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HomeMy WebLinkAbout2018 03 26 Regular 501 2017 Comprehensive Annual Financial Report (CAFR) COMMISSION AGENDA Informational Consent ITEM501 Public Hearings Regular X March 26, 2018SBSB Regular MeetingCity ManagerDepartment REQUEST: Finance and Administrative Services Department is requesting City Commission acceptance of the Comprehensive Annual Financial Report (CAFR) as presented for the Fiscal Year Ended September 30, 2017. SYNOPSIS: The presentation of the Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2017 by the auditors McDirmit Davis & Company, LLC CONSIDERATIONS: The CAFR is prepared and presented to give the City Commission, citizens, and other users a greater understanding of the City’s financial standing. Our 2017 financial statements received an unqualified opinion (best possible) by the auditors. Additionally, the 2017 CAFR will be submitted to the Government Finance Officers Association (GFOA) for consideration for their Certificate of Achievement award as we believe it continues to conform to the program’s stringent requirements. The City's CAFR has previously been awarded the GFOA's Certificate of Achievement award for the past 16 years. FISCAL IMPACT: This report has no direct financial impact on the City. However, the information presented in the CAFR is used by investors and citizens to help determine the overall financial health of the City of Winter Springs. Regular 501 PAGE 1 OF 2- March 26, 2018 COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, and is available on the City’s Website, LaserFiche, and the City’s Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City’s Website, LaserFiche, and the City’s Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas/Agenda Item information, Homeowner’s Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at six (6) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. RECOMMENDATION: Staff recommends that the Commission accept the Comprehensive Annual Financial Report (CAFR) as presented for the Fiscal Year Ended September 30, 2017. ATTACHMENTS: Comprehensive Annual Financial Report - For The Year Ended September 30, 2017 Regular 501 PAGE 2 OF 2- March 26, 2018 e � ■ - T Cot - 4 SA 0 Coo WF FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 a*40, This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2017 t-ATE�R 4 �� a Z r7 Incarporatcd ' I959 ' ��GOE) WF -T? -C7 Prepared by: Finance and Administrative Services Department This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� INTRODUCTORY SECTION This section contains the following subsections: ■ Table of Contents ■ Letter of Transmittal ■ GFOA Certificate of Achievement ■ List of Principal Officials ■ Organizational Chart This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2017 II. Financial Section: Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-17 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Balance Sheet - Governmental Funds Paae Introductory Section: Table of Contents i -iii Letter of Transmittal iv -vii GFOA Certificate of Achievement viii List of Principal Officials ix Organizational Chart x II. Financial Section: Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-17 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Balance Sheet - Governmental Funds 20-21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23-24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund 26-27 Road Improvements Special Revenue Fund 28 Solid Waste/Recycling Special Revenue Fund 29 Statement of Net Position - Proprietary Funds 30-31 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 32 Statement of Cash Flows - Proprietary Funds 33-34 Statement of Fiduciary Net Position - Fiduciary Funds 35 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 36 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2017 Paae II. Financial Section - Continued: Notes to Financial Statements 37-77 Required Supplementary Information Schedule of Funding Progress - Retiree Continuation Insurance Plan 78 Schedule of Employer Contributions - Retiree Continuation Insurance Plan 78 Schedule of Changes in Net Pension Liability and Related Ratios 79 Schedule of Contributions 80 Schedule of Investment Returns 81 Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual: TLBD Debt Service Fund 82 Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds 83-88 Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds 88-94 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds 95-106 Debt Service Funds 107-111 Capital Projects Funds 112-116 III. Statistical Section: Financial Trends Net Position by Component 117 Changes in Net Position 118-119 Governmental Activities Tax Revenues by Source 120 Fund Balances of Governmental Funds 121 Changes in Fund Balances of Governmental Funds 122-123 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 124 Property Tax Rates, Direct and Overlapping Governments 125 Special Assessment Billings and Collections 126 Principal Property Taxpayers 127 Property Tax Levies and Collections 128 CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2017 IV. Other Reports: Independent Auditor's Report on Internal Control over Financial Reporting Paae III. Statistical Section - Continued: Debt Capacity Legal Debt Margin 129 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 130 Ratio of Outstanding Debt by Type 131 Direct and Overlapping Governmental Activities Debt 132 Pledged -Revenue Coverage 133-134 Demographic and Economic Information Demographic and Economic Statistics 135 Principal Employers 136 Operating Information 150-152 Budgeted Full-time Equivalent City Government Employees by Function 137 Operating Indicators by Function 138-139 Capital Asset Statistics by Function 140 IV. Other Reports: 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 141-142 Independent Auditor's Report on Compliance for Each Major State Project and Report on Internal Control Over Compliance Required by Chapter 10.550, Rules of the Auditor General 143-144 Schedule of Expenditures of State Financial Assistance 145 Notes to Schedule of Expenditures of State Financial Assistance 146 Schedule of Findings and Questioned Costs - State Financial Assistance Projects 147 Management Letter 148-149 Communication with Those Charged with Governance 150-152 Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida Statutes 153 Affidavit of Impact Fee Compliance 154 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� F �,N 7gR so O u � lac p j -ted • 959 ' l�GOD WEYP"Vy�( March 14, 2018 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 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 Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2017. 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 (GARS) by a firm of licensed Certified Public Accountants. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs' comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of Winter Springs' financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2017 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, 2017 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' Managements Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The City of Winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. The City currently has a land area of approximately 13.3 square miles and a population of approximately 36,000. 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 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City's fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget -to -actual comparisons are provided in this report for each individual governmental fund. The General Fund, the Road Improvements Fund and the Solid Waste/Recycling Fund, are presented on pages 26-29 as part of the basic financial statements for the governmental funds. The TLBD Debt Service Fund budget -to -actual comparison is presented on page 82. The non -major governmental funds' budget comparisons are presented in the governmental fund subsection of this report which starts on page 95. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Seminole County has adopted a one -cent local government infrastructure sales tax which will be in effect from January 1, 2015 through December 31, 2024. The intent of this legislation is to improve the infrastructure of the Seminole County public school system and other public infrastructure within the County and its municipalities. Per the interlocal agreement, 2.99% of net revenues are to be distributed to the City of Winter Springs. It is estimated that this distribution will be nearly $2M for the fiscal year 2017-2018. Approximately 87% 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 2016-2017 fiscal year (tax year 2016), the gross taxable value reflects an increase of 6.4% from the prior year and a decrease of 11.6% since fiscal year 2008. During fiscal year 2016-2017 (tax year 2016), through prudent fiscal management, the City was able to maintain operating millage rates at 2.43 and was able to reduce voted debt millage to 0.0700 mills. At the local level, revenues such as review and permit fees, investment income and state sales tax revenues have rebounded and are showing signs of sustainable growth. New construction in Winter Springs has been steady for the past several years. Single-family residential construction projects that were recently completed or are currently under construction include Seven Oaks, Jesup's Landing, and Southern Oaks. Upcoming single-family residential projects include Tuskawilla Crossing (379 units) and Northern Oaks (35 units). In 2016, construction completed on the RiZE project in the Town Center, a 244 -unit upscale apartment complex located adjacent to City Hall. New construction in Winter Springs has been steady for the past several years. Single-family residential construction projects that were recently completed or are currently under construction include Tuskawilla Crossings, Southern Oaks, and Northern Oaks. Multi -family projects under construction in 2017 include the Integra 360 apartment project on the north side of SR 434 across from Creek's Run, and The Blake Apartments in the Town Center. Construction continued in 2017 on the Vistawilla Assisted Living Facility, a 77,000 square foot facility located near the SR 417 / SR 434 interchange. New commercial tenants in the Winter Springs Town Center include the General Public House restaurant and Berkshire Hathaway Home Services. Commercial construction projects started or completed in 2017 include the Offices at Winding Hollow, Red Bug Self Storage, and Phase 4 of the Nursery Road Warehouses. Seminole County Public Schools are the 12'" largest in the state and recognized as a Premier National School District. It boasts an approximate 88% graduation rate and is ranked #1 in STEM. Winter Springs is home to four elementary schools, one middle and one high school in the district. Winter Springs is also home to Choices in Learning Charter School, Willow School, The Primrose School, and Irblich Holistic Preschool which provide diverse educational options. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. Winter Springs continues its partnership with the UCF Business Incubation Program to foster the development of early-stage businesses in Central Florida. We have also partnered with Seminole County in the Community Redevelopment Agency (CRA) to build out neighborhood improvements at Shepard Road as part of the 17-92 Corridor Redevelopment Plan. Funding for the CRA relies on the annual tax revenue that is generated from the appreciation of property values above the established base level (1997). Winter Springs continues to offer its citizens the highest quality services and community -minded events. Winter Springs has been host to the Central Florida Scottish Highland Games for the fifteenth consecutive year. The Oviedo -Winter Springs Chamber of Commerce offers a variety of art and music at the Town Center's ARTtoberFEST event. The City partners with a number of sport leagues and clubs such as Babe Ruth & Pop Warner contributing a variety of sports activities. We host a spring break and summer camp program offering affordable day camp options and host a number of holiday events including Father - Daughter Dance, Spring Family Festival, the Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran's Day Ceremony, and Winter Wonderland. The Winter Springs and Oviedo Police Departments have teamed up to host events such as Cops & Kids and the Kids' House of Seminole Kickball Tournament which raises funds and awareness for abused children. During the holiday season, children from families in need from Winter Springs are invited to participate in our annual `Shop with a Cop' festivities. Parks and Recreation has been busy with numerous park upgrades including a newly remodeled and expanded playground at Moss Park, safety improvements with upgraded lighting at Moss and Trotwood Parks, improved roadway and parking at Central Winds Park and new play equipment at other area parks. The trend of expansion and modernization of the City's recreational facilities will continue into 2018 as improvements for Torcaso Paris are in process. Together with the Winter Springs Senior Association, a number of activities and outings are offered to our seniors, such as yoga, ceramics and the ever -popular therapy pool. Highlighted here are some of what makes the City of Winter Springs a top choice for families. Long-term financial planning. The City Commission updated and adopted a 5 -year Capital Improvements Plan (CIP) in September 2017 for fiscal years 2018 through 2022. 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 CIP 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 2014, the City had implemented GASB 67: Financial Reporting for Pension Plans, and in fiscal year 2015, GASB 68: Accounting and Financial Reporting for Pensions. Major Initiatives. The implementation of the third phase of the City's new ERP system is complete. Continued improvements in customer service and information reporting are on-going. Also many of our Vi park facilities have undergone major improvements and renovations including a newly remodeled and expanded playground area at Moss Park with funding from the General and Park Impact Funds, safety improvements with upgraded lighting at Moss and Trotwood Parks, roadway improvements and parking at Central Winds Park and new playground equipment as some of the other area parks. The Water and Sewer Utility Fund has begun the process of improvements recommended and required by the DEP. The upgraded water treatment facility was completed in late spring 2017 at a cost of over $6M which will be funded by a new loan issued by the Clean Water State Revolving Loan Fund. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Winter Springs for its CAFR for the fiscal year ended September 30, 2016. This was the seventeenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently - organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program requirements and will be submitting it to the GFOA to determine its eligibility for another fiscal year. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members the department who assisted and contributed to its preparation. Other City departments, although not extensively involved in year-end audit activities, contributed significantly by ensuring the accuracy and integrity of accounting information compiled throughout the year. Without their diligence, the work of the Finance Department would have been considerably more difficult. Appreciation must also be expressed to the City's auditors whose suggestions and attention to detail enhanced the quality of this report. In closing, we would also like to express appreciation to the Mayor and the City Commission for their support and for maintaining high standards of professionalism in the management of the City of Winter Springs' finances. Respectfully submitted, Kevin L. mith City Manager Shawn D. Boyle Finance and Administrative Services Director Vii 0� Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Winter Springs Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2016 Executive Director/CEO Viii CITY OF WINTER SPRINGS, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2017 ELECTED OFFICIALS MAYOR DEPUTY MAYOR / COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER COMMUNITY DEVELOPMENT FINANCE/ADMIN SERVICES INFORMATION SERVICES PARKS AND RECREATION POLICE CHIEF UTILITY/PUBLIC WORKS CITY MANAGER Kevin L. Smith CITY CLERK Andrea Lorenzo-Luaces LEGAL COUNSEL Anthony Garganese Garganese, Weiss & D'Agresta, P.A. DEPARTMENT DIRECTORS ix Charles Lacey Pam Carroll Jean Hovey Kevin Cannon Cade Resnick Geoff Kendrick Brian Fields Shawn Boyle Joanne Dalka Chris Caldwell Kevin Brunelle Lena Rivera City of Winter Springs Organizational Chart Civic Organizations Finance and Administrative Services Citizens of Winter Springs Mayor and City Commissioners Advisory Boards 11 .1 City Manager I . . .I City Attorney I - - • •I City Clerk I� p Information Public Works Police Parks and Services and Utilities Department Recreation fr • Administration • Administration • Administration • Accounting • Security • Stormwater • Debt Management • Records Management • Transportation • Meter Service • IT Maintenance • Engineering • Budgeting • IT Development • Water Management • HR • Geographical • Water/Wastewater • Risk management Information System • Purchasing • Treasury Management • Administration • Records • Communication • Patrol • Investigations • Code Enforcement Community Development • Administration • Administration • Civic/Senior Center • Comp Planning • Athletics Recreation • Land Management • Programs • Urban Beautification; • Concession Services • Permits and • Parks/Field Inspections Maintenance This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� FINANCIAL SECTION This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� MCDIRMIT %%f DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of linter Springs, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of and for the year ended September 30, 2017, and the related noted to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements City of Winter Springs' management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Winter Springs, as of September 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund, road improvements special revenue fund, and solid waste/recycling special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 1 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, budgetary comparison information, pension and other postemployment benefits disclosures on page 3 through 17, 82, and 78 through 81 be presented to supplement the basic financial statements. Such information, 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. 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Winter Springs' basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical section and the Schedule of Expenditures of State Financial Assistance, (the schedule) as required by Chapter 10.550, Rules of the Auditor General, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules and the Schedule is the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 14, 2018 on our consideration of City of Winter Springs' 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 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 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 City of Winter Springs' internal control over financial reporting and compliance. Orlando, Florida March 14, 2018 2 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Winter Springs we offer readers of the City of Winter Springs' financial statements this narrative overview and analysis of the financial activities of the City of Winter Springs for the fiscal year ended September 30, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal which can be found on pages iv - vii of this report. Financial Highlights • The assets 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 $104,407,246 (net position). Of this amount, $14,597,513 (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 $8,288,425 or 8.62% 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 $27,370,798. Approximately 26% of this total amount, $7,129,826, 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 $8,249,681, or 52% of total general fund expenditures. • As a result of current year's activities, the City of Winter Springs' total debt decreased by $320,461 (.91%). Overview of the Financial Statements The financial statements focus on both the City as a whole (government -wide) and on the major individual funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government -to -government) and enhance the City's accountability. This discussion and analysis are intended to serve as an introduction to the City of Winter Springs' basic financial statements, which are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Winter Springs' finances, in a manner similar to a private -sector business. The Statement of Net 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. ,C] MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued) Government -wide financial statements. (Continued) 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 18-19 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. El MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Overview of the Financial Statements (Continued Governmental Funds. (Continued) The City of Winter Springs maintains 26 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Road Improvements Special Revenue Fund, Solid Waste/Recycling Special Revenue Fund, and TLBD Debt Service Fund all four of which are considered to be major funds. Data from the other 22 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds in provided in the form of combining statements elsewhere in this report. The City of Winter Springs adopts an annual appropriated budget for all governmental funds. Budgetary comparison statements have been provided for the General Fund, Road Improvements Special Revenue Fund, and Solid Waste/Recycling Special Revenue Fund to demonstrate compliance with this budget on pages 26-29. Budgetary comparison schedules have been provided for the TLBD Debt Service Fund, and the nonmajor funds on pages 82 and 95-116. The basic governmental fund financial statements can be found on pages 20-25 of this report. Proprietary funds. The City of Winter Springs maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Winter Springs uses enterprise funds to account for the Water and Sewer Utility, Stormwater Utility and Development Services department. