HomeMy WebLinkAboutVI (A) Discussion/ Action re: Audit Report AGENDA 2-Oh-97
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6000 ELLIS SHAPIRO
MEMORANDUM
TO: The Honorable Mayor and Board of City Commissioners
FROM: Wanda B. Horton, Finance Director, .44/
DATE: January 28, 1997
RE: Audit Report for Fiscal Year 1995/1996
McDirn it, Davis, Lauteria & Company, P.A. have completed the independent audit of
the City's accounting records for fiscal year 1995/1996. Again this year, the auditors
have rendered an unqualified opinion.
Attached for your review is the Comprehensive Annual Financial Report, Management
Comment Letter, and the Water and Waste Water Audit reports. Please note that the
number of comments has decreased from the previous year as well as the severity of the
comments. Staffs response to the management comments is also attached.
Elden McDirmitt will be at the commission meeting to discuss the audit.
ACTION REOUESTED
"[he Honorable Mayor and Board of City Commissioners accept the Comprehensive
Annual Financial Report for Fiscal Year 1995/1996.
Olt
0
"CENTER OF GOOD LIVING - PRIDE OF WEST ORANGE" MAYOR• COMMISSIONER
Ocoee S.SCOTT VANDERGRIFT
O\ r
COMMISSIONERS
►11 CITY OF OCOEE RUSTY Y JOHOHNSON
a. SCOTT ANDERSON
C 150 N. LAKESHORE DRIVE SCOTT A.GLASS
of Ca OCOEE,FLORIDA 34761-2258 JIM GLEASON
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OF G000 ELLIS SHAPIRO
January 27, 1997
Elden G. McDirmit, CPA
McDirmit. Davis. Lauteria 8 Company. P.A.
612 East Colonial Suite 350
Orlando. Florida 32803-4603
Dear Elden.
The following details corrective action taken on the management comments resulting
from Me audit for fiscal year lc/Of, 1996.
1. Florida Contraband Forfeiture Semiannual Report
The Finance staff will coordinate with the police department to review the
report before it is released.
2. Florida Statute Revisions
Staff will include the estimated fund balance as a revenue source of the
budget for fiscal year 1997/1998 as recommended .
Sincerely. /'S/�,,(�
eren
Wanda B. Horton .
Finance Director
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CITY OF OCOEE, FLORIDA
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Ocoee
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF OCOEE, FLORIDA
for the
FISCAL YEAR ENDED SEPTEMBER 30, 1996
C
C
CDIRMIT
MIAVIS
AUTERIA & COMPANY, P.A.
CERTIFIED PI IRLIC ACCOI INTAN I S
MANAGEMENT COMMENTS
Honorable Mayor and City Commission
City of Ocoee, Florida
In connection with our audit of the general purpose financial statements of the City of Ocoee,
Florida, for the year ended September 30, 1996, we are submitting for your consideration
the accompanying recommendations designed to help you improve the internal control
structure and achieve operational efficiencies. Our comments deal exclusively with
weaknesses noted in operational, accounting, and recordkeeping systems and procedures,
and should not be regarded as reflecting on the integrity or capabilities of anyone in your
organization. Our comments reflect our desire to be of continuing assistance to
management.
Since the comments and observations contained in this letter are a by-product of the audit
of financial statements, the cost justification and other aspects of our suggestions have not
been fully evaluated; these evaluations should be made by management. Therefore, we
recognize that, after consideration, certain suggestions and recommendations may not be
practical to implement.
We have also provided comments as required by the Rules of the Auditor General of the
State of Florida.
We appreciate the cooperation we have received from the City's personnel in connection
with developing these recommendations. We appreciate the opportunity to have been of
service to you. Should you have any questions about our recommendations, this letter, or
other matters, please contact us at your convenience.
mcDiamit, DOA , 7�A4Aa a mpa1xa.PA.
McDirmit, Davis, Lauteria & Company, P.A.
November 6, 1996
612 F. COLONIAL DRIVE• SIll"FE 360• ORLANDO. FLORIDA 32803-4603
(407) 648-0713 • FAX (407) 839-3975 • E-mail: cpa mdl@aol.wm
63138IT COMPANIES PRACTICE SLCTIUN•AMERIC AB INS]I] I I F OF( FR I INFII PI HI IC ACCOUNTANTS•FLORIDA INSTITUTE OF CFRTIFlFD PUBLIC ACCOUNTANTS
Management Comments November 6, 1996
City of Ocoee, Florida Page Two
A. Status of Prior Year Comments
1. Purchasing Procedures
As noted in prior year comments, the City has not completed the Purchasing
Manual. During the 1995 audit, we noted some instances where procedures
being followed were not the same as outlined in the existing Purchasing
Manual.
Recommendation
We continue to recommend that revisions to the Purchasing Manual be
completed as soon as possible and approved by the City Commission.
Corrective Action
Ordinance No. 96-10 was adopted on July 16, 1996 providing for a Chapter 21
of the Code of Ordinances of the City of Ocoee regarding the purchasing
policy.
2. Contributed Fixed Assets
As a result of the physical inventory taken of fixed assets in 1995, it was
discovered that several lift stations had never been recorded as assets and
contributed capital of the City. Each year, the engineering department
prepares a list of water and sewer systems contributed to the City by
developers. Apparently this list has not always been complete.
Recommendation
We recommend that any discrepancies between current year contributed
assets per the engineering department and the fixed asset inventory be recon-
ciled annually.
Corrective Action
Contributed assets per the engineering department were reconciled to the
fixed asset inventory taken in 1996.
3. General Fixed Asset Additions
Our audit procedures for fixed asset additions includes review of various
capital expenditure accounts in the governmental fund types. There were
some items in the capital expenditure accounts that were not added to the list
of general fixed assets at September 30, 1995.
Management Comments November 6, 1996
City of Ocoee, Florida Page Three
Recommendation
We recommend that the capital expenditure accounts be reviewed at least
quarterly so that the fixed asset listing can be updated for additions.
Corrective Action
During the year ended September 30, 1996, the list of general fixed assets was
properly updated for additions noted in the capital expenditure accounts.
4. Budget Amendments
During our testing of expenditures, we discovered a situation where the
purchase of an unbudgeted item was recorded in various expenditure
accounts that had remaining budget balances even though these accounts did
not reflect the nature of the expenditure.
Recommendation
Since the City Manager is authorized to transfer budgeted amounts within
departments of any fund, we recommend in the future that the budget for line
item amounts be amended so that the actual expenditure is recorded in an
account that reflects the nature of the expenditure.
Corrective Action
During the testing of expenditures for the year ended September 30, 1996, all
items tested were properly classified.
B. Current Year Comments
1. Florida Contraband Forfeiture Semiannual Report
The ending balance available for Law Enforcement Trust Fund at September
30, 1996 shown on the Florida Contraband Forfeiture Semiannual Report does
not agree to the general ledger.
Recommendation
We recommend that the Finance Department review the Florida Contraband
Forfeiture Semiannual Report prepared by the police department and reconcile
it to the general ledger.
Management Comments November 6, 1996
City of Ocoee, Florida Page Four
2. Florida Statute Revisions
Section 166.241 of Florida Statutes was amended in July 1996. Municipalities
must consider amounts carried over from prior fiscal years when adopting their
budget. The amount available from taxation and other sources, including
amounts carried over from prior fiscal years, must equal the total
appropriations for expenditures and reserves. For example, the total fund
balance of the General Fund at September 30, 1996 is $1,602,214. This
amount should be shown as a revenue source in the budget and then under
expenditures there would be amounts budgeted as reserve for capital
expenditures, or reserve for contingencies.
Recommendation
We recommend that the fiscal year ended September 30, 1998 budget include
the estimated fund balance at the beginning of the fiscal year as revenue. We
do not interpret the revisions to the Florida Statutes Section 166.241 to mean
that the City include in revenue only the amount of fund balance needed to
balance the budget.
C. Comments Required by the Rules of the Auditor General
1. The financial report filed with the Department of Banking and Finance pursuant
to Section 218.32(1)(b), Florida Statutes, is in agreement in all material
respects with the annual financial audit report for the same period.
2. The City is not, or during the fiscal year was not, in a state of financial emer-
gency as a consequence of conditions described in Section 218.503(1) Florida
Statutes.
D. Other Comments
In previous years we have made recommendations for the City to upgrade its
accounting software. We would like to commend the City Commission for making the
large commitment to upgrade the City's computer system during the fiscal year
ending September 30, 1997.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
—
OF THE
—
CITY OF OCOEE, FLORIDA
FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 1996
—
—
Prepared by: Finance Department
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CRY OF OCOEE, FLORIDA
COMMISSION-MANAGER FORM OF GOVERNMENT
CRY COMMISSION
HONORABLE S. SCOTT VANDERGRIFT, Mayor
RUSTY JOHNSON, Commissioner SCOTT GLASS, Commissioner
SCOTT ANDERSON, Commissioner JIM GLEASON, Commissioner
CRY MANAGER CITY ATTORNEY
Ellis Shapiro Paul Rosenthal
CRY CLERK CITY AUDITOR
Jean Grafton McDirmit, Davis, Lauteria &
Company, P.A.
FINANCE DIRECTOR
Wanda Horton
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INTRODUCTORY SECTION
This section contains the following subsections:
. Table of Contents
. Letter of Transmittal
. City of Ocoee Organizational Chart
. Certificate of Achievement
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS
PAGE NO.
I. INTRODUCTORY SECTION
TABLE OF CONTENTS i-v
LETTER OF TRANSMITTAL vi-xvii
CITY OF OCOEE ORGANIZATIONAL CHART xviii
CERTIFICATE OF ACHIEVEMENT xix
II. FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT xx-xxi
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
COMBINED BALANCE SHEET - ALL FUND TYPES AND
ACCOUNT GROUPS 1-4
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERN-
- MENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 5-6
COMBINED STATEMENT OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL - GENERAL AND SPECIAL
- REVENUE FUNDS 7-8
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE-
' ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST
FUNDS 9
COMBINED STATEMENT OF CASH FLOWS - ALL PRO-
- PRIETARY FUND TYPES 10-11
NOTES TO FINANCIAL STATEMENTS 12-46
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS - CONTINUED
PAGE NO.
