year 1,920,865$ 1,424,936$ 2,421,556$ 996,620$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SOLID WASTE/RECYCLING SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 25 216 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues -$ 7,744,327$ 6,137,207$ (1,607,120)$ Investment Income/(Loss)22,000 22,000 368,451 346,451 Total Revenues 22,000 7,766,327 6,505,658 (1,260,669) Expenditures Capital Outlay: Physical Environment - 7,744,327 6,325,588 1,418,739 Total Expenditures - 7,744,327 6,325,588 1,418,739 Net Change in Fund Balances 22,000 22,000 180,070 158,070 Fund Balances, Beginning of Year 1,101,327 1,720,852 1,720,852 - Fund Balances, End of Year 1,123,327$ 1,742,852$ 1,900,922$ 158,070$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 26 217 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Assets Current Assets: Cash and Cash Equivalents 2,101,363$ 225,211$ 132,930$ 2,459,504$ Investments 38,836,395 4,160,443 2,456,770 45,453,608 Receivables, Net 685,512 - 87,305 772,817 Due from Other Governments - - 1,210,740 1,210,740 Inventories 54,527 - - 54,527 Prepaid Expenses - 7,317 - 7,317 Total Current Assets 41,677,797 4,392,971 3,887,745 49,958,513 Non-Current Assets: Restricted Cash and Cash Equivalents 856,156 - - 856,156 Net Pension Asset 532,153 145,133 145,133 822,419 Capital Assets: Land, Buildings and Equipment 89,782,208 967,305 15,957,545 106,707,058 Construction in Progress 864,824 71,687 118,617 1,055,128 Less Accumulated Depreciation (55,708,407) (653,837) (8,865,243) (65,227,487) Total Capital Assets (Net of Accumulated Depreciation 34,938,625 385,155 7,210,919 42,534,699 Total Non-Current Assets 36,326,934 530,288 7,356,052 44,213,274 Total Assets 78,004,731 4,923,259 11,243,797 94,171,787 Deferred Outflows of Resources Deferred Charge on Refunding 5,274 - - 5,274 Deferred Outflow Pension and OPEB 62,584 17,068 17,068 96,720 Total Deferred Outflows Resources 67,858 17,068 17,068 101,994 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2025 Business-Type Activities - Enterprise Funds See accompanying notes. 27 218 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Liabilities Current Liabilities: Accounts Payable 1,812,515$ 82,512$ 175,205$ 2,070,232$ Accrued Liabilities 71,869 16,796 10,932 99,597 Compensated Absences - Current 90,811 19,419 15,938 126,168 Customer Deposits Payable 607,196 - - 607,196 Notes Payable - Current 438,225 - - 438,225 Revenue Bonds Payable - Current 432,638 - - 432,638 Other Postemployment Benefits - Current 8,938 2,438 2,438 13,814 Accreted Interest Payable - Current 1,442,363 - - 1,442,363 Accrued Interest Payable 28,949 - - 28,949 Total Current Liabilities 4,933,504 121,165 204,513 5,259,182 Non-Current Liabilities: Notes Payable 5,704,915 - - 5,704,915 Revenue Bonds Payable 1,489,538 - - 1,489,538 Accreted Interest Payable 4,754,587 - - 4,754,587 Compensated Absences 60,540 12,947 10,625 84,112 Other Postemployment Benefits 155,568 42,427 42,427 240,422 Total Non-Current Liabilities 12,165,148 55,374 53,052 12,273,574 Total Liabilities 17,098,652 176,539 257,565 17,532,756 Deferred Inflows of Resources Deferred Inflow of Pension and OPEB 1,017,876 277,602 277,602 1,573,080 Total Deferred Inflows of Resources 1,017,876 277,602 277,602 1,573,080 Net Position Net Investment in Capital Assets 26,878,583 385,155 7,210,919 34,474,657 Restricted for: Renewal and Replacement 847,259 - - 847,259 Building Fund - 3,955,898 - 3,955,898 Pension Assets 532,153 145,133 145,133 822,419 Unrestricted 31,698,066 - 3,369,646 35,067,712 Total Net Position 59,956,061$ 4,486,186$ 10,725,698$ 75,167,945$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2025 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 28 219 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Operating Revenues User Charges 17,237,786$ 1,057,351$ 1,388,404$ 19,683,541$ Total Operating Revenues 17,237,786 1,057,351 1,388,404 19,683,541 Operating Expenses Salaries and Benefits 1,297,961 657,510 409,242 2,364,713 Materials and Supplies 1,496,950 30,566 905,631 2,433,147 Depreciation and Amortization 3,231,786 222,819 274,580 3,729,185 Other Operating Expenses 6,886,371 1,022,250 404,909 8,313,530 Total Operating Expenses 12,913,068 1,933,145 1,994,362 16,840,575 Operating Income (Loss)4,324,718 (875,794) (605,958) 2,842,966 Non-Operating Revenue (Expenses) Investment Income 1,711,274 199,142 70,123 1,980,539 Interest Expense (71,344) (2,338) - (73,682) Accreted Interest Expense (518,344) - - (518,344) Operating Grants - - 1,839,598 1,839,598 Capital Grants 240,680 - - 240,680 Auction Proceeds 81,374 - 1,087 82,461 Total Non-Operating Revenue (Expenses)1,443,640 196,804 1,910,808 3,551,252 Income (Loss) Before Contributions and Transfers 5,768,358 (678,990) 1,304,850 6,394,218 Other Financing Sources (Uses) Capital Contributions: Connection Fees 201,135 - - 201,135 Private Contributions 16,765 - - 16,765 Transfers In - - 2,167,917 2,167,917 Transfers (Out)(881,953) - (1,271,130) (2,153,083) Total Other Financing Sources (Uses)(664,053) - 896,787 232,734 Change in Net Position 5,104,305 (678,990) 2,201,637 6,626,952 Net Position, Beginning of Year 54,851,756 5,165,176 8,524,061 68,540,993 Net Position, End of Year 59,956,061$ 4,486,186$ 10,725,698$ 75,167,945$ AND CHANGES IN FUND NET POSITION Business-Type Activities - Enterprise Funds CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 29 220 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Cash Flows from Operating Activities Receipts from Customers 17,067,955$ 1,057,351$ 136,406$ 18,261,712$ Payments to Suppliers (8,793,225) (1,141,313) (1,172,278) (11,106,816) Payments to Employees (1,544,683) (750,025) (503,232) (2,797,940) Net Cash Provided (Used) by Operating Activities 6,730,047 (833,987) (1,539,104) 4,356,956 Cash Flows from Non-Capital Financing Activities Operating Grants Received - - 1,839,598 1,839,598 Transfers In - - 2,167,917 2,167,917 Transfers (Out)(881,953) - (1,271,130) (2,153,083) Net Cash Provided (Used) by Non-Capital Financing Activities (881,953) - 2,736,385 1,854,432 Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets (4,119,138) (151,113) (167,917) (4,438,168) Proceeds from Sale of Capital Assets 81,374 - 1,087 82,461 Grants Received 240,680 - 240,680 Principal Paid (894,068) - - (894,068) Interest Paid (1,486,166) (2,338) - (1,488,504) Connection Fees 201,135 - - 201,135 Net Cash Provided (Used) by Capital and Related Financing Activities (5,976,183) (153,451) (166,830) (6,296,464) Cash Flows from Investing Activities Sale (Purchase) of Investments (2,103,373) 664,597 (1,068,038) (2,506,814) Interest Income 1,711,274 199,142 70,123 1,980,539 Net Cash Provided (Used) by Investing Activities (392,099) 863,739 (997,915) (526,275) Net Increase (Decrease) in Cash and Cash Equivalents (520,188) (123,699) 32,536 (611,351) Cash and Cash Equivalents, Beginning of Year 3,477,707 348,910 100,394 3,927,011 Cash and Cash Equivalents, End of Year 2,957,519$ 225,211$ 132,930$ 3,315,660$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2025 Business-Type Activities - Enterprise Funds See accompanying notes. 30 221 Water and Sewer Development Stormwater Utility Fund Services Fund Utility Fund Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss)4,324,718$ (875,794)$ (605,958)$ 2,842,966$ Adjustments Not Affecting Cash: Depreciation and Amortization 3,231,786 222,819 274,580 3,729,185 Change in Assets and Liabilities: Decrease (Increase) in Accounts Receivable (165,611) - (41,258) (206,869) Decrease (Increase) in Due From Other Governments - - (1,210,740) (1,210,740) Decrease (Increase) in Inventories (9,642) - - (9,642) Decrease (Increase) in Prepaid Expenses - (7,317) - (7,317) Decrease (Increase) in Deferred Outflows 37,822 10,315 10,315 58,452 Increase (Decrease) in Accounts Payable (400,262) (81,180) 138,262 (343,180) Increase (Decrease) in Accrued Liabilities 46,624 (20,572) (19,116) 6,936 Increase (Decrease) in Customer Deposits (4,220) - - (4,220) Increase (Decrease) in Accrued Compensated Absences 22,810 14,283 11,352 48,445 Increase (Decrease) in Deferred Inflows 100,642 27,447 27,447 155,536 Increase (Decrease) in Net Pension Liability/Asset (475,321) (129,633) (129,633) (734,587) Increase (Decrease) in Net OPEB Liability 20,701 5,645 5,645 31,991 Total Adjustments 2,405,329 41,807 (933,146) 1,513,990 Net Cash Provided (Used) by Operating Activities 6,730,047$ (833,987)$ (1,539,104)$ 4,356,956$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2025 Business-Type Activities - Enterprise Funds (Concluded) See accompanying notes. 31 222 Defined Benefit Pension Trust Fund Assets Cash and Cash Equivalents 2,800,707$ Contributions Receivable 157,473 Investments, at Fair Value: Common Funds, Equity 56,179,419 Common Funds, Bonds 21,926,269 Other Investments 3,247,784 Total Investments 81,353,472 Total Assets 84,311,652 Liabilities Accounts Payable 40,165 Total Liabilities 40,165 Net Position Net Position Restricted for Pensions 84,271,487$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2025 See accompanying notes. 32 223 Defined Benefit Pension Trust Fund Additions Contributions: Employer 1,607,042$ Plan Members 215,945 Total Contributions 1,822,987 Investment Income: Net Increase (Decrease) in Fair Value of Investments 8,178,094 Interest 952,429 Investment-Related Expenses (299,328) Net Investment Income 8,831,195 Total Additions 10,654,182 Deductions Benefits 5,323,844 Administrative Expenses 50,286 Total Deductions 5,374,130 Change in Net Position 5,280,052 Net Position, Beginning of Year 78,991,435 Net Position, End of Year 84,271,487$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED SEPTEMBER 30, 2025 See accompanying notes. 33 224 NOTES TO FINANCIAL STATEMENTS 225 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 34 Note 1 - Summary of Significant Accounting Policies Reporting Entity The City of Winter Springs, Florida (the City) is a political subdivision of the State of Florida located in Seminole County and was established by the Laws of Florida 59-1614. The legislative branch of the City is comprised of a five-member elected Commission and a separately elected mayor, which is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager appointed by the Commission. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization’s governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government: (a) is entitled to the organizations’ resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated i n some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from busi ness-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 226 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 35 Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of t he current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds:  Major Governmental Funds • General Fund - is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. • Infrastructure Surtax (previously Road Improvements) Special Revenue Fund - accounts for collected one-cent sales tax revenues restricted for use for transportation, safety, capacity, and infrastructure consistent with Section 212.055, Florida Statutes. • Solid Waste/Recycling Special Revenue Fund - accounts for proceeds from billed solid waste and recycling services performed by contract vendors. Proceeds are committed to pay monthly vendor charges for providing solid waste and recycling services. • American Rescue Plan Act (ARPA) Fund - accounts for the collection and expenditures of the Coronavirus State and Local Recovery Funds, a part of the ARPA.  Non-Major Governmental Fund Types • Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects. 227 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 36 • Debt Service Funds - account for the accumulation of resources for and the payment of principal and interest on certain general governmental obligations. • Capital Projects Funds - account for financial resources segregated for the acquisition or construction of major capital facilities.  Major Proprietary Funds • Water and Sewer Utility Fund - used to account for the operations of the City’s water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. • Development Services Fund - used to account for the operations of the City’s building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. • Stormwater Utility Fund - used to account for the City’s operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges.  Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are other charges between the City’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s water, sewer, and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 228 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 37 Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance Deposits and Investments The government’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of less than 2 years from the date of acquisition. Investments for the City are reported at fair value and are categorized within the fair value hierarchy established in accordance with Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a non-spendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certif icates are sold for all delinquent taxes on real property. Inventories and Prepaid Items All inventories are valued at cost using the average cost method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. These are recorded as expenditures when consumed rather than when purchased. Leases As described further in Note 16, the City is a lessor for non-cancellable leases of its cell towers. In accordance with both agreements, the City recognizes a lease receivable and deferred inflow of resources. The City recognizes lease receivables for leases with a term greater than 12 months. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured 229 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 38 as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and receivable if certain changes occur that are expected to significantly affect the amount of the lease receivable. Subscription-Based Information Technology Arrangements As described further in Note 17, the City is party to subscription-based information technology arrangements (SBITAs). The City recognizes both a subscription asset and a related subscription liability for arrangements with terms greater than 12 months. At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be paid during the lease term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments received at or before commencement. Subsequently, the subscription asset is amortized as depreciation expense over the life of the arrangement term. The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure the subscription asset and subscription liability if certain changes occur that are expected to significantly affect the arrang ement. Restricted Assets Certain proceeds of the City’s enterprise fund revenue bonds and notes, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the statement of net position. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is expensed as incurred. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Years Buildings 30 Improvements 20-50 Infrastructure 30-50 Intangible Assets 3-10 Equipment 3-10 230 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 39 Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Previously, there was 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. However, with the implementation of GASB Statement No. 101, Compensated Absences, the City is required to record a liability for any amount of unpaid accumulated sick leave that is expected to be used in the future . The implementation of this standard was further described both below. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences, other postemployment benefits (OPEB), and net pension liability are generally liquidated by the General Fund. Long-Term Obligations In the government-wide financial statements, and for proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts (including deep-discount or capital appreciation bonds) are deferred and amortized over the life of the bonds and notes using the effective interest method. Bonds payable and notes payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The deferred charge on refunding and deferred outflows of pension and OPEB reported in the enterprise and government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the sh orter of the life of the refunded or refunding debt. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The first, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: county taxes, special assessments, and other. The second, deferred inflows from leases, are reported in both the governmental funds balance sheet and in the government-wide statement of net position. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also has deferred inflows of pension and OPEB reported in the enterprise and government-wide statement of net position. 231 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 40 Net Position Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The City itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for specific purposes determined by a formal action of the government’s highest level of decision-making authority. The City Commission is the highest level of decision-making authority for the City that can, by adoption of a Resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resol ution) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The commission is authorized to assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget, and it is done at their discretion without the need for formal action such as adopting a resolution. Unlike commitments, assignments generally only exist temporarily. The General Fund is the only fund that reports a positive unassigned fund balance. However, in other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. 