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Stormwater Utility, and Development Services. The basic proprietary fund financial statements can be found on pages 30-34 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's 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 35-36 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 37-77 of this report. Required Supplementary Information (RSI). RSI can be found on pages 78-81 of this report. Other information. The budget schedules for the major debt service fund is on page 82 after the RSI. The combining statements referred to earlier in connection with nonmajor governmental funds are presented after this. Combining and individual fund statements and schedules can be found on pages 83-116 of this report. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analvsis 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 outflows by $104,407,246 at the close of the most recent fiscal year. Of the City of Winter Springs' net position, $76,495,232 or 73%, 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 total $13,314,501 (13%). The remaining balance of unrestricted net position ($14,597,513 or 14%) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2017, 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 and prior year. For more detail see the Statement of Net Position on page 18. "THIS SECTION INTENTIONALLY LEFT BLANK' N. MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) City of Winter Springs Statement of Net Position As of September 30 Governmental Activities Business -type Activities Total Primary Government 2017 2016 2017 2016 2017 2016 Assets: 52,572,866 48,555,323 23,922,366 21,801,972 76,495,232 70,357,295 Current and other assets $31,316,120 $31,079,635 $21,847,178 $20,504,095 $ 53,163,298 $51,583,730 Restricted assets 69,494 133,462 1,507,460 717,020 1,576,954 850,482 Capital assets 59,523,931 58,951,180 39,298,563 35,028,440 98,822,494 93,979,620 Total assets 90,909,545 90,164,277 62,653,201 56,249,555 153,562,746 146,413,832 Deferred Outflows of Resources Deferred Inflows of Resources Deferred charge on refunding $ 69,321 $ 77,073 $ 332,843 $ 422,697 $ 402,164 $ 499,770 deferred outflowof pension earnings earnings 430,539 336,764 97,585 56,158 528,124 392,922 499,860 413,837 430,428 478,855 930,288 892,692 Liabilities: 52,572,866 48,555,323 23,922,366 21,801,972 76,495,232 70,357,295 Current liabilities 2,187,883 1,735,542 908,376 512,137 3,096,259 2,247,679 Long term liabilities 20,380,527 26,341,286 23,616,129 21,757,552 43,996,656 48,098,838 Other liabilities 66,504 129,612 654,145 663,622 720,649 793,234 Total liabilities 22,634,914 28,206,440 25,178,650 22,933,311 47,813,564 51,139,751 Deferred Inflows of Resources Deferred inflowof pension earnings $ 1,852,369 $ 43,212 $ 419,855 $ 4,740 $ 2,272,224 $ 47,952 Net Position: Net investment in capital assets 52,572,866 48,555,323 23,922,366 21,801,972 76,495,232 70,357,295 Restricted 12,754,776 12,026,667 559,725 561,145 13,314,501 12,587,812 Unrestricted 1,594,480 1,746,472 13,003,033 11,427,242 14,597,513 13,173,714 Total net position $66,922,122 $62,328,462 $37,485,124 $33,790,359 $104,407,246 $96,118,821 Statement 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 19. As a result of the current year's activities, the government's total net position increased by $8,288,425 or 8.62% from the prior year. The previous fiscal year, 2016, net position increased by $6,260,539. Governmental activities increased net position by $4,593,660 in fiscal year 2017 compared to an increase of $3,574,839 in 2016. The increase in net position for fiscal year 2017 is primarily due to revenues received for ad valorem taxes, discretionary sales tax, revenue sharing and a modest decrease in operating expenses. Net position also increased due to a reduction in long term liabilities. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) Business -type activities increased net position by $3,694,765 in fiscal year 2017 compared to an increase of $2,685,700 in 2016. This is largely due to an increase in capital assets and contributed capital offset by an increase in long-term liabilities to purchase. Additionally, demand for water and sewer services increased year over year. The gains were partially offset by increases in expenditures in the business type funds. Following the Changes in Net Position table is a series of bar and pie charts that relay in pictorial form the revenues and expenses for each of the governmental and business -type activities as well as the revenue "source" for each. Additional information regarding the changes in fund balance of the governmental and business - type activities can be found in the section entitled Financial Analysis of Government's Funds on page 12. 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. "THIS SECTION INTENTIONALLY LEFT BLANK' �:3 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) City of Winter Springs Changes in Net Position For the Year Ended September 30 Expenses General government Governmental Activities Business -type Activities Total Primary Government 2017 2016 2017 2016 2017 2016 Revenues: 6,227,986 6,764,254 Physical environment 6,625,371 5,798,060 Program Revenues: 6,625,371 5,798,060 Culture and recreation 2,044,630 2,163,180 Charges for services $ 8,530,358 $ 6,590,955 $13,402,632 $12,309,326 $ 21,932,990 $18,900,281 Operating grants and charges on long-term debt 635,347 668,239 - contributions 86,950 2,596 - - 86,950 2,596 Capital grants and 7,880,612 7,295,358 Development services 665,215 contributions 2,781,344 3,583,125 1,616,801 1,311,005 4,398,145 4,894,130 General Revenues: 941,530 1,223,425 Total expenses 21,831,525 21,524,357 9,487,357 Property taxes 4,727,435 4,515,752 - - 4,727,435 4,515,752 Utility taxes 3,879,197 3,975,578 3,879,197 3,975,578 Business tax receipts 122,517 121,541 2,618,944 1,533,432 122,517 121,541 Intergovernmental - 6,260,539 unrestricted 3,706,323 3,556,804 - - 3,706,323 3,556,804 Investment income and Increase In Net Position 4,593,660 3,574,839 3,694,765 2,685,700 8,288,425 miscellaneous 616,345 711,438 137,405 135,728 753,750 847,166 Total revenues 24,450,469 23,057,789 15,156,838 13,756,059 39,607,307 36,813,848 Expenses General government 6,298,191 6,130,624 6,298,191 6,130,624 Public safety 6,227,986 6,764,254 6,227,986 6,764,254 Physical environment 6,625,371 5,798,060 6,625,371 5,798,060 Culture and recreation 2,044,630 2,163,180 2,044,630 2,163,180 Interest and other fiscal charges on long-term debt 635,347 668,239 - - 635,347 668,239 Water and sewer - - 7,880,612 7,295,358 7,880,612 7,295,358 Development services 665,215 510,169 665,215 510,169 Stormwater - 941,530 1,223,425 941,530 1,223,425 Total expenses 21,831,525 21,524,357 9,487,357 9,028,952 31,318,882 30,553,309 Increase (Decrease) In Net Position Before Transfers 2,618,944 1,533,432 5,669,481 4,727,107 8,288,425 6,260,539 Transfers 1,974,716 2,041,407 (1,974,716) (2,041,407) - - Increase In Net Position 4,593,660 3,574,839 3,694,765 2,685,700 8,288,425 6,260,539 Net Position- October 1 62,328,462 58,753,623 33,790,359 31,104,659 96,118,821 89,858,282 Net Position- September 30 $66,922,122 $62,328,462 $37,485,124 $33,790,359 $104,407,246 $96,118,821 9 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Governmental Program Specific Revenues and Expenses General Public Safety Physical Culture & Interest on Government Environment Recreation Long -Term De bt Governmental Revenues by Source Taxes 36% Intergovernmental—/ Revenues 15% 10 Investment Income and Miscellaneous 2% Charges for Services 35% Capital and Operating Grants and Contributions 12% Revenues Expenses MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Government -wide Financial Analysis (Continued) Statement of Changes in Net Position. (Continued) 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Business -type Activities Revenues and Expenses Water and Sewer Revenues Expenses Development Services Stormwater Business -type Activities Revenues by Source Capital and Investment Operating Grants Income and and Contributions Miscellaneous 11% 1% Charges for Services 88% 11 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Financial Analvsis of the Government's Funds As noted earlier, the City of Winter Springs uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds. The focus of the City of Winter Springs' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Winter Springs' financing requirements. In particular, 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, 2017, the City of Winter Springs' governmental funds reported combined ending fund balances of $27,370,798 an decrease of $114,064 over the prior year. Approximately 26% or $7,129,826 of this total amount constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is restricted, committed or assigned to indicate that it is not available for new spending because it has already been committed for such purposes as debt service, capital projects, inventories and prepaid costs. The general fund is the chief operating fund of the City of Winter Springs. At the end of the current fiscal year, unassigned fund balance of the General Fund was $8,249,681, while total fund balance was $8,506,283. 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 53% and 55% respectively, of total General Fund expenditures. The increase in fund balance of $5,867 is a result of a favorable revenue variance which was offset by an unfavorable expenditures variance. The Road Improvements Fund balance increased $597,314 due to the deferral of budgeted capital projects. The Solid Waste Fund net position decreased by $105,991. This decrease is in large part the result of increases in contractual costs without a corresponding increase in billed revenues for solid waste services provided to residents. The TLBD Debt Service Fund net position decreased by $18,073. This decrease is a result of additional non-recurring capital expenditures and accounts for 100% of the decrease. "THIS SECTION INTENTIONALLY LEFT BLANK" 12 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Financial Analysis of the Government's Funds (Continued) 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 $9,624,723 and total net position increased $2,675,048 to $27,183,097. This increase is due to user charges for water and waste water services, as well as operating cost reductions and $838,000 of contributed capital. This demand is driven by new construction and higher occupancy levels in existing units. The Development Services Fund net position increased as a result of current year activities by $953,425 to $2,778,462 at the end of the fiscal year. This increase is a result of permitting revenues for new construction which exceed the prior year by approximately $660,000 (50%) while related expenses only increased by approximately $161,000 (16%). The Stormwater Utility Fund net position increased as a result of current fiscal year activities by $66,292 to $7,523,565 at the end of the fiscal year. Though revenues increased nearly $52,676 (5%) operating expenses decreased (23%) to $941,530. General Fund Budgetary Highlights Differences between the original General Fund budget and the final amended General Fund budget resulted in $2,616 more in appropriations from fund balance during the year from an appropriation to fund balance of $1,668 in the original budget to appropriations from fund balance of $948 in the final budget. The actual results of General Fund for the year show an appropriation to fund balance of $5,867 compared to a final budgeted appropriation from fund balance of $948. The favorable variance of $6,815 is comprised of an unfavorable revenue and transfers variance of $120,980 and a favorable expenditure variance as set forth in the Departmental cost centers below: Executive & Legislative $ 896 General Government 1,859 Finance & Admin Services 94,107 Information Services 1,784 Community Development 1,740 Public Safety 5,263 Public Works 1,405 Parks & Recreation 3,860 Transfers 16,881 Total $ 127,795 This favorable variance is represented by the following expenditure categories as both amounts and percentage of budget: Payroll Other Operating Capital Transfers $ 35,886 0.2% 69,723 0.3% 17,230 0.09% 16,881 0.09% The comparison of budgeted results to actual results for the General Fund is shown on pages 26-27. 13 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) 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, 2017, amounts to $98,822,494 (net of accumulated depreciation), for an increase of $4,842,874 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 5.15% (a .97% increase for governmental activities, and a 12.19% increase for business -type activities). Major capital asset events during the current fiscal year included the following: The purchase of the following capital assets: • New vehicles for the Police Department at a cost of approximately $55,000; • Police mobile command trailer camera mast at a cost of approximately $26,175; • Upgrade network storage device at a cost of approximately $62,000; • New vehicles & equipment for public works/utilities at a cost of approximately $257,000; • New playground equipment at Sam Smith Park for a total cost of $139,000; The completion and capitalization of the following projects: • Road reconstruction and resurfacing totaling approximately $604,000; • Water system pipe relining at a cost of approximately $230,000; • Sidewalk completions at a cost of approximately $56,000; • Roof replacement at police headquarters at a cost of approximately $360,000; • Trotwood Park Parking lot at a cost of $438,000 along with park improvements totaling $31,000; • Tuscora drive deceleration lane costing approximately $387,000; • Lift station refurbishment at a cost of approximately $136,000; • New public works utilities administration building with a total cost of $777,000 (approximately $493,000 spent in the prior years); • Central Winds Roadway improvements at a total cost of $1,676,000 (approximately $848,000 spent in the prior years); • Sam Smith Restrooms with a total cost of $178,000; The capitalization of donated assets as a result of new residential and commercial building projects including: • Southern Oaks and Dunmar Estates, additions to water/sewer system infrastructure at a value of approximately $769,000. Beginning and continued construction on the following projects: • Planning and engineering of deceleration lane at city hall at a cost of approximately $24,000; • Beginning design and engineering phase of Torcaso field house with an estimated total project cost of $3,000,000; • Customer service initiative to upgrade Commission Chambers and Community Development Service Counter at an approximate cost of $500,000; • WTP #1 Water Quality Improvements at a cost of approximately $5,839,000 (Approximately $577,000 was spent in the prior years) • Magnolia Park Amphitheatre Design at a cost of approximately $257,000 (Approximately $227,000 was spent in the prior years) • Design of streetscape improvements along Hwy 17-92 and SR 434 at a cost of $45,000 (Approximately $41,000 spent in prior years) 14 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Capital Asset and Debt Administration (Continued) Capital assets. (Continued) Additional information on the City of Winter Springs' capital assets can be found in Note 6 on pages 56-58 of this report. Land Buildings Improvements Other Than Buildings Machinery and Equipment Intangibles Infrastructure Construction in Progress Total Long-term debt. At September 30, 2017, the City of Winter Springs had total debt outstanding of $34,778,268, a decrease of $320,461 from $35,098,729 at September 30, 2016. Total bonded debt of the City at the end of the current fiscal year was $9,168,161. This amount does not include accreted interest of $12,035,920. The City of Winter Springs' bonded debt represents bonds and notes 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. "THIS SECTION INTENTIONALLY LEFT BLANK' 15 City of Winter Springs Capital Assets (Net of Depreciation) As of September 30 Governmental Activities Business -type Activities Total Primary Government 2017 2016 2017 2016 2017 2016 $ 9,946,795 $ 9,946,795 $ 7,170,177 $ 7,170,177 $17,116,972 $17,116,972 6,839,176 6,507,163 152,726 178,718 6,991,902 6,685,881 8,003,586 6,347,179 25,167,669 26,191,872 33,171,255 32,539,051 1,806,505 1,824,716 651,843 659,013 2,458,348 2,483,729 112,671 17,916 24,933 33,813 137,604 51,729 30,706,235 31,370,382 - - 30,706,235 31,370,382 2,108,963 2,937,029 6,131,215 794,847 8,240,178 3,731,876 $ 59,523,931 $58,951,180 $39,298,563 $35,028,440 $98,822,494 $93,979,620 Long-term debt. At September 30, 2017, the City of Winter Springs had total debt outstanding of $34,778,268, a decrease of $320,461 from $35,098,729 at September 30, 2016. Total bonded debt of the City at the end of the current fiscal year was $9,168,161. This amount does not include accreted interest of $12,035,920. The City of Winter Springs' bonded debt represents bonds and notes 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. "THIS SECTION INTENTIONALLY LEFT BLANK' 15 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Capital Asset and Debt Administration (Continued) Long-term debt. (Continued) Additional information on the City of Winter Springs' long-term debt can be found in Note 7 on pages 58-64 of this report. City of Winter Springs Long Term Debt As of September 30 The above information does not include the interfund loan balances related to the repayment of the general obligation note. "THIS SECTION INTENTIONALLY LEFT BLANK' 16 Governmental Activities Business -type Activities Total Primary Go\ernment 2017 2016 2017 2016 2017 2016 Improvement Refunding Revenue Bonds, Series 1999 $ 3,498,970 $ 3,498,970 $ - $ - $ 3,498,970 $ 3,498,970 Water & Sewer Refunding Revenue Bonds, Series 2000 - - 5,669,191 5,669,191 5,669,191 5,669,191 Capital Improvement Revenue Note, Series 2006 - 29,883 - - - 29,883 Revenue Refunding Note Series 2011 458,280 664,590 458,280 664,590 Special Assessment Revenue Notes, Series 2011 1,408,352 1,493,858 1,408,352 1,493,858 Limited General Obligation Note, Series 2012 - 2,312,629 - 2,312,629 Improvement Refunding Revenue Note, Series 2014 1,654,000 2,473,000 - - 1,654,000 2,473,000 Revenue Refunding Note Series 2016 - - 5,747,000 6,497,000 5,747,000 6,497,000 State Revolving Fund Loan - - 4,306,555 1,497,734 4,306,555 1,497,734 Accreted Interest Payable 5,874,766 5,367,049 6,161,154 5,594,825 12,035,920 10,961,874 Total $ 12,894,368 $ 15,839,979 $ 21,883,900 $ 19,258,750 $ 34,778,268 $ 35,098,729 The above information does not include the interfund loan balances related to the repayment of the general obligation note. "THIS SECTION INTENTIONALLY LEFT BLANK' 16 MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) Economic Factors and Next Year's Budaets and Rates Winter Springs is primarily a residential community in Seminole County servicing more than 36,000 residents. Located in Central Florida, it is just 15 miles north of the city of Orlando, one of Florida's largest metropolitan statistical areas. Through conservative fiscal policies and aggressive budget oversight, the City Manager and City Commission have maintained the operating millage rate at 2.4300 and lowered the voted debt millage to 0.07000. The gross property taxable values in Winter Springs increased in FY 2017 by 6.4% and have decreased 11.6% since fiscal year 2008 as certified by the Seminole County Property Appraiser. In May 2014, a countywide precinct referendum resulted in an additional 1% local government infrastructure sales surtax which will largely be utilized for transportation related infrastructure improvements. The surtax is expected to result in $2.0 million in additional revenues each year. This surtax expires in 2024. The General Fund's FY 2017 adopted expenditure budget of $17,342,723 (inclusive of transfers) showed a slight increase of .06% from the previous year. Additionally, fiscal year 2017 was balanced without the need to appropriate from the fund balance. The total combined expenditure budget of $41,957,633 (inclusive of transfers) is $506,550 or 1.2% less than the adopted budget of FY 2016. 