COMBINING AND INDIVIDUAL FUND AND ACCOUNT
GROUP STATEMENTS
GENERAL FUND -
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL 47-48
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET 49-50
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 51-52
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET 53
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 54 -
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET 55-56 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 57-58
ENTERPRISE FUNDS
COMBINING BALANCE SHEET 59-60
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS 61
COMBINING STATEMENT OF CASH FLOWS 62-63
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET 64
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND BALANCE - PENSION TRUST FUNDS 65
STATEMENT OF CHANGES IN ASSETS AND
LIABILITIES • AGENCY FUND 66
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS - CONTINUED
PAGE NO.
GENERAL FIXED ASSETS
SCHEDULE OF CHANGES IN FIXED ASSETS -
BY FUNCTION AND ACTIVITY 67
SUPPLEMENTARY INFORMATION
GENERAL EMPLOYEES' DEFINED BENEFIT PENSION PLAN
COMPARATIVE SUMMARY OF REVENUES BY SOURCE
AND EXPENSES BY TYPE LAST TEN FISCAL YEARS 68
POLICE OFFICERS AND FIREFIGHTERS DEFINED BENEFIT
PENSION PLAN COMPARATIVE SUMMARY OF REVENUES BY
SOURCE AND EXPENSES BY TYPE LAST TEN FISCAL YEARS 69
GENERAL EMPLOYEES' DEFINED BENEFIT PENSION PLAN
ANALYSIS OF FUNDING PROGRESS LAST TEN
FISCAL YEARS 70
POLICE OFFICERS AND FIREFIGHTERS DEFINED BENEFIT
PENSION PLAN ANALYSIS OF FUNDING PROGRESS LAST
TEN FISCAL YEARS 71
SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL - WATER 0 & M DEPARTMENT 72
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND
ACTUAL - WASTEWATER 0 & M DEPARTMENT 73
SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL - SANITATION FUND 74
III. STATISTICAL SECTION
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER
FINANCING USES 75-76
GENERAL GOVERNMENTAL REVENUES AND OTHER
FINANCING SOURCES 77-78
TAX REVENUES BY SOURCE 79
PROPERTY TAX LEVIES AND COLLECTIONS 80
ASSESSED AND ESTIMATED VALUE OF TAXABLE
PROPERTY NET OF EXEMPTIONS 81-82
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS - CONTINUED
PAGE NO.
III. STATISTICAL SECTION - CONTINUED
PROPERTY TAX RATES AND TAX LEVIES DIRECT
AND OVERLAPPING GOVERNMENTS 83
SPECIAL ASSESSMENT COLLECTIONS 84 _
RATIO OF NET GENERAL OBLIGATION BONDED
DEBT TO ASSESSED VALUE AND NET BONDED
DEBT PER CAPITA 85
LEGAL DEBT MARGIN 86
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT 87
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT TO
TOTAL GENERAL GOVERNMENTAL EXPENDITURES
AND OTHER USES 88
REVENUE BOND COVERAGE 89
DEMOGRAPHIC STATISTICS 90
PROPERTY VALUE, CONSTRUCTION AND BANK
DEPOSITS 91-92
SCHEDULE OF TEN LARGEST TAXPAYERS 93
MISCELLANEOUS STATISTICAL DATA 94-95
SCHEDULE OF INSURANCE IN FORCE 96
IV. INTERNAL CONTROL AND COMPLIANCE SECTION
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL STRUCTURE BASED ON AN AUDIT OF '-
GENERAL PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 97-98
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS 99
iv
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS - CONTINUED
PAGE NO.
IV. INTERNAL CONTROL AND COMPLIANCE SECTION - CONTINUED
FEDERAL AND STATE FINANCIAL ASSISTANCE PROGRAMS
INDEPENDENT AUDITOR'S REPORT ON SCHEDULE
OF FEDERAL AND STATE FINANCIAL ASSISTANCE 100
SCHEDULE OF FEDERAL AND STATE FINANCIAL
ASSISTANCE 101
NOTES TO SCHEDULE OF FEDERAL AND STATE
FINANCIAL ASSISTANCE 102
INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL
CONTROL STRUCTURE USED IN ADMINISTERING
FEDERAL FINANCIAL ASSISTANCE PROGRAMS 103-105
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH GENERAL REQUIREMENTS APPLICABLE TO
FEDERAL ASSISTANCE PROGRAMS 106-107
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO STATE
FINANCIAL ASSISTANCE PROGRAM 108
V
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"CENTER OF GOODLIVING- PRIDE OF WEST( RANGE" nl cc e.r it
lCOee S C()I I VANN RIIiIII
CITY OF OCOEE
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OF 6000 61_LIS�H:AFIFO
November 6, 1996
Honorable Mayor and
Members of the City Commission
City of Ocoee, Florida
Gentlemen:
The Comprehensive Annual Financial Report of the City of Ocoee, Florida, for the year ended
September 30, 1996, is submitted herewith pursuant to Article III, Section 11 of the City
Charter, Florida Statutes Chapter 11, Section 45, and Chapter 10.550 of the Rules of the
Auditor General of the State of Florida. The Annual Financial Report was compiled by the staff
of the Finance Department, with close cooperation of the External Auditors, and represents
the official report of the City's financial operations and condition to the citizens, City Commis-
sion, management personnel of the City, rating agencies, and other interested persons.
Responsibility for both the accuracy of the presented data, and the completeness and fairness
of the presentation, including all disclosures, rests with the City. We believe the data, as
presented, is accurate in all material aspects; that it is presented in a manner designed to
fairly set forth the financial activity of its various funds, and that all disclosures necessary to
_ enable the reader to gain the maximum understanding of the City's financial affairs have been
included.
_ FINANCIAL REPORTING AND CONTENT
We have prepared this Comprehensive Annual Financial Report in conformance with the
reporting format and presentation standards set forth by professional pronouncements of the
Governmental Accounting Standards Board (GASB).
The accompanying financial statements present the financial position, results of operations,
_ and the cash flows of the applicable fund types governed by the City Commission. The
reporting entity for the City of Ocoee includes all organizations, functions, and activities of
government for which the City (the Mayor and City Commission) has financial accountability.
(See Notes to Financial Statements, Reporting Entity for more details.)
vi
FINANCIAL REPORTING AND CONTENT - CONTINUED
The Comprehensive Annual Financial Report(CAFR) is the City's official annual financial report
and has been designed to meet the needs of a broad spectrum of readers. The report has
been divided into four (4) distinctive sections; i.e., the Introductory Section, Financial Section,
Statistical Section and Compliance Section.
I. Introductory Section - This section includes the Table of Contents, Letter of
Transmittal, City's Organizational Chart, and the City of Ocoee's Certificate of
Achievement for Excellence in Financial Reporting for the year ended September 30, _
1995.
II. Financial Section - The Financial Section contains the opinion of the City's
independent auditors, McDirmit, Davis, Lauteria & Company, P.A., Certified Public
Accountants, the general purpose financial statements, the notes to the financial
statements, and the combining and individual fund financial statements for six
different fund types and the City's two account groups (encompassing 22 different
funds). The General Purpose Financial Statements are the City's basic financial
statements and provide an overview for readers who require less detailed informa-
tion about the City's finances. The remainder of the Financial Section presents the
combining statements, individual fund statements, and schedules focusing on indi-
vidual funds and account groups. The Financial Section necessarily contains the
major portion of the report and has been subdivided into the various descending
levels of reporting detail necessary to adequately disclose the financial position and
operating results of the City's various fund entities and account groups and to
demonstrate compliance with both finance-related, legal and contractual require-
ments.
I. Statistical Section -This section contains substantial financial information. However,
the various tables differ from the Financial Section in that the tables present some
non-accounting data, cover more than one fiscal year, and are designed to reflect
social, demographic and economic data, financial trends, and the fiscal capacity of
the City.
IV. Internal Control and Compliance Section - This section includes the independent
auditors' reports on the City's internal control and the City's compliance with laws
and regulations.
vii
ECONOMIC CONDmON AND OUTLOOK
The City of Ocoee, a municipal corporation of the State of Florida, operates under a commis-
sion/manager form of government. Located in Central Florida, Ocoee is the home of approxi-
mately 19,261 residents. In addition to its close proximity to many tourist attractions, including
Disney World, Sea World and the new Universal Studios, Ocoee is also conveniently located
near other major employers such as Martin-Marietta. These factors bring large numbers of
people to the area, not only as visitors, but also as permanent residents.
As a result of the increasing population, during 1992 regional mall developers announced
plans to construct a one-million square foot mall within the City limits. With an approved
_ Development Order and the necessary regulatory permits, construction began in the Fall,
1995 and opened as scheduled in the Fall, 1996. With such continuing economic growth, the
financial position of the City remains sound. There were no significant or material changes
in financial policy. All required debt service payments of principal and interest were met.
MAJOR INFilATIVES
The City is experiencing phenomenal growth. From 1987 through January of 1990, 1,504
acres of land were annexed into the City. During 1992, 1,856 additional acres were annexed;
through a Joint Planning Area Agreement with Orange County, these lands will be developed
consistent with the City's adopted Comprehensive Plan. According to the 1990 census, there
were 4,439 dwelling units in the City. Since the 1990 census, over 2,000 residential building
permits have been issued. Currently, there are over 1,500 dwelling units proposed that are
between the preliminary plan submittal and approval and the development stages.
Commercial centers to service these residential units have been planned and two additional
centers have completed their first phases.
There are many factors that have influenced and continue to influence the growth of the City.
First, and foremost is the unique transportation system alignment in the region. In 1990, the
Western Extension of the East-West Expressway was completed. This extension,which is part
of a beltway system planned to surround the Orlando Metropolitan Statistical Area (MSA)
terminates just inside the City limits, making the trip to downtown Orlando approximately 20
minutes. In addition, State Road (SR) 50, a major east/west arterial that traverses all of
Orange County, divides the City. The proposed Northwest Beltway and the Florida Turnpike
have or will have interchanges within the City. In their efforts to modernize the system, the
Turnpike Authority has removed the toll booths from its Ocoee interchange.
To meet the increasing transportation needs, the City has opened Clarke Road (a major north-
- south arterial roadway). This four-lane arterial roadway has advanced the construction of
additional residential homes, several hundred of which are already under construction, and
accompanying retail services, one retail center being the regional mall mentioned above and
one storage center.
VIII
MAJOR INITIATIVES - CONTINUED —
Another factor which influences the growth of Ocoee is the amenities in the area, including
numerous lakes, rolling hills, recreational opportunities, excellent schools and a plentiful supply
of potable water and the provision of services such as central water and wastewater service.