232 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 41 Implementation of New Accounting Pronouncement s During the fiscal year, the City adopted GASB Statement No. 101, Compensated Absences. The statement updated the recognition and measurement guidance for compensated absences and aligns the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The statement requires that liabilities for compensated absences be recognized for: (1) leave that has not been used, and (2) leave that has been used by not yet paid in cash or settled through non-cash means. In accordance with the statement a liability should be recognized for leave that has not been used if: (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through non- cash means. There was an impact to the City’s financial statements as a result of the adoption of this statement, which is shown in Note 7. Additionally, GASB Statement No. 102, Certain Risk Disclosures, was adopted during the fiscal year. The statement provides users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The statement requires a government to assess whether a concentration or constraint makes the government vulnerable to the risk of a substantial impact, and whether the substantial impact has occurred, has begun to occur, or is more likely than not to begin to occur within 12 months of the date the financial statements are issued. There was no impact to the City’s financial statements as a result of the adoption of this statement. Note 2 - Reconciliation of Government-Wide and Fund Financial Statements Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds”. The details of this difference are as follows: Bonds Payable $ (1,321,092) Accreted Interest Payable (4,238,879) Notes Payable (612,569) Compensated Absences (1,573,849) SBITAs (515,396) Net Adjustment to Reduce Fund Balance, Total Governmental Funds to Arrive at Net Position, Governmental Activities $ (8,261,785) Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “governmental funds report capital outlays as expenditures. 233 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 42 However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense”. The details of this difference are as follows: Capital Outlay $ 14,741,632 Depreciation Expense (4,510,126) Net Adjustment to Increase Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ 10,231,506 Another element of that reconciliation states that “the issuance of long -term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long - term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities”. The details of this difference are as follows: SBITAs $ (360,816) Principal Repayment 640,533 Net Adjustment to Decrease Net Changes in Fund Balances, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ 279,717 Another element of that reconciliation states that “some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds”. The details of this difference are as follows: Compensated Absences $ (433,670) Other Postemployment Benefits 25,686 Accreted Interest Payable (337,505) Net Adjustment to Decrease Net Changes in Fund Balance, Total Governmental Funds to Arrive at Changes in Net Position, Governmental Activities $ (745,489) Note 3 - Stewardship, Compliance, and Accountability Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year -end. The City follows the procedures set forth below in establishing the budgetary data reflected in the financial statements. 1. On or before July 1 of each year, the City Manager submits a proposed budget to the City Commission for the fiscal year beginning the following October 1. The budget includes proposed revenues, expenditures, and a description of capital activities for the ensuing fiscal year. 2. The City Commission then holds informal workshops, wherein the public is invited to attend. 3. On or before September 30 of each year, two public hearings are convened, and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 234 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 43 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. Note 4 - Deposits and Investments Deposits All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida’s Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. Thi s limits local government deposits to “authorized depositories”. Investments The City’s investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280, Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LGIP) 2. U.S. Government Securities 3. U.S. Government Agency Securities 4. Federal Instrumentalities (U.S. Government Sponsored Agencies) 5. Interest-Bearing Time Deposit or Savings Deposit 6. Repurchase Agreements 7. Commercial Paper 8. Bankers’ Acceptances 9. State and/or Local Government and/or Tax-Exempt Debt 10. Registered Investment Companies (Money Market Mutual Funds) 11. Intergovernmental Investment Pool The City’s investment policy limits credit risk by restricting authorized investments to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poor’s (S&P) rating of Aam or Aam-G. Investments in commercial paper and bankers’ acceptances must be rated, at a minimum, “P-1” by Moody’s Investors Services and “A-1” by S&P. Investment in state and/or local government taxable and/or tax-exempt debt must be rated at least “Aa” by Moody’s and “AA” by S&P for long-term debt, or rated at least “MIG-2” by Moody’s and “SP-2” by S&P for short-term debt. Minimum ratings are based on the highest rating by a Nationally Recognized Statistical Ratings Organization and apply at the time of purchase. 235 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 44 Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Depositories Trust Fund, a multiple financial institution p ool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2025, all of the City’s bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2025, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City’s investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year, and commercial paper and bankers’ acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant inform ation generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which may include the City’s own data in measuring unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2025: 236 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 45 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs Investments Valued by Fair Value Fair Value (Level 1) (Level 2) Commercial Paper $ 970,630 $ - $ 970,630 U.S. Treasury Notes 58,491,719 58,491,719 - Commercial Mortgage-Backed Securities 2,891,183 - 2,891,183 Consumer Asset Backed Securities 9,114,899 - 9,114,899 Other U.S. Credit 22,563,337 - 22,563,337 $ 94,031,768 $ 58,491,719 $ 35,540,049 As of September 30, 2025, the government held an investment in a pooled investment fund managed by PFM Asset Management. The investment is reported at fair value, which is determined using the fund’s net asset value (NAV) per share or its equivalent as a practical expedient. The investment had a fair value of $25,905 and is not classified within the fair value hierarchy pursuant to GASB Statement No. 72. The fund permits same-day daily redemptions. Investments held by the City at September 30, 2025, are detailed below. Weighted Average Investments Fair Value Credit Rating Maturity Commercial Paper $ 970,630 A-1 0.68 years U.S. Treasury Notes 58,491,719 AA+ 1.05 years Commercial Mortgage-Backed Securities 2,891,183 AA+ 1.22 years Consumer Asset Backed Securities 9,114,899 AAA 2.11 years Other U.S. Credit 22,563,337 A+-BBB+ 1.00 years $ 94,031,768 Investments: Pension Funds The City’s Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280, Florida Statutes. Authorized investments are: 1. Equities traded on a national exchange 2. Fixed income investments having a minimum rating of investment grade or higher as determined by at least one major credit rating service 3. Money market fund or short-term investment fund provided by the plan’s custodian 4. Real estate limited to commingled funds 5. Alternatives 6. Foreign securities limited to fully and easily negotiable securities or commingled funds with investments in such securities 7. Commingled funds/mutual funds and exchange traded funds 237 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 46 The investments held by the City’s Pension Trust Fund at September 30, 202 5, are detailed below: Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Investments Fair Value (Level 1) (Level 2) (Level 3) Equity Mutual Funds $ 56,179,419 $ 56,179,419 $ - $ - Bond Mutual Funds 21,926,269 - 21,926,269 - Real Estate Investment Trusts 2,979,775 - - 2,979,775 Other Investments 268,009 - 268,009 - Total Investments 81,353,472 $ 56,179,419 $ 22,194,278 $ 2,979,775 Cash and Cash Equivalents 2,800,707 Total Cash and Investments $ 84,154,236 Credit Risk The City’s Trust investment policy limits credit risk by restricting authorized investments to those described above. The policy requires that the investments in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backin g commercial paper, the long-term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers’ acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and/or Revenue Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a nationally recognized rating service or rated “MIG-2” or “SP-2”, for short-term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of “A1” by Standard & Poor’s (S&P) or “P1” by Moody’s Investor Services (Moody’s); fixed income securities be investment grade as measured by S&P or Moody’s; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2025, none of the Trust investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City’s Trust investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. The policy limits an individual issuer of common or capital stock to no more than 5% of the fund’s assets; the aggregate investment in any one stock issuing company to no more than 5% of the outstanding capital stock of the company; and the value of bonds issued by any single corporation to no more than 3% of the total fund. The policy limits investments in corporate common stock and convertible bonds to no more than 75% of the fund assets at market value; foreign securities to no more than 20% of fund assets at market value; and alternative investments, such as timber and real estate, to no more than 15% of the fund assets at market value. At September 30, 2025, there were no security investments in the Trust that were over their respective limitations. 238 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 47 Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, as long as the average duration of the portfolio will not exceed +/- 125% of the duration of the Policy benchmark. There were no security level fixed income investments in the Pension Portfolio. Note 5 - Receivables Receivables as of year-end for the City’s individual major funds and non-major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance for Accounts Uncollectible Fund Receivable Accounts Net Receivable General $ 125,568 $ (3,247) $ 122,321 Solid Waste/Recycling Special Revenue 564,833 (22,940) 541,893 Other Governmental Funds 627,452 - 627,452 Water and Sewer Utility 839,851 (154,339) 685,512 Stormwater Utility 108,346 (21,041) 87,305 $ 2,266,050 $ (201,567) $ 2,064,483 Note 6 - Capital Assets Capital asset activity for the year ended September 30, 2025, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets, Not Being Depreciated: Land 10,341,976$ -$ -$ 10,341,976$ Construction in Progress 1,263,141 12,334,147 (4,683,934) 8,913,354 Total Capital Assets, Not Being Depreciated 11,605,117 12,334,147 (4,683,934) 19,255,330 Capital Assets, Being Depreciated: Buildings 16,652,711 123,367 - 16,776,078 Improvements 17,612,084 2,312,372 - 19,924,456 Intangible Assets 1,167,464 - (16,636) 1,150,828 Subscription Assets 667,737 360,816 - 1,028,553 Machinery and Equipment 13,808,046 1,995,699 (680,571) 15,123,174 Infrastructure 85,469,800 2,299,165 - 87,768,965 Total Capital Assets, Being Depreciated 135,377,842 7,091,419 (697,207) 141,772,054 Less Accumulated Depreciation for: Buildings (9,981,564) (508,871) - (10,490,435) Improvements (10,806,040) (663,725) - (11,469,765) Intangible Assets (1,167,464) - 16,636 (1,150,828) Subscription Assets (291,704) (240,606) - (532,310) Machinery and Equipment (10,769,912) (1,146,630) 678,587 (11,237,955) Infrastructure (53,504,704) (1,950,294) (55,454,998) Total Accumulated Depreciation (86,521,388) (4,510,126) 695,223 (90,336,291) Total Capital Assets, Being Depreciated, Net 48,856,454 2,581,293 (1,984) 51,435,763 Governmental Activities Capital Assets, Net 60,461,571$ 14,915,440$ (4,685,918)$ 70,691,093$ 239 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 48 Depreciation expense was charged to functions/programs as follows: Governmental Activities General Government $ 713,746 Public Safety 835,806 Physical Environment 2,015,462 Culture and Recreation 945,112 Total Depreciation Expense, Governmental Activities $ 4,510,126 Business-Type Activities Water and Sewer $ 3,231,786 Development Services 222,819 Stormwater 274,580 Total Depreciation Expense, Business-Type Activities $ 3,729,185 Note 7 - Long-Term Debt Revenue Bonds - Public Offering The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business-type activities. The 1999 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $6,375,000. For the fiscal year, principal and interest paid (including accreted interest) on this series was $1,275,000, and total pledged revenue was $8,553,906. Beginning Ending Balance Increases Decreases Balance Business-Type Activities Capital Assets, Not Being Depreciated: Land 7,170,177$ -$ -$ 7,170,177$ Construction in Progress 4,784,851 2,084,235 (5,813,958) 1,055,128 Total Capital Assets, Not Being Depreciated 11,955,028 2,084,235 (5,813,958) 8,225,305 Capital Assets, Being Depreciated: Buildings 2,281,497 10,391 - 2,291,888 Improvements 75,797,584 5,607,726 - 81,405,310 Intangible Assets 413,331 - - 413,331 Subscription Assets 487,318 - - 487,318 Machinery and Equipment 12,702,466 2,463,669 (227,099) 14,939,036 Total Capital Assets, Being Depreciated 91,682,196 8,081,786 (227,099) 99,536,883 Less Accumulated Depreciation for: Buildings (1,093,993) (60,461) - (1,154,454) Improvements (53,405,532) (2,269,570) - (55,675,102) Intangible Assets (389,850) (17,538) - (407,388) Subscription Assets (151,237) (201,649) - (352,886) Machinery and Equipment (6,684,791) (1,179,967) 227,099 (7,637,659) Total Accumulated Depreciation (61,725,403) (3,729,185) 227,099 (65,227,489) Total Capital Assets, Being Depreciated, Net 29,956,793 4,352,601 - 34,309,394 Business-Type Activities Capital Assets, Net 41,911,821$ 6,436,836$ (5,813,958)$ 42,534,699$ 240 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 49 The 2000 Water and Sewer Refunding bonds are secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $9,375,000. For the fiscal year, the principal and interest paid on this series was $1,875,000, and total pledged net revenue was $9,763,085. The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year- end, are as follows: Balance Interest Rates Original September 30, and Dates Maturity Amount 2025 Governmental Activities Improvement Refunding Revenue Bonds Series 1999 (Excludes 10/1/2020 $4,238,879 of Accreted Interest on 3.25%-5.25% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2029 $ 7,998,970 $ 1,321,092 Total $ 1,321,092 Balance Interest Rates Original September 30, and Dates Maturity Amount 2025 Business-Type Activities Water and Sewer Refunding Revenue Bonds Series 2000 (Excludes 10/1/2022 $6,196,950 of Accreted Interest on 4.5%-5.5% to Capital Appreciation Bonds) (4/1 and 10/1) 10/1/2030 $ 6,969,191 $ 1,922,176 Total $ 1,922,176 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 2026 $ 295,456 $ 979,544 $ 432,638 $ 1,442,363 2027 278,677 996,323 405,919 1,469,081 2028 263,517 1,011,483 382,688 1,492,313 2029 248,485 1,026,515 360,788 1,514,213 2030 234,957 1,040,043 340,143 1,534,855 $ 1,321,092 $ 5,053,908 $ 1,922,176 $ 7,452,825 Notes Payable - Direct Borrowing The 2011 Special Assessment Revenue Refunding Note is secured by a first lien and pledge of assessments levied on the property within the assessed area. The agreement provides for total funding of $1,765,000. The note period is for 18 years with an interest rate of 3.25% payable semiannually. The total principal and interest remaining to be paid on this series is $663,534. For the fiscal year, principal and interest paid on this series was $135,071, and total pledged revenue was $138,490. 