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 and Administrative Services Director, 1126 East State Road 434, Winter Springs, Florida, 32708. The Comprehensive Annual Financial Report is also available at the City of Winter Springs' website located at www.wintersprin-qsfl.org. "THIS SECTION INTENTIONALLY LEFT BLANK' 17 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� BASIC FINANCIAL STATEMENTS This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� GOVERNMENT -WIDE FINANCIAL STATEMENTS This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION September 30, 2017 ASSETS Cash and Cash Equivalents Investments Receivables, net Inventories - at cost Prepaid Costs Restricted Assets: Cash and cash equivalents Investments Receivables, long-term Capital Assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding Deferred Outflow of Pension Earnings LIABILITIES Accounts Payable and Accrued Expenses Due to Other Governments Accrued Interest Payable Liabilities Payable from Restricted Assets Noncurrent Liabilities: Due within one year Due in more than one year Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Pension Earnings NET POSITION Net Investment in Capital Assets Restricted for: Capital projects Debt service Renewal and replacement Physical environment Public safety Unrestricted Total Net Position Governmental Activities $ 3,136,237 25,973,300 205,673 13,087 192,627 69,494 1,795,196 12,055,758 Business -type Activities $ 1,541,154 19,735,805 557,641 7,378 5,200 788,505 718,955 13,301,392 Total $ 4,677,391 45,709,105 763,314 20,465 197,827 857,999 718,955 1,795,196 25,357,150 47,468,173 25,997,171 73,465,344 90,909,545 62,653,201 153,562,746 69,321 332,843 402,164 430,539 97,585 528,124 499,860 430,428 930,288 2,152,362 832,609 2,984,971 - 17,526 17,526 35,521 58,241 93,762 66,504 654,145 720,649 1,274,724 1,773,986 3,048,710 19,105,803 21,842,143 40,947,946 22,634,914 25,178,650 47,813,564 1,852,369 419,855 2,272,224 52,572,866 23,922,366 76,495,232 5,443,457 - 5,443,457 134,380 - 134,380 - 559,725 559,725 7,091,192 - 7,091,192 85,747 - 85,747 1,594,480 13,003,033 14,597,513 $ 66,922,122 $ 37,485,124 $ 104,407,246 The accompanying Notes to Financial Statements are an integral part of these statements. 18 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� Functions/Programs Primary Government Governmental activities General government Public safety Physical environment Culture and recreation Interest on long-term debt Total governmental activities Business -type activities CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF ACTIVITIES For The Year Ended September 30, 2017 Program Revenue Operating Capital Grants Charges for Grants and and Expenses Services Contributions Contributions Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Ac4ivi4iac Ac4ivi4iac Tnfni $ 6,298,191 $ 2,060,609 $ - $ - $ (4,237,582) $ - $ (4,237,582) 6,227,986 1,075,460 44,540 - (5,107, 986) - (5,107, 986) 6,625,371 4,314,761 42,410 2,781,344 513,144 - 513,144 2,044,630 1,079,528 - - (965,102) - (965,102) 635,347 - - - (635,347) - (635,347) 21,831,525 8,530,358 86,950 2,781,344 (10,432,873) - (10,432,873) Water and sewer 7,880,612 10,266,772 - 1,616,801 Development services 665,215 1,968,293 - - Stormwater 941,530 1,167, 567 - - Total business -type activities 9,487,357 13,402,632 - 1,616,801 Total primary government $ 31,318,882 $ 21,932,990 $ 86,950 $ 4,398,145 General Revenues: Property taxes Utility taxes Business tax receipts I ntergovernmental-unrestricted Investment income and miscellaneous Transfers Total general revenues and transfers Change in net position Net Position - beginning Net Position - ending - 4,002,961 4,002,961 - 1,303,078 1,303,078 - 226,037 226,037 - 5,532,076 5,532,076 (10, 432, 873) 5,532,076 (4,900,797) 4,727,435 - 4,727,435 3,879,197 - 3,879,197 122,517 - 122,517 3,706,323 - 3,706,323 616,345 137,405 753,750 1,974,716 (1,974,716) - 15, 026, 533 (1,837,311) 13,189, 222 4,593,660 3,694,765 8,288,425 62, 328, 462 33, 790, 359 96,118, 821 FF Q77 177 R7 ARC; 17d 1 nd dn7 ?AR The accompanying Notes to Financial Statements are an integral part of these statements. 19 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� FUND FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2017 Assets: Cash and cash equivalents Investments Receivables, net Inventories, at cost Prepaids Special assessments receivable Advances to other funds Restricted assets: Cash and cash equivalents Total assets Liabilities and Fund Balances: Accounts payable Accrued liabilities Retainage payable Due to other funds Payable from restricted assets Total liabilities Deferred Inflows of Resources Unavailable revenue -county taxes Unavailable revenue -special assessments Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Special Revenue Road Improvements Solid General Fund Fund Waste/Recycling $ 634,117 $ 361,653 $ 169,702 8,953,716 4,632,056 2,173,549 65,401 754 139,518 13,087 - - 189,824 - - 53,691 - - 66,504 - - $ 9,976,340 $ 4,994,463 $ 2,482,769 $ 718,241 $ 36,517 $ 628,913 664,138 - - 21,174 - - 66,504 - - 1,470,057 36,517 628,913 754 - 754 256,602 - - - 4,957,192 - - 1,002,652 - - 851,204 8,249,681 - - 8,506,283 4,957,192 1,853,856 $ 9,976,340 $ 4,994,463 $ 2,482,769 The accompanying Notes to Financial Statements are an integral part of these statements. 20 Debt Service - 754 1,348,352 Other Total TLBD Debt Governmental Governmental Service Funds Funds - 2,803 259,405 $ 113,304 $ 1,857,461 $ 3,136,237 10,834 10,203,145 25,973,300 - - 205,673 - - 13,087 - 2,803 192,627 1,348,352 446,844 1,795,196 - 1,085,000 1,138,691 - 2,990 69,494 $ 1,472,490 $ 13,598,243 $ 32,524,305 $ 83,379 $ 1,467,050 - 664,138 - 21,174 1,138,691 1,138,691 - 66,504 1,222,070 3,357,557 - - 754 1,348,352 446,844 1,795,196 1,348,352 446,844 1,795,950 - 2,803 259,405 124,138 7,669,889 12,751,219 - 289,601 1,292,253 - 5,086,891 5,938,095 - (1,119,855) 7,129,826 124,138 11,929,329 27,370,798 $ 1,472,490 $ 13,598,243 $ 32,524,305 21 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION September 30, 2017 Total Fund Balance, governmental funds $ 27,370,798 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. 59,523,931 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 1,795,950 Deferred inflows and outflows of resources related to pension earnings are not recognized in the governmental funds, however, they are recorded in net position under full accrual accounting (1,421,830) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (14,092,026) Net pension liabilities are not due and payable in the current period and therefore, are not reported in the funds (6,254,701) Net Position of Governmental Activities in the Statement of Net Position $ 66,922,122 The accompanying Notes to Financial Statements are an integral part of this statement. 22 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2017 Other Financing Sources (Uses) Transfers in 2,321,838 - 500,000 Transfers out (2,172,481) - (16,947) Total other financing sources(uses) 149,357 - 483,053 Net Change in Fund Balances 5,867 597,314 (105,991) Fund Balances - beginning 8,500,416 4,359,878 1,959,847 Fund Balances -ending $ 8,506,283 $ 4,957,192 $ 1,853,856 23 Special Revenue Road Improvements Solid General Fund Fund Waste/Recycling Revenues: Taxes: Property taxes $ 4,595,061 $ - $ - Utility taxes 3,879,197 - - Business tax receipts 122,517 - - Permits and fees 2,007,967 - - Intergovernmental revenues 3,740,892 2,141,605 52,381 Charges for services 773,076 - 2,526,829 Fines and forfeitures 71,078 - - Impact fees/assessments - - - Investment income 71,078 28,567 12,188 Miscellaneous 190,744 - - Total revenues 15,451,610 2,170,172 2,591,398 Expenditures: Current: General government 5,152,382 - - Public safety 6,699,036 - - Physical environment 977,940 5,000 3,180,442 Culture and recreation 1,849,712 - - Debt Service: Principal - - - Interest and fiscal charges - - - Capital Outlay: General government 248,070 - - Public safety 140,838 - - Physical environment 73,595 1,567,858 - Culture and recreation 453,527 - - Total expenditures 15,595,100 1,572,858 3,180,442 Excess (Deficiency) of Revenues Over Expenditures (143,490) 597,314 (589,044) Other Financing Sources (Uses) Transfers in 2,321,838 - 500,000 Transfers out (2,172,481) - (16,947) Total other financing sources(uses) 149,357 - 483,053 Net Change in Fund Balances 5,867 597,314 (105,991) Fund Balances - beginning 8,500,416 4,359,878 1,959,847 Fund Balances -ending $ 8,506,283 $ 4,957,192 $ 1,853,856 23 - Other Total TLBD Debt Governmental Governmental Service Funds Funds $ - $ 132,374 $ 4,727,435 - - 3,879,197 - - 122,517 - 69,245 2,077,212 - 639,739 6,574,617 - 40,813 3,340,718 - 103,543 174,621 85,506 3,076,765 3,162,271 48,040 87,409 247,282 6,525 83,830 281,099 140,071 4,233,718 24,586,969 - 8,454 5,160,836 - 40,291 6,739,327 3,984 889,684 5,057,050 - 15,900 1,865,612 85,506 3,367,822 3,453,328 47,161 101,603 148,764 - 31,962 280,032 - 18,091 158,929 20,993 1,552,016 3,214,462 - 143,882 597,409 157,644 6,169,705 26,675,749 (17,573) (1,935,987) (2,088,780) - 1,672,481 4,494,319 (500) (329,675) (2,519,603) (500) 1,342,806 1,974,716 (18,073) (593,181) (114,064) 142,211 12,522,510 27,484,862 $ 124,138 $ 11,929,329 $ 27,370,798 The accompanying Notes to Financial Statements are an integral part of these statements. 24 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS T( THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2017 Net Change in Fund Balances - total governmental funds: $ (114,064) Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period 577,713 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and disposals) is to decrease net position (4,962) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net 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 3,453,328 Special assessment revenue reported in the funds must be eliminated from the statement of activities since revenue was recognized in a prior year (131,538) Cash pension contributions reported in the funds were more than the calculated pension expense on the statement of activities, and therefore increased net position 1,423,908 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds. (610,725) Change in net position of governmental activities $ 4,593,660 The accompanying Notes to Financial Statements are an integral part of these statements. 25 CITY OF WINTER SPRINGS, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Revenues: Taxes: Property Taxes Utility taxes Business tax receipts Permits and fees: Permits Franchise fees Intergovernmental revenues: Sales tax State revenue sharing Other state shared revenue Other county shared revenue Federal grants Charges for services: Program activity fees Rental and other Fines and forfeitures Investment income Miscellaneous Total revenues For The Year Ended September 30, 2017 The accompanying Notes to Financial Statements are an integral part of these statements. 26 Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final $ 4,587,090 $ 4,587,090 $ 4,595,061 $ 7,971 3,745,000 3,890,000 3,879,197 (10,803) 100,000 120,000 122,517 2,517 8,432,090 8,597,090 8,596,775 (315) 26,000 26,000 21,785 (4,215) 1,988,720 1,988,720 1,986,182 (2,538) 2,014,720 2,014,720 2,007,967 (6,753) 2,340,000 2,366,000 2,366,371 371 1,171,000 1,246,000 1,244,740 (1,260) 35,000 35,000 42,831 7,831 5,000 45,000 42,410 (2,590) - 44,576 44,540 (36) 3,551,000 3,736,576 3,740,892 4,316 235,602 235,602 212,172 (23,430) 509,275 553,429 560,904 7,475 744,877 789,031 773,076 (15,955) 100,000 100,000 71,078 (28,922) 30,000 71,000 71,078 78 45,002 160,977 190,744 29,767 14,917,689 15,469,394 15,451,610 (17,784) The accompanying Notes to Financial Statements are an integral part of these statements. 26 Expenditures: Current: General government: Executive General government Finance and administrative services Information services Community development Public Safety: Police Fire Physical environment: Public works Culture and recreation: Parks and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Net other financing sources Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Actual Budgeted Amounts Amounts Original Final Variance with Final Budget - Positive (Negative) $ 663,235 $ 642,987 $ 642,091 $ 896 756,856 556,974 555,115 1,859 2,010,139 1,945,748 1,851,641 94,107 1,037,043 1,022,384 1,020,600 1,784 1,490,337 1,332,745 1,331,005 1,740 5,957,610 5,500,838 5,400,452 100,386 7,192,155 6,771,137 6,766,010 5,127 65,000 74,000 73,864 136 7,257,155 6,845,137 6,839,874 5,263 1,072,719 1,052,940 1,051,535 1,405 1,983,571 2,307,099 2,303,239 3,860 16,271,055 15,706,014 15,595,100 110,914 (1,353,366) (236,620) (143,490) 93,130 2,425,034 2,425,034 2,321,838 (103,196) (1,070,000) (2,189,362) (2,172,481) 16,881 1,355,034 235,672 149,357 (86,315) 1,668 (948) 5,867 6,815 8,500,416 8,500,416 8,500,416 - $ 8,502,084 $ 8,499,468 $ 8,506,283 $ 6,815 The accompanying Notes to Financial Statements are an integral part of these statements. 27 CITY OF WINTER SPRINGS, FLORIDA ROAD IMPROVEMENTS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Other Financing Sources (Uses) Transfers out (212,000) - - Total other financing sources (uses) (212,000) - - Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending (666,500) (52,378) 597,314 649,692 4,359,878 4,359,878 4,359,878 - $ 3,693,378 $ 4,307,500 $ 4,957,192 $ 649,692 The accompanying Notes to Financial Statements are an integral part of these statements. 28 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenues $ 2,351,786 $ 2,007,000 $ 2,141,605 $ 134,605 Investment income 10,500 10,500 28,567 18,067 Total revenues 2,362,286 2,017,500 2,170,172 152,672 Expenditures: Current: Physical environment 105,000 105,000 5,000 100,000 Capital Outlay Physical environment 2,711,786 1,964,878 1,567,858 397,020 Total expenditures 2,816,786 2,069,878 1,572,858 497,020 Excess (Deficiency) of Revenues Over Expenditures (454,500) (52,378) 597,314 649,692 Other Financing Sources (Uses) Transfers out (212,000) - - Total other financing sources (uses) (212,000) - - Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending (666,500) (52,378) 597,314 649,692 4,359,878 4,359,878 4,359,878 - $ 3,693,378 $ 4,307,500 $ 4,957,192 $ 649,692 The accompanying Notes to Financial Statements are an integral part of these statements. 28 CITY OF WINTER SPRINGS, FLORIDA SOLID WASTE/RECYCLING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Intergovernmental revenues Charges for services Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balances - beginning Fund Balances - ending 2,611,535 3,371,612 3,180,442 Variance with 2,611,535 3,371,612 3,180,442 Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final 500,000 500,000 $ 44,640 $ 44,640 $ 52,381 $ 7,741 2,473,200 2,513,200 2,526,829 13,629 6,000 6,000 12,188 6,188 2,523,840 2,563,840 2,591,398 27,558 2,611,535 3,371,612 3,180,442 191,170 2,611,535 3,371,612 3,180,442 191,170 (87,695) (807,772) (589,044) 218,728 - 500,000 500,000 - (16,947) (16,947) (16,947) - (16,947) 483,053 483,053 - (104,642) (324,719) (105,991) 218,728 1,959,847 1,959,847 1,959,847 - $ 1,855,205 $ 1,635,128 $ 1,853,856 $ 218,728 The accompanying Notes to Financial Statements are an integral part of these statements. 29 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS Assets Current assets: Cash and cash equivalents Investments Receivables, net Inventories Prepaid expense Restricted cash and cash equivalents Total current assets Noncurrent assets: Restricted investments Capital Assets: Land, buildings and equipment Construction in Progress Less Accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Deferred Outflows of Resources Deferred charge on refunding Deferred outflow pension earnings Total deferred outflows of resources September 30, 2017 Business -type Activities - Enterprise Funds Water an Sewer Utility Development Stormwater Fund Services Fund Utility Fund Total $ 1,262,263 $ 219,814 16,165, 040 2,814,099 460,161 - 7,378 - 5,200 - 788,505 - 18, 688, 547 3,033,913 718,955 - 62, 740, 988 160,900 6,042,267 - (36,408,409) (141,175) 32, 374, 846 19,725 33, 093, 801 19,725 51, 782, 348 3,053,638 $ 59,077 $ 1,541,154 756,666 19, 735, 805 97,480 557,641 - 7,378 - 5,200 - 788,505 913,223 22,635,683 - 718,955 12,516,450 75,418,338 88,948 6,131,215 (5,701,406) (42,250,990) 6,903,992 39, 298, 563 6,903,992 40, 017, 518 7,817,215 62,653,201 332,843 - - 332,843 78,101 8,686 10,798 97,585 410,944 8,686 10,798 430,428 The accompanying Notes to Financial Statements are an integral part of these statements. 30 Liabilities Current Liabilities: Accounts payable Retainage payable Accrued liabilities Compensated absences - current Customer deposits payable Due to other governments Notes payable - current Accrued interest payable Total current liabilities Noncurrent Liabilities: Notes payable Revenue bonds payable Accreted interest payable Compensated absences Other noncurrent liabilities Net pension liability Total noncurrent liabilities Total liabilities Deferred Inflows of Resources Deferred inflow pension earnings Total deferred outflows of resources NET POSITION Net investment in capital assets Restricted for debt service Restricted for renewal and replacement Unrestricted Total net position Business -type Activities - Enterprise Funds Water an Sewer Utility Development Stormwater Fund Services Fund Utility Fund Total 458,970 44,343 22,446 525,759 87,475 - - 87,475 164,171 34,422 20,782 219,375 22,500 1,100 4,900 28,500 654,145 - - 654,145 - 17,526 - 17,526 1,745,486 - - 1,745,486 58,241 - - 58,241 3,190, 988 97,391 48,128 3,336,507 8,308,069 - - 8,308,069 5,655,485 - - 5,655,485 6,161,154 - - 6,161,154 89,790 4,512 19,715 114,017 134,061 18,404 33,274 185,739 1,134, 622 126,185 156,872 1,417,679 21, 483,181 149,101 209,861 21, 842,143 24,674,169 246,492 257,989 25,178,650 336,026 37,370 46,459 419,855 336,026 37,370 46,459 419,855 16, 998, 649 19,725 559,725 - 9,624,723 2,758,737 $ 27,183, 097 $ 2,778,462 6,903,992 23, 922, 366 - 559,725 619,573 13, 003, 033 $ 7,523,565 $ 37, 485,124 The accompanying Notes to Financial Statements are an integral part of these statements. 31 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For The Year Ended September 30, 2017 Operating Revenues: User charges Other revenue Total operating revenues Operating Expenses: Salaries and benefits Materials and supplies Depreciation and amortization Other operating expenses Total Operating Expenses Operating income (loss) Nonoperating Revenue (Expenses): Investment income Interest expense Accreted interest expense Proceeds from auction and insurance Total nonoperating revenue (expenses) Income (loss) before contributions and transfers Capital Contributions: Connection fees Capital contribution Transfers In Transfers Out Change in net position Total Net Position - beginning Total Net Position - ending Business -type Activities - Enterprise Funds Water and Sewer Development Stormwater 4,052,680 Utility Fund Services Fund Utility Fund Total $ 10,266,772 $ 1,968,276 $ 1,042,363 $ 13,277,411 - 17 125,204 125,221 10,266,772 1,968,293 1,167,567 13,402,632 2,075,175 322,687 305,424 2,703,286 1,214,979 6,278 177,826 1,399,083 2,124,789 17,366 426,875 2,569,030 1,464,728 318,884 31,405 1,815,017 6,879,671 665,215 941,530 8,486,416 3,387,101 1,303,078 226,037 4,916,216 104,024 16,107 4,830 124,961 (434,612) - - (434,612) (566,329) - - (566,329) 5,719 - 6,725 12,444 (891,198) 16,107 11,555 (863,536) 2,495,903 1,319,185 237,592 4,052,680 777,913 - - 777,913 838,888 - - 838,888 42,813 - - 42,813 (1,480,469) (365,760) (171,300) (2,017,529) 2,675,048 953,425 66,292 3,694,765 24,508,049 1,825,037 7,457,273 33,790,359 $ 27,183,097 $ 2,778,462 $ 7,523,565 $ 37,485,124 The accompanying Notes to Financial Statements are an integral part of these statements. 32 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2017 The accompanying Notes to Financial Statements are an integral part of these statements. 33 Business -type Activities - Enterprise Funds Water and Development Sewer Utility Services Stormwater Fund Fund Utility Fund Total Cash Flows from Operating Activities: Receipts from customers $ 10,222,069 $ 1,968,293 $ 1,117,883 $ 13,308,245 Payments to suppliers (2,550,002) (276,346) (225,815) (3,052,163) Payments to employees (2,162,215) (217,349) (591,628) (2,971,192) Net cash provided by operating activities 5,509,852 1,474,598 300,440 7,284,890 Cash Flows from Noncapital Financing Activities: Transfers in 42,813 - - 42,813 Transfers out (1,480,469) (365,760) (171,300) (2,017,529) Net cash provided (used) by noncapital financing activities (1,437,656) (365,760) (171,300) (1,974,716) Cash Flows from Capital and Related Financing Activities: Proceeds from insurance 5,719 - 6,725 12,444 Acquisition of capital assets (5,891,270) (13,664) (30,351) (5,935,285) Debt proceeds 2,881,540 2,881,540 Principal paid (822,719) - - (822,719) Interest paid (306,207) - - (306,207) Connection fees 777,913 - - 777,913 Net cash provided (used) by capital and related financing activities (3,355,024) (13,664) (23,626) (3,392,314) Cash Flows from Investing Activities: Sale (purchase) of investments 318,260 (992,261) (88,213) (762,214) Investment income 104,024 16,107 4,830 124,961 Net cash provided (used) by investing activities 422,284 (976,154) (83,383) (637,253) Net Increase (Decrease) in Cash and Cash Equivalents 1,139,456 119,020 22,131 1,280,607 Cash and Cash Equivalents - beginning 911,312 100,794 36,946 1,049,052 Cash and Cash Equivalents - end $ 2,050,768 $ 219,814 $ 59,077 $ 2,329,659 Classified As: Cash and cash equivalents $ 1,262,263 $ 219,814 $ 59,077 $ 1,541,154 Restricted cash 788,505 - - 788,505 Total $ 2,050,768 $ 219,814 $ 59,077 $ 2,329,659 The accompanying Notes to Financial Statements are an integral part of these statements. 33 Reconciliation of Operating Income(Loss) to Net Cash Provided by Operating Activities Operating income(loss) Adjustments Not Affecting Cash: Depreciation and amortization Change in Assets and Liabilities: Decrease (increase) in accounts receivable Decrease in inventories Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Decrease in due to other governments Increase in accrued liabilities Decrease in customer deposits Increase (decrease) in accrued compensated absences Decrease in deferred pension outflow Decrease in deferred pension inflow Decrease in net pension liability Increase in OPEB obligation Total adjustments Net Cash Provided By Operating Activities Noncash Capital and Financing Activities: Contributed capital assets Business -type Activities - Enterprise Funds Water and Development Sewer Utility Services Stormwater 2,124,789 17,366 426,875 2,569,030 (35,226) - (49,684) (84,910) (592) - - (592) (5,200) - - (5,200) 135,497 37,461 (16,584) 156,374 - 11,355 - 11,355 99,732 23,642 2,659 126,033 (9,477) - - (9,477) (27,988) (16,208) (3,260) (47,456) (35,622) (7,691) 1,886 (41,427) 332,325 37,376 45,414 415,115 (472,107) 66,422 (337,395) (743,080) 16,620 1,797 4,492 22,909 (2,038) 154,154 (352,472) (200,356) $ 5,509,852 $ 1,474,598 $ 300,440 $ 7,284,890 $ 838,888 $ 34 - $ - $ 838,888 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2017 Assets: Cash and cash equivalents Receivables: Employer contributions Total receivables Investments, at fair value: Common funds - equity Common funds - bonds Other investments Total Investments Total assets Liabilities Net Position: Net position restricted for pensions Defined Benefit Pension Trust Fund $ 600,121 431,805 431,805 32,193,323 8,466,739 6,399,597 47,059,659 48,091,585 $ 48,091,585 The accompanying Notes to Financial Statements are an integral part of these statements. 