As an example of combining services with amenities, the 240-acre effluent disposal site serves
another key role as an 18-hole PGA designed golf course. The City continues to expand and —
improve its wastewater and water facilities to keep pace with the City's growth and to meet
state concurrency requirements through an aggressive capital improvements program. One
such example is the development of a comprehensive water reuse plan.
Along with the growth of residential development, the City has noted a marked increase in
industrial and commercial developments.
Also of great importance to the City is the movement of the West Orange Hospital from the
adjacent community of Winter Garden to Ocoee. This "Medical Mall" is the only one of its kind
in Central Florida. The concept incorporates office suites and services within the hospital area
creating a regional health care campus with high-tech images.
Final adoption of the City's Comprehensive Plan was approved on September 18, 1991.
Ocoee became the first city in Orange County to have a plan receiving State compliance. In
April 1991, the City issued $2,580,000 in revenue bonds to finance the construction of a new
City Hall and expansion of the Police Department building. These buildings reached
substantial completion in August 1994; occupancy followed soon after. In April of 1996, the
City received loan proceeds of $2,200,000 to finance stormwater drainage improvements.
Plans for construction of two new fire stations, a public works facility and a gymnasium were
completed as well, which will be financed by a Capital Improvement loan of $4,840,000. —
Construction of these improvement projects will start in Fiscal Year 1997.
FINANCIAL INFORMATION —
Accounting System
In the design and direction of the City's accounting system, we have followed Generally
Accepted Accounting Principles (GAAP) for state and local governments as set forth in the
aforementioned statements on governmental accounting and financial reporting. Our
accounting policies follow the modified accrual concept of reporting revenues and
expenditures for all governmental funds; i.e., General Fund, Special Revenue Funds, Debt
Service Funds, Capital Project Funds, and Trust and Agency Funds. The City's Proprietary —
Funds and Pension Trust Funds are accounted for on the full accrual basis. Further
explanation of the City's accounting policies is contained in the Notes to Financial Statements, —
which are an integral part of the Financial Section of this report.
Internal Control Structure
The Finance Department is responsible for maintaining an internal control structure that
provides management with reasonable, but not absolute, assurance that assets are safe-
guarded against loss from unauthorized use or disposition,and that transactions are executed
in accordance with management's authorization and recorded properly to permit the prepara-
tion of financial statements in accordance with generally accepted accounting principles. —
ix
Internal Control Structure - Continued
To understand the limitations of internal controls it is essential that the concept of reasonable
assurance be clearly stated. The concept is as follows:
1. The cost of a control should not exceed the benefits,
and
2. The evaluation of costs and benefits requires the use of estimates and judgments
by management.
We believe that the City's internal accounting controls adequately safeguard assets and
provide reasonable assurance of proper recording of financial transactions.
Budgetary Control
Budgetary control is maintained in a manner to comply with the requirements and constraints
of the City Charter through a system of monthly financial schedules reflecting expenditures
and encumbrances against appropriations. The annual budget provides detail of the ap-
proved appropriation by specific purpose within each object of expense. Purchase orders
for supplies or equipment not provided for in the approved budget or which cause appropri-
ation balances to be exceeded, are not released until additional appropriations or appro-
priation transfers are approved.
General Governmental Functions
The General Fund encompasses the general governmental functions of the City not required
to be accounted for in other funds. The following summary compares actual revenue to sup-
- port these functions for current and prior fiscal years:
Increase
Percent (Decease)
Revenue and Other Financing Sources Amount Of Total From 1995
Taxes $ 4,269,994 41.6% $ 450,784
Licenses & Permits 850,427 8.3 216,164
Intergovernmental Revenues 3,088,521 30.1 404,075
Charges for Services 186,163 1.8 47,682
Fines & Forfeitures 101,895 1.0 8,888
Investment Income 89,666 0.9 80,337
Miscellaneous Revenues 108,379 1.0 29,372
SUB TOTAL 8,695,045 84.7 1,237,302
Transfers from Other Funds 1,531,185 14.9 11,103
Capital Lease Proceeds 37,700 .4 22.702
TOTAL $ 10.263,930 100.0% $ 1271,107
x
General Governmental Functions - Continued
Property taxes are the major source of local tax revenue. In fiscal year 1995, the City's
property tax, all of which is for operating purposes, was 4.0 mills and for 1996, the rate was
4.0 mills. The related property values subject to taxes showed growth of 7.7 percent,
representing $36,346,885 in added taxable property.
Another principal source of local tax revenue consists of utility service taxes. These taxes are
levied at the rate of 10 percent on telephone, electric, water, natural and bottled gas services
within the City. In 1996, total revenue from this tax reflected an increase of $188,350. Inter-
governmental revenue consists primarily of shared revenue from other governmental agencies.
The increase in intergovernmental revenues is due primarily to an increase of _
$278,816 in State shared sales tax.
The following summary shows the level of expenditures used in providing governmental
services:
Increase
Expenditures and Percent (Decrease)
Other Uses Amount Of Total From 1995
General Government $ 1,907,097 20.4% $ (4,991)
Public Safety 4,689,003 50.1 315,701
Physical Environment 1,151,049 12.2 25,843
Culture & Recreation 417,495 4.5 98,154
Debt Service 133,416 1.4 (26,110)
SUB TOTAL 8,298,060 88.6 468,597
Transfers to Other Funds 1,064,845 11.4 145,649
TOTAL $ 9,362,905 100.0% $ 554,246,
The increase in Public Safety expenditures is due primarily to an increase in salaries and
benefits for police and fire departments.
Special Revenue Funds
Special Revenue Funds account for revenue from special revenue sources which are legally _
restricted for specific purposes. The combined fund balances of these funds amount to
$9,461,810 and the following represents an analysis of sources and uses in the Special
Revenue Funds for 1996:
xi
Special Revenue Funds - Continued
Change
in Fund
Fund Sources Uses Balance
Maguire House Grant $ 3,006 $ 1,813 $ 1,193
Road Impact 1,162,541 912,420 250,121
Parks 174,117 12,277 161,840
Stormwater 781,720 812,564 (30,844)
Interim Services 19,521 23,195 (3,674)
Police Training 5,806 --- 5,806
Police Trust 26,265 17,367 8,898
Fire Impact 818,729 873,262 (54,533)
Police Impact 933.488 986.074 (52,586)
TOTAL $3,925,193 $3,638,972 $ 286.221
The increase in fund balance for the Road Impact Fund is primarily due to the West Oaks Mall
construction. The Maguire House Grant Fund was used to account for grant revenue and
related expenditures to the historical site, Maguire House. This fund was closed at September
30, 1996.
The Road Impact Fund is used to account for revenues received which are designated for use
solely for the purpose of planning, acquisition, expansion and development of off-site
improvements to the road system due to the impact of new development within the City.
The Parks Fund is used to account for funds used in maintaining City parks. The major
sources of revenues in this fund are recreation assessments and impact fees from developers.
The Stormwater Fund is used to account for the Stormwater Utility Fee Revenue and the
related expenditures for drainage, stormwater and other related projects.
Interim Services Fund is used to account for fees collected and for disbursements made for
the purpose of providing additional municipal services to new development within the City.
The Police Training Fund is used to account for revenues to be used in educating and training
law enforcement personnel. The primary source of revenues in this fund is from inter-
- governmental fines.
The Police Trust Fund is used to account for revenues to be used for law enforcement
purposes. The principal source of revenues in this fund is from confiscated funds.
The Fire Impact Fund is used to account for revenues received which are designated for use
solely for the purpose of acquisition of facilities and equipment needed to provide fire
protection for new development within the City.
The Police Impact Fund is used to account for revenues received which are designated for
use solely for the purpose of acquisition of facilities and equipment needed to provide police
protection for new development within the City.
xii
Debt Administration
The City's outstanding debt is classified and reported according to the type of resource _
pledged to satisfy the individual debt series.
General long-term debt consists of:
1. Transportation Refunding and Improvement Revenue Bonds, Series 1990, totaling
$7,000,000. The proceeds are designated to defease the City's Public Improvement
Revenue Bonds, Series 1987, and for paving, extending and improving certain streets
within the City. These bonds are secured by certain public service taxes and the Local
Option Gas Tax.
2. Capital Improvement Revenue Bonds, Series 1991, totaling $2,580,000. The proceeds
are designated to finance the construction of a new City Hall and expansion of the Police _
Station. These bonds are secured by non-ad valorem revenues of the City.
3. Stormwater Utility Revenue Promissory Note, Series 1996, totaling $2,200,000. The —
proceeds will be used to finance the acquisition, construction, and improvements of
certain stormwater utility capital improvements. This note is secured by a pledge of the
net revenues of the Stormwater System levied and collected by the City.
Proprietary Fund debt consists of:
1. Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993,
totalling $8,555,000. The proceeds are designated to finance the refunding of Water and
Sewer System Revenue Bonds, Series 1989A and 1989B, and improving the City's water —
and wastewater systems. These bonds are secured by the combined Water and
Wastewater Fund operating revenues, interest earnings, impact fees and a first priority
pledge of cash payments due from developers.
Adequate reserves are being maintained in all sinking funds, in accordance with the provisions
of the ordinance governing the issuance of the above-referenced bonds.
Cash Management
The following schedule compares investment income (loss) in all funds for the current and
prior fiscal year:
1995-96 1994-95 Increase
Fund Type Amount Amount (Decrease)
General $ 89,666 $ 9,329 $ 80,337 _
Special Revenue 512,197 288,024 224,173
Debt Service 32,058 25,042 7,016
Capital Projects 74,767 9,536 65,231
Expendable Trust 2,473 2,205 268
Nonexpendable Trust --- 1,857 (1,857)
Pension Trust 67,939 30,467 37,472 ..
Enterprise 440,268 398,003 42,265
TOTAL $ 1,219.368 $ 764,463 $ 454,905
xiii
Cash Management - Continued
The primary objectives for the City's cash reserves are first, protection and safety of the City's
funds, second, provision for liquidity, and third, maximized return on the portfolio but
minimized risk, in that order. The investment portfolio will maintain sufficient liquidity to ensure
cash availability for operating cash flow requirements. Cash held in the pooled checking
account is invested in a SunTrust overnight repurchase agreement.