241 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 50 The 2020 Water and Sewer System Revenue Refunding Note Payable was issued in October 2020 and is secured by net revenue from the water and sewer system. Net revenues are calculated using system gross revenues less any expenses paid for operation and maintenance. This Revenue Refunding Note Payable was used to refund the 2018 Water and Sewer System Revenue Refunding Note Payable and 2013 Clean Water State Revolving Fund (SRF) Loan. The agreement provides for total funding of $3,063,000. The note period is for 12 years with an interest rate of 1.72% payable semiannually. The total principal and interest remaining to be paid on this series is $2,671,246. For the fiscal year, principal and interest paid was $185,084 and total pledged revenue was $9,763,085. In the event of default, the note holders may make the outstanding amounts due and payable immediately. In 2017, the City executed the Drinking Water State Revolving Fund Construction Loan agreement DW590610 for Water Treatment Plant Water Quality Improvements. The agreement provides for total funding of $5,862,732. The loan period is for 20 years with an interest rate of .72%. The note is secured by gross revenues from the water and sewer utility net of operations and maintenance costs. The principal and interest remaining to be paid on this series is $3,841,801. For the fiscal year, principal and interest paid on this series was $320,150, and total pledged net revenue was $9,763,085. In the event of default on the State Revolving Fund Loans, the Florida Department of Environmental Protection may cause to establish rates and collect fees, require the City to account for all moneys received and used, appoint a receiver to manage the water and sewer systems, intercept delinquent amounts plus a penalty due to the City under State Revenue Sharing, recover all amounts due including costs of collection and attorney fees, and accelerate the repayment schedule or increase the interest rate by a factor of up to 1.667%. The City has notes payable for both governmental and business-type activities. Outstanding notes payable at year-end are as follows: Governmental Activities Special Assessment Refunding Revenue Note, Series 2011 - Payable in Annual Principal Installments Starting 10/1/2012 through 10/1/2029 and Interest Paid Semiannually at 3.25% $ 612,569 Business-Type Activities 2017 SRF Loan - Payable in Semiannual Principal and Interest Installments Starting 12/15/2017 through 6/15/2037, with Interest Paid Semiannually at .72% $ 3,674,184 Water and Sewer System Revenue Refunding Note, Series 2020 - Payable in Annual Principal Installments Starting 10/15/2020 through 10/1/2032 with Interest Paid Semiannually at 1.72% 2,468,956 $ 6,143,140 242 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 51 Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities Business-Type Activities September 30, Principal Interest Principal Interest 2026 $ 115,967 $ 18,024 $ 438,225 $ 67,567 2027 118,435 14,215 443,347 62,950 2028 120,722 10,329 447,484 58,276 2029 127,821 6,290 452,637 53,543 2030 129,624 2,107 456,806 48,751 2031-2035 - - 3,270,108 73,053 2036-2040 - - 634,533 5,767 $ 612,569 $ 50,965 $ 6,143,140 $ 369,907 Changes in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2025, was as follows: Note 8 - Interfund Receivables, Payables and Transfers The composition of interfund advances as of September 30, 2025, is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds $ 29,807 Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Bonds Payable - Revenue Bonds 1,633,505$ -$ (312,413)$ 1,321,092$ 295,456$ Accreted Interest Payable 4,863,961 337,505 (962,587) 4,238,879 979,544 Notes Payable - Direct Borrowing: Capital Improvement Notes 725,890 - (113,321) 612,569 115,967 Subscription Liabilities 369,379 360,816 (214,799) 515,396 131,203 Other Postemployment Benefits 915,124 131,736 - 1,046,860 56,880 Compensated Absences*1,140,179 1,098,083 (664,413) 1,573,849 944,310 Governmental Activity Long-Term Liabilities 9,648,038$ 1,928,140$ (2,267,533)$ 9,308,645$ 2,523,360$ Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-Type Activities Bonds Payable - Revenue Bonds 2,383,125$ -$ (460,949)$ 1,922,176$ 432,638$ Accreted Interest Payable 7,092,656 518,344 (1,414,050) 6,196,950 1,442,363 Notes Payable - Direct Borrowing: Revenue Notes 2,609,956 - (141,000) 2,468,956 144,000 SRF Loans 3,966,302 - (292,118) 3,674,184 294,225 Subscription Liabilities 102,869 - (102,869) - - Other Postemployment Benefits 222,245 31,991 - 254,236 13,814 Compensated Absences*161,835 182,076 (133,631) 210,280 126,168 Business-Type Activity Long-Term Liabilities 16,538,988$ 732,411$ (2,544,617)$ 14,726,782$ 2,453,208$ did not require a restatement of beginning balances as the adjustment was deemed immaterial. Therefore, the impact of this statement was recognized in the current year additions and reductions to the recorded liabilities. * GASB Statement No. 101, Compensated Absences, was implemented as of October 1, 2024. The impact of this implementation 243 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 52 The balance due to the General Fund represents an interfund loan with the Tuscawilla III Special Revenue Fund, which was established with Resolution 2013-22 in the amount of $80,820 of which cumulative $17,100 in prepayments were received for a net interfund loan of $63,720. The terms of the note are an initial interest rate of 2.875% for 20 years. The interest rate is variable, with maximum increases of 1.25% in years 6-15, and 1.5% in years 16-20. The remaining amount due to the General Fund is a cash advance to the TLBD Debt Service Fund. Interfund transfers for the year ended September 30, 2025, are summarized below: Interfund transfers for the year ended September 30, 2025, are detailed below: Recipient Fund Amount Purpose General Fund $ 714,036 Transfer from Water and Sewer Utility Fund for utility billing ($714,036). Infrastructure Surtax Fund 1,271,130 Transfer from Stormwater Fund to reimburse grant expenditures which were paid out of the Infrastructure Surtax Fund. Other Governmental Funds 2,715,000 Transfer from General Fund for annual debt service requirements ($1,215,000). Transfer from General Fund for public facilities capital projects ($1,500,000). Stormwater Fund 2,167,917 Transfer from General Fund for Stormwater Infrastructure projects ($2,000,000). Transfer from the Utility Fund for an equipment transfer ($167,917). $ 6,868,083 Note 9 - Defined Benefit Pension Plan Plan Description The City maintains a single-employer defined benefit pension plan that provides retirement benefits to City employees. The pension plan is maintained as a Pension Trust Fund and is included with the fund financial statements. This pension plan does not issue a stand-alone financial report. General employees hired on or after October 1, 2011, are no longer eligible for the defined benefit pension plan but are eligible for the City’s defined contribution plan. Employees hired as sworn police officers or hired as forensic professionals on or after October 1, 2011, will continue to participate in the defined benefit plan. Infrastructure Other Surtax Governmental Stormwater Transfers Out General Fund Fund Funds Fund Total General Fund -$ -$ 2,715,000$ 2,000,000$ 4,715,000$ Stormwater Fund - 1,271,130 - - 1,271,130 Water and Sewer Utility Fund 714,036 - - 167,917 881,953 714,036$ 1,271,130$ 2,715,000$ 2,167,917$ 6,868,083$ Transfers In 244 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 53 In October 2008, the City consolidated fire services with Seminole County and firefighters were given the option to either remain in the City’s pension plan or enroll in the County’s pension plan. As a result, 27 firefighters elected to remain in the City’s pension plan, of which one remains, although they are no longer employees of the City. The Board of Trustees of the plan are appointed by the City Commission to make advisory recommendations regarding the plan’s investment and portfolio strategies. Any recommendations are then taken back to the City Commission for final approval. Plan Membership At September 30, 2025, plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 169 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 156 Active Plan Members 57 382 Benefits Provided For Firefighters, Police Officers, and Forensic Professionals, 3% times final average compensation multiplied by accrual service up to a maximum of 30 years. For General Employees, 3% times accrual service earned through September 30, 2011, times final average compensation plus 2.5% times accrual service earned after September 30, 2011, times final average compensation, up to a maximum of 30 years of accrual service. Contributions Contribution requirements of plan members and the City are established and may be amended by the City Commission. The Plan currently requires employees to contribute 5% of their salary. Net Pension Asset The City’s net pension liability was measured as of September 30, 2025, and the net pension liability was determined by an actuarial valuation as of October 1, 2024, updated to September 30, 2025. The components of the net pension liability of the sponsor on September 30, 2025, were as follows: Total Pension Liability $ (80,062,641) Plan Fiduciary Net Position 84,271,487 Sponsor's Net Pension Asset $ 4,208,846 Plan Fiduciary Net Position as a Percentage of Total Pension Asset 105.26% Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of October 1, 202 4, updated to September 30, 2025, using the following actuarial assumptions: Inflation 2.75% Salary Increases 3.75 – 7.00% Investment Rate of Return 6.75% 245 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 54 For healthy General Employee participants post-employment, PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for male, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. For healthy Firefighter, Police Officer, and Forensic Professional participants during employment, PUB- 2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. For healthy Firefighter, Police Officer, and Forensic Professional participants postemployment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018 was used. For disabled General Employee participants, PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements. For disabled Firefighter, Police Officer, and Forensic Professional participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of September 30, 2025, are summarized in the following table: Long-Term Target Expected Asset Class Allocation Rate of Return Domestic Equity 50% 7.50% International Equity 15% 8.50% Domestic Bonds 15% 2.50% Real Estate 10% 4.50% Alternative Investments 10% 6.50% Total 100% Discount Rate The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed member contributions will be made at the current contribution rate and employer contributions will be made at rates equal to the difference between the actuarially 246 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 55 determined contribution rates and the member rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in Net Pension Liability/(Asset) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability (a) Net Position* (b) Liability (Asset) (a)-(b) Balances at September 30, 2024 $ 78,541,946 $ 78,991,435 $ (449,489) Changes for a Year: Service Cost 442,554 - 442,554 Interest 5,230,827 - 5,230,827 Differences Between Expected and Actual Experience 1,171,158 - 1,171,158 Contributions - Employer - 1,607,042 (1,607,042) Contributions - Employee - 215,945 (215,945) Net Investment Income - 8,831,195 (8,831,195) Benefit Payments, Including Refunds of Employee Contributions (5,323,844) (5,323,844) - Administrative Expense - (50,286) 50,286 Net Changes 1,520,695 5,280,052 (3,759,357) Balances at September 30, 2025 $ 80,062,641 $ 84,271,487 $ (4,208,846) *The figures in the table vary from the Statement of Changes in Fiduciary Net Position due to the timing of receipts and disbursements in the Plan. Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate Current 1% Decrease Discount Rate 1% Increase (5.75%) (6.75%) (7.75%) Net Pension Liability (Asset) $ 4,740,789 $ (4,208,846) $ (11,697,695) Deferred Outflows and Inflows of Resources For the year ended September 30, 2025, the City recognized pension expense of $(861,484). At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Net Difference Between Projected and Actual Earnings on Pension Plan Investments $ - $ (7,601,948) $ - $ (7,601,948) 247 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 56 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending September 30, 2026 $ (533,603) 2027 (3,413,481) 2028 (2,931,040) 2029 (723,824) Total $ (7,601,948) Note 10 - Defined Contribution Plan In March 2012, the City established the Winter Springs Defined Contribution Plan (General Plan) as a defined contribution plan covering all full -time employees of the City hired after October 1, 2011, not eligible to participate in the Defined Benefit Pension Plan. The plan is authorized and may be amended by the City Commission. The City makes employer contributions of 5% (no mandatory employee contribution) and will match an employee's 457 deferred contribution, dollar for dollar, up to 2.5% of employee's salary. Employees are eligible to participate in the General Plan after 6 months of employment. Vesting is 0% until at least 2 years, 40% at the end of year 2, 60% at the end of year 3, 80% at the end of year 4, and 100% at the end of year 5. Benefits are available upon termination subject to IRS regulations, regardless of age, based on vested years of service. Normal retirement age has been designated by the employer as age 65. For the fiscal year ended September 30, 2025, employer contributions required and made were $416,076. As of September 30, 2025, participation in the plan consisted of 57 active members. During the year, the General Plan held no securities issued by the employer. Note 11 - Other Postemployment Benefits In accordance with Florida Statutes Section 112.0801, the City makes continued group health insurance through the City’s current provider available to retirees and eligible dependents provided certain service requirements and normal age retirement requirements have been met. This plan is a single employer plan that is not administered through a trust or equivalent arrangement and therefore there are no plan assets accumulated. This benefit has no cost to the City, other than the implicit cost of including retirees in the group calculation. All premiums are paid by the retiree. The City has chosen pay-as-you-go funding but is recording the liability in the government-wide financial statements. This plan does not issue stand- alone financial statements. As of October 1, 2023, the valuation date, there were 158 active employees and 41 inactive employees or beneficiaries currently receiving benefits. The OPEB liability of $1,301,096 was measured as of October 1, 2024, and was determined by the actuarial valuation. The covered-employee payroll was $9,299,836, and the ratio of net OPEB liability as a percentage of covered-employee payroll was 13.99%. 248 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 57 Summary of Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The OPEB Liability and Related Ratios Schedule, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Total OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Healthcare Cost Trend Rates Based on the Getzen Model, starting at 6.0%, gradually decreasing to an ultimate rate of 3.7% in 2042. Valuation Date October 1, 2023 Measurement Date October 1, 2024 Actuarial Cost Method Entry Age Normal Discount Rate 3.81% Inflation Rate 2.50% Salary Rate Increase 3.75%-7.00% Retiree’s Share of Benefit Related Costs 100% of blended health insurance premium rates except by law 0% for certain conditions for police officers’ death and disability benefits. 249 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 58 Below are the details regarding the total OPEB liability for the measurement period from October 1, 2024 to September 30, 2025: Total OPEB Liability Balance as of September 30, 2024 $ 1,137,369 Changes for the Year: Service Cost 50,744 Interest 53,517 Difference Between Expected and Actual Experience - Changes of Assumptions and Other Inputs* 124,735 Benefit Payments (65,269) Net Changes 163,727 Balances as of September 30, 2025 $ 1,301,096 * Changes in assumptions and other inputs reflect a change in the discount rate from 4.63% for the measurement period ended September 30, 2024, to 3.81% for the measurement period ended September 30, 2025. The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.81%) (3.81%) (4.81%) Total OPEB Liability $ 1,483,242 $ 1,301,096 $ 1,151,470 The following presents the total OPEB liability of the City using a healthcare cost trend rate of 6.0% to 3.7%, as well as what the City’s OPEB liability would be if it were calculated using healthcare trend rates that were 1 percentage point lower and 1 percentage point higher than the current healthcare cost trend rates: 1% Decrease Current Trend 1% Increase (5.0% to 2.7%) (6.0% to 3.7%) (7.0% to 4.7%) Total OPEB Liability $ 1,175,329 $ 1,301,096 $ 1,456,190 For the fiscal year ended September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference Between Expected and Actual Experience $ 195,194 $ (269,877) Changes of Assumption of Other Inputs 229,091 (178,646) Contributions Subsequent to the Measurement Date 70,694 - Total $ 494,979 $ (448,523) 250 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 59 The deferred outflows of resources related to OPEB, totaling $70,694, resulting from City contributions to the OPEB plan subsequent to the measurement date, will be recognized as a reduction of the OPEB liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending September 30, 2026 $ (58,601) 2027 (54,763) 2028 (21,691) 2029 63,273 2030 46,002 Thereafter 1,542 $ (24,238) Summary of Benefits OPEB - The City of Winter Springs provides optional postemployment healthcare, life and dental insurance coverage to eligible individuals. Eligible Individuals - Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans - Eligible individuals may choose healthcare coverage under the United Healthcare Medical Plans 5 or 6. Required Monthly Premium for Postemployment Healthcare Coverage - Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children, or family coverage. Note 12 - Deferred Compensation Plan All employees of the City may voluntarily elect to participate in one of two available deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Nationwide Retirement Solutions and ICMA Retirement Corporation. The plans permit participants to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Because the Plan assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City’s financial statements. Note 13 - Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; job-related illnesses or injuries to employees; and natural disasters. Risk of loss from above is transferred by the City to various commercial insurers through the purchase of insurance . There has been no significant reduction in insurance coverage from the previous year . There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. 