35 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For The Year Ended September 30, 2017 Investment income: Net decrease in fair value of investments 5,184,094 Interest 820,206 Net investment income 6,004,300 Total additions 8,952,262 Deductions: Benefits 2,679,406 Administrative expenses 208,505 Total deductions 2,887,911 Change in net position Defined Benefit Net Position - beginning Pension Trust Net Position - ending Fund Additions: Contributions: Employer $ 2,636,331 Plan Members 311,631 Total contributions 2,947,962 Investment income: Net decrease in fair value of investments 5,184,094 Interest 820,206 Net investment income 6,004,300 Total additions 8,952,262 Deductions: Benefits 2,679,406 Administrative expenses 208,505 Total deductions 2,887,911 Change in net position 6,064,351 Net Position - beginning 42,027,234 Net Position - ending $ 48,091,585 The accompanying Notes to Financial Statements are an integral part of these statements. 36 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� NOTES TO FINANCIAL STATEMENTS CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2017 Note 1 - Summary of Significant Accounting Policies: A. Reporting Entity The City of Winter Springs, Florida (the City) is a political subdivision of the state of Florida located in Seminole County, and was established by the Laws of Florida 59-1614. The legislative branch of the City is comprised of a five -member elected Commission and a separately elected mayor, which is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager appointed by the Commission. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no component units to be included within the reporting entity. B. 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 nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. 37 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): B. Government -Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The government reports the following funds: Major Governmental Funds The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Road Improvements Special Revenue Fund accounts for collected one -cent sales tax revenues restricted for use for transportation, safety, capacity and infrastructure consistent with 212.055, F.S. The 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. The TLBD Debt Service Fund was established to account for the accumulation of resources and payment of principal and interest for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable. Nonmaior 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. 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. W CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Major Proprietary Funds The Water and Sewer Utility Fund is used to account for the operations of the City's water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. The Development Services Fund is used to account for the operations of the City's building and other permits department, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. The Stormwater Utility Fund is used to account for the City's operation and maintenance of the stormwater system, where the costs, including depreciation, of providing services to the general public are financed primarily through user charges. Fiduciary Fund The Pension Trust Fund accounts for contributions to the defined benefit plan. As a general rule the effect of interfund activity has been eliminated from the government - wide financial statements. Exceptions to this general rule are other charges between the City's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, sewer and stormwater utility funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. .8 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of 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 GASB Statement No. 72, Fair Value Measurement and Application. 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 41 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 2. Receivables and Payables (Continued) All receivables are shown net of an allowance for uncollectibles. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. 3. Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. These are recorded as expenditures when consumed rather than when purchased. 4. 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 balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 42 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government - wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at 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 included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 30 Improvements 20-50 Infrastructure 30-50 Intangible Assets 3-10 Equipment 3-10 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the government does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences, other post - employment benefits and net pension obligation are generally liquidated by the General Fund. 43 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 7. Long-term obligations In the government -wide financial statements, and for proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net 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. 8. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. The deferred charge on refunding and deferred outflows of pension earnings reported in the enterprise and government - wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 8. Deferred outflows/inflows of resources (continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: county taxes and special assessments. 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 earnings reported in the enterprise and government -wide statement of net position. 9. 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. 10. 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. 45 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 1 - Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 11. 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 the specific purposes determined by a formal action of the government's highest level of decision making authority. The City Commission is the highest level of decision making authority for the City that can, by adoption of a Resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The commission may assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. The General Fund is the only fund that reports a positive unassigned fund balance. However, in other governmental funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. M. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net 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 ($14,092,026) difference are as follows: Bonds Payable Accreted Interest Payable $ (3,498,970) (5,874,766) Notes Payable (3,520,632) Less: Deferred charge on refunding (to be amortized as interest expense) 69,321 Accrued Interest Payable (35,521) Other Post Employment Benefits (544,261) Compensated Absences (687,197) Net Adjustment to Reduce Fund Balance - total governmental funds to arrive at net position - governmental activities $(14,092,026) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $577,713 difference are as follows: Capital Outlay $ 4,250,832 Depreciation Expense (3,673,119) Net Adjustment to Decrease Net Changes in Fund Balances - total governmental funds to arrive at changes in net position - governmental activities $ 577,713 47 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 2 - Reconciliation of Government -Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities (Continued) Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net 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 $3,453,328 difference are as follows: Debt Issued or Incurred Principal repayment $ 3,453,328 Net Adjustment to Increase Net Changes in Fund Balances - total governmental funds to arrive at changes in net position - governmental activities $ 3,453,328 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 ($610,725) difference are as follows: Compensated Absences $ (63,051) Amortization of Loss on Refunding (7,752) Accrued Interest Payable 28,886 Other Post Employment Benefits (61,091) Accreted Interest Payable (507,717) Net Adjustment to Decrease Net Changes in Fund Balances- total governmental funds to arrive at changes in net position - governmental activities $ (610,725) EM CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 3 - Stewardship, Compliance, and Accountability: A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. On or before July 1St of each year, the City Manager submits a Proposed Budget to the City Commission for the fiscal year beginning the following October 1St. 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 30th of each year, two public hearings are convened and the Commission establishes the ad valorem tax millage followed by the adoption of the final budget. 4. The budget may be formally amended by the City Commission at any time. Budgeted amounts presented in the accompanying financial statements have been adjusted for any legally authorized revisions of the annual budgets during the year. 5. The City Manager is authorized to transfer budgeted amounts between accounts within a department. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered appropriations among programs within one department. The legal level of budgetary control is the departmental level. B. Appropriations in Excess of Funds Available Appropriations for the Tuscawilla Phase III Special Revenue Fund and Oak Forest Debt Service Fund were in excess of anticipated revenue and prior years' fund balance. C. Deficit Fund Equity As a result of the internal loan, the Tuscawilla Phase III Special Revenue Fund has a deficit fund balance of $45,712 at September 30, 2017. As a result of the internal loan, the Central Winds Go Debt Service Fund has a deficit fund balance of $1,074,143 at September 30, 2017. i • CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments: Deposits At year-end, the carrying amount of the City's deposits was $5,448,624 and the bank balance was $4,685,621. Petty cash funds of $1,810 are not on deposit with a financial institution, and fiduciary fund cash of $600,121 held by the pension fund is not in the City's bank. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories". Investments The City's investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. Florida Local Government Surplus Funds Trust Fund Investment Pool (SBA LG I P) 2. U.S. Government securities 3. U.S. Government Agency securities 4. Federal Instrumentalities (U.S. Government sponsored agencies) 5. Interest bearing time deposit or savings accounts 6. Repurchase agreements 7. Commercial paper 8. Bankers' acceptances 9. State and/or local government taxable and/or tax-exempt debt 10. Registered investment companies (money market mutual funds) 11. Intergovernmental investment pool The City's investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investment in federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency and that investments in money market mutual funds have a Standard & Poors (S & P) rating of AAm or AAm-G. Investments in commercial paper and bankers' acceptances must berated, at a minimum, "P-1" by Moody's Investors Services and "A-1" by S & P. Investment in state and/or local government taxable and/or tax-exempt debt must be rated at least "Aa" by Moody's and "AX by S & P for long-term debt, or rated at least "MIG -2" by Moody's and "SP -2" by S & P for short-term debt. 50 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments (Continued): Investments (Continued) Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The city's investment policy requires that the bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2017, 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, 2017, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. Concentration of Credit Risk The City's investment policy requires diversification, and places limits on the percentage of funds that may be invested with an individual issuer and type of investment. Interest Rate Risk The policy limits investment in U.S. Government securities and agencies and federal instrumentalities to a maximum length to maturity of five years. The maximum length to maturity for an investment in any state or local government debt security is three years. Certificates of deposit maximum maturity is one year and commercial paper and bankers' acceptances are 180 days. The maximum length to maturity for repurchase agreements is 90 days. Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The City uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. 51 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments (Continued): Investments (Continued) Fair Value (Continued) 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 includes the City's own data in measuring unobservable inputs. The City has the following recurring fair value measurements as of September 30, 2017: Investments Valued by Fair Value Level Commercial Paper US Treasury Notes Federal Agency Bond Note Fidelity Institutional Money Market Government Portfolio Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs (Level 1) (Level 2) $ 6,957,855 $ - $ 6,957,855 21,119, 843 21,119, 843 - 17,631,410 - 17,631,410 803,908 - 803,908 $46,513,016 $ 21,119, 843 $ 25, 393,173 Investments held by the City at September 30, 2017 are detailed below. Investments Fair Value Commercial Paper $ 6,957,855 US Treasury Notes 21,119, 843 Federal Agency Bond Note 17,631,410 Fidelity Institutional Money Market Government Portfolio 803,908 Z� 40, O l 3, U I D 52 Weighted Credit Average Rating Maturity A-1 45 days AA+ 418 days AA+ 261 days Not rated CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds The City's Pension Trust Fund (Trust) investment policies are governed by State Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. 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 STIF 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 The investments held by the City's Pension Trust Fund at September 30, 2017 are detailed below: Investments Stoc ks Bonds Other Investments Total Investments Cash and Cash Equivalents Total Cash and Investments Fair Value $ 32,193, 323 8,466,739 6,399,597 47, 059, 659 600,121 $ 47,659,780 53 Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs (Level1) (Level2) $ 32,193, 323 $ - 32,193, 323 8,466,739 6,399,597 14, 866, 336 $ 32,193, 323 $ 14, 866, 336 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds (Continued) Credit Risk The City's Trust investment policy limits credit risk by restricting authorized investment to those described above. The policy requires that the investments in: federal instrumentalities be guaranteed by the full faith and credit of the U.S. Government sponsored agency; deposit accounts be insured by the Federal Deposit Insurance Corporation and may not exceed maximum insured amount; commercial paper be rated in the highest category by a nationally recognized rating service; Letters of Credit (LOC) backing commercial paper, the long-term debt of the LOC provider be rated A or better by at least two nationally recognized rating services; bankers' acceptances of the United States Banks or federally chartered domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, be rated in the highest category by a nationally recognized rating service; General Obligation and/or Revenue Bonds of state or local government taxable or tax-exempt debt be rated A, for long-term debt, by a nationally recognized rating service or rated "MIG -2" or "SP -2", for short term debt, by a nationally recognized rating service; intergovernmental investment pools be authorized to the Florida Interlocal Cooperation Act provided in Section 163.01, Florida Statutes; equities be traded on a national exchange; money market mutual funds have a rating of "Al" by Standard & Poor's (S&P) or "P1" by Moody's Investor Services (Moody's); fixed income securities be investment grade as measured by S&P or Moody's; and any bonds or notes that fall below investment quality must be liquidated immediately. Custodial Credit Risk Custodial risk is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2017, 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, 2017, there were no security investments in the Trust that were over their respective limitations. 54 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 4 - Deposits and Investments (Continued): Investments: Pension Funds (Continued) Interest Rate Risk The Pension investment policy allows for investment in commingled funds administered by national or state banks, and mutual funds. Authorized investments criteria with the exception of commingled funds, apply to security level investments. All fixed income investments in the Pension portfolio are commingled funds. The Pension fixed income portfolio may be invested in securities with a maturity up to (30) years, 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 nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Fund General Road Improvements Special Revenue Solid Waste/Recycling Special Revenue Water & Sewer Utility Stormwater Utility Accounts Receivable $ 66,303 754 148,622 502,369 Allowance for Uncollectible Accounts Net Receivable (902) $ 65,401 754 (9,104) 139,518 (42, 208) 460,161 100,390 (2,910) 97,480 $ 818,438 $ (55,124) $ 763,314 There is an amount of $754 included in accounts receivable above in the Road Improvements Special Revenue Fund that is not considered to be available to liquidate liabilities of the current period. There are also special assessments receivable of $1,795,196 that are not available to liquidate liabilities of the current period. These receivables totaling $1,795,950 are reported as deferred inflows of resources in the governmental funds balance sheet. 55 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 6 - Capital Assets: Capital asset activity for the year ended September 30, 2017 was as follows: Less accumulated depreciation for: Buildings Beginning (380,137) - Ending Improvements Balance Increases Decreases Balance Governmental Activities: (1,011,462) (24,016) 558,451 (477,027) Capital assets, not being (5,840,218) (622,457) 142,833 (6,319,842) depreciated: (34,213,747) (2,156,975) - (36,370,722) Land $ 9,946,795 $ - $ - $ 9,946,795 Construction in Progress 2,937,029 3,595,894 (4,423,960) 2,108,963 Total capital assets, not being depreciated, net depreciated 12,883,824 3,595,894 (4,423,960) 12,055,758 Capital assets, being depreciated: Governmental activities capital Buildings 12,819,340 712,150 - 13,531,490 Improvements 12,520,723 2,150,903 (21,023) 14,650,603 Intangible assets 1,029,378 118,771 (558,451) 589,698 Machinery and equipment 7,664,934 604,246 (142,833) 8,126,347 Infrastructure 65,584,129 1,492,828 - 67,076,957 Total capital assets, being depreciated 99,618,504 5,078,898 (722,307) 103,975,095 Less accumulated depreciation for: Buildings (6,312,177) (380,137) - (6,692,314) Improvements (6,173,544) (489,534) 16,061 (6,647,017) Intangible assets (1,011,462) (24,016) 558,451 (477,027) Machinery and equipment (5,840,218) (622,457) 142,833 (6,319,842) Infrastructure (34,213,747) (2,156,975) - (36,370,722) Total accumulated depreciation (53,551,148) (3,673,119) 717,345 (56,506,922) Total capital assets, being depreciated, net 46,067,356 1,405,779 (4,962) 47,468,173 Governmental activities capital assets, net $58,951,180 $5,001,673 $(4,428,922) $59,523,931 56 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 6 - Capital Assets (Continued): Business -type Activities: Capital assets, not being depreciated: Land Construction in Progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings I mprovements I ntangi ble assets Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for: Buildings I mprovements I ntangi ble assets Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net September 30, 2017 Beginning Ending Balance Increases Decreases Balance $ 7,170,177 $ - $ - $ 7,170,177 794,847 5,732,669 (396,301) 6,131,215 7,965,024 5,732,669 (396,301) 13,301,392 818,362 - - 818,362 62,200,564 1,297,070 - 63,497,634 218,523 13,664 (74,359) 157,828 3,721,307 192,051 (139,021) 3,774,337 66, 958, 756 1,502,785 (213, 380) 68, 248,161 (639,644) (25,992) - (665,636) (36,008,692) (2,321,273) - (38,329,965) (184,710) (22,544) 74,359 (132,895) (3,062,294) (199,221) 139,021 (3,122,494) (39,895,340) (2,569,030) 213,380 (42,250,990) 27,063,416 (1,066,245) - 25,997,171 $ 35,028,440 $ 4,666,424 $ (396,301) $ 39,298,563 57 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 6 - Capital Assets (Continued): Depreciation expense was charged to functions/programs as follows: Governmental Activities General government 1,358,733 Public safety 306,556 Physical environment 1,645,358 Culture and recreation 362,472 Total Depreciation Expense - governmental activities $ 3,673,119 Business -type Activities Water and sewer $ 2,124,789 Development services 17,366 Stormwater 426,875 Total Depreciation Expense - business -type activities $ 2,569,030 Note 7- Long -Term Debt: Revenue Bonds The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business -type activities. The 1999 Improvement Refunding Bonds are secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $14,025,000. For the fiscal year, there was no principal and interest paid on this series and total pledged revenue was $5,691,585. 