Some of the cash is maintained in trust accounts which are designated for a specific purpose
and have been isolated from normal operational cash. For example, the pension trust fund
expenditure needs are of a long-range nature and therefore investments are made in long-
- term investments. The increase in investment income in the general fund is due primarily to
the fact that there has been a significant increase in amount of investments due to actual
revenue exceeding budgeted revenue and actual expenditures being less than budgeted
expenditures. The increase in investment income in the special revenue funds is due primarily
to the increase in investments in the Road Impact Fund as a result of the West Oaks Mall
Construction.
Capital Projects Funds
The Capital Projects Funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities. In Fiscal Year 1996, the Capital Projects
Funds were used to account for major road and street improvements.
Proprietary Operations
Proprietary Fund Types are those that are financed and operated in a manner similar to a
private business enterprise where the intent of the governing body is that the cost of providing
goods and services on a continuing basis be financed through user charges or where the
governmental body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, budget policy, manage-
ment control, accountability, or other purposes. The City accounts for its water, wastewater
and sanitation funds as enterprise operations. These funds are primarily supported by user
charges.
Water and Wastewater Fund
1995-96 1994-95 Increase
Description Amount Amount (Decrease)
Operating Revenues $ 3,873,669 $ 3,643,645 $ 230,024
Operating Expenses 3,346,461 3,068,549 277,912
Operating Income 527,208 575,096 (47,888)
Net Income (Loss) (356,347) (24,427) (331,920)
Revenues Available for Debt Service 2,167,447 2,117,017 50,430
Annual Bond Debt Service 645,054 647,254 (2,200)
Revenue Bond Coverage 3.36 3.27 0.09
xiv
Water and Wastewater Fund - Continued
The 6.3% increase in operating revenues of the Water and Wastewater Fund is due primarily
to an increase in customers. Operating expenses increased 9.0% due to an increase in
salaries and benefits and depreciation expense.
Bond covenants require that total revenues be at least 110 percent of annual debt service
requirements after deductions for operating expenses and debt service reserve requirements.
Sanitation Fund
1995-96 1994-95 Increase
Description Amount Amount (Decrease)
Operating Revenues $ 1,176,211 $ 1,097,275 $ 78,936
Operating Expenses 987,791 948,493 39,298
Operating Income (Loss) 188,420 148,782 39,638
Net Income (Loss) 94,846 68,955 25,891
Fiduciary Operations
Trust Funds are established to account for assets held by the City in a trustee capacity for
individuals, private organizations, other government units, and/or other funds.
Pension Trust Fund
The City maintains two separate single employer defined benefit pension plans which cover
virtually all full time employees of the City. In addition to a plan for general employees, the
City has a plan for the police officers and firefighters.
Further details concerning pension expense, vested benefits and actuarial assumptions are
included in the notes to the financial statements. At September 30, 1996, the pension funds
had total assets of $4,377,652.
Agency Fund
The City maintains an optional deferred compensation plan which is funded solely by
employees through payroll deductions. A participant in the deferred compensation plan has _
an option regarding in which fund(s) his/her contribution will be invested. The amount due
to employees under the City's deferred compensation agency fund at September 30, 1996
was $801,305.
xv
General Fixed Assets
The General Fixed Assets of the City of Ocoee are those fixed assets used in the performance
of general governmental functions and exclude the fixed assets of the proprietary funds. As
of September 30, 1996,the general fixed assets of the City of Ocoee totaled $9,871,831. This
amount represents the original cost of the assets and does not include certain improvements,
such as streets, sidewalks and other items of an immovable nature.
Risk Management
Risk of loss from theft of, damage to or destruction of assets, errors and omissions, job-
related illnesses or injuries to employees, and natural disasters are transferred by the City to
various commercial insurers through the purchase of insurance. In addition, various control
techniques, including employee accident prevention training, have been implemented to
minimize accident-related losses.
OTHER INFORMATION
Independent Audit
Pursuant to the City of Ocoee Charter, Florida Statutes Chapters 11.45 and 218, and Chapter
10.550 of the rules of the State Auditor General, an audit of the accounts and financial state-
_ ments has been completed by the City's independent certified public accountants, McDirmit,
Davis, Lauteria & Company, P.A., whose opinion is included in the financial section of the
report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Ocoee, Florida for its comprehensive annual financial report for the year ended September
30, 1995. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, the City must publish
an easily readable and efficiently organized comprehensive annual financial report whose
contents conform to program standards. Such reports must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a
Certificate of Achievement for the last seven consecutive years. We believe that our current
report continues to conform to the Certificate of Achievement Program requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
xvi
Acknowledgements
The preparation of this report on a timely basis could not be accomplished without the
efficient and dedicated services of the entire staff of the Finance Department. We wish to
express our appreciation to all members of the Department who assisted and contributed to
its preparation. We would also like to thank the members of the City Commission for their
interest and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted,
Ellis Sha ity Manager
Wanda Horton, Finance Director
xvii
1 I I I I 1 1 I I I I I 1 I I I 1 1 1
CITY OF OCOEE
ORGANIZATIONAL CHART
Ocoee Voters
City Attorney City Commission Appointed Boards
City Manager
Finance Police Fire City Clerk Recreation Public Works Planning Personnel Building Engineering/ Purchasing Data
Utilities Processing
Utility Billing CID Suppression Cemetery Solid Waste/ Development Employee Zoning Water
Recycling Benefits
Projects Patrol Investigation Voter Traffic Concurrency Risk Management Inspections Waste Water
Registration Operations Management
Payroll DARE EMS Facilities Projects Labor Relations Permits Mapping
Maintenance
Dispatch Fleet Safety Code Stormxater Utility
Maintenance Enforcement
Streets/ Utility
Drainage/Parks Construction
Inspection
This page intentionally left blank.
Certificate of
Achievement
_ for Excellence
in Financial
' Reporting
Presented to
City of Ocoee,
_ Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1995
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
— and financial reporting.
oict
Fr 4�
A i t•••;- Preside
Executive Director
This page intentionally left blank.
FINANCIAL SECTION
This section contains the following subsections:
. Independent Auditor's Report
. General Purpose Financial Statements
. Combining Statements
. Supplementary Information
This page intentionally left blank.
CDIRMIT
- AVIS
AUTERIA & COMPANY, P.A.
— CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the accompanying general purpose financial statements of the City of
Ocoee, Florida, as of and for the year ended September 30, 1996, as listed in the table of
contents. These general purpose financial statements are the responsibility of the City's man-
- agement. Our responsibility is to express an opinion on these general purpose financial state-
ments based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
GovemmentAuditing 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 general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting princi-
- pies used and significant estimates made by management, as well as evaluating the overall
general purpose financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to in the first paragraph
present fairly, in all material respects, the financial position of the City of Ocoee, Florida, as
of September 30, 1996, and the results of its operations and the cash flows of its proprietary
fund types and nonexpendable trust funds for the year then ended in conformity with gen-
erally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
November 6, 1996 on our consideration of the City of Ocoee, Florida's internal control
structure and a report dated November 6, 1996 on its compliance with laws and regulations.
612 P_ COLONIAI. DRIVE.• SUITE 350• ORLANDO, FLORIDA 325(13-4603
(407)648-0713• FAX (407) 839-3975 • E-mail cpa moll r@aol corn
PRI4 ATE COMPANIES PRACTICE SECTION•AM LRICAN'NSF'I U I F OF CF R'I DIED PCNI IC ACCOUNTANTS•FLORIDA INSTI l TE OF CER FIPIEU PUBLIC ACCOUNTANTS
xx
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, and supplementary information listed in the accompanying table of contents are `
presented for purposes of additional analysis and are not a required part of the general pur-
pose financial statements of the City of Ocoee, Florida. Such information has been subjected
to the auditing procedures applied in the audit of the general purpose financial statements
and, in our opinion, is fairly presented in all material respects in relation to the general
purpose financial statements taken as a whole.
The information listed in the Statistical Section is presented for purposes of additional analysis
and is not a required part of the general purpose financial statements. Such information has
not been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, accordingly, we express no opinion on it.
7Ilc,Dinnrtit.Dawrb, M-04). eentftny,PR.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
xxi
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
These basic financial statements provide a summary overview of the
financial position of all funds and account groups as well as the operating
results of all funds. They also serve as an introduction to the detailed
statements that follow in subsequent sections.
CITY OF OCOEE, FLORIDA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1996
Governmental Fund Types
Special Debt
General Revenue Service
Assets
Cash And Cash Equivalents $ 830,305 $ 1,477,857 $ 101,884 —
Investments 987,146 7,965,627 --
Receivables (Net Of Allowances For Uncollectibles) 70,534 65,117
Inventories -At Cost 17,030 — --
Due From Other Funds 1,515 --- —
Due From Other Governments 143,699 --
Prepaid Costs 12,532 -- ---
Restricted Assets: —
Cash And Cash Equivalents --- -- —
Investments — -- 443,820
Cash With Paying Agent --- -- 556,599
Property, Plant And Equipment --- — --
I Pict: Accumulated Depreciation — —
Construction In Progress -- —
Unamonized Bond Issuance Costs — —Amount Available In Debt Service Funds — -- --
Amount To Be Provided For Retirement Of
General Long-term Debt — — ---
Total Assets $ 2,062,761 $ 9,508,601, $ 1,102,303
The accompanying notes are an integral part of the financial statements. -
-1-
a
a
Governmental Proprietary Fiduciary Account Groups
Fund Types Fund Types Fund Types General General Totals
Capital Trust And Foxed Long-Tenn (Memorandum
Protects Enterprise Agency Assets Debt Only)
-
$ 1,432,928 $ 829,913 $ 43,241 $ -- $ --- $ 4,716,128
1,517,453 2,552,733 5,096,327 --- --- 18,119,286
244 1,074,218 82,508 -- --- 1,292,621
- 22,152 --- --- -- 39,182
-- ... 122 - ___ 1,637
a
-- 3,493 - --- --- 147,192
-- ... - --- --- 12,532
- 1,086,434 - -__ --- 1,086,434
--- 2,776,777 - --- -- 3,220,597
-- 425,027 -- -- --- 981,626
-
--- 35,025,132 -- 9,871,831 --- 44,896,963
-- (8,590,407) - __- --- (8,590,407)
-- 1,658,990 - 32,353 -- 1,691,343
-- 306,684 - __ ___ 306,684
--- --- ___ 545,704 545,704
- - - -- 11,850,421 11,850,421
$ 2,950,625 $ 37,171,146 $ 5,227,198 $ 9,904,184 $12,396,125 $80,317,943
ai
a
-
-2- (Continued)
CITY OF OCOEE, FLORIDA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS -CONTINUED
SEPTEMBER 30, 1996
Governmental Fund Typea -
Special Debt
General Revenue Service
Liabilities And Fund Equity
Liabilities
Accounts Payable $ 30,933 $ 29,791 $ --
Retainage Payable - -- --
Accrued Liabilities 216,740 --- -
Due To Other Funds - --- ---
Due To Other Governments 53,775 --- ---
Deferred Revenue 128,662 17,000 --- -
Current Liabilities (Payable From Restricted Assets):
Customer Deposits 875 --- ---
Matured Bonds Payable -- --- 240,000
Matured Interest Payable -- --- 316,599
Deferred Compensation Payable - --- ---
Accrued Annual Leave --- -- ---
Bonds Payable -- --- -- -
Obligations Under Capital Leases -- --- ---
Note Payable - --- --
Total Liabilities 430,985 46,791 556,599
Fund Equity
Contributed Capital --- --- -
Investment In General Fixed Assets --- -- -- -
Retained Earnings:
Reserved For Renewal & Replacement - - -
Reserved for Debt Service - --- -
Unreserved -- --- ---
Total Retained Earnings --- --- -_
Fund Balances: -
Reserved:
Inventories 17,030 -- ---
Prepaid Costs 12,532 - -- -
Debt Service --- -- 545,704
Employee's Retirement System -- -- -
Other Projects -- -- --
Encumbrances -- 66,498 --
Unreserved:
Designated For Capital Projects --- -- ---
Designated For Subsequent Years Budget - 9,395,312 --
Undesignated 1.602,214 --- --
Total Fund Balances 1.631.776 9,461,810 545,704 -
Total Equity And Other Credits 1.631,776 9,461,810 545,704
-
Total Liabilities, Fund Equity And
Other Credits $ 2,062,761 $ 9,508,601 $ 1,102,303
The accompanying notes are an integral part of the financial statements.