251 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 60 Note 14 - Commitments and Contingencies Grants Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds . The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. Litigation The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. Commitments Under Construction Contracts At September 30, 2025, the City had entered into construction contracts in the amount of $11,532,490. Anticipated Cost of Wastewater Treatment System Replacement In the coming fiscal years, the wastewater treatment system requires replacement, which will be a large construction cost the City is responsible for funding. As of the date the financial statements were issued, the total anticipated cost of this project is $1 40 million for the replacement of both plants and will be funded using American Rescue Plan Act revenues and financing options available to the City in the coming fiscal years. Note 15 - Fund Balance Minimum Fund Balance Policy In accordance with Resolution 2002-36, the City designates an amount equal to 20% of the total operating expenses of the General Fund to be maintained as a required minimum unreserved fund balance. The purpose of the policy is to provide capacity to: (1) provide sufficient cash flow for daily financial needs, (2) secure and maintain investment grade (i.e., A or above) bond ratings, (3) offset significant economic downturns or revenue shortfalls, and (4) provide funds for unforeseen expenditures related to emergencies. By a supermajority vote of the City Commission, supplemental appropriation from unassigned General Fund balance may be authorized by the City Commission for a General Fund purpose, reducing the unassigned General Fund’s fund balance below the 20% minimum provided that the assigned General Fund’s fund balance is restored to the minimum in the following year’s budget. 252 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2025 61 At September 30, 2025, the City’s governmental fund balances were as follows: Note 16 - Leases The City, as lessor, leases its cell towers to various private companies. The lease terms range from 29 to 31 years, including the non-cancelable period of the lease and extensions the City is reasonably certain to exercise and vary with each contract. The agreements allow for a 5% annual increase to the lease payments on the anniversary of the agreement. During the fiscal year, the City recognized $130,780 in interest income related to these agreements. At September 30, 2025, the City recognized $4,358,459 in lease receivables for these agreements. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease terms. At September 30, 2025, the balance of deferred inflows of resources was $3,738,480. Note 17 - Subscription-Based Information Technology Arrangements (SBITAs) The City has arrangements for its evidence maintenance system, worn body cameras, and building permitting system. The agreement terms range from 3 to 6 years, including the non-cancelable period of the arrangement and extensions the City is reasonably certain to exercise and vary with each contract. During the fiscal year, the City recognized $18,422 in interest expenditures related to these agreements. At September 30, 2025, the City recognized total subscription assets of $630,675, net of accumulated depreciation. Additionally, the City has remaining principal payments of $515,396 between these arrangements. Annual debt service requirements to maturity for SBITAs are as follows: Year Ending Governmental Activities September 30, Principal Interest 2026 $ 131,203 $ 12,321 2027 135,194 8,330 2028 139,306 4,218 2029 54,025 1,782 2030 55,668 139 $ 515,396 $ 26,790 Surtax Solid Waste/Rescue Plan Governmental Governmental General Fund Fund Recycling Act Funds Funds Fund Balance Non-Spendable: Inventory/Prepaid 206,627$ -$ -$ -$ 1,500$ 208,127$ Advances 29,807 - - - - 29,807 Restricted for: Physical Environment - 12,304,820 - - 261,397 12,566,217 Transportation Improvements - - - - 5,240,101 5,240,101 Public Safety - - - - 733,939 733,939 Fire Impact Fees - - - - 3,089,649 3,089,649 Parks Improvements - - - - 832,635 832,635 Committed to: Solid Waste - - 577,787 - - 577,787 Arbor - - - - 1,607,557 1,607,557 Transportation Improvements - - - - 1,450,000 1,450,000 Assigned to: Storm Reserve - - 1,843,769 - - 1,843,769 Debt Service - - - - 1,348,007 1,348,007 Capital Projects - - - - 5,673,672 5,673,672 Physical Environment - - - 1,900,922 - 1,900,922 Subsequent Year's Budget 1,276,288 - - - - 1,276,288 Unassigned 8,983,299 - - - - 8,983,299 Total Fund Balance 10,496,021$ 12,304,820$ 2,421,556$ 1,900,922$ 20,238,457$ 47,361,776$ 253 REQUIRED SUPPLEMENTARY INFORMATION 254 2025 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost 50,744$ 42,004$ 66,408$ 64,604$ 61,772$ 60,410$ 62,209$ 105,694$ Interest 53,517 37,654 24,781 39,230 42,084 57,351 52,706 38,973 Differences Between Expected and Actual Experience - 280,062 - (577,243) - (249,780) - (9,706) Changes in Assumptions 124,735 (21,590) (312,323) 24,355 12,587 211,887 (72,616) 212,072 Benefit Payments (65,269) (28,769) (31,870) (39,255) (42,189) (43,183) (54,750) (55,000) Net Change in Total OPEB Liability 163,727 309,361 (253,004) (488,309) 74,254 36,685 (12,451) 292,033 Total OPEB Liability, Beginning of Year 1,137,369 828,008 1,081,012 1,569,321 1,495,067 1,458,382 1,470,833 1,178,800 Total OPEB Liability, End of Year 1,301,096$ 1,137,369$ 828,008$ 1,081,012$ 1,569,321$ 1,495,067$ 1,458,382$ 1,470,833$ Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Covered-Employee Payroll 9,299,836$ 8,961,647$ 7,599,208$ 7,373,675$ 6,979,027$ 6,870,391$ 7,190,589$ 7,049,660$ Net OPEB Liability as a Percentage of Covered-Employee Payroll 13.99%12.69%10.90%14.66%22.49%21.76%20.28%20.86% Notes to Schedule The plan is not administered through a trust or equivalent arrangement and therefore there are no plan assets accumulated. Ten years of data will be presented as available. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS PLAN RETIREE CONTINUATION INSURANCE PLAN YEAR ENDED SEPTEMBER 30, 2025 62 255 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Total Pension Liability Service Cost 442,554$ 447,227$ 405,604$ 370,884$ 390,407$ 401,950$ 472,736$ 502,667$ 697,459$ 808,281$ Interest 5,230,827 5,124,101 5,034,091 4,948,720 4,858,742 4,736,276 4,693,091 4,452,760 4,229,901 4,059,813 Differences Between Expected and Actual Experience 1,171,158 721,817 1,300,852 258,774 661,000 569,125 1,281,355 124,345 (592,087) 275,994 Changes of Assumptions - 2,668,890 2,978,730 - 691,291 479,182 - 2,531,601 526,115 - Benefit Payments, Including Refunds of Employee Contributions (5,323,844) (4,989,518) (4,760,493) (4,425,331) (4,119,650) (3,821,626) (3,276,412) (2,935,206) (2,679,408) (2,450,972) Net Change in Total Pension Liability 1,520,695 3,972,517 4,958,784 1,153,047 2,481,790 2,364,907 3,170,770 4,676,167 2,181,980 2,693,116 Total Pension Liability, Beginning 78,541,946 74,569,429 69,610,645 68,457,598 65,975,808 63,610,901 60,440,131 55,763,964 53,581,984 50,888,868 Total Pension Liability, Ending (a)80,062,641 78,541,946 74,569,429 69,610,645 68,457,598 65,975,808 63,610,901 60,440,131 55,763,964 53,581,984 Plan Fiduciary Net Position Contributions - Employer 1,607,042 1,994,135 2,492,912 2,734,292 3,052,914 3,213,927 2,924,706 2,635,968 2,605,753 2,586,936 Contributions - Employee 215,945 264,602 206,423 215,136 208,098 217,975 265,688 460,745 342,209 479,257 Net Investment Income 8,831,195 15,421,479 6,664,779 (9,095,110) 14,813,524 4,254,000 1,437,224 5,243,193 5,851,493 4,077,452 Benefit Payments, Including Refunds of Employee Contributions (5,323,844) (4,989,518) (4,760,493) (4,425,331) (4,119,650) (3,821,626) (3,276,412) (2,935,206) (2,679,408) (2,450,972) Administrative Expense (50,286) (67,092) (34,871) (71,691) (46,494) (32,984) (69,023) (64,770) (55,697) (28,208) Other - - (11,598) - - - - - - - Net Change in Plan Fiduciary Net Position 5,280,052 12,623,606 4,557,152 (10,642,704) 13,908,392 3,831,292 1,282,183 5,339,930 6,064,350 4,664,465 Plan Fiduciary Net Position, Beginning 78,991,435 66,367,829 61,810,677 72,453,381 58,544,989 54,713,697 53,431,514 48,091,584 42,027,234 37,362,769 Plan Fiduciary Net Position, Ending (b)84,271,487 78,991,435 66,367,829 61,810,677 72,453,381 58,544,989 54,713,697 53,431,514 48,091,584 42,027,234 Net Pension (Asset)/Liability, Ending (a)-(b)(4,208,846)$ (449,489)$ 8,201,600$ 7,799,968$ (3,995,783)$ 7,430,819$ 8,897,204$ 7,008,617$ 7,672,380$ 11,554,750$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 105.26%100.57%89.00%88.79%105.84%88.74%86.01%88.40%86.24%78.44% Covered Payroll*4,276,869$ 4,327,083$ 4,279,689$ 4,346,257$ 4,335,802$ 4,334,163$ 4,800,755$ 5,342,971$ 5,846,735$ 6,671,503$ Net Pension (Asset)/Liability as a Percentage of Covered Payroll -98.41%-10.39%191.64%179.46%-92.16%171.45%185.33%131.17%131.23%173.20% Valuation Date 10/1/2024 10/1/2023 10/1/2022 10/1/2021 10/1/2020 10/1/2019 10/1/2018 10/1/2017 10/1/2016 10/1/2015 Notes to Schedule Update procedures were used to roll forward the total pension liability to the measurement date. *Reported payroll on which contributions to the Plan are based on guidance provided under Governmental Accounting Standards Board Statement No. 82. YEAR ENDED SEPTEMBER 30, 2025 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS CITY OF WINTER SPRINGS, FLORIDA 63 256 Actuarially Contribution/Actual Fiscal Year Determined Actual Deficiency Covered Contribution as Ended September 30,Contribution Contribution (Excess)Payroll a % of Payroll 2016 2,067,445$ 2,586,936$ (519,491)$ 6,671,503$ 38.78% 2017 1,831,495 2,605,753 (774,258) 5,846,735 44.57% 2018 1,613,548 2,635,968 (1,022,420) 5,342,971 49.34% 2019 1,484,498 2,924,706 (1,440,208) 4,800,755 60.92% 2020 1,389,125 3,213,927 (1,824,802) 4,334,163 74.15% 2021 1,251,632 3,052,914 (1,801,282) 4,335,802 70.41% 2022 1,055,047 2,734,292 (1,679,245) 4,346,257 62.91% 2023 669,772 2,492,912 (1,823,140) 4,279,689 58.25% 2024 846,797 1,994,135 (1,147,338) 4,327,083 46.08% 2025 1,090,776 1,607,042 (516,266) 4,276,869 37.58% Notes to Schedule Update procedures were used to roll forward the total pension liability to the measurement date. Methods and Assumptions Used to Determine Contribution Rates Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar, Closed Remaining Amortization Period 25 Years Asset Valuation Method 5-Year Smoothed Market Inflation 2.75% Salary Increases 3.25%-7.00% Investment Rate of Return 6.75% Retirement Age Mortality YEAR ENDED SEPTEMBER 30, 2025 SCHEDULE OF CONTRIBUTIONS CITY OF WINTER SPRINGS, FLORIDA Actuarially determined contributions are calculated as of October 1,two years prior to the fiscal year-end in which contributions are reported. Experience-based table of rates that are specific to the type of eligibility condition. For healthy General Employee participants during employment,PUB-2010 Headcount Weighted General Below Median Employee Mortality Table,separate rates for males and females,set back 1 year for male,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy General Employee participants post employment,PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table,separate rates for males and females,set back 1 year for male,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. 64 257 Mortality (Concluded) Benefit Changes Assumption Changes (Concluded) 2023:Investment return,salary increase factors,retirement rates and withdrawal rates updated.2022:Investment return updated.2020:Investment return and mortality rates for disabled updated.2019:Investment return,mortality,rates and disability rates updated.2017:Investment return,salary increase,withdrawal,and retirement rates updated. 2016: Mortality rates updated. 2014: Disability rates updated. For healthy Firefighter,Police Officer,and Forensic Professional participants during employment,PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table,both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF CONTRIBUTIONS YEAR ENDED SEPTEMBER 30, 2025 For healthy Firefighter,Police Officer,and Forensic Professional participants post employment,PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table,both set forward 1 year,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled General Employee participants,PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table,separate rates for males and females,both set forward 3 years, without projected mortality improvements. For disabled Firefighter,Police Officer,and Forensic Professional participants,80%PUB- 2010 Headcount Weighted General Disabled Retiree Mortality Table /20%PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table,separate rates for males and females, without projected mortality improvements. 2011:Plan closed to future general employees;pensionable earnings to base pay, overtime -maximum 150 hours and accrued leave balance as of July 1,2011;vesting schedule updated;unreduced early retirement eligibility updated;final average pay updated to five-year average and future service benefit accrual rate reduced for general employees. 65 258 Annual Money-Weighted Rate of Fiscal Year Ended September 30,Return Net of Investment Expense 2016 10.75% 2017 10.75% 2018 13.90% 2019 10.89% 2020 2.69% 2021 26.30% 2022 -14.02% 2023 10.24% 2024 23.56% 2025 11.69% CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF INVESTMENT RETURNS YEAR ENDED SEPTEMBER 30, 2025 66 259 OTHER SUPPLEMENTARY INFORMATION 260 CITY OF WINTER SPRINGS, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Police Education Fund―This fund is used to account for the $2.00 additional assessment on each traffic citation that is restricted for criminal justice education and training in accordance with Chapter 938.15, Florida Statutes. Special Law Enforcement Trust Fund – Local―This fund was established to receive revenues from local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Transportation Improvement Fund―Revenues in this fund are derived from Local Option Gasoline Tax distribution. Proceeds are restricted for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. Transportation Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding road construction directly related to new growth. Police Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding capital investment needed to maintain the level of police service directly related to new growth. Fire Impact Fee Fund―This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future growth. Parks Impact Fee Fund―This fund is used to account for collected impact fees on new development, which are restricted for use in funding capital investment needed to develop and improve the parks directly related to new growth. Arbor Fund―This fund is used to account for arbor permit revenues committed to new plantings and maintenance of trees and shrubs within the City of Winter Springs, Florida (the City). TLBD Maintenance Fund―This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Lighting and Beautification District for Phases I and II of the project. Phase II was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance Fund―This fund is used to account for collected special assessments restricted for maintenance related to the Oak Forest subdivision wall. Special Law Enforcement Trust Fund – Federal―This fund was established to receive revenues from federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Such purposes may include drug/gang-related education, Shop with a Cop, movies, and other civic events. Tuscawilla Phase III―This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Phase III and repayment of advance from the General Fund. 261 CITY OF WINTER SPRINGS, FLORIDA NON-MAJOR GOVERNMENTAL FUNDS Debt Service Funds TLBD Debt Service Fund―This fund is used to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue, which was refinanced in October 2011 with a private placement note payable. 1999 Debt Service Fund―This fund is used to account for the accumulation of resources and payment of principal and interest for the 1999 bond issue and Improvement Refunding Note Series 2011, which partially refunded the 1999 bond issue. Capital Projects Funds 1999 Construction Capital Projects Fund―This fund was established for the acquisition and construction of City-owned Capital Improvements. Revolving Rehab Capital Projects Fund ―This fund was established to fund capital improvements and economic development within the City. Public Facilities Fund―This fund was established to account for construction of additional public facilities. Excellence in Customer Service Fund―This fund was established to account for the acquisition of software and equipment to improve the level of customer service performance. 