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 $19,555,625. For the fiscal year, principal and interest paid on this series was $103,125 and total pledged net revenue was $4,919,358. 58 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Revenue Bonds (Continued) The original amount of revenue bonds issued in prior years, as well as revenue bonds outstanding at year end, are as follows: Interest Balance Rates and Original September 30, Dates Maturity Amount 2017 Governmental Activities Improvement Refunding Revenue Bonds- Series 1999 10/1/2020 (excludes $5,874,766 of accreted 3.25-5.25% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2029 $ 7,998,970 $ 3,498,970 Total $ 3,498,970 Business -Type Activities Water and Sewer Refunding Revenue Bonds- Series 2000 10/1/2022 (excludes $6,151,154 of accreted 4.5-5.5% to interest on capital appreciation bonds) (4/1 & 10/1) 10/1/2030 $ 6,969,191 $ 5,669,191 Total $ 5,669,191 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 2018 $ - $ - $ - $ 103,125 2019 - 428,559 - 103,125 2020 417,881 869,161 - 103,125 2021 393,797 892,220 - 1,045,627 2022 371,765 913,671 397,498 1,455,488 2023-2027 1,568,569 4,850,119 2,313,075 7,717,500 2028-2031 746,958 2,572,300 2,958,618 3,358,444 $ 3,498,970 $ 10, 526, 030 $ 5,669,191 $ 13, 886, 434 59 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Notes Payable The City issued a Special Assessment Revenue Note Series 2006, in the amount of $430,000 to provide financing for the Tuscawilla Lighting and Beautification Project, Phase II. The Special Assessment Revenue Note Series 2006 is secured by a first lien and pledge of assessments levied on the property within the assessed area. For the fiscal year, principal and interest paid on this series was $30,120 and total pledged revenue was $26,478. This loan was paid in full during the year ended September 30, 2017. The 2011 Improvement Refunding Revenue Note is secured by Electric Franchise fees and Public Service tax revenue. The total principal and interest remaining to be paid on this series is $469,190. For the fiscal year, principal and interest paid on this series was $219,559 and total pledged revenue was $5,691,585. 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 total principal and interest remaining to be paid on this series is $1,726,028. For the fiscal year, principal and interest was paid on this series was $132,667 and total pledged revenue was $133,546. The 2012 Limited General Obligation Refunding Note is secured a pledge of the faith, credit and taxing power of the City, provided that the levy of ad valorem taxes by the City in each year for the payment of debt service on the Note shall not exceed one quarter (1/4) of one mil on all of the taxable property in the City. Total principal and interest remaining on this series of $2,354,834 was paid during the fiscal year and total pledged revenue was $132,374. This Note was fully paid off in January 2017. The 2014 Improvement Refunding Revenue Notes are secured by Public Service tax revenue. The total principal and interest remaining to be paid on this series is $1,668,590. For the fiscal year, principal and interest paid was $837,159 and total pledged revenue was $3,879,197. W CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) The 2016 Water and Sewer System Revenue Refunding Note Payable is secured by net revenue from the water and sewer system. The total principal and interest remaining to be paid on this series is $5,875,184. For the fiscal year, principal or interest paid was $793,772 and total pledged revenue was $4,919,358. In April 2012, the City executed Clean Water State Revolving Fund Loan agreement WW590600 for the Lake Jessup reclaimed water augmentation facility. The agreement provides for total funding of $2,831,985. The loan period is for 20 years with an interest rate of 2.77 percent. The note is secured by gross revenues from the water and sewer utility net of operation and maintenance costs. The total principal and interest remaining to be paid on this series is $1,742,713. For the fiscal year, principal and interest paid on this series was $113,706 and total pledged net revenue was $4,816,233. 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 $5,952,000. The loan period is for 20 years with an interest rate of .72 percent. The note is secured by gross revenues from the water and sewer utility net of operations and maintenance costs. The principal and interest to be paid on this series is $2,978,339. The first payment on this loan is due December 15, 2017. THIS SECTION INTENTIONALLY LEFT BLANK 61 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) The City has notes payable for both governmental and business -type activities. Outstanding notes payable at year end are as follows: Governmental Activities Improvement Refunding Revenue Note, Series 2011 - payable in annual principal installments starting 10/1/11 through 10/1/18 and interest paid semi-annually at 2.36% Special Assessment Refunding Revenue Note, Series 2011 - payable in annual principal installments starting 10/1/12 through 10/1/29 and interest paid semi-annually at 3.25% Improvement Refunding Revenue Note, Series 2014 - payable in annual principal installments starting 10/1/14 through 10/1/18 and interest paid semi-annually at 0.88% THIS SECTION INTENTIONALLY LEFT BLANK 62 $ 458,280 1,408,352 1,654,000 $ 3,520,632 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Notes Payable (Continued) Business -Type Activities Water and Sewer System Revenue Refunding Note, Series 2016 - payable in annual principal installments starting 4/1/17 through 10/1/2021 and interest paid semi-annually at 3.28% $ 5,747,000 SRF loan- payable in semi-annual principal and interest installments starting 4/15/13, with interest paid semi-annually at 2.77% 1,425,015 2017 SRF loan- payable in semi-annual principal and interest installments starting 12/15/17, with interest paid semi-annually at .72% 2,881,540 $ 10,053,555 Annual debt service requirements to maturity for notes payable are as follows: Year Ending September 30, 2018 2019 2020 2021 2022 2023-2027 2028-2032 2033 Governmental Activities Principal Interest $ 1,137, 724 $ 63,409 1,157, 512 47,750 97,062 38,248 95,604 35,117 99,099 31,953 555,463 107,974 378,168 18,725 $ 3,520,632 $ 343,176 63 Business-Tvpe Activities Principal Interest $ 1,745,486 $ 142,654 1,888,579 118,561 1,914,783 93,651 1,344,062 72,384 569,417 64,098 1,945,216 251,856 589,934 52,348 56,078 - $ 10, 053, 555 $ 795,552 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 7 - Long -Term Debt (Continued): Changes in Long -Term Liabilities Long-term liability activity for the year ended September 30, 2017 was as follows: .' Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable - Revenue bonds $ 3,498,970 $ - $ - $ 3,498,970 $ - Accreted Interest Payable 5,367,049 507,717 - 5,874,766 - Notes Payable - (14,760) - 1,054 (13,706) - Capital improvement notes 4,661,331 - (1,140,699) 3,520,632 1,137,724 Limited general obligation note 2,312,629 566,329 (2,312,629) - - Total notes payable 6,973,960 - (3,453,328) 3,520,632 1,137,724 Other Post Employment Benefits 483,170 61,091 - 544,261 - Net Pension Obligation 9,393,991 - (3,139,290) 6,254,701 - Compensated Absences 624,146 687,197 (624,146) 687,197 137,000 Governmental activity long- 2,160,759 - (743,080) 1,417,679 - term liabilities $ 26,341,286 $ 1,256,005 $ (7,216,764) $ 20,380,527 $ 1,274,724 .' Beginning Ending Due Within Balance Additions Reductions Balance One Year Business -type Activities: Bonds Payable - Revenue bonds $ 5,669,191 $ - $ - $ 5,669,191 $ - Less deferred amounts: Issuance discounts (14,760) - 1,054 (13,706) - Total bonds payable 5,654,431 - 1,054 5,655,485 - AccretedlnterestPayable 5,594,825 566,329 - 6,161,154 - Notes Payable - Revenue notes 6,497,000 - (750,000) 5,747,000 1,506,000 SRF Loan 1,497,734 2,881,540 (72,719) 4,306,555 239,486 Other Post Employment Benefits 162,830 22,909 - 185,739 - Net Pension Obligation 2,160,759 - (743,080) 1,417,679 - Compensated Absences 189,973 142,517 (189,973) 142,517 28,500 Governmental activity long- term liabilities $ 21,757,552 $ 3,613,295 $ (1,754,718) $ 23,616,129 $ 1,773,986 .' CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 8 - Interfund Receivables, Payables and Transfers: The composition of interfund advances as of September 30, 2017 is as follows: Receivable Fund Payable Fund Amount General Other Governmental Funds $ 53,691 Other Governmental Other Governmental Funds 1,085,000 $ 1,138,691 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 $17,100 in prepayments were received for a net interfund loan of $63,720. The terms of the note are 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 interfund loan with the Excellence in Customer Service fund due to Central Wind GO DSF, in the amount of $1,085,000. The terms of the note are 0% for 20 years. Interfund transfers for the year ended September 30, 2017 are summarized below: Transfers In $ 2,321,838 $ 500,000 $ 1,672,481 $ 42,813 $ 4,537,132 65 Other Water and Governmental Sewer Utility Transfers Out General Fund Solid Waste Funds Fund Total General Fund $ - $ 500,000 $ 1,672,481 $ - $ 2,172,481 TLBD Debt Service 500 - - - 500 Solid Waste/Recycling - Special Revenue Fund 16,947 - - - 16,947 Other Governmental Funds 292,862 - - 36,813 329,675 Water and Sewer Utility Fund 1,480,469 - - - 1,480,469 Development Services Fund 365,760 - - - 365,760 Stormwater Utility Fund 165,300 - - 6,000 171,300 $ 2,321,838 $ 500,000 $ 1,672,481 $ 42,813 $ 4,537,132 65 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 8 - Interfund Receivables, Payables and Transfers (Continued): Interfund transfers for the year ended September 30, 2017 are detailed below: Recipient Fund Arnount Purpose Transfer from General Fund to Pay Debt Service 1999/2011 Debt Service Fund $ 236,000 expenses on the Improvement Refunding Revenue Note series 2011 Transfer from General Fund to Pay Debt Service 2003/ 2014 Debt Service Fund 834,000 expenses on the Improvement Refunding Revenue Note series 2014 Transfer from General Fund to prepare for Torcaso field Public Facilities 555,000 house project. Transfer from General Fund for storm reserve Solid Waste/Recycling 500,000 (Hurricane Matthew/Irma). Transfer from General Fund for Sam Smith park project Parks Impact 47,481 and impact analytis. Transfer from Water and Sewer Utility Fund for the General Fund 1,480,469 Utility Billing division budget, fair share portion of central service costs General Fund 365,760 Transfer from Development services Fund for direct administrative expense and central service costs Transfer from TLBD Phase I Maintenance Special General Fund 36,415 Revenue Fund for City Clerk, Urban Beautification Coordinator and other central costs allocation Transfer from Oak Forest Maintenance Special General Fund 7,853 Revenue Fund for City Clerk, Urban Beautification Coordinator and other central costs allocation Transfer form Solid Waste/Recycling Special Revenue General Fund 16,947 Fund for Urban Beautification General Fund 15,750 Transfer from Arbor Fund for urban forestry services. Transfer from Stormwater Utility Fund for fair share General Fund 165,300 portion of central service costs General Fund 500 Transfer from Oak Forest Debt Service fund for administration fees. General Fund 500 Transfer from TLBD Debt Service Fund for administration fees. General Fund 500 Transfer from TLBD Phase II Debt Service Fund for administration fees. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 8 - Interfund Receivables, Payables and Transfers (Continued): Recipient Fund Amount Purpose Transfer from Tuscawilla III Special Revenue Fund for General Fund 1,844 insurance and urban beautification and administrative costs Transferfrom Transportation Improvement Fund for General Fund 230,000 street lighting Transfer from Arbor Fund for City arborist payroll Water and Sewer Utility Fund 9,438 allocation Transfer from TLBD Maintenance Fund for urban Water and Sewer Utility Fund 25,485 beautification Transfer from Oak Forest Maintenance Fund for urban Water and Sewer Utility Fund 1,890 beautification Transfer from Stormwater Utility for administrative Water and Sewer Utility Fund 6,000 costs $ 4,537,132 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. 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 9 remain although they are no longer employees of the City. 67 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 9 - Defined Benefit Pension Plan (Continued): 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 Commission for final approval. Plan Membership - At September 30, 2017 plan membership consisted of the following: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 99 Inactive Plan Members Entitled to but Not Yet Receiving Benefits 157 Active Plan Members 109 365 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 Liability - The City's net pension liability was measured as of September 30, 2017, and the pension liability was determined by an actuarial valuation as of October 1, 2016 updated to September 30, 2017. The components of the net pension liability of the sponsor on September 30, 2017 were as follows: Total Pension Liability Plan Fiduciary Net Position Sponsor's Net Pension Liability Plan Fiduciary Net Position as a Percentage of Total Pension Liability $ 55, 763, 964 (48, 091, 584) $ 7,672,380 86.24% CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 9 - Defined Benefit Pension Plan (Continued): Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of October 1, 2016 updated to September 30, 2017 using the following actuarial assumptions: Inflation Salary Increases Investment Rate of Return 3.00% 3.0%-7.5% 8.00% For healthy General Employee participants, the RP -2000 Combined Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Firefighter and Police Officer participants, the RP -2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP -2000 Combined Disability Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. 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, 2017 are summarized in the following table: Asset Class Target Allocation Large Cap Domestic Stocks 25% Domestic Broad Cap Growth Equity 25% International 15% Fixed Income 20% TIPS 5% Real Estate 10% Total 100% We Long -Term Expected Real Rate of Return 2.58% 3.05% 0.59% 0.59% 0.08% 1.44% CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 9 - Defined Benefit Pension Plan (Continued): Discount rate - The discount rate used to measure the total pension liability was 8%. 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 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 Balances at September 30, 2016 Changes for a Year: Service Cost I nterest Differences between expected and actual experience Changes of assumptions Contributions -employer Contributions -employee Net investment income Benefit payments, including refunds of employee contributions Administrative Expense Net Changes Balances at September 30, 2017 Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) -(b) $ 53, 581, 984 $ 42, 027, 234 $ 11, 554, 750 697,459 - 697,459 4,229,901 - 4,229,901 (592,087) - (592,087) 526,115 - 526,115 - 2,605,753 (2,605,753) - 342,209 (342,209) - 5,851,493 (5,851,493) (2,679,408) (2,679,408) - - (55,697) 55,697 2,181, 980 6,064,350 (3,882,370) $ 55, 763, 964 $ 48, 091, 584 $ 7,672,380 Sensitivity of the Net Pension Liability to changes in the Discount Rate Current 1 % Decrease Discount Rate 1 % Increase 7.00% 8.00% 9.00% Net Pension Liability $ 14,259,497 $ 7,672,380 $ 2,192,852 U CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 9 - Defined Benefit Pension Plan (Continued): Deferred outflows and inflows of resources For the year ended September 30, 2017, the City will recognize a pension expense of $(812,453). At September 30, 2017, the city reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences Between Expected and Actual Experience Changes of Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Deferred Outflows of Resources $ 134,458 393,666 Deferred Inflows of Resources $ 548,619 1,723,605 $ 528,124 $ 2,272,224 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended September 30: 2018 2019 2020 2021 2022 Thereafter 71 $ (425,212) (84,059) (746,703) (488,126) CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 10 - Defined Contribution Plan: In March 2012 the City established the Winter Springs Defined Contribution (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 administered by the City. This plan is authorized and may be amended by the City Commission. The City makes employer contributions of 5%. Employees are eligible to participate in the General Plan after 6 months of employment. Vesting is 0% for the first 3 years, 60% at the end of year 3, 80% at the end of year 4, 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 ending September 30, 2017, payroll for the employees covered by this plan was $1,942,115. Employer contributions required and made were $98,268. As of September 30, 2017, participation in the plan consisted of 63 active members. During the year, the General Plan held no securities issued by the employer. Note 11 - Other Post -Employment Benefits: In accordance with Florida Statutes Section 112.0801, the City makes continued group health insurance through the city's current provider available to retirees and eligible dependents provided certain service requirements and normal age retirement requirements have been met. This plan is a single employer plan. This benefit has no cost to the City, other than the implicit cost of including retirees in the group calculation. All premiums are paid by the retiree. The City has seven retirees currently receiving benefits. The City has chosen pay-as-you-go funding, but is recording the liability in the government wide financial statements. This plan does not issue stand-alone financial statements. The most recent actuarial report for the City's Retiree Continuation Insurance plan was prepared as of December 1, 2015. At that point in time, the unfunded actuarial accrued liability (UAAL) for benefits was $1,079,000 and funded ratio was 0%. The covered payroll was $7,853,000 and the ratio of the UAAL to covered payroll was 13.7 percent. The annual required contribution and Net OPEB Obligation for the fiscal year ended September 30, 2017 is as follows: Annual Required Contribution Interest on Net OPEB Obligation Adjustment to Annual Required Contribution Annual OPEB Cost Employer Contributions Interest on Employer Contributions Increase in Net OPEB Obligation Net OPEB Obligation (beginning of year) Net OPEB Obligation (end of year) 72 $ 181,000 26,000 (56,000) 151,000 (66,000) (1,000) 84,000 646,000 $ 730,000 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 11 -Other Post -Employment Benefits (Continued): Three Year Trend Information - Fiscal Year Annual Percentage of OPEB Cost Net OPEB Ending OPEB Cost Contributed Obligation 9/30/2015 $ 156,000 36.0% $ 545,000 9/30/2016 157,000 36.0% 646,000 9/30/2017 151,000 44.0% 730,000 Summary of Actuarial Methods & Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial Cost Method - The projected unit credit cost method was used to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Amortization Method - The level -dollar payment with a 15 year open period amortization method was used. Decrements Mortality - Sex -distinct mortality rates set forth in the RP -2000 mortality table to annuitants and non -annuitants, projected to 2015 by Scale AA, as published by the IRS for purposes of IRC section 430; future generational improvements in mortality have not been reflected. 73 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 11 -Other Post -Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) Disability - Sex -distinct disability rates set forth in the Wyatt 1985 Disability Study; Class 4 rates were used for police officers, Class 1 rates were used for all other employees. Permanent Withdrawal from Active Status - Sex -distinct withdrawal rates set forth in the Scale 155 table. Retirement - Retirement was assumed to occur as at age 55 for police officers and at age 60 for all other employees Investment Return (Discount Rate) - 4.0% per annum (includes inflation at 2.75% per annum) Healthcare Costs Trend Rates - The cost of covered medical services has been assumed to increase in accordance with the following rates, compounded annually: Year Increase Year Increase Year Increase 2016 8.00% 2019 6.50% 2022 2017 7.50% 2020 6.00% and later 5.00% 2018 7.00% 2021 5.50% Implied Subsidy (Not Eligible for Medicare) - The implied subsidy for a 60 -year old retiree and his spouse for the period December 1, 2015 through November 30, 2016 is assumed to be $4,800 per year and $6,600 per year, respectively. Implied Subsidy (Dental Insurance) - There is no implied subsidy for dental insurance since it is assumed that the dental insurance costs for covered individuals do not increase with age. Age -Related Morbidity - The cost of covered medical services has been assumed to increase with age at the rate of 3.5% per annum. Retiree Contributions - Retirees electing post -employment healthcare coverage have been assumed to make monthly contributions equal to the premium charged to the active employees and retiree contributions are assumed to increase in accordance with the healthcare cost trend assumption. Medical Plan Choice - Retirees have been assumed to elect coverage under the "United Healthcare Medical Plan 6" plan. Future Participation Rates - 25% of eligible employees are assumed to elect healthcare coverage for themselves until age 65 upon retirement or disability; of the retirees election healthcare coverage, 10% are assumed to elect coverage for their spouses until age 65. CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 11 -Other Post -Employment Benefits (Continued): Summary of Actuarial Methods & Assumptions (Continued) COBRA Assumption - Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience, we assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. Summary of Benefits Other Post -Employment Benefits (OPEBs) - The City of Winter Springs provides optional post -employment healthcare and dental insurance coverage to eligible individuals. Eligible Individuals - Eligible individuals include all regular employees of the City of Winter Springs who retire from active service and are eligible for retirement or disability benefits under the defined benefit pension plan that is sponsored by the City. Under certain conditions, eligible individuals for healthcare coverage also include spouses and dependent children. Choice of Healthcare Plans - Eligible individuals may choose healthcare coverage under the United Healthcare Medical Plan 4, 5 or 6 plans. Required Monthly Premium for Post -Employment Healthcare Coverage - Retirees must pay a monthly premium as determined by the insurance carrier. The premium varies depending on the plan selected and whether the retiree elects single, single plus spouse, single plus children or family coverage. 