3-
Governmental Proprietary Fiduciary Account Groups
- Fund Types Fund Types Fund Types General General Totals
Capital Tout And aced Long-Term (Memorandum
Projects Enterprise Agency Assets Debt Only)
$ 8,192 $ 47,504 $ - $ -- $ --- $ 116,420
28,616 91,580 - -- --- 120,196
- -- 132,612 - - --- 349,352
- 1,515 122 --- --- 1,637
-- ..- --- -- - 53,775
- -- 45,726 --- --- -- 191,388
- 337,-422 - - -- 338,197
-- 205,000 - -- - 445,000
-
- 220,027 - - - 536,626
- --- 801,305 -- -- 801,305
- --- - --- 399,593 399,593
- - 7,747,373 - - 8,420,000 16,167,373
- 175,044 -- -- 1,376,532 1,551,576
- - - --- 2,200,000 2,200,000
,.. 36,808 9,003,703 801,427 -- 12,396,125 23,272.438
- 23,957,113 - - --- 23,957,113
-- --- - 9,904,184 - 9,904,184
- 1,360,884 - - - 1,360,884
- -- 649,875 - - -- 649,875
-- 2,199,571 - -- -- 2,199,571
- 4,210,330 -- - - 4,210,330
-- -- - -- - 17,030
- -- --- -- -- --- 12,532
- - - - - 545,704
- - 4,377,530 -- - 4,377,530
- -- 43,241 - - 43,241
-- -- - - - 66,498
2,913,817 -- - --- -- 2,913,817
-
--- -- --- -- - 9,395,312
- - - - - 1,602,214
2,913,817 - 4,420,771 - - 18.973,878
2,913.817 28,167,443 4,420,771 9,904,184 --- 57.045,505
a
$ 2,950,625 $ 37,171,146 $ 5,222198 $ 9,904,184 $12,396,125 $80,317,943
-
-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES AND —
EXPENDABLE TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Governmental Fund Types
Special Debt
General Revenue Service
Revenues
Taxes $4,269,994 $ -- $
Licenses And Permits 850,427 - --
Intergovernmental Revenues 3,088,521 30,327 --
Charges For Services 186,163 -- --
Fines And Forfeitures 101,895 21,329 —
Impact Fees/Special Assessments --- 1,919,925 ---
Investment Income 89,666 512,197 32,058
Miscellaneous Revenues 108,379 31,518 -
Total Revenues 8,695,045 2,515,296 32,058
Expenditures
Current:
General Government 1,907,097 --- ---
Public Safety 4,689,003 1,353,263 ---
Physical Environment 1,151,049 986,924 ---
Culture And Recreation 417,495 14,090 -- —'
Capital Outlay --- — --
Debt Service:
Principal Retirement 124,281 366,181 240,000
Interest And Fiscal Charges 9,135 61,066 6.13.711
Total Expenditures 8,298,060 2,781,524 873,711
Excess (Deficiency) Of Revenues Over Expenditures 396,985 (266,228) (841,653)
Other Financing Sauces (Uses) —
Operating Transfers In 1,531,185 154,500 1,073,198
Operating Transfers Out (1,064,845) (857,448) ---
Capital Daage Proceeds 37,700 1,255,397
Promissory Note Proceeds -- ---Net Other Financing Sources (Uses) 504,040 552,449 1,073,198
Excess (Deficiency) Of Revenues And Other Financing
Sources Over Expenditures And Other Financing Uses 901,025 286,221 231,545
Fund Balances-Beginning Of Year 730,751 9,175,589 314.159
Fund Balances-End Of Year $ 1,631,776 $ 9,461,810 $ 545,704
The accompanying notes are an integral pan of the financial statements, -
-5-
Governmental Fiduciary
Fund Types Fund Types
Capital Expendable Totals
Projects Trust (Memorandum OnN)
$ — $ — $ 4,269,994
318,143 — 1,168,570
-- — 3,118,848
--- --- 186,163
-- -- 123,224
--- 1,919,925
74,767 2,473 711,161
3,947 -- 143,844
396,857 2,473 11,641,729
-- -- 1,907,097
--- 6,042,266
3,588 2,141,561
-_ — 431,585
585,517 --- 585,517
730,462
-- --- 703,912
585,517 3,588 12,542,400
(188,660) (1,115) (900,671)
406,000 — 3,164,883
(200,000) ___ (2,122,293)
1,293,097
2,200,000 — 2,200,000
2,406,000 — 4,535,687
2,217,340 (1,115) 3,635,016
696,477 44,356 10,961,332
$ 2,913,817 $ 43,241 $ 14,596348
-6-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGED IN -
FUND BALANCES-BUDGET AND ACTUAL- GENERAL AND SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996 -
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 4,116,100 $ 4,269,994 $ 153,894
Licenses And Permits 789,550 850,427 60,877
Intergovernmental Revenues 2,796,350 3,088,521 292,171
Charges For Services 149,750 186,163 36,413
Fines And Forfeitures 101,000 101,895 895
Impact Feas/Special Assessments --- - ---
Investment Income 55,000 89,666 34,666
Miscellaneous Revenues 159,624 108,379 (51,245)
Total Revenues 8,167,374 8,695,045 527,671 _
Expenditures
Current:
General Government 2,354,694 1,907,097 447,597
Public Safety 4,851,795 4,651,303 200,492
Physical Environment 1,209,720 1,151,049 58,671
Culture And Recreation 398,365 417,495 (19,130) ..
Debt Service -- 133,416 (133,416)
Total Expenditures 8,814,574 8,260,360 554,214
Excess (Deficiency) Of Revenues Over Expenditures (647,200) 434,685 1,081,885
Other Financing Sources (Uses) -
Operating Transfers In 1,476,400 1,531,185 54,785
Operating Transfers Outs (1,044,200) (1,064.845) (20,645)
Net Other Fnanci g Sources (Uses) 432.200 466,340 34,140
Excess (Deficiency) Of Revenues And Other Financing
Sources Over Expenditures And Other Uses (215,000) 901,025 1,116,025
Fund Balances - Beginning of Year 215,000 730,751 515,751 --
Furl Balances - End of Year $ -- $ 1,631,776 $ 1,631,776
The accompanying notes are an integral part of the financial statements.
-7-
Special Revenue Funds
Variance
Favorable
Budget Actual 'Unfavorable)
$ — $ -- $
550,000 585,897 35,897
12,500 16,228 3,728
562,500 602,125 39,625
724,428 406,552 317,876
+ -- 58.690 (58,690)
724,428 465,242 259,186
(161,928) 136,883 298,811
a
(46,872) (49,885) (3,013)
(46,872) (49,885) (3,013)
(208,800) 86,998 295,798
208.800 398.130 189,330
� - $ 485,128 $ 485,128
-8-
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-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS/FUND BALANCE
-
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
-
Proprietary Fiduciary
wo Fund Types Fund Types Totals
(Memorandum
Enterprise Pension Trust Only)N)
Operating Revenues
User Charges $ 5,049,880 $ -- $ 5,049,880
Contributions -- 1,051,320 1,051,320
Revenue Earned On Investments - 67,939 67,939
Total Operating Revenues 5,049.880 1,119,259 6,169,139
Operating Expenses
Personal Services 1,621,012 -- 1,621,012
Materials And Supplies 583,698 -- ca' ,698
Heat, Light And Power 298,622 -- 298,622
Depredation And Amortization 1,376,016 --- 1,376,016
Other Expenses 442,365 178,204 620,569
Recycling ExpertAs 12,539 -- 12,539
Total Operating Expenses 4,334,252 178,204 4,512,456
.. Operating Income 715,628 941,055 1,656,683
Nonoperating Revenues (F_glenses)
in. Grant Revenue 27,072 --- 27,072
Investment Income 440,268 --- 440,268
Interest Expense (401,879) --- (401,879)
Total Nonoperating Revenues 65,461 - 65,461
Income Before Operating Transfers 781,089 941,055 1,722.144
Operating Transfers
Operating Transfers In 61,513 --- 61,513
Operating Transfers Out (1,104,103) - (1,104,103)
Net Operating Transfers (1,042,590) - (1,042,590)
-
Net Income (Loss) $ (261,501) $ 941,055 $ 679,554
Disposition Of Net Income (Loss)
Net Income (Loss) $ (261,501) $ 941,055 $ 679,554
Depreciation On Contributed Assets 350,576 - 350,576
Net Increase In Retained Earnings/
Fund Balance 89,075 941,055 1,030,130
Retained Earnings/Fund Balance -
Beginning Of Year 4,121,255 3,436,475 7,557,730
-
Retained Eami gs/Fund Balance-
End Of Year $ 4,210 330 $ 4,377,530 $ 8,587,860
The accompanying notes are an integral part of the financial statements.