262 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Assets Cash and Cash Equivalents 3,268$ 2,098$ 267,070$ 90,313$ Investments 60,390 38,771 4,935,921 1,669,138 Receivable, Net - - 627,439 - Special Assessments Receivable - - - - Prepaids - - 1,500 - Restricted Assets: Cash and Cash Equivalents - 2,091 - - Total Assets 63,658 42,960 5,831,930 1,759,451 Liabilities Accounts Payable - - 328,477 - Retainage Payable - - 72,281 - Advances from Other Funds - - - - Total Liabilities - - 400,758 - Deferred Inflows of Resources Unavailable Revenue - Grants - - 499,022 - Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - 499,022 - Fund Balances Nonspendable - - 1,500 - Restricted 63,658 42,960 3,480,650 1,759,451 Committed - - 1,450,000 - Assigned - - - - Total Fund Balances 63,658 42,960 4,932,150 1,759,451 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 63,658$ 42,960$ 5,831,930$ 1,759,451$ Special Revenue SEPTEMBER 30, 2025 NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA 67 263 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Assets Cash and Cash Equivalents 30,216$ 158,592$ 43,422$ 86,365$ Investments 558,450 2,931,057 802,513 1,596,172 Receivable, Net - - - - Special Assessments Receivable - - - - Prepaids - - - - Restricted Assets: Cash and Cash Equivalents - - - - Total Assets 588,666 3,089,649 845,935 1,682,537 Liabilities Accounts Payable - - 13,300 74,980 Retainage Payable - - - - Advances from Other Funds - - - - Total Liabilities - - 13,300 74,980 Deferred Inflows of Resources Unavailable Revenue - Grants - - - - Unavailable Revenue - Special Assessments - - - - Total Deferred Inflows of Resources - - - - Fund Balances Nonspendable - - - - Restricted 588,666 3,089,649 832,635 - Committed - - - 1,607,557 Assigned - - - - Total Fund Balances 588,666 3,089,649 832,635 1,607,557 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 588,666$ 3,089,649$ 845,935$ 1,682,537$ Special Revenue 68 264 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Assets Cash and Cash Equivalents 11,740$ 5,594$ 1,984$ 1,623$ 702,285$ Investments 216,985 103,392 36,671 29,995 12,979,455 Receivable, Net 10 - - - 627,449 Special Assessments Receivable - - - - - Prepaids - - - - 1,500 Restricted Assets: Cash and Cash Equivalents - - - - 2,091 Total Assets 228,735 108,986 38,655 31,618 14,312,780 Liabilities Accounts Payable 64,531 11,793 - 350 493,431 Retainage Payable - - - - 72,281 Advances from Other Funds - - - 29,807 29,807 Total Liabilities 64,531 11,793 - 30,157 595,519 Deferred Inflows of Resources Unavailable Revenue - Grants - - - - 499,022 Unavailable Revenue - Special Assessments - - - - - Total Deferred Inflows of Resources - - - - 499,022 Fund Balances Nonspendable - - - - 1,500 Restricted 164,204 97,193 38,655 - 10,157,721 Committed - - - - 3,057,557 Assigned - - - 1,461 1,461 Total Fund Balances 164,204 97,193 38,655 1,461 13,218,239 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 228,735$ 108,986$ 38,655$ 31,618$ 14,312,780$ COMBINING BALANCE SHEET CITY OF WINTER SPRINGS, FLORIDA Special Revenue SEPTEMBER 30, 2025 NON-MAJOR GOVERNMENTAL FUNDS (Continued) 69 265 Page 2 of 3 TLBD Debt 1999 Debt Total Service Service Debt Fund Fund Service Assets Cash and Cash Equivalents 1,821$ 67,420$ 69,241$ Investments 33,661 1,246,040 1,279,701 Receivable, Net 3 - 3 Special Assessments Receivable 552,570 - 552,570 Prepaids - - - Restricted Assets: Cash and Cash Equivalents - - - Total Assets 588,055 1,313,460 1,901,515 Liabilities Accounts Payable 938 - 938 Retainage Payable - - - Advances from Other Funds - - - Total Liabilities 938 - 938 Deferred Inflows of Resources Unavailable Revenue - Grants - - - Unavailable Revenue - Special Assessments 552,570 - 552,570 Total Deferred Inflows of Resources 552,570 - 552,570 Fund Balances Nonspendable - - - Restricted - - - Committed - - - Assigned 34,547 1,313,460 1,348,007 Total Fund Balances 34,547 1,313,460 1,348,007 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 588,055$ 1,313,460$ 1,901,515$ Debt Service 70 266 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Assets Cash and Cash Equivalents 11,359$ 47$ 200,532$ Investments 209,937 872 3,706,188 Receivable, Net - - - Special Assessments Receivable - - - Prepaids - - - Restricted Assets: Cash and Cash Equivalents - - - Total Assets 221,296 919 3,906,720 Liabilities Accounts Payable - - 12,455 Retainage Payable - - - Advances from Other Funds - - - Total Liabilities - - 12,455 Deferred Inflows of Resources Unavailable Revenue - Grants - - - Unavailable Revenue - Special Assessments - - - Total Deferred Inflows of Resources - - - Fund Balances Nonspendable - - - Restricted - - - Committed - - - Assigned 221,296 919 3,894,265 Total Fund Balances 221,296 919 3,894,265 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 221,296$ 919$ 3,906,720$ CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2025 Capital Projects (Concluded) 71 267 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Assets Cash and Cash Equivalents 81,713$ 293,651$ 1,065,177$ Investments 1,510,198 5,427,195 19,686,351 Receivable, Net - - 627,452 Special Assessments Receivable - - 552,570 Prepaids - - 1,500 Restricted Assets: Cash and Cash Equivalents - - 2,091 Total Assets 1,591,911 5,720,846 21,935,141 Liabilities Accounts Payable 36,180 48,635 543,004 Retainage Payable - - 72,281 Advances from Other Funds - - 29,807 Total Liabilities 36,180 48,635 645,092 Deferred Inflows of Resources Unavailable Revenue - Grants - - 499,022 Unavailable Revenue - Special Assessments - - 552,570 Total Deferred Inflows of Resources - - 1,051,592 Fund Balances Nonspendable - - 1,500 Restricted - - 10,157,721 Committed - - 3,057,557 Assigned 1,555,731 5,672,211 7,021,679 Total Fund Balances 1,555,731 5,672,211 20,238,457 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,591,911$ 5,720,846$ 21,935,141$ Capital Projects 72 268 Special Law Police Enforcement Transportation Transportation Education Trust Fund - Improvement Impact Fee Fund Local Fund Fund Revenues Permits and Fees -$ -$ -$ -$ Intergovernmental Revenues - - 1,610,133 - Fines and Forfeitures 32,825 8,108 - - Impact Fees/Assessments - - - - Investment Income/(Loss)1,971 1,708 242,500 77,172 Miscellaneous - - - - Total Revenues 34,796 9,816 1,852,633 77,172 Expenditures Current: General Government - - - - Public Safety 1,000 1,500 - - Physical Environment - - 511,880 99,583 Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - - Public Safety - - - - Physical Environment - - 2,938,424 - Culture and Recreation - - - - Total Expenditures 1,000 1,500 3,450,304 99,583 Excess (Deficiency) of Revenues Over (Under) Expenditures 33,796 8,316 (1,597,671) (22,411) Other Financing Sources (Uses) Transfers In - - - - Total Other Financing Sources (Uses)- - - - Net Changes in Fund Balances 33,796 8,316 (1,597,671) (22,411) Fund Balances, Beginning of Year 29,862 34,644 6,529,821 1,781,862 Fund Balances, End of Year 63,658$ 42,960$ 4,932,150$ 1,759,451$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2025 Special Revenue CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 73 269 Page 1 of 3 Police Fire Parks Impact Impact Impact Arbor Fee Fund Fee Fund Fee Fund Fund Revenues Permits and Fees -$ -$ -$ 1,355$ Intergovernmental Revenues - - - - Fines and Forfeitures - - - 329,100 Impact Fees/Assessments 3,025 1,950 18,315 - Investment Income/(Loss)23,506 126,619 36,309 73,796 Miscellaneous - - - - Total Revenues 26,531 128,569 54,624 404,251 Expenditures Current: General Government - - - - Public Safety - - - - Physical Environment - - - 444,973 Debt Service: Principal - - - - Interest and Fiscal Charges - - - - Capital Outlay: General Government - - - 175,770 Public Safety - - - - Physical Environment - - - - Culture and Recreation - - 102,710 - Total Expenditures - - 102,710 620,743 Excess (Deficiency) of Revenues Over (Under) Expenditures 26,531 128,569 (48,086) (216,492) Other Financing Sources (Uses) Transfers In - - - - Total Other Financing Sources (Uses)- - - - Net Changes in Fund Balances 26,531 128,569 (48,086) (216,492) Fund Balances, Beginning of Year 562,135 2,961,080 880,721 1,824,049 Fund Balances, End of Year 588,666$ 3,089,649$ 832,635$ 1,607,557$ Special Revenue 74 270 Special Law TLBD Oak Forest Enforcement Total Maintenance Maintenance Trust Fund -Tuscawilla Special Fund Fund Federal Phase III Revenue Revenues Permits and Fees -$ -$ -$ -$ 1,355$ Intergovernmental Revenues - - - - 1,610,133 Fines and Forfeitures - - 5,649 - 375,682 Impact Fees/Assessments 542,988 55,639 - 13,385 635,302 Investment Income/(Loss)16,833 5,370 3,010 795 609,589 Miscellaneous 48,427 - - 16,250 64,677 Total Revenues 608,248 61,009 8,659 30,430 3,296,738 Expenditures Current: General Government - - - 4,931 4,931 Public Safety - - 32,331 - 34,831 Physical Environment 530,595 66,884 - - 1,653,915 Debt Service: Principal - - - - - Interest and Fiscal Charges - - - 927 927 Capital Outlay: General Government 249,546 - - - 425,316 Public Safety - - 38,326 - 38,326 Physical Environment - - - - 2,938,424 Culture and Recreation - - - - 102,710 Total Expenditures 780,141 66,884 70,657 5,858 5,199,380 Excess (Deficiency) of Revenues Over (Under) Expenditures (171,893) (5,875) (61,998) 24,572 (1,902,642) Other Financing Sources (Uses) Transfers In - - - - - Total Other Financing Sources (Uses)- - - - - Net Changes in Fund Balances (171,893) (5,875) (61,998) 24,572 (1,902,642) Fund Balances, Beginning of Year 336,097 103,068 100,653 (23,111) 15,120,881 Fund Balances, End of Year 164,204$ 97,193$ 38,655$ 1,461$ 13,218,239$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2025 Special Revenue (Continued) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 75 271 Page 2 of 3 TLBD Debt 1999 Debt Total Service Service Debt Fund Fund Service Revenues Permits and Fees -$ -$ -$ Intergovernmental Revenues - - - Fines and Forfeitures - - - Impact Fees/Assessments 113,281 - 113,281 Investment Income/(Loss)23,495 37,441 60,936 Miscellaneous 3,460 - 3,460 Total Revenues 140,236 37,441 177,677 Expenditures Current: General Government - - - Public Safety - - - Physical Environment 4,250 - 4,250 Debt Service: Principal 113,321 312,413 425,734 Interest and Fiscal Charges 21,750 962,587 984,337 Capital Outlay: General Government - - - Public Safety - - - Physical Environment - - - Culture and Recreation - - - Total Expenditures 139,321 1,275,000 1,414,321 Excess (Deficiency) of Revenues Over (Under) Expenditures 915 (1,237,559) (1,236,644) Other Financing Sources (Uses) Transfers In - 1,215,000 1,215,000 Total Other Financing Sources (Uses)- 1,215,000 1,215,000 Net Changes in Fund Balances 915 (22,559) (21,644) Fund Balances, Beginning of Year 33,632 1,336,019 1,369,651 Fund Balances, End of Year 34,547$ 1,313,460$ 1,348,007$ Debt Service 76 272 1999 Revolving Public Construction Rehab Facilities Fund Fund Fund Revenues Permits and Fees -$ -$ -$ Intergovernmental Revenues - - - Fines and Forfeitures - - - Impact Fees/Assessments - - - Investment Income/(Loss)8,006 38 106,625 Miscellaneous - - - Total Revenues 8,006 38 106,625 Expenditures Current: General Government - - - Public Safety - - - Physical Environment - - 20,773 Debt Service: Principal - - - Interest and Fiscal Charges - - - Capital Outlay: General Government - - - Public Safety - - - Physical Environment - - 197,253 Culture and Recreation - - - Total Expenditures - - 218,026 Excess (Deficiency) of Revenues Over (Under) Expenditures 8,006 38 (111,401) Other Financing Sources (Uses) Transfers In - - 1,500,000 Total Other Financing Sources (Uses)- - 1,500,000 Net Changes in Fund Balances 8,006 38 1,388,599 Fund Balances, Beginning of Year 213,290 881 2,505,666 Fund Balances, End of Year 221,296$ 919$ 3,894,265$ FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2025 Capital Projects (Concluded) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 77 273 Page 3 of 3 Total Excellence in Total Non-Major Customer Capital Governmental Service Projects Funds Revenues Permits and Fees -$ -$ 1,355$ Intergovernmental Revenues - - 1,610,133 Fines and Forfeitures - - 375,682 Impact Fees/Assessments - - 748,583 Investment Income/(Loss)65,563 180,232 850,757 Miscellaneous - - 68,137 Total Revenues 65,563 180,232 3,654,647 Expenditures Current: General Government - - 4,931 Public Safety - - 34,831 Physical Environment - 20,773 1,678,938 Debt Service: Principal - - 425,734 Interest and Fiscal Charges - - 985,264 Capital Outlay: General Government 99,289 99,289 524,605 Public Safety - - 38,326 Physical Environment - 197,253 3,135,677 Culture and Recreation - - 102,710 Total Expenditures 99,289 317,315 6,931,016 Excess (Deficiency) of Revenues Over (Under) Expenditures (33,726) (137,083) (3,276,369) Other Financing Sources (Uses) Transfers In - 1,500,000 2,715,000 Total Other Financing Sources (Uses)- 1,500,000 2,715,000 Net Changes in Fund Balances (33,726) 1,362,917 (561,369) Fund Balances, Beginning of Year 1,589,457 4,309,294 20,799,826 Fund Balances, End of Year 1,555,731$ 5,672,211$ 20,238,457$ Capital Projects 78 274 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Fines and Forfeitures 5,100$ 30,074$ 32,825$ 2,751$ Investment Income/(Loss)160 160 1,971 1,811 Total Revenues 5,260 30,234 34,796 4,562 Expenditures Current: Public Safety 7,500 7,500 1,000 6,500 Total Expenditures 7,500 7,500 1,000 6,500 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,240) 22,734 33,796 11,062 Fund Balances, Beginning of Year 17,567 29,862 29,862 - Fund Balances, End of Year 15,327$ 52,596$ 63,658$ 11,062$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE EDUCATION FUND YEAR ENDED SEPTEMBER 30, 2025 79 275 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Fines and Forfeitures -$ 8,108$ 8,108$ -$ Investment Income/(Loss)370 370 1,708 1,338 Total Revenues 370 8,478 9,816 1,338 Expenditures Current: Public Safety 13,500 13,500 1,500 12,000 Total Expenditures 13,500 13,500 1,500 12,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (13,130) (5,022) 8,316 13,338 Fund Balances, Beginning of Year 26,157 34,644 34,644 - Fund Balances, End of Year 13,027$ 29,622$ 42,960$ 13,338$ (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts 80 276 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Intergovernmental Revenues 2,175,000$ 2,175,000$ 1,610,133$ (564,867)$ Investment Income/(Loss)46,000 46,000 242,500 196,500 Total Revenues 2,221,000 2,221,000 1,852,633 (368,367) Expenditures Current: Physical Environment 641,065 641,065 511,880 129,185 Capital Outlay: Physical Environment 4,595,000 4,595,000 2,938,424 1,656,576 Total Expenditures 5,236,065 5,236,065 3,450,304 1,785,761 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,015,065) (3,015,065) (1,597,671) 1,417,394 Fund Balances, Beginning of Year 4,800,076 6,529,821 6,529,821 - Fund Balances, End of Year 1,785,011$ 3,514,756$ 4,932,150$ 1,417,394$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPROVEMENT FUND YEAR ENDED SEPTEMBER 30, 2025 81 277 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)34,000$ 34,000$ 77,172$ 43,172$ Total Revenues 34,000 34,000 77,172 43,172 Expenditures Current: Physical Environment - - 99,583 (99,583) Capital Outlay: Physical Environment 379,000 379,000 - 379,000 Total Expenditures 379,000 379,000 99,583 279,417 Excess (Deficiency) of Revenues Over (Under) Expenditures (345,000) (345,000) (22,411) 322,589 Fund Balances, Beginning of Year 1,948,149 1,781,862 1,781,862 - Fund Balances, End of Year 1,603,149$ 1,436,862$ 1,759,451$ 322,589$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TRANSPORTATION IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts (Continued) 82 278 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ -$ 3,025$ 3,025$ Investment Income/(Loss)6,000 6,000 23,506 17,506 Total Revenues 6,000 6,000 26,531 20,531 Expenditures Capital Outlay: Public Safety 52,424 52,424 - 52,424 Total Expenditures 52,424 52,424 - 52,424 Excess (Deficiency) of Revenues Over (Under) Expenditures (46,424) (46,424) 26,531 72,955 Fund Balances, Beginning of Year 512,938 562,135 562,135 - Fund Balances, End of Year 466,514$ 515,711$ 588,666$ 72,955$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL POLICE IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2025 83 279 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ -$ 1,950$ 1,950$ Investment Income/(Loss)56,000 56,000 126,619 70,619 Total Revenues 56,000 56,000 128,569 72,569 Excess (Deficiency) of Revenues Over (Under) Expenditures 56,000 56,000 128,569 72,569 Fund Balances, Beginning of Year 2,857,670 2,961,080 2,961,080 - Fund Balances, End of Year 2,913,670$ 3,017,080$ 3,089,649$ 72,569$ (Continued) YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FIRE IMPACT FEE FUND 84 280 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ -$ 18,315$ 18,315$ Investment Income/(Loss)7,000 7,000 36,309 29,309 Total Revenues 7,000 7,000 54,624 47,624 Expenditures Capital Outlay: Culture and Recreation 695,000 695,000 102,710 592,290 Total Expenditures 695,000 695,000 102,710 592,290 Excess (Deficiency) of Revenues Over (Under) Expenditures (688,000) (688,000) (48,086) 639,914 Fund Balances, Beginning of Year 720,375 880,721 880,721 - Fund Balances, End of Year 32,375$ 192,721$ 832,635$ 639,914$ (Continued) PARKS IMPACT FEE FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 85 281 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Permits and Fees 1,000$ 1,000$ 1,355$ 355$ Fines and Forfeitures - - 329,100 329,100 Investment Income/(Loss)20,000 20,000 73,796 53,796 Total Revenues 21,000 21,000 404,251 383,251 Expenditures Current: Physical Environment 565,886 565,886 444,973 120,913 Capital Outlay: General Government 260,000 260,000 175,770 84,230 Total Expenditures 825,886 825,886 620,743 205,143 Excess (Deficiency) of Revenues Over (Under) Expenditures (804,886) (804,886) (216,492) 588,394 Fund Balances, Beginning of Year 1,369,814 1,824,049 1,824,049 - Fund Balances, End of Year 564,928$ 1,019,163$ 1,607,557$ 588,394$ IN FUND BALANCE - BUDGET AND ACTUAL ARBOR FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 86 282 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 538,565$ 538,565$ 542,988$ 4,423$ Investment Income/(Loss)800 800 16,833 16,033 Miscellaneous - 48,423 48,427 4 Total Revenues 539,365 587,788 608,248 20,460 Expenditures Current: Physical Environment 621,869 604,005 530,595 73,410 Capital Outlay: Physical Environment - 262,864 249,546 13,318 Total Expenditures 621,869 866,869 780,141 86,728 Excess (Deficiency) of Revenues Over (Under) Expenditures (82,504) (279,081) (171,893) 107,188 Fund Balances, Beginning of Year 83,343 336,097 336,097 - Fund Balances, End of Year 