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 fund financials. 75 CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 13 - Risk Management: The City is exposed to various risks of loss related to torts of assets; errors and omissions; job-related illnesses or disasters. Risk of loss from above is transferred by the through the purchase of insurance. There has been n coverage from the previous year. There have been no coverage in any of the prior three fiscal years. Note 14- Commitments and Contingencies: Grants - theft of, damage to and destruction injuries to employees; and natural City to various commercial insurers o significant reduction in insurance settlements in excess of insurance 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, 2017, the City had entered into construction contracts in the amount of $141,300. Transportation Impact Fee Credits - The City has entered into a number of agreements with developers under which the developer donates transportation infrastructure improvements or rights of way to the City and receives credit for future transportation impact fee payments. As of September 30, 2017, there are no remaining impact fee credits. Note 15 - Fund Balance: Minimum Fund Balance Policy - In accordance with Resolution 2002-36, the City designates an amount equal to 20 percent 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. Z:� CITY OF WINTER SPRINGS, FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 2017 Note 15 - Fund Balance (Continued): By a super majority vote of the Commission, supplemental appropriation from unassigned General Fund balance may be authorized by the Commission for a General Fund purpose reducing the unassigned General Fund fund balance below the 20% minimum provided that the assigned General Fund fund balance is restored to the minimum in the following year budget. At September 30, 2017, the City's governmental fund balances were as follows 77 Road Other Total General Improvements Solid Waste/ TLBD Debt Governmental Governmental Fund Balances Fund Fund Recycling Service Funds Funds Nonspendable Inventory/prepaid $ 202,911 $ $ $ $ 2,803 $ 205,714 Advances 53,691 - 53,691 Spendable Restricted for: Physical environment - 4,957,192 334,932 5,292,124 Transportation improvements - 2,831,233 2,831,233 Public safety 616,030 616,030 Fire impact fees 2,404,139 2,404,139 Parks Improvements 1,473,313 1,473,313 Debt service 124,138 10,242 134,380 Committed to: Solid Waste 1,002,652 - - 1,002,652 Arbor - 289,601 289,601 Assigned to: Storm reserve 589,593 - 589,593 Emergency Disaster Relief 261,611 - 261,611 Debt service - 1,074,116 1,074,116 Capital projects 4,012,775 4,012,775 Unassigned 8,249,681 - (1,119,855) 7,129,826 Total Fund Balance $8,506,283 $ 4,957,192 $1,853,856 $ 124,138 $11,929,329 $27,370,798 77 REQUIRED SUPPLEMENTARY INFORMATION CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION September 30, 2017 Retiree Continuation Insurance Plan Schedule of Funding Progress ** initial valuation date UAAL as a % of Covered Payroll (b -a) / c Schedule of Contributions from Employers and Other Contributing Entities Actuarial Annual Required ARC Actuarial Accrued Contribution (ARC) Contributed Obligation Actuarial Value of Liability (AAL) Unfunded Funded Covered Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Date (a) (b) (b -a) (a/b) ( c) 7/1/2009** $ - $ 505,000 $ 505,000 0.0% $ 9,230,000 10/1/2011 - 754,000 754,000 0.0% 7,441,000 10/1/2013 - 1,016,000 1,016,000 0.0% 7,665,000 12/1/2015 - 1,079,000 1,079,000 0.0% 7,853,000 ** initial valuation date UAAL as a % of Covered Payroll (b -a) / c Schedule of Contributions from Employers and Other Contributing Entities Percentage of Annual Required ARC Net OPEB Fiscal Year Ending Contribution (ARC) Contributed Obligation 9/30/2012 $ 137,000 43.0% $ 290,000 9/30/2013 160,000 42.0% 368,000 9/30/2014 163,000 42.0% 445,000 9/30/2015 176,000 32.0% 545,000 9/30/2016 182,000 30.2% 646,000 9/30/2017 181,000 36.5% 730,000 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS Last Ten Fiscal Years** Total Pension Liability Service Cost Interest Benefit Changes Differences Between Expected and Actual Experience Changes of Assumptions Benefit Payments, including refunds of employee contributions Net Change in Total Pension Liability Total Pension Liability -beginning Total Pension Liability -ending (a) Plan Fiduciary Net Position Contributions -employer Contributions -employee Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Administrative Expense Other Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position- beginning Plan Fiduciary Net Position- ending (b) Net Pension Liability - ending (a)- (b) Plan Fiduciary Net Position as a Percentage of Total Pension Liability Covered -employee Payroll* Net Pension Liability as a Percentage of Covered Employee Payroll 9/30/2014 9/30/2015 9/30/2016 9/30/2017 $ 886,819 $ 834,402 $ 808,281 $ 697,459 3,666,120 3,851,130 4,059,813 4,229,901 (581,481) (107,513) 275,994 (592,087) - 8,107 - 526,115 (1,974,208) (2,202,769) (2,450,972) (2,679,408) 1,997,250 2,383,357 2,693,116 2,181,980 46,508,261 48,505,511 50,888,868 53,581,984 $ 48,505,511 $ 50,888,868 $ 53,581,984 $ 55,763,964 2,527,508 2,392,948 2,586,936 2,605,753 369,500 358,106 479,257 342,209 3,885,344 5,160 4,077,452 5,851,493 (1,974,208) (2,202,769) (2,450,972) (2,679,408) (159,424) (11,937) (28,208) (55,697) 4,648,720 541,508 4,664,465 6,064,350 32,172,541 36,821,261 37,362,769 42,027,234 $ 36,821,261 $ 37,362,769 $ 42,027,234 $ 48,091,584 $ 11,684,250 $ 13,526,099 $ 11,554,750 $ 7,672,380 75.91% 73.42% 78.44% 86.24% $ 7,369,943 $ 7,070,355 $ 6,671,503 $ 5,846,735 158.54% 191.31% 173.20% 131.23% Valuation Date 10/1/2013 10/1/2014 10/1/2015 10/1/2016 Notes to Schedule: Updated procedures were used to roll forward the total pension liability to the measurement date. No benefit changes during the year. Mortality assumption was updated during the year. * Reported payroll on which contributions to the Plan are based as provided under GASB Statement Number 82. ** Only 4 years of data available. CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Employee Payroll Contributions as a Percentage of Last Ten Fiscal Years** onni7nl n onni7ni ti onn /On -1 r onni7nl 7 L,4 / 4,0 / 8 L,LJU,yUB L,U0 / ,440 1 ,8J 1 ,4yD 7 F77 FnS2 7 la") aASZ 7 r szr allP 7 rnF 7F'2 ) k 1 oc,�4�� ) ku 1 5,45 1 1) k i 4,cUo) 7,369,943 7,070,355 6,671,503 5,846,435 Covered Employee Payroll 34.29% 33.84% 38.78% 44.57% Notes to Schedule Valuation Date 10/1/2013 10/1/2014 10/1/2015 10/1/2016 Update procedures were used to roll forward the total pension liability to the measurement date Methods and Assumptions Used to Determine Contribution Rates Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, closed Remaining Amortization Period 30 years Asset Valuation Method 5 -year smoothed market Inflation 3.00% Salary Increases 3.0%-7.5% Investment Rate of Return 8% Retirement Age Experience -based table of rates that are specific to the type of eligibility condition Mortality For health General Employee participants, the RP -2000 Combined Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Firefighter and Police Officer participants, the RP -2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP -2000 Combined Disabled Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. Benefit Changes 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. 2008: Benefit accrual rate increased. Assumption Changes 2014: Disability rates updated. 2008: Mortality, salary increase, withdrawal, disability and retirement rates updated; administrative expense assumption introduced and actuarial cost method updated. ** Only 4 years of data available. 80 CITY OF WINTER SPRINGS, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS Last Ten Fiscal Years** 9/30/2014 9/30/2015 9/30/2016 9/30/2017 Annual Money -Weighted Rate of Return Net of Investment Expense ** Only 4 years of data available. 9.75% 0.28% 10.75% 10.75% 81 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� MAJOR GOVERNMENTAL FUNDS Debt Service Funds TLBD Debt Service Fund - This fund was established to account for the accumulation of principal and interest for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable. This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA TLBD DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 138,655 $ 138,655 $ 85,506 $ (53,149) Investment income 160 160 48,040 47,880 Miscellaneous - - 6,525 6,525 Total revenues 138,815 138,815 140,071 1,256 Expenditures: Current: Physical environment 5,925 4,675 3,984 691 Debt Service: Principal 85,506 85,506 85,506 - Interest and other charges 47,161 47,161 47,161 - Capital Outlay Physical environment 70,000 21,250 20,993 257 Total expenditures 208,592 158,592 157,644 948 Excess (Deficiency) of Revenues Over Expenditures (69,777) (19,777) (17,573) 2,204 Other Financing Sources (Uses) Transfers out (500) (500) (500) - Total other financing sources and uses (500) (500) (500) - Net Change in Fund Balances (70,277) (20,277) (18,073) 2,204 Fund Balances - beginning 142,211 142,211 142,211 - Fund Balances - ending $ 71,934 $ 121,934 $ 124,138 $ 2,204 NONMAJOR 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 - This fund was established to receive revenues from local Trust Fund - Local sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Transportation - Revenues in this fund are derived from Local Option Improvement Fund 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 - This fund is used to account for collected impact fees on Fund 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. NONMAJOR GOVERNMENTAL FUNDS - Continued Special Revenue Funds - Continued 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. 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 11 of project. Phase 11 was accounted for in a separate fund prior to Fiscal Year 2008. Oak Forest Maintenance - This fund is used to account for collected special Fund assessments restricted for maintenance related to the Oak Forest subdivision wall. Special Law Enforcement - This fund was established to receive revenues from Trust Fund - Federal federal sources derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are restricted for law enforcement purposes. Such purposes may include drug/gang related education, Shop with a Cop, movie and other civic events. Tuscawilla Phase III This fund is used to account for collected special assessments restricted for maintenance related to the Tuscawilla Phases III, and repayment of advance from General Fund. NONMAJOR GOVERNMENTAL FUNDS - Continued Debt Service Funds 2003 Debt Service Fund - This fund is used to account for the accumulation of resources and payment of principal and interest for the 2003 bond issue which was refinanced in July 2014 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. Oak Forest Debt Service - This fund is used to account for the accumulation of Fund resources and payment of principal and interest to the General Fund for the 2010 interfund loan which paid off the Capital Improvement Revenue Note, Series 2004A. TLBD Phase II Debt - This fund is used to account for the accumulation of Service Fund resources and payment of principal and interest for the TLBD Phase II Improvements. Central Winds G.O. Debt This fund is used to account for accumulation of resources Service Fund and payment of principal and interest for the 2002 limited general obligation bond which was refinanced in May 2012 with private placement note payable. NONMAJOR GOVERNMENTAL FUNDS - Continued Capital Projects Funds 1999 Construction Capital - This fund was established for the acquisition and Projects Fund construction of City - owned Capital Improvements. Revolving Rehab Capital - This fund was established to fund capital improvements Projects Fund and economic development within the City. Utility/Public Works Facility - This fund was established to account for construction of Fund additional public facilities. Excellence in Customer - This fund was established to account for the acquisition of Service software and equipment to improve the level of customer service performance. CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2017 Assets: Cash and cash equivalents Investments Prepaids Special assessments receivable Advances to other funds Restricted assets: Cash and cash equivalents Total assets Liabilities: Accounts payable Due to other funds Total liabilities Deferred Inflows of Resources Unavailable revenue -special assessments Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Special Revenue $ - $ 76 $ 39,893 $ - 76 39,893 - - 2,803 - 13,096 25,275 1,795,511 1,035,722 13,096 25,275 1,798,314 1,035,722 $ 13,096 $ 25,351 $ 1,838,207 $ 1,035,722 83 Special Law Police Enforcement Transportation Education Trust Fund- Improvement Transportation Fund Local Fund Impact Fee Fund $ 948 $ 1,619 $ 132,923 $ 75,009 12,148 20,742 1,702,481 960,713 - - 2,803 - - 2,990 - - $ 13,096 $ 25,351 $ 1,838,207 $ 1,035,722 $ - $ 76 $ 39,893 $ - 76 39,893 - - 2,803 - 13,096 25,275 1,795,511 1,035,722 13,096 25,275 1,798,314 1,035,722 $ 13,096 $ 25,351 $ 1,838,207 $ 1,035,722 83 Special Revenue TLBD Police Impact Fire Impact Parks Impact Maintenance $ 36,4U4 $ 114,112 $ 1U/,U/1 $ 2U,9/3 $ 2U,U64 491,879 2,230,027 1,371,370 268,628 256,846 $ 530,283 $ 2,404,139 $ 1,478,441 $ 289,601 $ 276,900 5,128 $ - $ 21,375 530,283 2,404,139 1,473,313 - 255,525 - - - 289,601 - $ 530,283 $ 2,404,139 $ 1,478,441 $ 289,601 $ 276,900 (Continued) EM CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2017 Assets: Cash and cash equivalents Investments Prepaids Special assessments receivable Advances to other funds Restricted assets: Cash and cash equivalents Total assets Liabilities: Accounts payable Due to other funds Total liabilities Deferred Inflows of Resources Unavailable revenue -special assessments Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances Special Revenue Special Law Oak Forest Enforcement Maintenance Trust Fund - Tuscawilla Total Special $ 5,751 $ 3,431 $ 578 $ 580,873 73,656 43,945 7,401 7,439,836 - - - 2,803 - - - 2,990 $ 79,407 $ 47,376 $ 7,979 $ 8,026,502 $ 66,472 53,691 53,691 53,691 120,163 - - - 2,803 79,407 47,376 - 7,659,647 - - - 289,601 - - (45,712) (45,712) 79,407 47,376 (45,712) 7,906,339 $ 79,407 $ 47,376 $ 7,979 $ 8,026,502 85 Debt Service Central Oak Forest Winds GO TLBD Phase 2003 Debt 1999 Debt Debt Service Debt Service II Debt Total Debt $ 830,906 $ 230,894 $ 608 $ 786 $ 134 $ 1,063,328 8,042 4,274 7,788 10,071 1,712 31,887 363,539 - 83,305 446,844 $ 838,948 $ 235,168 $ 3711935 $ 10,857 $ 85,151 $ 1,542,059 838,948 838,948 1,085,000 - 1,085,000 - 1,085,000 - 1,085,000 363,539 - 83,305 446,844 8,396 - 235,168 - - - - (1,074,143) 235,168 8,396 (1,074,143) 1,846 10,242 1,074,116 - (1,074,143) 1,846 10,215 $ 838,948 $ 235,168 $ 371,935 $ 10,857 $ 85,151 $ 1,542,059 (Continued) CITY OF WINTER SPRINGS, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2017 Liabilities: Accounts payable $ - $ - $ 8,986 Capital Projects Due to other funds - - - 1999 Totalliabilities - - 8,986 Utility/Public Deferred Inflows of Resources Construction Revolving Public Works - Fund Rehab Fund Facilities Facility Fund Assets: Nonspendable - - - - Cash and cash equivalents $ 61,143 $ 79,670 $ 41,854 $ 14,626 Investments 783,115 1,020,411 536,066 187,331 Prepaids - - - - Special assessments receivable - - - - Advances to other funds - - - - Restricted assets: Cash and cash equivalents - - - - Total assets $ 844,258 $ 1,100,081 $ 577,920 $__201,957 Liabilities: Accounts payable $ - $ - $ 8,986 $ 7,921 Due to other funds - - - - Totalliabilities - - 8,986 7,921 Deferred Inflows of Resources Unavailable revenue -special assessments - - - - Total deferred inflows of resources - - - - Fund Balances: Nonspendable - - - - Restricted - - - - Committed - - - - Assigned 844,258 1,100,081 568,934 194,036 Unassigned - - - - Total fund balances 844,258 1,100,081 568,934 194,036 Total liabilities, deferred inflows of resources and fund balances $ 844,258 $ 1,100,081 $ 577,920 $ 201,957 87 Capital Projects Excellence in Customer Total Capital Service Projects $ 15,967 $ 213,260 204,499 2,731,422 1,085,000 1,085,000 Total Nonmajor Governmental Funds $ 1,857,461 10,203,145 2,803 446,844 1,085,000 - - 2,990 $ 1,305,466 $ 4,029,682 $ 13,598,243 $ - $ 16,907 $ 83,379 - 1,138,691 16,907 1,222,070 - 446,844 446,844 2,803 7,669,889 - - 289,601 1,305,466 4,012,775 5,086,891 - - (1,119,855) 1,305,466 4,012,775 11,929,329 $ 1,305,466 $ 4,029,682 $ 13,598,243 -I CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2017 Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal Interest and fiscal charges Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - beginning Fund Balances -ending Special Revenue special Law Enforcement Transportation Police Trust Fund- Improvement Transportation Education Fund Local Fund Impact Fee Fund - - 628,639 - - - 40,813 - 6,206 973 - - - - - 785,561 68 165 10,737 7,293 - - 66,035 - 6,274 1,138 746,224 792,854 1,354 11,003 - - - - 269,206 2,342 - - 65,602 1,140,019 1,354 11,003 334,808 1,142,361 4,920 (9,865) 411,416 (349,507) (230,000) (230,000) 4,920 (9,865) 181,416 (349,507) 8,176 35,140 1,616,898 1,385,229 $ 13,096 $ 25,275 $ 1,798,314 $ 1,035,722 :• Special Revenue TLBD Police Impact Fire Impact Fee Parks Impact Maintenance Fee Fund Fund Fee Fund Arbor Fund Fund - - - 69,245 - - - - 84,450 - 322,333 566,480 778,800 - 509,452 2,555 13,692 7,587 1,435 2,712 - - - - 2,400 324,888 580,172 786,387 155,130 514,564 12,400 - - - - - - - 62,216 508,064 - - 12,400 - - - - 143,882 - - 12,400 - 156,282 62,216 508,064 312,488 580,172 630,105 92,914 6,500 - - 47,481 - - - - - (25,188) (61,900) - - 47,481 (25,188) (61,900) 312,488 580,172 677,586 67,726 (55,400) 217,795 1,823,967 795,727 221,875 310,925 $ 530,283 $ 2,404,139 $ 1,473,313 $ 289,601 $ 255,525 (Continued) CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2016 Revenues: Taxes: Property taxes Permits and fees Intergovernmental revenues Charges for services Fines and forfeitures Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Culture and recreation Debt Service: Principal Interest and fiscal charges Capital Outlay: General government Public safety Physical environment Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources(uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Special Revenue special Law Oak Forest Enforcement Maintenance Trust Fund - Tuscawilla Fund Federal Phase III Total - - - 69,245 - - - 628,639 - - - 40,813 - 11,914 - 103,543 55,915 - 12,192 3,030,733 572 311 74 47,201 - - - 68,435 56,487 12,225 12,266 3,988,609 - - 7,698 7,698 - 15,534 - 40,291 34,981 - - 876,809 - - - 12,400 - - 1,619 1,619 - 18,091 - 18,091 - - - 1,205,621 - - - 143,882 34,981 33,625 9,317 2,306,411 21,506 (21,400) 2,949 1,682,198 (9,743) (9,743) - - 47,481 -_ (1,844) (328,675) (1,844) (281,194) 11,763 (21,400) 1,105 1,401,004 67,644 68,776 (46,817) 6,505,335 $ 79,407 $ 47,376 $ (45,712) $ 7,906,339 91 Debt Service Central Winds TLBD Phase II 2003 Debt 1999 Debt Oak Forest Debt GO Debt Service Debt Service Total Debt Service Fund Service Fund Service Fund Fund Fund Service 3,183 132,374 $ - $ 132,374 - 20,689 - 25,343 46,032 894 16,317 540 1,135 22,069 - 15,395 - - 15,395 894 52,401 132,914 26,478 215,870 - - - - 756 756 - - 2,990 - - 2,990 - - - 3,500 - 3,500 819,000 206,310 - 2,312,629 29,883 3,367,822 18,159 13,249 508 67,831 237 99,984 - - - - 9,900 9,900 - - 6,243 - - 6,243 837,159 9,741 219,559 2,383,960 40,776 3,491,195 (833,976) (218,665) 42,660 (2,251,046) (14,298) (3,275,325) 834,000 236,000 - - - 1,070,000 - - (500) - (500) (1,000) 834,000 236,000 (500) - (500) 1,069,000 24 17,335 42,160 (2,251,046) (14,798) (2,206,325) 838,924 217,833 (33, 764) 1,176, 903 16,644 2,216,540 $ 838,948 $ 235,168 $ 8,396 $ (1,074,143) $ 1,846 $ 10,215 (Continued) W, CITY OF WINTER SPRINGS, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2017 93 Capital Projects 1999 Utility/Public Construction Revolving Works Facility Fund Rehab Fund Public Facilities Fund Revenues: Taxes: Property taxes $ - $ - $ - $ - Permits and fees - - - - Intergovernmental revenues 11,100 - - - Charges for services - - - - Fines and forfeitures - - - - Impact fees/assessments - - - - Investment income 5,271 6,835 - 1,602 Miscellaneous - - - - Total revenues 16,371 6,835 - 1,602 Expenditures: C u rre nt: General government - - - - Public safety - - - - Physical environment - - - 9,885 Culture and recreation - - - - Debt Service: Principal - - - - Interest and fiscal charges - - - - Capital Outlay: General government - - - - Public safety - - - - Physical environment 29,165 - 20,665 290,322 Culture and recreation - - - - Total expenditures 29,165 - 20,665 300,207 Excess (Deficiency) of Revenues Over Expenditures (12,794) 6,835 (20,665) (298,605) Other Financing Sources (Uses): Transfers in - - 555,000 - Transfers out - - - - Total other financing sources(uses) - - 555,000 - Net Change in Fund Balances (12,794) 6,835 534,335 (298,605) Fund Balances - Beginning 857,052 1,093,246 34,599 492,641 Fund Balances -Ending $ 844,258 $ 1,100,081 $ 568,934 $ 194,036 93 Capital Projects Excellence in Customer Total Capital Service Projects Total Nonmajor Governmental Funds $ 132,374 - - 69,245 - 11,100 639,739 - - 40,813 - - 103,543 - - 3,076,765 4,431 18,139 87,409 - - 83,830 4,431 29,239 4,233,718 - - 8,454 - - 40,291 - 9,885 889,684 - - 15,900 - - 3,367,822 - - 101,603 22,062 22,062 31,962 - - 18,091 - 340,152 1,552,016 - - 143,882 22,062 372,099 6,169,705 (17,631) (342,860) (1,935,987) (17,631) 555,000 1,672,481 - (329,675) 555,000 1,342,806 212,140 (593,181) 1,323,097 3,800,635 12,522,510 $ 1,305,466 $ 4,012,775 $ 11,929,329 CITY OF WINTER SPRINGS, FLORIDA POLICE EDUCATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Original Final $ 9,600 $ 9,600 $ Variance with Final Budget - Actual Positive Amounts (Negative) 6,206 $ (3,394) 68 58 9,610 9,610 6,274 (3,336) 10,000 10,000 1,354 8,646 10,000 10,000 1,354 8,646 (390) (390) 4,920 5,310 (390) (390) 4,920 5,310 8,176 8,176 8,176 - $ 7,786 $ 7,786 $ 13,096 $ 5,310 95 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - LOCAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending M. Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ - $ - $ 973 $ 973 50 50 165 115 50 50 1,138 1,088 31,300 25,884 11,003 14,881 31,300 25,884 11,003 14,881 (31,250) (25,834) (9,865) 15,969 (31,250) (25,834) (9,865) 15,969 35,140 35,140 35,140 - $ 3,890 $ 9,306 $ 25,275 $ 15,969 M. CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPROVEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Intergovernmental revenues Charges for services Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures 476,084 550,008 269,206 280,802 52,100 85,185 65,602 19,583 528,184 635,193 334,808 300,385 93,480 61,880 411,416 349,536 Other Financing Sources (Uses) Transfers out (230,000) (230,000) (230,000) Total other financing sources and uses (230,000) (230,000) (230,000) Net change in fund balances Fund Balances - beginning Fund Balances -ending (136,520) (168,120) 181,416 349,536 1,616,898 1,616,898 1,616,898 - $ 1,480,378 $ 1,448,778 $ 1,798,314 $ 349,536 97 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 590,000 $ 590,000 $ 628,639 $ 38,639 27,664 27,664 40,813 13,149 4,000 4,000 10,737 6,737 - 75,409 66,035 (9,374) 621,664 697,073 746,224 49,151 476,084 550,008 269,206 280,802 52,100 85,185 65,602 19,583 528,184 635,193 334,808 300,385 93,480 61,880 411,416 349,536 Other Financing Sources (Uses) Transfers out (230,000) (230,000) (230,000) Total other financing sources and uses (230,000) (230,000) (230,000) Net change in fund balances Fund Balances - beginning Fund Balances -ending (136,520) (168,120) 181,416 349,536 1,616,898 1,616,898 1,616,898 - $ 1,480,378 $ 1,448,778 $ 1,798,314 $ 349,536 97 CITY OF WINTER SPRINGS, FLORIDA TRANSPORTATION IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 9.1 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ - $ 740,000 $ 785,561 $ 45,561 Investment income 1,100 1,100 7,293 6,193 Total revenues 1,100 741,100 792,854 51,754 Expenditures: Current: Physical environment 76,000 16,356 2,342 14,014 Capital Outlay Physical environment 250,000 1,175,028 1,140,019 35,009 Total expenditures 326,000 1,191,384 1,142,361 49,023 Excess (Deficiency) of Revenues Over Expenditures (324,900) (450,284) (349,507) 100,777 Net change in fund balances (324,900) (450,284) (349,507) 100,777 Fund Balances - beginning 1,385,229 1,385,229 1,385,229 - Fund Balances -ending $ 1,060,329 $ 934,945 $ 1,035,722 $ 100,777 9.1 CITY OF WINTER SPRINGS, FLORIDA POLICE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 we Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ - $ 172,240 $ 322,333 $ 150,093 Investment income 650 650 2,555 1,905 Total revenues 650 172,890 324,888 151,998 Expenditures: Current: Public Safety -12,400 12,400 - Total expenditures - 12,400 12,400 - Excess (Deficiency) of Revenues Over Expenditures 650 160,490 312,488 151,998 Net change in fund balances 650 160,490 312,488 151,998 Fund Balances - beginning 217,795 217,795 217,795 - Fund Balances - ending $ 218,445 $ 378,285 $ 530,283 $ 151,998 we CITY OF WINTER SPRINGS, FLORIDA FIRE IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Expenditures: Public Safety - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures 5,900 373,400 580,172 206,772 Net change in fund balances 5,900 373,400 580,172 206,772 Fund Balances - beginning 1,823,967 1,823,967 1,823,967 - Fund Balances - ending $ 1,829,867 $ 2,197,367 $ 2,404,139 $ 206,772 100 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ - $ 367,500 $ 566,480 $ 198,980 Investment income 5,900 5,900 13,692 7,792 Total revenues 5,900 373,400 580,172 206,772 Expenditures: Public Safety - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over Expenditures 5,900 373,400 580,172 206,772 Net change in fund balances 5,900 373,400 580,172 206,772 Fund Balances - beginning 1,823,967 1,823,967 1,823,967 - Fund Balances - ending $ 1,829,867 $ 2,197,367 $ 2,404,139 $ 206,772 100 CITY OF WINTER SPRINGS, FLORIDA PARKS IMPACT FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Impact fees/assessments Investment income Total revenues Expenditures: Current: Culture and recreation Capital Outlay Culture and recreation Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances -ending - 12,400 12,400 250,000 169,960 143,882 26,078 250,000 182,360 156,282 26,078 (247,400) 258,240 630,105 371,865 - 44,362 47,481 3,119 44,362 47,481 3,119 (247,400) 302,602 677,586 374,984 795,727 795,727 795,727 - $ 548,327 $ 1,098,329 $ 1,473,313 $ 374,984 101 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ - $ 438,000 $ 778,800 $ 340,800 2,600 2,600 7,587 4,987 2,600 440,600 786,387 345,787 - 12,400 12,400 250,000 169,960 143,882 26,078 250,000 182,360 156,282 26,078 (247,400) 258,240 630,105 371,865 - 44,362 47,481 3,119 44,362 47,481 3,119 (247,400) 302,602 677,586 374,984 795,727 795,727 795,727 - $ 548,327 $ 1,098,329 $ 1,473,313 $ 374,984 101 CITY OF WINTER SPRINGS, FLORIDA ARBOR FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Permits and fees Fines and forfeitures Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances - ending 71,250 71,250 Variance with Budgeted Amounts 71,250 Final Budget - 62,216 Actual Positive Original Final Amounts (Negative) $ 7,500 $ 7,500 $ 69,245 $ 61,745 500 500 84,450 83,950 500 500 1,435 935 8,500 8,500 155,130 146,630 71,250 71,250 62,216 9,034 71,250 71,250 62,216 9,034 (62,750) (62,750) 92,914 155,664 (25,188) (25,188) (25,188) - (25,188) (25,188) (25,188) - (87,938) (87,938) 67,726 155,664 221,875 221,875 221,875 - $ 133,937 $ 133,937 $ 289,601 $ 155,664 102 CITY OF WINTER SPRINGS, FLORIDA TLBD MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) $ 507,549 $ 507,549 $ 509,452 $ 1,903 600 600 2,712 2,112 - 2,400 2,400 - 508,149 510,549 514,564 4,015 560,345 562,745 508,064 54,681 560,345 562,745 508,064 54,681 (52,196) (52,196) 6,500 58,696 Other Financing Sources (Uses) Transfers out (61,900) (61,900) (61,900) Total other financing sources and uses (61,900) (61,900) (61,900) Net change in fund balances Fund Balances - beginning Fund Balances - ending (114,096) (114,096) (55,400) 58,696 310,925 310,925 310,925 - $ 196,829 $ 196,829 $ 255,525 $ 58,696 103 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Impact fees/assessments Investment income Total revenues Expenditures: Current: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 55,726 $ 55,726 $ 55,915 $ 189 200 200 572 372 55,926 55,926 56,487 561 50,100 50,100 34,981 15,119 50,100 50,100 34,981 15,119 5,826 5,826 21,506 15,680 Other Financing Sources (Uses) Transfers out (9,743) (9,743) (9,743) - Total other financing sources and uses (9,743) (9,743) (9,743) - Net change in fund balances (3,917) (3,917) 11,763 15,680 Fund Balances - beginning 67,644 67,644 67,644 - Fund Balances - ending $ 63,727 $ 63,727 $ 79,407 $ 15,680 104 CITY OF WINTER SPRINGS, FLORIDA SPECIAL LAW ENFORCEMENT TRUST FUND - FEDERAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Public Safety Capital Outlay Public Safety Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ - $ 3,580 $ 11,914 $ 8,334 20 20 311 291 20 3,600 12,225 8,625 12,870 18,806 15,534 3,272 - 18,091 18,091 - 12,870 36,897 33,625 3,272 (12,850) (33,297) (21,400) 11,897 (12,850) (33,297) (21,400) 11,897 68,776 68,776 68,776 - $ 55,926 $ 35,479 $ 47,376 $ 11,897 105 CITY OF WINTER SPRINGS, FLORIDA TUSCAWILLA PHASE III SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Impact fees/assessments Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Budgeted Amounts Original Final $ 12,162 $ 12,162 $ Variance with Final Budget - Actual Positive Amounts (Negative) 12,192 $ 30 74 54 12,182 12,182 12,266 84 7,790 7,790 7,698 92 2,615 2,615 - 2,615 1,620 1,620 1,619 1 12,025 12,025 9,317 2,708 157 157 2,949 2,792 Other Financing Sources (Uses) Transfers out (1,844) (1,844) (1,844) - Total other financing sources and uses (1,844) (1,844) (1,844) - Net change in fund balances (1,687) (1,687) 1,105 2,792 Fund Balances - beginning (46,817) (46,817) (46,817) - Fund Balances - ending $ (48,504) $ (48,504) $ (45,712) $ 2,792 106 CITY OF WINTER SPRINGS, FLORIDA 2003 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 2,000 $ 2,000 $ 3,183 $ 1,183 2,000 2,000 3,183 1,183 2,500 2,500 - 2,500 819,000 819,000 819,000 18,161 18,161 18,159 839,661 839,661 837,159 2 2,502 (837,661) (837,661) (833,976) 3,685 Other Financing Sources (Uses) Transfers in 834,000 834,000 834,000 Total other financing sources and uses 834,000 834,000 834,000 Net change in fund balances Fund Balances - beginning Fund Balances - ending (3,661) (3,661) 24 3,685 838,924 838,924 838,924 - $ 835,263 $ 835,263 $ 838,948 $ 3,685 107 CITY OF WINTER SPRINGS, FLORIDA 1999 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Current: General government Debt Service: Principal Interest and other charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Original Final T rnn T rnn T 500 500 3,500 3,500 Variance with Final Budget - Actual Positive Amounts (Negative) 894 $ 394 894 394 - 3,500 206,309 206,309 206,310 (1) 13,250 13,250 13,249 1 223,059 223,059 219,559 3,500 (222,559) (222,559) (218,665) 3,894 236,000 236,000 236,000 - 236,000 236,000 236,000 - 13,441 13,441 17,335 3,894 217,833 217,833 217,833 - $ 231,274 $ 231,274 $ 235,168 $ 3,894 108 CITY OF WINTER SPRINGS, FLORIDA OAK FOREST DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Impact fees/assessments Investment income Miscellaneous Total revenues Expenditures: Current: Physical environment Debt Service: Principal Interest and other charges Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances - ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 52,132 $ 52,132 $ 20,689 $ (31,443) - - 16,317 16,317 - - 15,395 15,395 52,132 52,132 52,401 269 4,275 4,275 2,990 1,285 37,427 37,427 - 37,427 510 510 508 2 10,500 10,500 6,243 4,257 52,712 52,712 9,741 42,971 (580) (580) 42,660 43,240 (500) (500) (500) - (500) (500) (500) - (1,080) (1,080) 42,160 43,240 (33,764) (33,764) (33,764) - $ (34,844) $ (34,844) $ 8,396 $ 43,240 109 CITY OF WINTER SPRINGS, FLORIDA CENTRAL WINDS GO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Taxes: Property taxes Investment income Total revenues Expenditures: Current: Culture and recreation Debt Service: Principal Interest and fiscal charges Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Notes payable Total other financing sources (uses) Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending Variance with Final Budget - Actual Positive Budgeted Amounts Amounts (Negative) Original Final $ 132,138 $ 132,138 $ 132,374 $ 236 1,000 1,000 540 (460) 133,138 133,138 132,914 (224) 1,250 3,500 3,500 - 2,437,629 2,312,629 2,312,629 - 90,631 67,840 67,831 9 2,529,510 2,383,969 2,383,960 9 (2,396,372) (2,250,831) (2,251,046) (215) 1,458,000 1,085,000 - 1,085,000 1,458,000 1,085,000 - 1,085,000 (938,372) (1,165,831) (2,251,046) (1,085,215) 1,176,903 1,176,903 1,176,903 - $ 238,531 $ 11,072 $ (1,074,143) $ (1,085,215) 110 CITY OF WINTER SPRINGS, FLORIDA TLBD PHASE II DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 111 Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Impact fees/assessments $ 26,242 $ 26,242 $ 25,343 $ (899) Investment income 25 25 1,135 1,110 Total revenues 26,267 26,267 26,478 211 Expenditures: Current: General government 1,070 1,070 756 314 Debt Service: Principal 29,890 29,890 29,883 7 Interest and other charges 1,025 1,025 237 788 Capital Outlay General government 10,000 10,000 9,900 100 Total expenditures 41,985 41,985 40,776 1,209 Excess (Deficiency) of Revenues Over Expenditures (15,718) (15,718) (14,298) 1,420 Other Financing Sources (Uses) Transfers out (500) (500) (500) - Total other financing sources and uses (500) (500) (500) - Net change in fund balances (16,218) (16,218) (14,798) 1,420 Fund Balances - beginning 16,644 16,644 16,644 - Fund Balances - ending $ 426 $ 426 $ 1,846 $ 1,420 111 CITY OF WINTER SPRINGS, FLORIDA 1999 CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Intergovernmental revenues Investment income Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ - $ 11,100 $ 11,100 - 1,300 1,300 5,271 $ 3,971 1,300 12,400 16,371 3,971 1,035,000 43,290 29,165 14,125 1,035,000 43,290 29,165 14,125 (1,033,700) (30,890) (12,794) 18,096 Other Financing Sources (Uses) Transfers in 212,000 - - - Total other financing sources and uses 212,000 - - - Net change in fund balances (821,700) (30,890) (12,794) 18,096 Fund Balances - beginning 857,052 857,052 857,052 - Fund Balances -ending $ 35,352 $ 826,162 $ 844,258 $ 18,096 112 CITY OF WINTER SPRINGS, FLORIDA REVOLVING REHAB FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Current: General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances -ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) $ 3,500 $ 3,500 $ 6,835 $ 3,335 3,500 3,500 6,835 3,335 3,500 3,500 6,835 3,335 3,500 3,500 6,835 3,335 1,093,246 1,093,246 1,093,246 - $ 1,096,746 $ 1,096,746 $ 1,100,081 $ 3,335 113 CITY OF WINTER SPRINGS, FLORIDA PUBLIC FACILITIES CAPITAL PROJECT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers in Total other financing sources and uses Net change in fund balances Fund Balances - beginning Fund Balances -ending Variance with Budgeted Amounts Final Budget - Actual Positive Original Final Amounts (Negative) -_ 34,599 20,665 13,934 34,599 20,665 13,934 - (34,599) (20,665) 13,934 -_ 575,000 555,000 (20,000) 575,000 555,000 (20,000) - 540,401 534,335 (6,066) 34,599 34,599 34,599 - $ 34,599 $ 575,000 $ 568,934 $ (6,066) 114 CITY OF WINTER SPRINGS, FLORIDA UTILITY/PUBLIC WORKS FACILITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Current: Physical environment Capital Outlay Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Original $ 600 $ 600 Final 600 600 10,000 Variance with Final Budget - Actual Positive Amounts (Negative) $ 1,602 $ 1,002 1,602 1,002 9,885 115 75,000 378,748 290,322 88,426 75,000 388,748 300,207 88,541 (74,400) (388,148) (298,605) 89,543 (74,400) (388,148) (298,605) 89,543 492,641 492,641 492,641 - $ 418,241 $ 104,493 $ 194,036 $ 89,543 115 CITY OF WINTER SPRINGS, FLORIDA EXCELLENCE IN CUSTOMER SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended September 30, 2017 Revenues: Investment income Total revenues Expenditures: Capital Outlay General government Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balances Fund Balances - beginning Fund Balances - ending Budgeted Amounts Original Final $ 150 $ 150 150 150 Variance with Final Budget - Actual Positive Amounts (Negative) $ 4,431 $ 4,281 4,431 4,281 99,000 34,000 22,062 11,938 99,000 34,000 22,062 11,938 (98,850) (33,850) (17,631) 16,219 (98,850) (33,850) (17,631) 16,219 1,323,097 1,323,097 1,323,097 - $ 1,224,247 $ 1,289,247 $ 1,305,466 $ 16,219 116 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� STATISTICAL SECTION This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� STATISTICAL SECTION This part of the City of Winter Springs' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall health. Contents Paqe Financial Trends 117 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 124 These schedules contain information to help the reader assess the government's most significant local revenue. Debt Capacity 129 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. There are no limitations placed upon the amount of debt the City of Winter Springs may issue by either the City's Charter or the City's Code or by Florida Statutes. Demographic and Economic Information 135 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 137 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. This page intentionally left blank. 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U (n Cu -0 Q E .� a3 2 U U 0) 0) E 0- w a3 O 0) DEL 0) a3 E 0) N C Q N .�„ C 0) N y ; E C 0) C N RE O) 0) 7 t 7 N o 0) 0) a3 0) y0 a3 0 > L E (p C� d d U m a 0 `u a) Q a3 t Q Cu p> U O O U m m a 0 0 0 00 �I O N (01 O N LoI O N VI O N MI O L (\I 03 0) } 03 U N LL NI O N OIN 01 O N d)I O O N 001 O O N MN I� m M M M In M 00 ' In r d) M In OO M V M O In O N r I- 00 N0 Il M ' r N O O M r M W O 00 d) In d) OO M N O In V M M V M 00 00 N (O (O (ON I- M In ' M r In M V M d) In In r In r O � In In r ' V N O d) V O O d) O I- In 00 M M N V (O V M M N V M N (O In M N V I- O V (O V (O 00 ' V (O O I- O0 In r, O0 I- V N O0 N O0 00 N W N V V N (O 00 O N O(O In M 0 G 0') M In N In In O O In In V M M N V N N M M I- (OO (O In In In d) M r LO N N ' In M d) V I- M N W V M O (O M- O0 (O M O0 In O M N M d) r O O N M d) r d) d) O N O MV V V M - .ri .ri N N 00 N (OM M m O V V O M 00 ' O N In O In O I, M I- In In 00 N O- O3 In V M r V O In O0 I- O0 (O O O In M O0 00 O NV 00 M M M N N N N In M M (D V M ' I- V r� ' r O V d) M In In r r O (O O V I- V M (O V O0 In r d) r M O M d) O O In O( O d) M N O N MIn M M M N N M V M N d) d) d) In N ' N (D d) ' N M M M O0 W O In M O N (O O In (Lr)) (O O W d) W (O I- M W (O N d) N N O0 d) N V V M 7- O O0 (O V I- ' (O N M ' (O M O M r O CF) O r N In In M In M In O N d) M W d) O O d) d) O M O O M r O0 W V (O In M M O O I- N M `-' M O O r M O M d) In MV _ V d) V O (O (O W _ _ O0 (O In _ _ V V In V N N N In r O M O In In ' m In 00 ' V M (O M V V d) M r V V I- V (O W In In d) W d) M O In 00 V M r- d) (0 (0 .2 r M M N N (» (» p (» (» (» (» a Y z C U) N 'o 0) y R i 3 N 3 L � 05 y 05 0) r N U U U 03 N O- Q -O 05 " -O O- " C Q > 0) N N ll.l R N 0) i 05 O -u N O U r N N y y N N y 0) N Q y O O Q N y y i > > O 0) Q 0) Gl Q Q 0) X N NO T � � 0 O C9 L X d m 0) .� (� N N N m C9 E C9 W N 1 _ d cu > 03 C > O N N 0) C > .N 03 C > C C H 03 'N J H 03 03 f0 > 'N 03 0) O 7 O N O O 7 O O i O 3 p z C9 m C9 C9 H m U C9 m CITY OF WINTER SPRINGS, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Taxes included in Unrestricted Intergovernmental Revenues State Revenue Fiscal Year Sales Tax Sharing Other Total 2008 2,261 1,021 Business Tax 3,445 Fiscal Year Property Tax Franchise Tax Utility Tax Receipts 2 Total 2010 1,852 2008 7,130 3,976 140 11,246 2009 5,013 4,106 70 9,189 2010 4,538 4,536 204 9,278 2011 4,209 4,169 119 8,497 2012 3,901 3,963 106 7,970 2013 3,853 3,923 109 7,885 2014 4,015 4,035 105 8,155 2015 4,284 3,887 120 8,291 2016 4,516 3,976 122 8,614 2017 4,727 3,879 122 8,728 Taxes included in Unrestricted Intergovernmental Revenues State Revenue Fiscal Year Sales Tax Sharing Other Total 2008 2,261 1,021 163 3,445 2009 1,944 907 109 2,960 2010 1,852 893 152 2,897 2011 1,873 916 226 3,015 2012 1,918 962 164 3,044 2013 1,994 972 134 3,100 2014 2,097 1,038 134 3,269 2015 2,249 1,128 104 3,481 2016 2,305 1,168 84 3,557 2017 2,366 1,245 95 3,706 Note Franchise fees were classified as taxes prior to fiscal year 2008 2 Business tax receipts (formerly known as Occupational licenses) were classified as licenses and permits prior to fiscal year 2008 120 Q N0 w O J LL 'c V Nz a w w H Z LL O U (O ' O (O M N o0 O V N N N N O Ln N m r N M N 01 (O 00 I� 00 00 r N r 00 O N V3 V3 V3 V3 N N N O In N d) O r V o0 N 00 01 (p 00 00 N (O o0 O N V3 V3 V3 V3 M' M (O ' V N (O 01 co co co (O 0) N O M M_ O O N r N 00 00 N O N V3 V3 � V3 co r (O ' 00 N 00 N 0) V co V V (O m Nt m 00 N N N r N (O (O I- 00 N - 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O ONO (6 a) N O O o 0 0 0 0 0 0 0 0 E i5 OO o 0 0o o O o o O O (.f) V N O N (.f) (0 0) o V (.f) m O m � V r- N r*-: 00. r- r*-: N (h 00 00 (!i I- r- r- I- 1- 00 1- 1- 1 N U � '- O O O O o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 : Q O O U O O o 0 0 0 0 0 0 0 o C 0 0 = O O o 0 0 0 0 0 0 0 > E O 02 O N U N U U N rnO O o 0 0 0 0 0 0 0 0 11LONr a) LQ �o � V o CY)v 17 � � m _ o � a) m V v N O v v v v o m O (n (o m 0 0 0 0 I-- 00 I-- 00 I-- 00 I� 00 > 0 0 m «i v v ui ui ui ui v v v v Q `m U o > CL a) > N 7 O l!7 l!7 (f) (f) 0 0 0 0 0 0 0 0 0 0 0 0 0 O Q w N � � � � 00 00 00 00 0 0 ` 0 0 0 0 0 0 o 2 m>m C 2) U E O Ul U) m C C a) a) ul m ao Oo � n u) o o (0 (0 (0 (0 (0 (0 (0 0 E m m U c a) m d) rn N co (0 0 rn I- Oo 1- Oo 1- Oo 1- Oo 1- Oo 1- Oo 1 Oo C a) > .3 a) a) __ v v v v v v v v v v v a) 0 Q m CL 2 O : a) a 3 0 T °) ao 0 o 0 0 ami 0 rn 0 O U o v (0 c� 00 u) 00 u) 00 u)u) (o v u) v u) v u) v u) o u) ul m m U N N-0 -O x � O N o 0 0 0 0 0 0 0 0 >+ 0 N O N o 0 0 0 0 0 0 0 0 wN m a) Q U OO _ 2 N a) _ O O o 0 0 0 0 0 0 0 o U a) C/) O Ul O s a) (u o a) O U) LD N a) 0) d) V I� O N O n O n O n O n O n V O' N (OA N N V V V V V V V V Qj Q N i N Q CL 2 O U O H a) U O O O N C2 V l.f) 0 z (n a) E� O N 0 ON 0 N N 0 N 0 N 0 N 0 N 0 N 0 N 0 N N O T o) V LO U C V (O V V V V N N r O C � O N N N r rn oo c Q = U O O LL Q = O N — 0 _ C N N N ~ M Co c0 CO T p a co co co O N N N N C 9 N m O E C U O � a U C O T m Z UN c0 (O O o) O (O c0 c0 o) m N p] C N M O M V c0 (O T o) o) m O C J (+) O N C N O O O m N O N N O C U C w O a O L LL N T w o) (O V o) O V O o) M w CN t/1 a LO M O co c0 - co m O co O o) CO Mco M M M w O 07 w N O O O O O O O O M 9 �n U) 0 O 0 O a) E O d — — U J V O o) O O O O LO — V1 (D (— f/1 W a V N c0 I� co CO W LO V M M M N N N N N M M M Lp m m Q 4% L Q J N N N N N N N O d d N Y m m o 0 U cn 0 1 J LL Z Q o) (O O N c0 IT M o) M U M V V V o) V M M IT z %n } m N N N N M N N N N N Z ~ J o_ Cf) J_ m U ry LU w N O LO O M Loo) O O O) O CO LO O o) O) c0 co a p A m o Lo v Lo v Lo co co co >_m 2 J Q m Q o c°)o c°)o (D co c`pco o co (D coo � a U) 0 n LL U .