-
-9-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF CASH ROWS
ALL PROPRIETARY FUND TYPES —
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Proprietary
Fund Types
Enterprise
Cash Flows From Operating Activities: —
Receipts From Customers $ 5,097,581
Payments To Suppliers (1,211,548)
Payments To Employees (1,603,295) —
Net Cash Provided By Operating Activities 2,282,738
Cash Flows From Noncapital Financing Activities: —
Operating Transfers Out (1,042,590)
Receipts From Grants 27,072
(Decrease) In Due To Other Funds (29,610) —
Increase In Due To Other Funds 1,455
Increase In Due From Other Funds 29,610
Net Cash Used In Noncapital Financing Activities (1,014,063)
Cash Flows From Capital And Related
Financing Activities: —
Purchase Of Property, Plant And Equipment (1,406,238)
Additions To Construction In Progress (1,197,766)
Principal Paid On Bonds Arid Leases (335,773) —
Interest Paid On Bonds And Leases (462,181)
Proceeds from Capital Leases 116,375
Capital Contributions 704,961
Cash Received On Assessments Receivable 53,804 —
Net Cash Used In Capital And Related
Financing Activities (2,526,818) —
Cash Flows From Investing Activities:
Sale of Investments 80,230
Purchase Of Investments (49,705)
Interest On Investments 440,268
Net Cash Provided By Investing Activities 470,793 —
Net Increase (Decrease) In Cash And Cash Equivalents (787,350)
Cash And Cash Equivalents At Beginning Of Year 3,128,724
Cash And Cash Equivalents At End Of Year $ 2,341,374(
Classified As:
Current Assets $ 829,913
Restricted Assets 1,511,461 —
Total $ 2,341,374
The accompanying notes are an integral part of the financial statements.-10-
Proprietary
Fund Types
Enterprise
Reconciliation Of Operating Income To Net Cash
Provided By Operating Activities:
Operating Income $ 715,628
Adjustments Not Affecting Cash:
Depreciation 1,361,412
.,. Amortization 14,604
Provision for Uncollectible Accounts 14,000
Change In Assets And Liabilities:
Decrease In Accounts Receivable 29,994
Decrease in Prepaid Costs 9,782
Increase In Accounts Payable 36,372
Increase In Accrued Expenses 17,717
Increase In Retainage Payable 65,522
(Decrease) In Deferred Revenue (23,413)
Increase In Customer Deposits 41,120
Total Adjustments 1,567,110
Net Cash Provided By Operating Activities $ 2,282,738
Noncash Investing, Capital and Financing Activities:
Contributed Properly, Plant and Equipment $ 1,097,771
-11-
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NOTES TO FINANCIAL STATEMENTS
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CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Ocoee, Florida, conform to generally accepted
accounting principles as applicable to governments. The following is a summary of
the more significant policies:
Reporting Entity
�- The City operates under a commission-manager government whereby the Mayor
and Commission are elected by the registered voters of the City of Ocoee. The
Commission appoints the City Manager, who in turn performs as the admin-
'- istrator of the everyday operations of the City. The City provides a full range of
municipal services as directed by the City Charter, including general government,
public safety, public improvements, planning and zoning, water and wastewater
service, refuse collection, and related general administrative services.
The financial statements of the City of Ocoee, Florida include all those separately
administered departments and funds for which the City has financial accounta-
bility. Financial accountability is present if the Commission appoints a voting
majority of a component unit's governing body and has the ability to impose its
will on that organization or if there is a potential for the organization to provide
specific financial benefits to, or impose specific financial burdens on, the City.
Based upon the application of the above mentioned criteria as set forth in Gov-
ernment Accounting Standards Board Statement Number 14, The Financial
Reporting Entity, there were no potential component units or related organizations
of the City.
Fund Accounting
The accounts of the City are organized on the basis of funds or account groups,
each of which is considered a separate accounting entity. The operations of
., each fund are accounted for with a separate set of self-balancing accounts. The
various funds are grouped by type in the financial statements. The following fund
types and account groups are used by the City.
Governmental Fund Types
General Fund
To account for all financial resources except those required to be accounted
for in another fund. All general tax revenues and other receipts that are not
allocated by law or contractual agreement to another fund are accounted for
in this fund. The general operating expenditures, fixed charges, and capital
improvement costs that are not paid through other funds are paid from the
general fund.
-12-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Governmental Fund Types - Continued
Special Revenue Funds
To account for the proceeds of specific revenue sources (other than
expendable trust, or major capital projects) requiring separate accounting
because of legal, regulatory provisions or administrative action.
Debt Service Funds
To account for the accumulation of resources for, and the payment of general
long-term debt principal and interest.
Capital Projects Funds
To account for financial resources to be used for the acquisition or con-
struction of major capital facilities (other than those financed by proprietary
funds).
Proprietary Fund Types _
Enterprise Funds
To account for operations that are financed and operated in a manner similar
to private business enterprises, where the intent of the governing body is that
costs of providing goods or services to the general public on a continuing
basis be financed or recovered primarily through user charges, or where the
governing body has decided that periodic determination of net income is
appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Fiduciary Fund Types
Trust and Agency Funds
To account for assets held by the City in a trustee capacity for individuals,
private organizations, other governments, and/or other funds. When these
assets are held under the terms of a formal trust agreement, either a pension
trust fund, a nonexpendable trust fund, or an expendable trust fund is used.
The terms "nonexpendable" and "expendable" refer to whether or not the
government is under an obligation to maintain the trust principal.
Account Groups
General Fixed Assets Account Group
To account for all fixed assets of the City, other than those accounted for in
the enterprise funds.
General Long-Term Debt
To account for the outstanding principal balances on any general obligation
debt of the City.
-13-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
.. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Rack of Accounting and Measurement Focus
-• Governmental fund types include the general, special revenue, debt service, and
capital projects funds. The governmental fund type measurement focus is upon
determination of financial flow (financial position, changes in financial position,
sources, uses, and balances of financial resources rather than upon net income
determination). These funds are maintained on the modified accrual basis of
accounting. Under this method of accounting, revenues are recognized when
they become measurable and available as net current assets, or when suscepti-
ble to accrual; i.e., both measurable and available. "Measurable" means that the
amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities
of the current period. Revenues which are susceptible to accrual are substan-
tially all governmental fund revenues except licenses and permits, charges for
services, franchise fees, and utility services taxes. Special assessments are
recognized as revenue only to the extent that individual installments are con-
sidered current assets. Property taxes are billed and collected within the same
fiscal period and are recognized when levied to the extent that they result in cur-
rent receivables. Expenditures are recorded when the liability is incurred, except
for principal and interest on general long-term debt, which is recognized when
due.
In applying the "susceptible to accrual" concept to intergovernmental revenues
(grants, entitlements and shared revenues), the legal and contractual require-
ments of the numerous individual programs are used as guidance. There are
essentially two types of these revenues. In one, monies must be expended on
the specific purpose or project before any amounts will be earned by the City;
therefore, revenues are recognized based upon when the expenditures are made.
In the other, monies are essentially unrestricted as to purpose of expenditure and
revocable only for failure to comply with prescribed compliance requirements.
These resources are reflected as revenues at the time of receipt or earlier if they
meet the criterion of availability.
The proprietary fund type measurement focus is upon determination of capital
maintenance (net income, financial position, and changes in financial position).
These funds are maintained on the accrual basis of accounting. Under this
method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. The City adopted GASB Statement No. 20 and chose
not to apply all FASB pronouncements issued after November 30, 1989.
-14-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Basis of Accounting and Measurement Focus - Continued
Utility operating revenues (sanitation, water, and wastewater revenues, and
related utility taxes) are recognized during the month of consumption. Services
consumed, but not billed, are accounted for as unbilled utility revenues.
The basis of accounting and measurement focus of the expendable trust fund is
the same as governmental fund types and therefore is maintained on the
modified accrual basis of accounting. The basis of accounting and measure-
ment focus of the nonexpendable trust and pension trust funds is the same as
proprietary fund types and therefore is maintained on the accrual basis of
accounting.
Agency funds are purely custodial (assets equal liabilities) and thus do not
involve measurement of results of operations. The modified accrual basis of
accounting is followed for recognizing both assets and liabilities. _
Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in
the financial statements:
1. Prior to September 30th, the City Manager submits to the City Commission a
proposed operating budget for the fiscal year commencing the following
October 1st. The operating budget includes proposed expenditures and the
means of financing them.
2. Public hearings are conducted at the City Hall to obtain taxpayer comments.
3. Prior to October 1st, the budget is legally enacted through passage of a
resolution.
4. The City cannot legally exceed the budget; however, the City Manager is
authorized to transfer budgeted amounts between departments within any
fund. Any revisions that alter the total expenditures of any fund must be
approved by the City Commission.
5. Formal budgetary integration is employed as a management control device `
during the year for the General and Enterprise Funds.
-15-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Budgets and Budgetary Accounting - Continued
6. Budgets are legally adopted for the General Fund, the Enterprise Operations
and Maintenance Funds and one Special Revenue Fund: the Stormwater
Fund. The budgets for the General Fund and the Stormwater Fund are
prepared on a budgetary basis, whereby encumbrances are treated as ex-
- penditures. Unencumbered appropriations are lapsed at year end, except an
appropriation for a capital expenditure. An appropriation for a capital
expenditure shall continue in force until the purpose for which it was made has
been accomplished or abandoned; the purpose of any such appropriation
shall be deemed abandoned if three years pass without any disbursement
from or encumbrance of the appropriation. The budgets for the Enterprise
Funds are prepared on a modified accrual basis of accounting, which is not
the same basis of accounting as that used to account for the actual results of
operations. The actual results of operations are accounted for on an accrual
basis. The following items indicate the primary differences between the
budgetary basis and the GAAP basis used to account for the results of opera-
tions for the operating accounts:
a. Interest income earned on restricted assets is included in the results of
operations. Such amounts are not budgeted in the operating accounts.