839$ 57,016$ 164,204$ 107,188$ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TLBD MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts (Continued) CITY OF WINTER SPRINGS, FLORIDA 87 283 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 55,445$ 55,445$ 55,639$ 194$ Investment Income/(Loss)1,000 1,000 5,370 4,370 Total Revenues 56,445 56,445 61,009 4,564 Expenditures Current: Physical Environment 80,448 96,448 66,884 29,564 Total Expenditures 80,448 96,448 66,884 29,564 Excess (Deficiency) of Revenues Over (Under) Expenditures (24,003) (40,003) (5,875) 34,128 Fund Balances, Beginning of Year 81,175 103,068 103,068 - Fund Balances, End of Year 57,172$ 63,065$ 97,193$ 34,128$ (Continued) Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL OAK FOREST MAINTENANCE FUND YEAR ENDED SEPTEMBER 30, 2025 88 284 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments -$ -$ 5,649$ 5,649$ Investment Income/(Loss)1,900 1,900 3,010 1,110 Total Revenues 1,900 1,900 8,659 6,759 Expenditures Current: Public Safety 41,610 41,610 32,331 9,279 Capital Outlay: Public Safety 38,849 38,849 38,326 523 Total Expenditures 80,459 80,459 70,657 9,802 Excess (Deficiency) of Revenues Over (Under) Expenditures (78,559) (78,559) (61,998) 16,561 Fund Balances, Beginning of Year 78,559 100,653 100,653 - Fund Balances, End of Year -$ 22,094$ 38,655$ 16,561$ (Continued) CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts 89 285 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 5,926$ 5,926$ 13,385$ 7,459$ Investment Income/(Loss)- - 795 795 Miscellaneous - - 16,250 16,250 Total Revenues 5,926 5,926 30,430 24,504 Expenditures Current: General Government 1,937 1,937 4,931 (2,994) Debt Service: Interest and Other Charges 4,212 4,212 927 3,285 Total Expenditures 6,149 6,149 5,858 291 Excess (Deficiency) of Revenues Over (Under) Expenditures (223) (223) 24,572 24,795 Fund Balances, Beginning of Year 1,107 1,069 (23,111) (24,180) Fund Balances, End of Year 884$ 846$ 1,461$ 615$ (Continued) TUSCAWILLA PHASE III YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 90 286 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Impact Fees/Assessments 137,955$ 137,955$ 113,281$ (24,674)$ Investment Income/(Loss)1,500 1,500 23,495 21,995 Miscellaneous - - 3,460 3,460 Total Revenues 139,455 139,455 140,236 781 Expenditures Current: Physical Environment 4,099 4,099 4,250 (151) Debt Service: Principal 113,321 113,321 113,321 - Interest and Other Charges 21,751 21,751 21,750 1 Total Expenditures 139,171 139,171 139,321 (150) Excess (Deficiency) of Revenues Over (Under) Expenditures 284 284 915 631 Fund Balances, Beginning of Year 31,512 33,632 33,632 - Fund Balances, End of Year 31,796$ 33,916$ 34,547$ 631$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TLBD DEBT SERVICE FUND YEAR ENDED SEPTEMBER 30, 2025 (Continued) Budgeted Amounts 91 287 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)20,000$ 20,000$ 37,441$ 17,441$ Total Revenues 20,000 20,000 37,441 17,441 Expenditures Current: General Government 2,500 3,500 - 3,500 Debt Service: Principal 312,415 312,415 312,413 2 Interest and Other Charges 962,590 962,590 962,587 3 Total Expenditures 1,277,505 1,278,505 1,275,000 3,505 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,257,505) (1,258,505) (1,237,559) 20,946 Other Financing Sources (Uses) Transfers In 1,215,000 1,215,000 1,215,000 - Total Other Financing Sources (Uses)1,215,000 1,215,000 1,215,000 - Net Change in Fund Balances (42,505) (43,505) (22,559) 20,946 Fund Balances, Beginning of Year 1,333,463 1,336,019 1,336,019 - Fund Balances, End of Year 1,290,958$ 1,292,514$ 1,313,460$ 20,946$ (Continued) YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 DEBT SERVICE FUND 92 288 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)2,000$ 2,000$ 8,006$ 6,006$ Total Revenues 2,000 2,000 8,006 6,006 Excess (Deficiency) of Revenues Over Expenditures 2,000 2,000 8,006 6,006 Fund Balances, Beginning of Year 196,464 213,290 213,290 - Fund Balances, End of Year 198,464$ 215,290$ 221,296$ 6,006$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1999 CONSTRUCTION CAPITAL PROJECTS FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts (Continued) 93 289 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)-$ -$ 38$ 38$ Total Revenues - - 38 38 Excess (Deficiency) of Revenues Over (Under) Expenditures - - 38 38 Fund Balances, Beginning of Year - 881 881 - Fund Balances, End of Year -$ 881$ 919$ 38$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVOLVING REHAB CAPITAL PROJECTS FUND YEAR ENDED SEPTEMBER 30, 2025 (Continued) 94 290 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)19,000$ 19,000$ 106,625$ 87,625$ Total Revenues 19,000 19,000 106,625 87,625 Expenditures Current: Physical Environment - 183,000 20,773 162,227 Capital Outlay: Physical Environment 1,445,000 1,262,000 197,253 1,064,747 Total Expenditures 1,445,000 1,445,000 218,026 1,226,974 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,426,000) (1,426,000) (111,401) 1,314,599 Other Financing Sources (Uses) Transfers In - - 1,500,000 1,500,000 Total Other Financing Sources (Uses)- - 1,500,000 1,500,000 Net Change in Fund Balances (1,426,000) (1,426,000) 1,388,599 2,814,599 Fund Balances, Beginning of Year 1,713,291 2,505,666 2,505,666 - Fund Balances, End of Year 287,291$ 1,079,666$ 3,894,265$ 2,814,599$ CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PUBLIC FACILITIES FUND YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts (Continued) 95 291 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Income/(Loss)17,000$ 17,000$ 65,563$ 48,563$ Total Revenues 17,000 17,000 65,563 48,563 Expenditures Capital Outlay: General Government 240,000 240,000 99,289 140,711 Total Expenditures 240,000 240,000 99,289 140,711 Excess (Deficiency) of Revenues Over (Under) Expenditures (223,000) (223,000) (33,726) 189,274 Fund Balances, Beginning of Year 1,050,416 1,589,457 1,589,457 - Fund Balances, End of Year 827,416$ 1,366,457$ 1,555,731$ 189,274$ Budgeted Amounts CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EXCELLENCE IN CUSTOMER SERVICE FUND YEAR ENDED SEPTEMBER 30, 2025 (Concluded) 96 292 STATISTICAL SECTION 293 Statistical Section (Unaudited) Pages Financial Trends Information 97 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Information 104 These schedules contain information to help the reader assess the City's local revenue source. Debt Capacity Information 109 These schedules present information to help the reader assess the City's debt burden and its ability to issue additional debt in the future. Demographic and Economic Information 115 These schedules offer demographic and economic indicators to help the reader understand the environment in which the City's financial activities take place. Operating Information 117 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules was obtained from the Annual Comprehensive Financial Reports for the relevant year. Contents This part of the City of Winter Springs,Florida's (the City)Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the City's overall financial health. 294 FINANCIAL TRENDS INFORMATION 295 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Governmental Activities: Net Investment in Capital Assets 48,555$ 52,573$ 52,292$ 53,683$ 54,922$ 53,758$ 51,213$ 53,773$ 57,733$ 67,984$ Restricted 12,027 12,755 14,736 17,089 18,011 19,630 17,970 20,560 22,069 25,849 Unrestricted 1,746 1,594 3,052 5,634 7,748 9,160 16,277 13,403 12,982 13,270 Total Governmental Activities Net Position 62,328$ 66,922$ 70,080$ 76,406$ 80,681$ 82,548$ 85,460$ 87,736$ 92,784$ 107,103$ Business-Type Activities: Net Investment in Capital Assets 21,802$ 23,922$ 23,079$ 22,713$ 27,385$ 28,905$ 29,385$ 33,001$ 32,850$ 34,475$ Restricted 561 560 515 613 647 1,332 6,127 5,729 5,473 5,625 Unrestricted 11,427 13,003 15,945 21,197 24,690 26,628 21,419 17,809 30,218 35,068 Total Business-Type Activities 33,790$ 37,485$ 39,539$ 44,523$ 52,722$ 56,865$ 56,931$ 56,539$ 68,541$ 75,168$ Primary Government: Net Investment in Capital Assets 70,357$ 76,495$ 75,371$ 76,396$ 82,307$ 82,663$ 80,598$ 86,774$ 90,583$ 102,459$ Restricted 12,588 13,315 15,251 17,702 18,658 20,962 24,097 26,289 27,542 31,474 Unrestricted 13,173 14,957 18,997 26,831 32,438 35,788 37,696 31,212 43,200 48,338 Total Primary Government 96,118$ 104,767$ 109,619$ 120,929$ 133,403$ 139,413$ 142,391$ 144,275$ 161,325$ 182,271$ FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA (AMOUNTS EXPRESSED IN THOUSANDS) (ACCRUAL BASIS OF ACCOUNTING) LAST TEN FISCAL YEARS NET POSITION BY COMPONENT 97 296 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Expenses Governmental Activities: General Government 6,131$ 6,298$ 6,233$ 7,052$ 6,961$ 5,720$ 5,487$ 8,304$ 8,403$ 7,915$ Public Safety 6,764 6,228 5,791 6,892 5,278 5,746 7,468 8,775 9,681 8,588 Physical Environment 5,798 6,625 6,933 6,563 7,381 7,899 8,601 9,384 8,644 9,463 Culture and Recreation 2,163 2,045 2,301 2,282 2,827 2,625 3,026 3,272 3,630 3,659 Interest and Other Fiscal Charges on Long-Term Debt 668 635 589 673 603 560 514 468 427 376 Total Governmental Activities Expenses 21,524$ 21,831$ 21,847$ 23,462$ 23,050$ 22,550$ 25,096$ 30,203$ 30,785$ 30,001$ Business-Type Activities: Water and Sewer 7,295$ 7,881$ 7,985$ 8,569$ 10,051$ 9,738$ 11,018$ 13,249$ 14,130$ 13,503$ Development Services 510 665 574 647 1,130 1,331 1,315 1,534 1,869 1,936 Stormwater 1,223 941 1,043 2,321 1,759 1,300 1,402 1,728 1,726 1,994 Total Business-Type Activities Expenses 9,028$ 9,487$ 9,602$ 11,537$ 12,940$ 12,369$ 13,735$ 16,511$ 17,725$ 17,433$ Program Revenues Governmental Activities: Charges for Services: General Government 2,150$ 2,061$ 2,206$ 2,404$ 2,518$ 2,515$ 2,767$ 3,005$ 2,976$ 3,115$ Public Safety 418 1,075 232 180 100 243 130 225 181 118 Physical Environment 3,605 4,315 3,181 3,583 3,500 3,689 3,804 3,529 4,225 5,269 Culture and Recreation 418 1,079 378 321 179 209 308 296 306 376 Operating Grants and Contributions 2 87 74 1,284 31 553 9 - 10,252 7,528 Capital Grants and Contributions 3,583 2,781 2,897 5,122 5,692 3,470 4,060 3,902 4,084 4,807 Total Governmental Activities Program Revenues 10,176 11,398 8,968 12,894 12,020 10,679 11,078 10,957 22,024 21,213 Business-Type Activities: Water and Sewer 9,877 10,267 9,893 10,802 11,575 11,419 12,125 12,616 14,502 17,238 Development Services 1,315 1,968 1,055 3,031 2,148 1,297 986 997 1,115 1,057 Stormwater 1,117 1,167 1,120 1,150 1,135 1,137 1,134 1,137 1,140 1,389 Operating Grants and Contributions - - 8 926 590 - - - - 1,840 Capital Grants and Contributions 1,311 1,617 1,248 1,484 4,908 274 686 751 276 458 Total Business-Type Activities Program Revenues 13,620 15,019 13,324 17,393 20,356 14,127 14,931 15,501 17,033 21,982 Total Governmental Program Revenues 23,796$ 26,417$ 22,292$ 30,287$ 32,376$ 24,806$ 26,009$ 26,458$ 39,057$ 43,195$ CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) FISCAL YEAR 98 297 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net (Expense)/Revenue: Governmental Activities (11,348)$ (10,433)$ (12,879)$ (10,568)$ (11,030)$ (11,871)$ (14,018)$ (19,246)$ (8,761)$ (8,788)$ Business-Type Activities 4,592 5,532 3,722 5,856 7,416 1,758 1,196 (1,010) (692) 4,549 Total Governmental Net Expense (6,756)$ (4,901)$ (9,157)$ (4,712)$ (3,614)$ (10,113)$ (12,822)$ (20,256)$ (9,453)$ (4,239)$ Governmental Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 4,516$ 4,727$ 5,150$ 5,487$ 5,870$ 6,291$ 6,629$ 7,391$ 8,032$ 9,436$ Utility Taxes 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 5,417 5,974 Business Tax Receipts 122 123 126 122 112 126 89 165 144 117 Intergovernmental Revenues - Unrestricted 3,557 3,706 3,967 4,036 3,858 4,360 5,044 5,148 4,911 4,809 Investment Income and Miscellaneous 711 616 1,246 1,338 1,047 584 (240) 2,816 4,555 2,786 Gain (Loss) on Disposal of Capital Assets - - - - - - - - - - Transfers 2,041 1,975 1,873 1,697 (93) (2,316) 547 704 (9,249) (15) Total Governmental Activities 14,923 15,026 16,365 16,893 15,305 13,738 16,931 21,521 13,810 23,107 Business-Type Activities: Investment Income and Miscellaneous 135 138 323 825 691 69 (585) 1,324 3,445 2,063 Loss on Disposal of Capital Assets - - - - - - - - - - Transfers (2,041) (1,975) (1,873) (1,697) 93 2,316 (547) (704) 9,249 15 Total Business-Type Activities (1,906) (1,837) (1,550) (872) 784 2,385 (1,132) 620 12,694 2,078 Total Government 13,017$ 13,189$ 14,815$ 16,021$ 16,089$ 16,123$ 15,799$ 22,141$ 26,504$ 25,185$ Change in Net Position Governmental Activities 3,575$ 4,593$ 3,486$ 6,325$ 4,275$ 1,867$ 2,913$ 2,275$ 5,049$ 14,319$ Business-Type Activities 2,686 3,695 2,172 4,984 8,200 4,143 64 (390) 12,002 6,627 Total Government 6,261$ 8,288$ 5,658$ 11,309$ 12,475$ 6,010$ 2,977$ 1,885$ 17,051$ 20,946$ FISCAL YEAR (Concluded) CITY OF WINTER SPRINGS, FLORIDA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 99 298 Fiscal Year Property Tax Franchise Tax Utility Tax Business Tax Receipts Total 2016 4,516$ -$ 3,976$ 122$ 8,614$ 2017 4,727 - 3,879 123 8,729 2018 5,150 - 4,003 126 9,279 2019 5,487 - 4,213 122 9,822 2020 5,870 - 4,511 112 10,493 2021 6,291 - 4,693 126 11,110 2022 6,629 - 4,862 89 11,580 2023 7,391 - 5,297 165 12,853 2024 8,032 - 5,417 144 13,593 2025 9,436 - 5,974 117 15,527 Fiscal Year Sales Tax State Revenue Sharing Other Total 2016 2,305$ 1,168$ 84$ 3,557$ 2017 2,366 1,245 95 3,706 2018 2,552 1,313 102 3,967 2019 2,559 1,376 101 4,036 2020 2,475 1,279 104 3,858 2021 2,748 1,510 102 4,360 2022 3,073 1,874 97 5,044 2023 3,109 1,938 101 5,148 2024 2,943 1,853 115 4,911 2025 2,840 1,852 117 4,809 CITY OF WINTER SPRINGS, FLORIDA TAXES INCLUDED IN UNRESTRICTED INTERGOVERNMENTAL REVENUES (AMOUNTS EXPRESSED IN THOUSANDS) (ACCRUAL BASIS OF ACCOUNTING) LAST TEN FISCAL YEARS GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE 100 299 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Fund: Non-Spendable 275$ 256$ 226$ 287$ 338$ 231$ 248$ 585$ 144$ 237$ Assigned - - - - - - - 945 2,034 1,276 Unassigned 8,226 8,250 8,289 8,411 8,597 8,812 9,074 8,575 9,739 8,983 Total General Fund 8,501$ 8,506$ 8,515$ 8,698$ 8,935$ 9,043$ 9,322$ 10,105$ 11,917$ 10,496$ All Other Governmental Funds: Non-Spendable 1$ 3$ 1$ 1$ 1$ -$ -$ 2$ 2$ 2$ Restricted 12,025 12,751 14,736 17,088 18,010 16,356 17,970 20,560 21,708 22,463 Committed 799 1,292 972 1,830 1,901 2,616 4,464 4,073 3,274 3,635 Assigned 6,240 5,938 7,578 9,859 9,597 10,496 11,026 9,378 9,263 10,766 Unassigned (81) (1,120) (990) (873) (36) (35) (232) (31) (23) - Total All Other Governmental Funds 18,984$ 18,864$ 22,297$ 27,905$ 29,473$ 29,433$ 33,228$ 33,982$ 34,224$ 36,866$ FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 101 300 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Revenues Taxes: Property 4,320$ 4,595$ 5,026$ 5,377$ 5,870$ 6,291$ 6,629$ 7,391$ 8,032$ 9,436$ Utility 3,976 3,879 4,003 4,213 4,511 4,693 4,862 5,297 5,417 5,974 General Obligation 196 132 124 111 - - - - - - Business Tax 122 123 126 122 112 126 89 165 144 117 Licenses and Permits: Franchise Fees 2,042 1,986 2,166 2,331 2,363 2,397 2,545 2,787 2,695 2,797 Other 62 91 44 39 34 22 17 36 16 77 Intergovernmental 8,144 6,575 6,972 8,660 6,748 7,995 8,745 8,820 18,891 16,623 Charges for Services 3,302 3,341 3,342 3,351 3,212 3,237 3,376 3,426 4,217 4,944 Fines and Forfeitures 178 175 256 283 109 421 492 229 184 447 Impact Fees/Assessments 1,232 3,162 819 1,764 1,348 1,021 1,045 874 1,073 749 Investment Income 275 247 428 1,067 913 118 (625) 2,540 4,180 2,558 Miscellaneous 364 281 690 177 134 466 386 276 375 228 Total Revenues 24,213 24,587 23,996 27,495 25,354 26,787 27,561 31,841 45,224 43,950 Expenditures General Government 5,187$ 5,161$ 5,057$ 5,407$ 4,711$ 5,307$ 5,146$ 6,313$ 7,481$ 7,383$ Public Safety 6,916 6,739 6,574 6,503 6,523 7,033 7,576 7,680 8,341 8,779 Physical Environment 4,303 5,057 5,296 4,907 5,252 4,865 5,258 6,656 6,381 7,428 Culture and Recreation 1,785 1,865 1,891 1,866 1,965 1,854 2,167 2,254 2,574 3,098 Capital Outlay 5,370 4,251 2,410 3,509 3,593 3,937 2,363 7,322 7,577 14,745 Debt Service: Principal 1,232 3,453 1,138 1,158 515 489 573 501 585 641 Interest 188 149 65 49 897 918 952 949 983 1,001 Total Expenditures 24,981 26,675 22,431 23,399 23,456 24,403 24,035 31,675 33,922 43,075 Excess Revenues Over (Under) Expenditures (768) (2,088) 1,565 4,096 1,898 2,384 3,526 166 11,302 875 FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) 102 301 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Other Financing Sources (Uses) Transfers In 4,659$ 4,494$ 5,763$ 5,744$ 4,062$ 3,964$ 4,835$ 4,904$ 13,011$ 4,700$ Transfers Out (2,617) (2,520) (3,889) (4,047) (4,155) (6,280) (4,288) (4,200) (22,260) (4,715) Proceeds from Financing - - - - - - - 667 - 361 Total Governmental Activities 2,042 1,974 1,874 1,697 (93) (2,316) 547 1,371 (9,249) 346 Change in Fund Balances 1,274$ (114)$ 3,439$ 5,793$ 1,805$ 68$ 4,073$ 1,537$ 2,053$ 1,221$ Debt Services as a Percentage of Non-Capital Expenditures 7.24%16.06%6.01%6.07%7.11%6.87%7.04%5.95%5.95%5.80% FISCAL YEAR CITY OF WINTER SPRINGS, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (AMOUNTS EXPRESSED IN THOUSANDS) (Concluded) 103 302 REVENUE CAPACITY INFORMATION 303 Fiscal Year Total Residential Ended and Commercial Residential Commercial Personal Centrally Tax Exempt Real Total Taxable Total Direct Tax Estimated Actual September 30,Real Property 1 Property 1 Residential %Property 1 Property 1 Assessed 1 Property 1 Assessed Value 1 Rate 2 Taxable Value 1 2016 2,670,315$ 2,322,345$ 86.97%347,970$ 71,576$ 53 898,230$ 1,843,714$ 2.5400 2,865,145$ 2017 2,847,989 2,488,346 87.37%359,643 73,137 56 959,840 1,961,342 2.5000 3,091,198 2018 3,128,578 2,716,013 86.81%412,565 78,213 56 1,059,572 2,147,275 2.4900 3,389,902 2019 3,370,872 2,923,507 86.73%447,365 82,498 58 1 1,159,460 2,293,968 2.4800 3,650,558 2020 3,647,697 3,118,225 85.48%529,472 89,028 56 1,145,903 2,590,878 2.4300 4,151,979 2021 3,893,861 3,309,150 84.98%584,711 93,231 62 1,278,919 2,708,235 2.4100 4,430,171 2022 4,162,723 3,558,774 85.49%603,949 89,283 62 1,394,301 2,857,767 2.4100 4,724,520 2023 5,051,263 4,311,311 85.35%739,952 90,758 67 1,970,822 3,171,266 2.4100 5,713,431 2024 5,751,633 4,958,393 86.21%793,240 99,073 67 2,389,492 3,461,281 2.4100 6,500,859 2025 6,135,480 5,262,507 85.77%872,973 103,802 68 2,501,628 3,737,722 2.6200 6,932,611 Note: 1 Source: Seminole County Property Appraiser (www.scpafl.org). 