� m O m a oF- ,W,n^ v,^/ JY v/ Lp V co O V CO co co oo o T M V N V V (O M .0 U U a V V co CO co CO M co M C J N c0 CO c0 CO O O co O co co O co a m r N E� U LU m CL U) .Q N0 O) LO N C2 V CO LO CO C U N O o) (D M (6 U C I� O o) N N O O M V M V V V V V V V C— C t0/1 � � = a a � LO c0 N (O O) M M co M m U � a o) LO N o 0 o) LO c0 M M 0 O) — N C U N � N N N N N N N N N oo 0 0 0 N d C Q O U l Q m LL 0 N O N N N N N N M M M 0 C (O (O (O (O CO CO CO N N O m— — — — — — — — — N CT N T U O C C o Q O p C E 75c0 o) M V LO (O t/1 4) 0 0 0 0 0 0 0 0 0 0 a C — () (D r N I�W O) O N M V LO co o O Z o o O O O O O O O H CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL PROPERTY TAXPAYERS September 30, 2017 (amounts expressed in thousands) 2017 2008 Source: Seminole County Property Appraiser (www.scpafl.org) 127 Percentage Percentage of Total of Total Taxable Taxable Taxable Assessed Assessed Taxable Assessed Assessed Taxpayer Value Rank Value Value Rank Value Laurel Oaks LLC $ 40,765 1 2.08% $ 33,083 1 1.49% Duke Energy (formerly Progress Energy) 26,545 2 1.35% 18,646 4 0.84% Courtney Springs LLC 25,409 3 1.30% 21,078 2 0.95% Standard Pacific of Florida 14,128 4 0.72% 0.00% United Dominion Realty Trust 10,408 5 0.53% 11,197 5 0.50% T Winter Springs FL LLC 9,797 6 0.50% 0.00% Bright House Networks LLC 6,532 7 0.33% 0.00% Moss Park 6,074 8 0.31% 0.00% Winter Springs Holdings, Inc 5,080 9 0.26% 9,137 6 0.41% Seminole Pines Assoc LTD 4,959 10 0.25% 0.00% Capital Green I LLC 0.00% 19,687 3 0.89% Levitt & Sons - 0.00% 8,307 7 0.37% Tousa Homes 0.00% 7,480 8 0.34% BRI 1813 Village Co -Op Inc, 0.00% 7,156 9 0.32% Baxley Robert & Annmarie TRS 0.00% 6,179 10 0.28% Totals $ 149,697 7.63% $ 141,950 6.39% Source: Seminole County Property Appraiser (www.scpafl.org) 127 CITY OF WINTER SPRINGS, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS3 Last Ten Fiscal Years Total Collections to Date Amount 7,156,388 5,043,110 4,538,274 4,209,321 3,937,809 3,852,812 4,014,680 4,284,129 4,516,032 4,731,279 Note 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 128 Percentage of Levv 96.15% 97.24% 97.14% 96.63% 96.51% 96.47% 96.40% 96.48% 96.43% 96.49% Collected within the Fiscal Year of the Levy Fiscal Year Collections in Ended Total Tax Levy for Percentage of Subsequent September 30, Fiscal Year 1 Amount 2 Levy Years 2008 7,442,693 7,145,070 96.00% 11,318 2009 5,186,450 5,028,524 96.96% 14,586 2010 4,671,821 4,503,950 96.41% 34,324 2011 4,355,923 4,203,079 96.49% 6,242 2012 4,080,271 3,933,840 96.41% 3,969 2013 3,993,624 3,850,616 96.42% 2,196 2014 4,164,738 4,014,098 96.38% 582 2015 4,440,561 4,281,737 96.42% 2,392 2016 4,683,015 4,515,547 96.42% 485 2017 4.903.354 4.730.295 96.47% 984 Total Collections to Date Amount 7,156,388 5,043,110 4,538,274 4,209,321 3,937,809 3,852,812 4,014,680 4,284,129 4,516,032 4,731,279 Note 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 128 Percentage of Levv 96.15% 97.24% 97.14% 96.63% 96.51% 96.47% 96.40% 96.48% 96.43% 96.49% CITY OF WINTER SPRINGS, FLORIDA LEGAL DEBT MARGIN September 30, 2017 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. MR] CITY OF WINTER SPRINGS, FLORIDA RATIO OF NET GENERAL OBLIGATION -DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Gen Obligation Gross Net Debt to Gen Obligation Fiscal Assessed Less Debt Gen Obligation Assessed Debt per Year Population' Value 2 Debt 3 Service Fund 4 Debt Value Capita 2008 34,639 2,220,522,082 3,000,000 46,254 2,953,746 0.133% 85 2009 34,340 2,009,169,114 2,925,000 36,610 2,888,390 0.144% 84 2010 34,149 1,809,808,024 2,850,000 38,879 2,811,121 0.155% 82 2011 33,282 1,687,434,206 2,770,000 40,388 2,729,612 0.162% 82 2012 33,599 1,593,864,153 2,739,107 50,549 2,688,558 0.169% 80 2013 33,540 1,572,300,619 2,638,521 42,070 2,596,451 0.165% 77 2014 33,871 1,639,667,121 2,533,833 25,305 2,508,528 0.153% 74 2015 34,901 1,748,258,752 2,425,161 1,167,015 1,258,146 0.072% 36 2016 35,266 1,843,713,578 2,312,629 1,176,903 1,135,726 0.062% 32 2017 35,599 1,961,341,503 - (1,074,143) 1,074,143 0.055% 30 Note 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. In fiscal year 2017, the entered served to refinance the 2002 general obligation bonds. 130 d' 0 LLL 0 z of a d' W H Z LL O f a (6 a 0 0 0 0 0 0 0 0 0 0 0 0 Ev M M N N M N N N o a a T .. V M M M M M N N N N a` E t0 0 F � m m M N N N o E a U o w E N N N N N N N N N N LL U) zo This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2017 (amounts expressed in thousands) Governmental Unit Overlapping Debt: Seminole County General Obligation Debt Subtotal, overlapping debt Direct Debt: Series 1999 Improvement Revenue Bonds Accreted Interest City of Winter Springs General Obligation Debt City of Winter Springs Capital Improvement Notes Total direct and overlapping debt Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board The City of Winter Springs has a 'limited" general obligation note that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. In 2017, the note was refinanced with an 132 Estimated Share of Overlapping Debt Estimated Percentage Debt Outstanding Applicable 3,498,970 5,874,767 3,520,633 100% $ 12,894,370 Note Sources: Seminole County Property Appraiser (www.scpafl.org) Seminole County Finance Department Seminole County School Board The City of Winter Springs has a 'limited" general obligation note that is being repaid through a levy not to exceed one quarter of one mill on all taxable property in the City. In 2017, the note was refinanced with an 132 Estimated Share of Overlapping Debt Q W O J LL W c6 > O Z U W N N U)z LU LL N > c LU w Z 0 N Lu J LL O W } J CL U O C7 N C7 M M M M M C7 M O N O U n rmi v rn rn rn rn E o o U W rn co rn rn v v v v Z o6 L N X O [O O O O O O W W [O W Oc (n N � Q O O O O O O O O O cn O O O O N U ~ O O O O O � Q 0 N a o 0 .6 0 c a o 0 �,mw �LL coo coo o � m a o Q C7 m cq E E W W n O) O N W M a U)� QQ 9 o Q z c0 O .— CNO n W W M 9 0 O O O O O O O O O O •' X O O O O O N U ~ m S U LL U E t W W CO O) [O c0 U LL N N O N W (n x Cm0 U� C7 V V V C7 M V M C7 M 9 a C m > O N M O O O O O O O O O O O UU)O a U) N N N N N N N N N N N a W Q N� LL 0 J LL c V Z FY a_ U) Q' W Z LL 0 U to c0 N M O) c0 M N N M N V �n o rn o 0 0 I o O — co — — - 0 O) V O N O N O c0 V O � O M N c0 V O V c0 O O I� O V c0 V O O W CI O) c0 c0 I� V V V V M 0 0 0 0 o co m m rn rn U O) O) O O) O) N N V V c0 a N `O U N O) c0 � c0 V V c0 O c0 N N Z O) c0 CO CO N V CO CO V O) W9 O � O (n z Q D � .n co co w 0 w O � M N Q W O) O N M V CO I� } N O O LT0 N a w 0 z CITY OF WINTER SPRINGS, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Note Source: American Fact Finder; US Census; previous statistics from multiple sources 2 Source: American Fact Finder; Seminole County Public Schools 3 Source: Bureau of Economic and Business Research (BEBR) 135 Personal Education Income Level in (amounts Per Capita Years of expressed in Personal Median Formal School Unemploy- Fiscal Year Population thousands) Income 1 Age' Schooling 1 Enrollment 2 ment Rate 3 2007 34,899 971,623 27,841 39.8 13.93 7,115 3.6% 2008 34,639 1,028,951 29,705 40 13.72 6,804 5.0% 2009 34,340 1,053,173 30,669 40.3 13.72 6,754 9.7% 2010 34,149 1,047,589 30,677 41 13.82 6,454 11.8° 2011 33,282 1,161,675 34,904 39.3 14.71 6,316 9.5% 2012 33,599 1,183,558 35,226 36 13.81 6,341 6.8% 2013 33,540 1,104,540 32,932 41.8 6,496 5.4% 2014 33,871 1,084,989 32,033 39 6,461 5.4% 2015 34,901 1,090,935 31,258 40.2 14 6,072 5.0% 2016 35,266 1,144,523 32,454 40.7 13.98 5,565 4.6% 2017 35,599 1,170,887 32,891 42.2 14.18 5,708 4.0% Data not available Note Source: American Fact Finder; US Census; previous statistics from multiple sources 2 Source: American Fact Finder; Seminole County Public Schools 3 Source: Bureau of Economic and Business Research (BEBR) 135 CITY OF WINTER SPRINGS, FLORIDA PRINCIPAL EMPLOYERS Current Year and Ten Years Ago 2017 2008 Employer Employees Seminole County School Board 1,325 City of Winter Springs 194 Publix ( Winter Springs Town Cente 164 Dearborn Electronics 150 Modern Plumbing 138 Budget Tree 61 Tuscawilla Country Club 53 The Grove Counseling Center 52 United States Post Office 45 Longwood Kia / Mitsubishi 42 EZ Yield Dittmer Architectural Aluminum Total 2,224 1 Per survey of local businesses 136 Percentage of Percentage of Total City Total City Rank Employment Employees Rank Employment 1 19.47% 1,573 1 29.93% 2 2.85% 242 2 4.61% 3 2.41% 125 4 2.38% 4 2.20% 137 3 2.61% 5 2.03% 103 5 1.96% 6 0.90% 7 0.78% 92 6 1.75% 8 0.76% 35 10 0.67% 9 0.66% 49 7 0.93% 10 0.62% 0.00% 48 8 0.91% 45 9 0.86% 32.68% 2,449 46.61% 136 This page intentionally left blank. It * z G� Incorporated 1959 i,�C❑o WE �R J�•� CITY OF WINTER SPRINGS, FLORIDA BUDGETED FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION' Last Ten Fiscal Years Full-time Equivalent Employees as of September 30, Function 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Development Services 10 5 5 4 4.46 5.46 5.46 5.46 4.73 5.46 General Government 44 45 42 41 36.79 37.23 36.67 36.38 36.95 36.08 Public Safety: Police Sworn Officers 70 70 70 70 65 65 65 65 65.70 65.00 Civilians 2 20.75 20.75 20.75 20.75 18.45 16.45 16.88 17.13 17.13 17.13 Fire 3 Firefighters and officers 51 0 0 0 0 0 0 0 0 0 Civilians 2 0 0 0 0 0 0 0 0 0 Public Works 21 21 20.73 18.73 18 16 16 16 16 16 Culture and Recreation 36.63 34.07 31.86 29.10 25.68 24.07 24.06 21.84 21.11 21.76 Utilities 45 45 45 42 37 35 35.73 36.17 36.45 38.45 Stormwater 9 9 9 9 9 9 9 9 9 10 Total 309.38 249.82 244.34 234.58 214.38 208.21 208.8 206.98 207.07 209.88 Part-time FTEs (included above) 15.38 16.33 16.34 17.58 18.38 22.36 21.95 20.98 23.07 22.88 Note 1 City of Winter Springs Annual Budget Document FY16 2 Police civilians include emergency communications center personnel. 3 Municipal Fire Department was consolidated with Seminole County Fire Department on 10/02/08. 137 co U V O V c4 coo ON O m M m r O ro m v o N ri N Q Q Q o r Z Z Z � 0 o m r m co rn m N rn m o v (O N m r m O O (r0 M W if N W if a N m co N Z Z Z rn u� o v r v mm ro coo r m v r m v v rn u N m N Q Q Q o v Z Z Z � N m N O m N r N V 0 (O a m N Q Q Q O) LL� Z Z Z m co � o m � o v m N m rn rn o m rn rn v ro co r o 0 m m m Q Q Q m L N Z Z Z N rn r r co co u� r o ro u� ro v N o N Z Z Z m m N Z Z Z oO M V N Q Q Q M V N Z Z Z N N N N N y Q N Q Q N 0I U •• �/Sj O O (0 Z B lo 0I L N Q O Q— N /1 N j U OE Q a`• -O N N N N Y S U ojj y 3 Y "06 A Cll (O co coN -O Q N U CN U Q U N d N N N N N N `O U E 0 o i. 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It * z G� Incorporated 1959 i,�C❑o WE �R J�•� MCDIRMIT %%f DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 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, business -type activities, each major fund, and the aggregate remaining fund information of the City of Winter Springs, Florida, as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 14, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Winter Springs, Florida's internal control over financial reporting (internal control) to determine the 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 City of WInter Springs' internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. 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 entity'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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 141 Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Winter Springs' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The result of our tests disclosed no instances of noncompliance, 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida March 14, 2018 142 MCDIRMIT %%f DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY CHAPTER 10.550, RULES OF THE AUDITOR GENERAL Honorable Mayor and City Council City of Winter Springs, Florida Report on Compliance for Each Major State Project We have audited the City of Winter Springs's (the City) compliance with the types of compliance requirements described in the Florida Department of Financial Services State Projects Compliance Supplement that could have a direct and material effect on each of the City's major state projects for the year ended September 30, 2017. The City's major state projects are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its state projects. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major state projects based on our audit of the types of compliance requirements referred to above. 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; Chapter 10.550, Rules of the Auditor General. Those standards and rules require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state project occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major state project. However, our audit does not provide a legal determination of the City's compliance. MCDIRmi'r DAviS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 143 Opinion on Each Major State Project 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 major state project for the year ended September 30, 2017. Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major state project and to test and report on internal control over compliance in accordance with Chapter 10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's 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, noncompliance with a type of compliance requirement of a state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a state project 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 first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose. Orlando, Florida March 14, 2018 144 a 0 0 J LL 0 0 W_ 0 LL 0 H U 0 N O C7 a) a) Q a) a) LU L ca a) a N d 7 .a C N Q K W (7 (7 O C) O C) L(i L(i 6�? 6c? O O m Ln 0 O CY) E m O) O Q O .F E m U) O c N D a) U c ca a U c cu c LL (1) Z) 70 a) L U O U) a� 0 z 0) ca 0- E E O U U cu a) a) CITY OF WINTER SPRINGS, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE Year Ended September 30, 2017 Note 1 - Basis of Presentation: The accompanying schedule of expenditures of state financial assistance (the Schedule) includes the state grant activity of the City of Winter Springs (the City) under projects of the state government for the year ended September 30, 2017. The information in this Schedule is presented in accordance with the requirements of Section 215.97, Florida Statutes. 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. Note 2 - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Therefore, amounts reported on the Schedule are based on expenditures incurred as of September 30, 2017, even if grant or loan was received subsequent to that date. Pass-through entity identifying numbers are presented where available. 146 CITY OF WINTER SPRINGS, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - STATE FINANCIAL ASSISTANCE PROJECTS Year Ended September 30, 2017 Section I - Summary of Independent Auditor's Results: Financial Statements Type of auditors' report issued: Unmodified Internal control over financial reporting: • Material weakness identified? Yes X No • Significant deficiency identified Yes X None reported Noncompliance material to financial Statements noted? Yes X No State Projects Type of auditors' report issued on compliance for major federal programs: Unmodified Internal control over major Federal program: • Material weakness identified? Yes X No • Significant deficiency identified Yes X None reported Any audit findings disclosed that are required to be reported in accordance with Chapter 10.550? Yes X No Identification of major state projects Dollar threshold used to distinguish between type A and type B programs Auditee qualified as a low-risk auditee? Section II - Financial Statement Findings: Section III - State Award Findings and Questioned Costs: CFSA No. 37.076 $300,000 Yes None None Drinking Water Facility Construction X No Section IV - State Award Summary Schedule of Prior Year Findings: There were no audit findings for the year ended September 30, 2016. 147 MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 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, as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated March 14, 2018. 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; and Chapter 10.550, Rules of the Florida 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 State Project 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 AICPA 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 March 14, 2018, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings in the preceding annual 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 has been disclosed in the notes to the financial statements. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 148 Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the City of Winter Springs, Florida has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City of WInter Springs, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. 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 of Winter Springs, Florida'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 did not have any such recommendations. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and communicate the results of our determination as to whether the annual financial report for the City of WInter Springs, Florida for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have 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 the 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. Orlando, Florida March 14, 2018 149 MCDIRMIT %%f DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS Honorable Mayor and City Commissioners City of Winter Springs, Florida We have audited the financial statements of City of Winter Springs as of and for the year ended September 30, 2017, and have issued our report thereon dated March 14, 2018. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated August 25, 2015, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Winter Springs solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, have complied with all relevant ethical requirements regarding independence. MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 150 Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of significant accounting policies adopted by the City are described in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2017. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are Management's estimate for the allowance for doubtful accounts is based on historical loss levels, and an analysis of the individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimation for the allowance for depreciation is based on the estimated useful lives of the capital assets. We evaluated the reasonableness of the useful lives as well as the depreciation methods in determining that it is reasonable in relation to the financial statements taken as a whole. Management's allocation of the net pension liability, deferred inflows/outflows and pension expense is based on the participating employees' contributions made. We evaluated the reasonableness of the allocation methods in determining that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Winter Springs's financial statements relate to the recording of investments at fair value. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 151 Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to City of Winter Springs's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated March 14, 2018. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with City of Winter Springs, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City of Winter Springs's auditors. This report is intended solely for the use of management, the City Commission and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, nn pp ��tt �l c� t��� At �.L0, Orlando, Florida March 14, 2017 152 MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES The Honorable Mayor and City Commission City of Winter Springs, Florida We have examined City of Winter Springs's (the City) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2017. 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 and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, City of Winter Springs complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2017. �l c� DwH�,a At Cmpaad, Orlando, Florida (/ March 14, 2018 MCDIRMIT DAVIS & COMPANY, LLC 934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803 TELEPHONE: 407-843-5406 FAX 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC 153 ��NTER � SA p -- U fn Inwmor d D WW E E iyCOI� Jy.( March 14, 2018 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 AFFIDAVIT OF IMPACT FEE COMPLIANCE Impact Fees are assessed in accordance with Chapter 9: Land Development, Article VIII Impact Fees, of the City of Winter Springs Code of Ordinances. Impact fee collections, expenditures and accounting are provided for in separate accounting funds and comply with Florida Statue 163.31801. 2 C" Shawn Boyle Finance and Administrative Services Director STATE OF FLORIDA COUNTY OF SEMINOLE The foregoing instrument was acknowledged before me this day of M&trK, 20 S by �N•�••,, CASEY CARMAN Notary Public - State M Ftorift (Signa o Notary) • •= Commission # FF 215744 My Comm. Expires Mat 31, 2019 Grp* t1r�2•-� r` Hill N-ationalNotary Ann. (Name of Notary Typed, Printed, or Stamped) Personally Knovirt R Produced Identification