This portion of interest income is restricted for a specific purpose (debt,
capital projects, renewal and replacement, etc.) and is not normally avail-
able for operations.
b. Intrafund transfers to the restricted accounts are budgeted and transferred
on a budgetary basis, but are eliminated on a GAAP basis.
c. Depreciation expense is not budgeted; however, expenditures for capital
outlays are budgeted. These outlays have been capitalized into fixed
assets and eliminated from the results of operations on a GAAP basis.
d. Principal and interest payments on capital leases are budgeted as
expenses. Principal payments are recorded as a reduction of capital lease
obligation and eliminated from the results of operations on a GAAP basis.
7. Budgeted amounts presented in the accompanying financial statements have
been adjusted for legally authorized revisions of the annual budgets during the
year.
-16-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of funds are recorded in order to reserve that
portion of the applicable appropriation, is utilized in the governmental funds.
Encumbrances are reported as reservations of fund balances since they do not
constitute expenditures or liabilities.
Tap and Impact Fees
The City collects water and wastewater tap fees which are recorded as operating
revenue only to the extent that the amount equals the cost of physical connec-
tion to the system. Amounts that substantially exceed the cost to connect are —
recorded as an addition to contributed capital.
Deposits received which reserve capacity in the City's water and wastewater
facilities are recorded as contributed capital. Other deposits received from
customers are recorded as liability until all legal requirements, as stipulated by
the City's water and wastewater ordinances, are fulfilled.
Cash and Cash Equivalents
Cash balances from the majority of funds are pooled for investment purposes.
Earnings from such investments are allocated to the respective funds based on
applicable cash participation by each fund.
Cash and cash equivalents include cash on hand, demand deposits, repurchase
agreement, cash with paying agent, cash with State Board of Administration Local _
Government Surplus Funds Trust Fund (SBA), and all highly liquid investments
(including restricted assets) with a maturity of ninety days or less when
purchased. Each fund's equity in the City's pooled cash (checking) account is _
included in cash and cash equivalents.
Investments
Investments, other than the deferred compensation fund (See Note 8), are stated
at cost or amortized cost. Income from investments held by individual funds is
recorded in the respective fund as it is earned.
Inventories
Inventories are stated at cost, using the FIFO method. The cost of governmental
fund-type inventories are accounted for by the consumption method, under which
such inventory is recorded as an expenditure when used.
-17-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Amortization of Bond Discount and Issuance Costs
In the governmental fund types, bond issuance costs are charged as current ex-
penditures when the bonds are issued. For all enterprise funds, bond discount
and issuance costs are amortized on a straight-line basis, which approximates
the interest method, over the life of the bonds. Amortization of bond issuance
costs amounted to $14,604 for the 1996 fiscal year. Amortization of bond dis-
count, included in interest expense, amounted to $4,887 for the 1996 fiscal year.
Restricted Assets
The use of certain assets of enterprise funds is restricted by specific provisions
of bond resolutions and agreements with various parties. Assets so designated
are identified as restricted assets on the balance sheet.
Property, Plant and Equipment
Property, plant, and equipment owned by the enterprise funds is stated at his-
torical cost or estimated historical cost. Additions, improvements, and other
capital outlays that significantly extend the useful life of an asset are capitalized.
Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation of plant and equipment is provided on the straight line basis over
the following estimated useful lives:
Buildings, 10-30 years Improvements, 20-40 years
Equipment, 5-10 years
Contributions of property, plant, and equipment received from federal, state, or
local sources are recorded as contributions to equity when received. Deprecia-
tion on contributed property, plant, and equipment is recorded as a reduction of
contributed capital.
General Fixed Assets
General fixed assets have been acquired for general governmental purposes.
Assets purchased are recorded as expenditures in the governmental funds and
capitalized at cost in the general fixed assets account group. In the case of gifts
or contributions, such assets are recorded at fair market value at the time
received.
Certain improvements, such as roads, bridges, curbs, gutters, streets, sidewalks,
drainage systems, and lighting systems have not been capitalized. Such assets
normally are immovable and of value only to the City. No depreciation has been
provided on general fixed assets.
-18-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996 —
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED —
Postretirement Benefits
The City does not provide any postretirement health care and life insurance --
benefits for employees.
Capitalization of Interest —
Net interest cost relating to construction is capitalized.
Compensated Absences The City accrues accumulated unpaid vacation and sick leave when earned by
the employee. Upon termination, the employee receives a cash benefit for the
number of days accrued at the employee's current wage rate. The noncurrent —
portion (the amount estimated not to be used in the following year) for Govern-
mental Funds is recorded in the General Long-Term Debt Account Group. The
liability for Compensated Absences for Proprietary Fund Types is shown as a
current liability of those funds.
Long-Term Obligations
Long-term debt is recognized as a liability of a governmental fund when due, or
when resources have been accumulated in the debt service fund for payment —
early in the following year. For other long-term obligations, only that portion
expected to be financed from expendable available financial resources is reported
as a fund liability of a governmental fund. The remaining portion of such —
obligations is reported in the general long-term debt account group. Long-term
liabilities expected to be financed from proprietary fund operations are accounted
for in those funds. —
Fund Equity
Proprietary Funds —
Contributed capital consists of funds from developers, federal and state
(capital) grants, and a portion of connection fees charged to customers as
previously discussed. Grants received for operating assistance are recorded as non-operating revenue.
Reservations of retained earnings are created by increases in assets restricted for debt service, renewal and replacement, and other contractual obligations.
These increases result from earnings on restricted assets and other intrafund
transfers to (from) restricted accounts. Earnings on restricted assets are —
included in net income of the Proprietary Funds. Reserves are not established
for bond proceeds deposited into construction accounts.
-19-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Fund Equity - Continued
Governmental Funds
Reserves of the governmental funds are limited to the portions of fund balance
which are either not subsequently appropriate for expenditures or legally
segregated for a specific use.
Interfund Transactions
Transactions which constitute reimbursements to a fund for expenditures
(expenses) initially made are recorded as expenditures or expenses (as appro-
priate) in the reimbursing fund and as reductions of the expenditures (expenses)
in the reimbursed fund.
All interfund transactions except advances and reimbursements are accounted
for as transfers. Nonrecurring or nonroutine transfers of equity between funds
are considered residual equity transfers. All other interfund transactions are
treated as operating transfers.
Total Columns on Combined Statements - Overview
Total columns on the combined statements are captioned Memorandum Only to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or its cash flows
in conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Compliance with Finance-Related Legal and Contractual Provisions
The City has no material violations of finance-related legal and contractual pro-
-
visions.
-20-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 3 - BUDGET BASIS OF ACCOUNTING
The General Fund and Stormwater Fund budgets are prepared on a budgetary basis, —
whereby encumbrances are treated as budgeted expenditures in the year of incur-
rence of the commitment to purchase. In addition, the City includes a portion of the
prior year's fund balance represented by unappropriated liquid assets remaining in the —
fund as a budgeted revenue in the succeeding year. The results of operations on a
GAAP basis do not recognize the fund balance allocation as revenue as it represents
prior periods' excess of revenues over expenditures. Also, the City does not budget for capital outlay expenditures and other financing sources related to the acquisition
of assets through capital leases.
For the 1996 fiscal year, the following adjustments were necessary to convert General
Fund expenditures on the GAAP basis to the budgetary basis:
Other Financing
Expenditures Sources (Uses)
GAAP Basis $ 8,298,060 $ 504,040
Nonbudgeted Capital Lease —
Transactions (37,700) (37,700)
Budgetary Basis $ 8,260,360 $ 466,340
Adjustments were also necessary to convert the Special Revenue Fund excess of
revenues over expenditures and other financing sources from the GAAP basis to the
budgetary basis. The City only adopted a budget for one of the Special Revenue _
Funds, the Stormwater Fund. Therefore the budget and actual amounts for Special
Revenue Funds reported on the Combined Statement of Revenues and Expenditures-
Budget and Actual - General and Special Revenue Funds, only includes the —
Stormwater Fund. However,the Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types and Expendable Trust
Funds (GAAP Basis) includes amounts for all Special Revenue Funds. -
-21-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 3 - BUDGET BASIS OF ACCOUNTING - CONTINUED
A reconciliation of the above differences in the Special Revenue Funds is a follows:
Excess
(Deficiency)
of Revenues Other
Over Financing
Expenditures Sources (Uses)
GAAP Basis $ (266,226) $ 552,449
Nonbudgeted Funds 105,674 (422,739)
Nonbudgeted Capital Lease
Transactions 297,437 (179,595)
Budgetary Basis $ 136 883 $ (49,885)
_ NOTE 4 - CASH AND INVESTMENTS
Following are the components of the City's cash and investments at September 30,
1996:
Unrestricted Restricted Total
Cash & Cash Equivalents $ 4,716,128 $ 1,086,434 $ 5,802,562
Cash With Paying Agent --- 981,626 981,626
Investments 18,119.286 3.220.597 21,339.883
$22 835 414 $ 5288 657 $28 124,071
Deposits
In accordance with GASB Statement No. 3, the City's deposits are categorized
to give an indication of the level of custodial credit risk assumed at year end.
Category 1 includes deposits which are insured or collateralized pursuant to the
Public Depository Security Act of the State of Florida. Category 3 deposits are
uncollateralized, and represent amounts wired to the City's paying agents around
September 30 for bond principal and interest payments due on October 1.
-22-
CfTY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 4 - CASH AND INVESTMENTS - CONTINUED
Deposits - Continued
September 30, 1996 —
Bank Balances:
Category 1 $ 1,024,534
Category 3 981,626
Total Bank Balances $ 2,006,160
Carrying Amount $ 600,189
Investments
The City's investment policies, except for pension fund and deferred compensa-
tion assets, 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) The State Board of Administration Local Government Surplus Funds Trust
Fund;
2) U.S. Treasury bills, notes and bonds with maturity dates of 5 years or less;
3) Insured or fully collateralized Certificates of Deposit with maturity date of 3
years or less with financial institutions qualifying as public depositories; _
4) Federal agencies and instrumentalities with maturity date of 5 years or less;
5) Money market funds placed with financial institutions qualifying as public
depositories;
6) Securities of any open-end or closed-end management type investment
company or investment trust registered under the investment Company Act
of 1940, provided the portfolio of such investment company is limited to U.S. —
Government obligations and to repurchase agreements fully collateralized by
such U.S. Government obligations; or
7) Repurchase agreements collateralized by U.S. Treasury Securities or U.S.