2 Source: Seminole County Tax Collector (www.seminoletax.org). Real Property CITY OF WINTER SPRINGS, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (AMOUNTS EXPRESSED IN THOUSANDS) 104 304 St. John's Water Debt Debt Total Debt Total Manage-County Fire Total Direct Fiscal Operating Service Total City Operating Service County Operating Service School ment Protections & Overlap- Year Millage Millage Millage Millage Millage Millage Millage Millage Millage District (MSTU)ping Rates 2016 2.4300 0.1100 2.5400 4.8751 0.0000 4.8751 7.1490 0.7000 7.8490 0.3023 2.3299 17.8963 2017 2.4300 0.0700 2.5000 4.8751 0.0000 4.8751 6.8570 0.7000 7.5570 0.2885 2.3299 17.5505 2018 2.4300 0.0600 2.4900 4.8751 0.0000 4.8751 6.5690 0.0000 6.5690 0.2724 2.7649 16.9714 2019 2.4300 0.0500 2.4800 4.8751 0.0000 4.8751 6.3130 0.0000 6.3130 0.2562 2.7649 16.6892 2020 2.4300 0.0000 2.4300 4.8751 0.0000 4.8751 6.1330 0.0000 6.1330 0.2414 2.7649 16.4444 2021 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.9340 0.0000 5.9340 0.2287 2.7649 16.2127 2022 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.8250 0.0000 5.8250 0.2189 2.7649 16.0939 2023 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.4600 0.0000 5.4600 0.1974 2.7649 15.7074 2024 2.4100 0.0000 2.4100 4.8751 0.0000 4.8751 5.3780 0.0000 5.3780 0.1974 2.7649 15.6254 2025 2.6200 0.0000 2.6200 4.8751 0.0000 4.8751 5.2790 0.0000 5.2790 0.1793 2.7649 15.7183 Note: Source: Seminole County Tax Collector (www.seminoletax.org). 1 Overlapping rates are those of local and county governments that apply to property owners within the City of Winter Springs. 2 Taxes levied for the fiscal year are based on the prior calendar year taxable value. LAST TEN FISCAL YEARS2 PROPERTY TAX RATES - DIRECT AND OVERLAPPING1 GOVERNMENTS CITY OF WINTER SPRINGS, FLORIDA Winter Springs Seminole County School District Overlapping Rates1 105 305 Tax Fiscal Year Year Billed Collected1 Difference Billed2 Collected1 Difference Billed Collected1 Difference Billed Collected1 Difference 2015 2016 112,351$ 108,286$ 4,065$ 673,164$ 648,823$ 24,341$ 27,346$ 26,369$ 977$ 12,668$ 12,204$ 464$ 2016 2017 112,351 108,213 4,138 673,128 648,645 24,483 27,335 23,363 3,972 12,668 12,193 475 2017 2018 58,047 55,872 2,175 673,128 648,946 24,182 - 8 (8) 12,668 12,217 451 2018 2019 58,047 55,916 2,131 673,128 648,654 24,474 - - - 12,668 12,212 456 2019 2020 58,047 55,914 2,133 673,128 648,400 24,728 - - - 13,746 13,230 516 2020 2021 58,047 54,766 3,281 673,128 638,891 34,237 - - - 13,746 13,237 509 2021 2022 58,047 55,610 2,437 673,128 647,095 26,033 - - - 13,746 13,175 571 2022 2023 58,047 55,658 2,389 708,374 647,183 61,191 - - - 13,955 13,161 794 2023 2024 58,047 55,644 2,403 708,374 681,743 26,631 - - - 13,955 13,374 581 2024 2025 58,047 55,638 2,409 708,374 681,478 26,896 - - - 13,955 13,385 570 Note:Special Assessment Debt Issued: 1 Includes prepayments.Oak Forest June 2020 (refinanced internally June of 2010) 2 TLBD Maintenance and Phase I Capital are shown in the TLBD Phase I program amounts.TLBD Phase I May 2001 (Refinanced October of 2011) TLBD Phase II February 2006; No assessment levied until Fiscal Year 2007. Tuscawilla III Financed Internally CITY OF WINTER SPRINGS, FLORIDA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS Tuscawilla III Assessments Cap/Maint Cap/Maint Capital Only Cap/Maint Oak Forest Assessments Tuscawilla Lighting and Beautification (TLBD) - Phase I Assessments Tuscawilla Lighting and Beautification (TLBD) - Phase II Assessments 106 306 Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value CIP 2014/Winter Springs 360 76,136$ 1 2.20% WE Park at Laurel Oaks LLC 63,361 2 1.83%29,117$ 1 1.58% PAC Blake LLC 61,983 3 1.79% KMF XI Winter Springs LLC 48,125 4 1.39% Courtney Springs LLC 47,495 5 1.37%23,117 3 1.25% Duke Energy (Formerly Progress Energy)41,548 6 1.20%25,280 2 1.37% United Dominion Realty Trust Inc.22,014 7 0.64%9,522 4 0.52% Winter Springs Retirement Residence LLC 21,796 8 0.63% Winter Springs Station LLC 19,400 9 0.56% CSLC Hacienda Village MHC LLC 18,678 10 0.54% Laurel Oaks LLC Summer Falls LLC 8,421 5 0.46% Bright House Networks LLC 6,349 6 0.34% Moss Park 6,074 7 0.33% Winter Springs Holdings, Inc.4,867 8 0.26% Pathfinder Landology Isis 4,397 10 0.24% Seminole Pines Assoc LTD 4,570 9 0.25% Totals 420,536$ 12.15%121,714$ 6.60% CITY OF WINTER SPRINGS, FLORIDA 2025 2016 (AMOUNTS EXPRESSED IN THOUSANDS) SEPTEMBER 30, 2025 PRINCIPAL PROPERTY TAXPAYERS 107 307 Fiscal Year Total Tax Collections in Ended Levy for Percentage of Subsequent Percentage of September 30,Fiscal Year1 Amount2 Levy Years Amount Levy 2016 4,683,015$ 4,515,547$ 96.42%485$ 4,516,032$ 96.43% 2017 4,903,354 4,730,295 96.47%984 4,731,279 96.49% 2018 5,346,715 5,145,529 96.24%4,436 5,149,965 96.32% 2019 5,574,343 5,481,310 98.33%4,763 5,486,073 98.42% 2020 6,099,004 5,869,644 96.24%260 5,869,904 96.24% 2021 6,526,846 6,172,023 94.56%53,049 6,225,072 95.38% 2022 6,911,491 6,625,956 95.87%2,878 6,628,834 95.91% 2023 7,660,754 7,362,718 96.11%574 7,363,292 96.12% 2024 8,371,467 8,033,626 95.96%(667) 8,032,959 95.96% 2025 9,813,466 9,432,891 96.12%2,750 9,435,641 96.15% Note: 1 Gross taxes before discount of 1% - 4%, depending on month paid; Source: Seminole County Property Appraiser (www.scpafl.org). 2 Source: Seminole County Tax Collector (www.seminoletax.org). 3 Includes voted debt service not to exceed 0.2500 mills for Central Winds General Obligation Debt (voted debt eliminated in fiscal year 2020). Fiscal Year of the Levy Collected within the Total Collections To-Date CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS 3 LAST TEN FISCAL YEARS 108 308 DEBT CAPACITY INFORMATION 309 CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN SEPTEMBER 30, 2025 Neither the City of Winter Springs Charter or Code,nor the Florida State Statutes limits the amount of debt the City of Winter Springs can issue. 109 310 Ratio of Net Gen Obligation Net Debt to Gen Obligation Fiscal Assessed Gross Less Debt Gen Obligation Assessed Debt Per Year Population1 Value2 Debt3 Service Fund4 Debt Value Capita 2016 35,266 1,843,713,578$ 2,312,629$ 1,176,903$ 1,135,726$ 0.062%32$ 2017 35,599 1,961,341,503 - - 1,074,143 0.055%30 2018 36,635 2,147,274,968 - - 949,131 0.044%26 2019 37,321 2,293,968,241 - - 835,458 0.036%22 2020 38,764 2,509,878,198 - - - 0.000%- 2021 38,975 2,708,235,730 - - - 0.000%- 2022 39,038 2,854,767,219 - - - 0.000%- 2023 39,097 3,171,266,844 - - - 0.000%- 2024 39,137 3,461,281,542 - - - 0.000%- 2025 39,822 3,737,722,164 - - - 0.000%- Note: 1 Source: American Fact Finder; previous statistics from multiple sources. 2 Source: Seminole County Property Appraiser (www.scpafl.org) 3 Amount does not include special assessment bonds and revenue bonds. 4 Amount available for repayment of limited general obligation note. During fiscal year 2017, the external loan was retired and replaced with an interest-free loan from the City's General Fund, which was forgiven at the beginning of the fiscal year 2020. CITY OF WINTER SPRINGS, FLORIDA LAST TEN FISCAL YEARS AND NET GENERAL OBLIGATION PER CAPITA RATIO OF NET GENERAL OBLIGATION - DEBT TO ASSESSED VALUE 110 311 Fiscal Year Water and Water and Percentage of Ended Refunding Refunding Limited General Sewer Revenue Sewer Refunding State Revolving Total Primary Personal September 30,Revenue Bonds Notes Obligation Notes SBITAs Notes Revenue Bonds Loan SBITAs Government Income Per Capita 2016 8,866$ 4,661$ 2,313$ -$ 6,497$ 11,264$ 1,498$ -$ 35,099$ 3.07%995$ 2017 9,374 3,521 - - 5,747 11,830 4,307 - 34,779 2.97%977 2018 9,850 2,383 - - 6,165 10,555 6,272 - 35,225 2.92%962 2019 10,478 1,225 - - 4,639 11,192 6,669 - 34,203 2.49%916 2020 9,767 1,128 - - 3,061 11,867 6,308 - 32,131 2.14%829 2021 9,016 1,033 - - 3,216 12,584 4,830 - 30,679 1.86%787 2022 8,223 831 - - 2,795 11,964 4,544 - 28,357 1.81%726 2023 7,384 831 - 517 2,749 10,756 4,256 - 26,493 1.57%678 2024 6,498 726 - 369 2,610 9,476 3,966 103 23,748 1.10%607 2025 5,560 613 - 515 2,469 8,119 3,674 - 20,950 1.12%526 Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements: Note 7 - Long-Term Debt. CITY OF WINTER SPRINGS, FLORIDA Governmental Activities Business-Type Activities (DOLLARS IN THOUSANDS, EXCEPT PER CAPITA) LAST TEN FISCAL YEARS RATIO OF OUTSTANDING DEBT BY TYPE 111 312 Estimated Estimated Debt Percentage Share of Governmental Unit Outstanding Applicable1 Debt Overlapping Debt: Seminole County General Obligation Debt -$ 0%-$ Subtotal, Overlapping Debt - - Direct Debt: Series 1999 Improvement Revenue Bonds 1,321 100%1,321 Accreted Interest 4,239 100%4,239 City of Winter Springs General Obligation Debt2 - 0%- City of Winter Springs Capital Improvement Notes 613 100%613 SBITAs 515 100%515 Total Direct and Overlapping Debt 6,688$ 6,688$ Note: Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board 1 Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Winter Springs. 2 Through fiscal year 2019, the City of Winter Springs had a "limited" general obligation note being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. Fiscal Year 2019 was the last year of the levy as the internal loan was forgiven effective October 1, 2019. (AMOUNTS EXPRESSED IN THOUSANDS) AS OF SEPTEMBER 30, 2025 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CITY OF WINTER SPRINGS, FLORIDA 112 313 Federal Emergency Impact Fees Management (Fire, Police Agency Public Recreation,Non-Ad Valorem Total Revenue Maximum Fiscal Year Public Service Electric Half-Cent Sales General Assistance and Public Special Available for Annual Debt Ended Sept 30,Taxes Franchise Fees Tax Obligation Grants Facilities)Assessments Debt Service Service Coverage 2016 3,975,578$ 1,874,893$ -$ 195,560$ -$ -$ 159,347$ 6,205,378$ 1,838,498$ 3.38 2017 3,879,197 1,812,388 - 132,374 - - 160,024 5,983,983 1,633,823 3.66 2018 4,003,425 1,960,722 - 124,109 - - 135,163 6,223,419 1,633,823 3.81 2019 4,212,706 2,124,125 - 110,662 - - 138,063 6,585,556 1,410,310 4.67 2020 4,510,783 2,137,683 - 27 - - 136,883 6,785,376 1,405,721 4.83 2021 4,692,986 2,167,002 - - - - 139,137 6,999,125 1,406,052 4.98 2022 4,862,490 2,325,261 - - - - 138,362 7,326,113 1,406,012 5.21 2023 5,297,022 2,555,236 - - - - 138,383 7,990,641 1,405,712 5.68 2024 5,416,598 2,488,538 - - - - 138,530 8,043,666 1,405,712 5.72 2025 5,973,760 2,580,146 - - - - 138,490 8,692,396 1,410,070 6.16 CITY OF WINTER SPRINGS, FLORIDA PLEDGE-REVENUE COVERAGE LAST TEN FISCAL YEARS General Government 113 314 Net Revenue Fiscal Year Gross Operating Available for Ended Sept 30,Revenues1 Expenses2 Debt Service Principal Interest Total Coverage 2016 11,189,465$ 5,765,435$ 5,424,030$ 1,446,699$ 3 368,458$ 1,815,157$ 2.99 2017 11,154,709 6,235,351 4,919,358 822,719 187,884 1,010,603 4.87 2018 10,260,680 6,140,468 4,120,212 1,875,000 99,668 1,974,668 2.09 2019 12,259,418 6,450,421 5,808,997 1,888,696 159,542 1,974,668 2.94 2020 12,943,985 7,059,281 5,884,704 1,938,782 156,801 2,095,583 2.81 2021 14,205,837 7,111,885 7,093,952 1,369,149 113,608 1,482,757 4.78 2022 12,632,292 8,553,286 4,079,006 819,384 1,027,961 1,847,345 2.21 2023 13,856,093 10,304,172 3,551,921 803,611 1,433,419 2,237,030 1.59 2024 17,794,326 11,012,852 6,781,474 919,956 1,460,683 2,380,639 2.85 2025 19,489,014 9,725,929 9,763,085 894,067 1,485,529 2,379,596 4.10 Note: 1 Gross revenue is computed per bond resolution requirements, and is equivalent to revenue recognized under generally accepted accounting principles (GAAP). Revenues include investment income and other income. 2 "Direct operating expense" is computed per bond resolution requirements, and is equal to expenses recognized under GAAP (less interest, depreciation, and amortization expense) losses on disposal of fixed assets, and non-recurring transfers out. 3 Excludes principal paid on refunding. PLEDGE-REVENUE COVERAGE LAST TEN FISCAL YEARS Water Revenue Bonds Debt Service Requirements (Concluded) CITY OF WINTER SPRINGS, FLORIDA 114 315 DEMOGRAPHIC AND ECONOMIC INFORMATION 316 Personal Education Income Level in (Amounts Per Capita Years of Fiscal Expressed in Personal Median Formal School Unemployment Year Population1 Thousands)Income1 Age1 Schooling1 Enrollment2 Rate3 2016 35,266 1,144,523$ 32,454$ 40.7 13.98 5,565 4.6% 2017 35,599 1,170,887 32,891 42.2 14.18 5,708 4.0% 2018 36,635 1,204,962 32,891 43.4 14.31 5,366 3.3% 2019 37,321 1,375,615 36,859 43.4 14.36 5,258 3.0% 2020 38,764 1,502,038 38,748 43.9 14.42 6,370 4.6% 2021 38,975 1,651,059 42,362 43.4 14.48 5,587 4.3% 2022 39,038 1,564,128 40,067 42.7 14.65 5,469 3.7% 2023 39,097 1,685,996 43,123 43.1 14.00 6,992 4.2% 2024 39,137 2,150,617 54,951 42.0 14.36 6,203 3.3% 2025 39,822 1,862,276 46,765 42.0 14.34 6,074 4.2% Note: 1 Source: American Fact Finder; previous statistics from multiple sources, Orlando Economic Partnership. 2 Source: American Fact Finder; Seminole County Public Schools. 3 Source: Bureau of Economic and Business Research (BEBR), Orlando Economic Partnership. CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 115 317 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment2 Seminole County School Board 375 1 6.09%1,380 1 20.28% Modern Plumbing 200 2 3.25%115 5 1.69% Dearborn Electronics 186 3 3.02%167 3 2.45% City of Winter Springs 179 4 2.91%203 2 2.98% Publix (Winter Springs Town Center)170 5 2.76%155 4 2.28% Watermark at Vistawilla 119 6 1.93% Tuscawilla Country Club 107 7 1.74%70 6 1.03% Budget Tree 58 8 0.94%55 9 0.81% United States Post Office 55 9 0.89%56 8 0.82% McDonald's 35 10 0.57%60 7 0.88% Longwood Kia / Mitsubishi 50 10 0.73% Totals 1,484 24.10%2,311 33.95% Note: 1 Per telephone survey of major local businesses and e-mail correspondence. 2 Per Metro Orlando Economic Development Commission (www.orlandoedc.com), the City of Winter Springs has an estimated daytime working population of 6,153 FTEs. CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS CURRENT AND TEN YEARS AGO 2025 2016¹ 116 318 OPERATING INFORMATION 319 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function Development Services 4.73 5.46 3.46 3.73 5.19 8.73 6.00 7.00 8.00 8.00 General Government 36.95 36.08 33.13 33.05 36.80 40.80 48.03 47.90 53.63 44.00 Public Safety: Police: Sworn Officers 65.70 65.00 65.00 55.00 55.00 55.00 55.00 55.00 59.00 61.00 Civilians2 17.13 17.13 15.07 15.50 15.50 16.68 17.00 9.00 10.00 10.00 Public Works 16.00 16.00 16.00 14.00 15.00 12.00 13.00 17.00 17.00 16.00 Culture and Recreation 21.11 21.76 20.84 20.79 20.79 21.52 23.03 24.33 27.75 28.46 Utilities 36.45 38.45 38.45 38.73 38.00 20.00 22.00 21.73 22.73 19.73 Stormwater 9.00 10.00 9.00 8.00 9.00 6.00 6.00 7.00 8.00 6.00 Total 207.07 209.88 200.95 188.8 195.28 180.73 190.06 188.96 206.11 193.19 Part-Time FTEs (Included Above)23.07 22.88 19.95 17.80 18.28 22.73 16.06 13.96 16.11 12.38 Note: 1 City of Winter Springs Annual Budget Documents. 2 Police civilians include emergency communications center personnel. CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION1 LAST TEN FISCAL YEARS Full-Time Equivalent Employees as of September 30, 117 320 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function Police: Auto Accidents 560 479 526 489 420 569 424 597 680 409 Physical Arrests 1,220 1,034 824 704 534 268 299 940 475 975 Criminal Investigations Conducted 533 419 388 1,384 1,249 1,330 414 1,325 1,148 1,054 Total Calls for Service 106,477 102,146 101,086 101,356 94,933 109,563 496 154,666 168,918 100,576 911 Calls Received 3,539 3,607 4,175 4,338 4,982 5,572 2,555 2,539 7,263 13,648 Evidence Processed (Pieces)2,606 2,509 1,814 1,603 1,394 1,665 1,562 2,288 5,040 1,800 Highways and Streets: Streets Paved (Miles)- **108 *****4 Streets Resurfaced (Miles)63,674 70,324 53,925 51,783 116,528 82,961 24,379 25,270 20,102 116,160 Sidewalks/Bike Paths Built or Repaired (Sq Ft)11,344 7,384 6,428 15,127 31,248 36,192 4,061 3,264 *3,955 Culture and Recreation: Games - Baseball/Softball 879 939 646 715 535 900 550 592 347 884 Games - Basketball 578 749 749 734 ****** Games - Football 22 61 61 39 145 120 **** Games - Soccer 879 882 1,130 950 679 1,020 675 865 306 1,012 Senior Activities 1,573 1,906 2,632 3,477 530 ***1,440 1,440 Civic Center and Pavilion Rentals 400 461 474 553 433 667 1,354 1,818 1,610 1,573 Pickleball - - - - - - - - 2,414 2,423 Water: New Connections 165 32 61 227 230 177 81 67 75 66 Number of Customers 13,727 13,822 13,597 13,967 13,817 13,994 14,315 14,521 14,596 14,662 Water Main Breaks 2 10 6 5 8 3 13 29 28 31 Average Daily Consumption (Gallons/per Capita)104 97 103 119 252 96 119 122 125 122 Meter Reads 187,468 188,358 192,930 189,072 234,842 197,530 202,719 203,556 204,355 205,358 Community Development: Total Permits Issued 2,956 3,275 3,741 3,627 4,259 3,927 3,826 3,517 2,063 2,650 Building Inspections 8,885 6,194 7,154 7,690 6,662 9,441 9,402 9,334 3,244 6,346 Business Tax Receipts Issued 897 1,227 984 1,182 890 1,032 617 1,356 536 518 Land Use Amendments and Rezonings 3 8 1 *1 2 2 2 1 * Permit Files Created/Reviews Initiated 3,111 3,436 3,868 3,829 4,690 4,185 4,294 3,963 1,923 2,917 General Government: Personnel Actions Processed 283 426 201 288 150 281 300 360 840 645 Worker's Comp Injuries 30 37 35 25 21 27 14 13 15 14 Legal Notices Published 18 26 25 22 12 13 18 23 20 46 Payroll - Checks 352 334 335 296 266 93 101 554 278 121 Payroll - Direct Deposit 7,209 6,034 5,695 5,555 4,384 4,410 4,233 4,553 4,741 4,800 Receipts Deposited 134,565 130,754 127,820 129,349 130,541 132,772 133,850 133,365 134,516 134,600 A/P Checks Issued 5,364 4,974 3,659 4,537 4,018 3,881 6,871 4,194 4,194 4,209 Purchase Orders Processed 2,262 2,319 2,138 1,905 2,040 2,212 1,194 1,658 1,924 2,089 Source: Summary of Departmental Reports Note: * Information not available. CITY OF WINTER SPRINGS, FLORIDA OPERATING INDICATORS BY FUNCTION1 LAST TEN FISCAL YEARS Full-Time Equivalent Employees as of September 30, 118 321 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Function Public Safety: Police: Stations 1 1 1 1 1 1 1 1 1 1 Fleet 82 80 73 68 68 77 77 75 83 83 Fire Stations2 2 2 2 2 2 2 2 2 2 2 Highways and Streets: Streets - Paved (Miles)103.25 103.25 103.40 107.52 107.52 107.52 107.52 107.52 107.52 107.52 Streets - Unpaved (Miles)0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Street Lights 3,432 3,432 3,452 3,638 3,638 3,638 3,638 3,638 3,638 3,638 Traffic Signals 10 10 10 10 10 10 10 10 11 11 Culture and Recreation: Park Acreage 266.70 266.70 266.70 266.70 266.70 267.93 267.93 267.93 267.93 267.93 Parks - Community 6 6 6 6 6 6 6 6 6 6 Parks - Neighborhood 6 6 6 6 6 6 6 6 6 6 Senior Center 1 1 1 1 1 1 1 1 1 1 Community Center 1 1 1 1 1 1 1 1 1 1 Water: Water Mains (Miles)173.20 173.60 175.20 243.90 243.90 243.90 243.90 243.90 243.90 243.90 Fire Hydrants 1,060 1,064 1,080 1,092 1,092 1,092 1,092 1,092 1,100 1,182 Maximum Daily Capacity (Millions of Gallons)12 12 12 12 12 12 12 12 12 12 Deep Wells 8 8 8 8 8 8 8 8 8 8 Sewer: Sanitary Sewers (Miles)115.76 116.31 117.95 199.09 199.09 199.09 199.09 199.09 230.30 230.30 Storm Sewers (Miles)95.79 95.79 95.87 187.71 187.71 187.71 187.71 187.71 214.41 214.41 Treatment Facility Capacity (Millions of Gallons)4.212 4.212 4.212 4.212 4.212 4.212 4.082 4.082 4.082 4.082 Current Average Flow (Millions of Gallons)2.080 2.140 2.280 2.124 2.520 2.520 2.635 2.499 2.341 2.150 Note: * Information not available. 1 City of Winter Springs Departmental Reports. 2 Seminole County is leasing stations per Consolidation Agreement. CITY OF WINTER SPRINGS, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION1 LAST TEN FISCAL YEARS 119 322 OTHER REPORTS 323 Assistance Amount of Federal Grantor/Pass-Through Grantor/Program Listing Contract Expenditures Title Number Number (1) (2) (3) United States Department of Transportation Passed through Florida Department of Transportation: Highway Planning and Construction* Total United States Department of Transportation 20.205 G3091 1,373,340$ 1,373,340 United States Department of Agriculture: Emergency Watershed Protection Program*10.923 NR234209XXXXC012 598,002 Emergency Watershed Protection Program*10.923 NR234209XXXXC003 551,880 Total United States Department of Agriculture 1,149,882 United States Department of Treasury: Passed through Florida Division of Emergency Management: Coronavirus State and Local Fiscal Recovery Funds*21.027 Y5325 6,137,207 Total United States Department of Treasury 6,137,207 United States Department of Homeland Security: Passed through Florida Division of Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 4834 DR FL 522,512 Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 4673 DR FL 395,122 Total United States Department of Homeland Security 917,634 United States Department of Justice Passed through Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant 16.738 R723 54,045 Edward Byrne Memorial Justice Assistance Grant 16.738 6N099 17,227 Total United States Department of Justice 71,272 Total Expenditures of Federal Awards 9,649,335$ * Denotes major federal award program. Notes: (1) Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Winter Springs, Florida (the City) under programs of the federal government for the fiscal year ended September 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the City. (2) Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. (3) Indirect Cost Rate Election: The City has not elected to use the de minimis cost rate allowed under the Uniform Guidance. CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal 120 324 121 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida (the City) as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated February 27, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, non-compliance with which could have a direct and material effect on 325 122 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. February 27, 2026 Gainesville, Florida 326 123 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Winter Springs’ (the City), Florida, compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. 327 124 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material non-compliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material non-compliance when it exists. The risk of not detecting material non-compliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Non-compliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material non-compliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. ■ Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material non-compliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control 328 125 Honorable Mayor and City Commissioners City of Winter Springs, Florida INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. February 27, 2026 Gainesville, Florida 329 126 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2025 SUMMARY OF AUDITOR’S RESULTS Financial Statements Type of Auditor’s Report Issued: Unmodified Internal Control Over Financial Reporting: Material weakness(es) identified? No Significant deficiency(ies) identified? No Non-compliance material to financial statements noted? No Federal Awards Internal Control Over Major Programs: Material weakness(es) identified? No Significant deficiency(ies) identified? None Reported Type of Auditor’s Report Issued on Compliance for Major Programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with CFR 200.516(A)? No Identification of Major Programs: Federal Program U.S. Department of Treasury: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. 21.027 U.S. Department of Agriculture: Emergency Watershed Protection Program Assistance Listing No. 10.923 U.S. Department of Transportation: Highway Planning and Construction Assistance Listing No. 20.205 Dollar Threshold Used to Distinguish Between Type A and Type B Programs – Federal Programs $1,000,000 Auditee qualified as low-risk auditee pursuant to the Uniform Guidance? No 330 127 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2025 FINANCIAL STATEMENT FINDINGS No matters were identified. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER MATTERS A Summary Schedule of Prior Audit Findings is not required because there were no prior audit findings related to federal programs or state projects. A Corrective Action Plan is not required because there are no current year findings related to federal awards. 331 128 MANAGEMENT LETTER Honorable Mayor and City Commissioners City of Winter Springs, Florida Report on the Financial Statements We have audited the financial statements of the City of Winter Springs, Florida (the City) as of and for the fiscal year ended September 30, 2025, and have issued our report thereon dated February 27, 2026. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Auditor’s Report on an examination conducted in accordance with the American Institute of Certified Public Accountants Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 27, 2026, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i.)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Corrective actions have been taken to address the finding and recommendation made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information h as been disclosed in the notes to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida Statutes. 332 129 Honorable Mayor and City Commissioners City of Winter Springs, Florida MANAGEMENT LETTER Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the City. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we have no recommendations. Property Assessed Clean Energy (PACE) Programs As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, the City must state as to whether a PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, did/did not operate within the City’s geographical boundaries during the fiscal year under audit. Management has asserted that no PACE program operated within the City’s geographical boundaries during the year ended September 30, 2025. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a municipality to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the municipality in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate non-compliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the at tention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, City Commission and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. We would like to take this opportunity to express our appreciation for the professionalism and courtesies which were extended to our staff. If you have any questions or comments about the contents of this letter, or the information accompanying this letter, please do not hesitate to contact us. February 27, 2026 Gainesville, Florida 333 130 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH FLORIDA STATUTE SECTION 218.415 – INVESTMENTS OF PUBLIC FUNDS The Honorable Mayor and City Commissioners City of Winter Springs, Florida We have examined the City of Winter Springs, Florida’s (the City) compliance with Section 218.415, Florida Statutes, during the fiscal year ended September 30, 2025. City management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material non-compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City’s compliance with specified requirements. We are required to be independent and to meet our ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the City complied, in all material respects, with the aforementioned requirements during the fiscal year ended September 30, 2025. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, the Honorable Mayor and members of the City Commission, and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. February 27, 2026 Gainesville, Florida 334 1 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida (the City) for the year ended September 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated July 26, 2021, and in our required auditor’s communication letter to you dated December 22, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies . The significant accounting policies used by the City are described in Note 1 to the financial statements. The following new accounting pronouncements were adopted for the year ended September 30, 2025: ■ As described in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. The effects of this implementation are described in Note 1. GASB Statement No. 102, Certain Risk Disclosures, was also adopted during 2025 and was determined to have no impact to the City’s financial statements. The application of existing policies was not changed during 2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates may be particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: 335 2 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida ■ Allowance for Doubtful Accounts—Management’s estimate of the allowance for doubtful accounts reduces the City’s accounts receivable balance to the net realizable value and increases the bad debt expense. Management adjusts the allowance for uncollectible utility billing receivables bas ed on historical revenues, loss levels, and analysis of the collectability of accounts. ■ Accumulated Depreciation—Management estimates accumulated depreciation and depreciation expense for capital assets using the straight-line method of depreciation and industry guidelines for useful lives. ■ Compensated Absences—The City bases this liability on employees’ current pay and benefit rates and accrued hours (for sick and vacation time) as of year-end. ■ Net Pension Asset and Pension-Related Deferred Outflows and Inflows—The City’s combined net pension asset and pension-related deferred outflows and inflows of resources are based on actuarial studies performed by a qualified actuary retained by the City. The actuarial valuation is based upon actuarial methods and assumptions, which are selected based on risk and market factors affecting governmental entities of similar sizes, pension plan policies, and employee census information. ■ Other Postemployment Benefits (OPEB)—Management’s estimate of the total OPEB liability, related deferred inflows/outflows of resources, and expenses for OPEB, is an estimate based on actuarial studies performed by a qualified actuary retained by the City. The actuarial valuation is based upo n actuarial methods and assumptions which are selected based on risk and market factors affecting governmental entities of similar sizes, OPEB plan policies, and employee census information. The total OPEB liability and deferred inflows/outflows of resources allocated to the City are determined by the actuary and also considered a significant estimate. ■ Leases—Management’s estimate related to the initial measurement of leases, including the discount rate used to discount the expected lease receipts to present value, as well as the amortization of the deferred inflows using the straight-line method, based on the implementation of GASB Statement No. 87, Leases. ■ Subscription-Based Information Technology Arrangements (SBITAs)—Management’s estimate related to the initial measurement of SBITA assets and liabilities, interest expense, SBITA term, present value of SBITA payments, and fair value of underlying assets is all based on terms in the agreements and the discount rate, based on the implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. We evaluated the methods, assumptions, and data used to develop the above-described estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: ■ Pledged Revenues – The City has pledged certain revenues related to debt obligations as described in Note 7 to the financial statements. 336 3 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida ■ Commitments and Contingencies – As more fully described in Note 14 to the financial statements, the City is under contract with various contractors for future construction services and also requires significant construction in the near future to replace or rehabilitate their Wastewater Treatment Plant. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The following material misstatement detected as a result of audit procedures was corrected by management: ■ There were grant expenditures recognized on the schedule of expenditures of federal awards related to hurricane cleanup for which there were no matching revenues recorded as they had not been received during the year. Therefore, revenue and due from other governments in the Stormwater Fund were understated in the amount of $1,210,740. Disagreements with Management For the purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 27, 2026. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 337 4 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida The following are audit matters we would like to bring to the attention of the City: Upcoming Accounting Pronouncements ■ GASB Statement No. 103, Financial Reporting Model Improvements, will become effective for the year ending September 30, 2026. This statement improves presentation and disclosure requirements for governmental financial statements. ■ GASB Statement No. 104, Disclosure of Certain Capital Assets, will be effective for the year ending June 30, 2026. This statement enhances financial statement note disclosures by requiring governments to provide more detailed information about certain types of capital assets. Specifically, lease assets, intangible right-to-use assets, and subscription-based IT assets must be disclosed separately by major class in the capital asset note disclosures . In addition, intangible assets other than these categories must also be disclosed separately by major asset class. ■ GASB Statement No. 105, Subsequent Events, will be effective for fiscal years beginning after June 30, 2027. This statement aims to improve financial reporting by clarifying the time frame and requirements for reporting transactions or events that occur after the financial statement date . It defines the subsequent events time frame as the period ending on the date the financial statements are “available to be issued”, which is when they are complete in a format that is compliant with accounting principles generally accepted in the United States of America and all necessary approvals for issuance have been obtained. The City will be required to disclose the specific date through which subsequent events were evaluated and provide detailed note disclosures for non-recognized events, such as significant debt-related transactions or changes to the reporting entity, including an estimate of their financial effect. Other Matters We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the required supplementary information (other than MD&A), as listed in the table of contents (collectively, the required supplementary information), which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining financial statements and budgetary comparison schedules as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the other supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 338 5 To the Honorable Mayor and Members of the City Commission City of Winter Springs Winter Springs, Florida Restriction on Use This information is intended solely for the information and use of the City Commission and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. February 27, 2026 Gainesville, Florida 339