Government Agency securities.
-23-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 4 - CASH AND INVESTMENTS - CONTINUED
Investinents - Continued
The City's investments are categorized to give an indication of the level of risk
assumed by the City at September 30, 1996:
Category 1 includes investments that are insured or registered for which the
securities are held by the City or its agent in the City's name.
Category 2 includes uninsured and unregistered investments for which the
securities are held by a counterparty's trust department or agent in the City's
name.
Category 3 includes uninsured and unregistered investments for which the
securities are held by the broker or dealer, or by a trust department or agent, but
not in the City's name.
Investments in mutual funds and the Deferred Compensation Plan are not
required to be categorized since the investments are not evidenced by securities
that exist in physical or book entry form.
Following is a summary of risk levels assumed by the City at September 30,
1996:
Category
Carrying Market
1 2 3 Amount Value
Repurchase Agreements $ — $ -- $ 6,184,000 $ 6,184,000 $ 6,184,000
_ U.S. Government Obligations 8,508,027 — -- 8,508,027 8,509,153
Pension Fund Investments:
Corporate Bonds and Notes 2,139,920 -- -- 2,139,920 2,419,867
Common Stock 2,140,666 — — 2,140,666 2,83'1,144
$12,788,613 $ — $ 6,184,000
Deferred Compensation Plan 801,305 801,305
Mutual Funds Investing In U.S. Government Securities 7,749.964 7,393,615
$27,523,882 $28,141,084,
-24-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED _
SEPTEMBER 30, 1996
NOTE 5 - ACCOUNTS RECEIVABLE
The following is an analysis of Accounts Receivable:
Proprietary Fiduciary
Governmental Fund Fund —
Fund Types Types Types
Special Capital Pension
General Revenue Projects Enterprise Funds
Property Taxes $ 1,341 $ --- $ --- $ — $ ---
Accounts Receivable — 66,455 --- 497,861 ---
Assessments —
Current — --- --- 60,000 Noncurrent --- — --- 312,293 ---
Maintenance Fee
(Formerly -- --- --- 318,639 --
Guaranteed Revenue)
Other Receivables 78.193 2,662 244 425 82.508 "
Total 79,534 69,117 244 1,189,218 82,508
Less: Allowance for
Uncollectible Accounts (9,000) (4,000) — (115,000)
$ 70,534 $ 61,117 $ 244 $1,074,218 $ 82,508
NOTE 6 - PROPERTY TAXES
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 Decem-
ber, 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, cer-
tificates are sold for all delinquent taxes on real property.
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 receiv-
ables.
-25-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 6 - PROPERTY TAXES - CONTINUED
The City is permitted by the Municipal Finance Law of the State to levy taxes up to
$10.00 per $1,000 of assessed valuation. The combined tax rate to finance general
governmental services for the year ended September 30, 1996, was $4.00 per $1,000
which means that the City has a tax margin of $6.00 per $1,000 and could raise up to
$3,033,941 additional property tax revenue a year from the present assessed valuation
of $505,656,888 before the limit is reached.
NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT
During the fiscal year ended September 30, 1996, the following changes in general
fixed assets occurred:
Balance Balance
10-1-95 Additions Deletions 9-30-96
Land $ 1,139,327 $ 173,556 $ --- $ 1,312,883
Buildings 3,466,586 1,813 --- 3,468,399
Improvements 884,022 26,836 --- 910,858
Equipment 2.734,318 1,619.440 174,067 4,179,691
8,224,253 1,821,645 174,067 9,871,831
Construction in
Progress 15,375 16,978 32.353
$ 8,239 628 $ 1 838 623 $ 174 067 $ 9,904,184
Construction in progress for general fixed assets as of September 30, 1996 consisted
of improvements to the Ocoee Youth Center.
-26-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT - CONTINUED _
The sources of general fixed assets are as follows:
Balance Balance
10-1-95 Additions Deletions 9-30-96
General Fund $3,590,792 $ 190,615 $ 174,067 $ 3,607,340
Special Revenue Funds:
Federal Revenue —
Sharing 750,610 --- --- 750,610
Road Impact 102,220 25,728 --- 127,948
Police Trust 32,555 17,367 --- 49,922 —
Parks 93,876 12,277 --- 106,153
Stormwater Utility 31,221 317,516 --- 348,737
Fire Impact 443,799 606,473 --- 1,050,272 —
Police Impact 666,834 --- 666,834
Contributions - Other 389,745 --- --- 389,745
State Grant 318,197 1,813 --- 320,010 —
Capital Projects Fund 2,486,613 --- 2,486.613
$ 8,239 628 $1 8313,623 $ 174,067 $ 9,904,184 —
The components of property, plant and equipment for the Proprietary Fund Types at —
September 30, 1996, are as follows:
Proprietary _
Fund Types
Enterprise
Land and Land Improvements $ 4,722,072
Buildings 379,339
Improvements 27,343,689 _
Equipment 2,580,032
35,025,132
Less: Accumulated Depredation 8,590.407
$26,434,725 —
Proprietary Fund construction in progress at September 30, 1996, consisted primarily
of improvements to well pump and ground storage tanks. -
-27-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT - CONTINUED
During the year, the City capitalized interest expense on construction in progress in
the following amounts:
Water and
Wastewater
Fund
Total Interest Expense Incurred $ 463,469
Interest Associated with Construction Projects 118,734
Interest Earned in Construction Accounts 57.144
Net Interest Capitalized 61,590
Interest Expense $ 401,879
NOTE 8 - RETIREMENT PLANS
Defined Benefit Pension Plan and Trust
Plan Description
The City maintains two separate single employer defined benefit pension plans
for the: 1) police officers and firefighters; and 2) substantially all other fulltime
City employees. These benefit provisions and all other requirements are
established by City ordinance. The City's covered payroll for the year ended
September 30, 1996, amounted to $4,823,789 while the City's total payroll for
all employees was approximately $5,744,947.
All plans are contributory. The employees participating in the General
Employees' Pension Plan are required to contribute 5% of their salary. The
City is required to contribute the balance necessary to fund the Plan using the
actuarial basis specified by City ordinance.
-28-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996 —
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
Plan Description - Continued —
The Police Officers and Firefighters' Pension Plan funding methods and
determination of benefits payable are provided in the various acts of Florida —
Legislature, which created the funds, including subsequent amendments
thereto. The Statutes provide, in general, that funds are to be accumulated
from employee contributions, City contributions, state appropriations and
income from investments of accumulated funds. The act also provides that,
should the accumulated funds at any time be insufficient to meet and pay the
benefits due, the City shall supplement the fund by an appropriation from —
current funds, or from any revenues which may lawfully be used for said
purposes, in an amount sufficient to make up the deficiency. The employees
are required to contribute 5% of their salary. The City's required contribution —
is determined annually based upon current costs plus a provision for
amortization of the unfunded frozen accrued liability over thirty years less
contributions from the State. —
Summary of Significant Accounting Policies and Plan Asset Matters —
Basis of Accounting
The Plan's financial statements are prepared using the accrual basis of —
accounting.
Investments —
Assets of the Plan are invested in various investments, including common
stock, corporate bonds and mutual funds. Investment decisions are made
by the trustee with direction from the board of trustees. Investments are
reported at cost.
Pension Plan Obligations The Pension Benefit Obligation (PBO) is reflected as the Actuarial Present
Value of Credited Projected Benefits. The PBO is the standard measure
of the present value of pension benefits, adjusted for the effects of pro-
jected salary increases and any benefits projected to be paid in the future
as a result of employee service to date. The measure is intended to help
users assess the Public Employee's Retirement System (PERS) funding —
status on a going concern basis, assess progress made in accumulating
assets to pay benefits when due, and make comparisons among PERS.
-29-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
Pension Plan Obligations - Continued
This measure is independent of the actuarial funding method used to
determine the City's contribution requirements. The City's pension plans
use the Frozen Entry Age Method which is one of the State of Florida's
acceptable methods. The State of Florida has established guidelines for
state and local pension plan funding and requires submis-sion to and
approval of the local government's actuarial reports by a state agency, at
least every third year. The City's pension plan, by policy, (1) requires
annual actuarial reports as of October 1 of each year, (2) receives
employer contributions based on the actuarially determined requirement,
and (3) uses the same assumptions (see the following schedule) for deter-
mining the PBO and the employer contribution required. The required con-
. tribution necessary to amortize the unfunded actuarial accrued liability is
calculated as a level percentage of payroll rather than as a constant dollar
amount.
The following schedule is derived from the respective actuarial reports and
City information and reflects accounting policies, membership and plan
provisions, assumptions and liabilities, and funding provisions as of
October 1, 1995 for the two pension plans:
-30-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
General Police and
Membership and Plan Provisions Employees Firefighters _
Members:
Active Participants -
Vested 58 38
Nonvested 43 31
Retirees and Beneficiaries 4 3
Terminated Vested 7 3
112 75
Normal Retirement: Attainment of age Earlier of age 55
60. and 10 years of
credited service, or _
age 52 and 25
years of credited
service. _
Normal Form of Benefit: Ten year certain Ten year certain
and life annuity and life annuity
Normal Retirement Benefit: 2% of average 2.5% of average
monthly earnings monthly earnings _
times credited times credited
service service
Years to Vest: 5 years 5 years
-31-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
General Police and
Employees Firefighters
Assumptions and Liabilities
Assumptions:
Investment Earnings 8% 8%
Salary Increases Attributable to Inflation 3% 3%
Salary Increases Attributable to Seniority/Merit 6% 6%
_ Post-retirement Benefit Increases ---
Mortality Table 1984 Unisex 1984 Unisex
Pensioners Pensioners
Probability of Turnover Sarason W-80 Sarason W-80
Amortization of Initial Unfunded Liability 30 years 30 years
General Police and
Employees Firefighters Total
Pension Benefit Obligations
Retirees and beneficiaries receiving
benefits and terminated employees not
yet receiving benefits.
$ 330,298 $ 802,020 $1,132,318
Current Employees
Accumulated Member
Contributions 416,316 315,764 732,080
Employer-financed Vested 1,523,626 1,858,628 3,382,254
Employer-financed Nonvested 84.561 24,554 109.115
Total Pension Benefit Obligation 2,354,801 3,000,966 5,355,767
at
Net Assets Available for Benefits, at Cost
(Market Value: General Employees -
$1,823,426; Police and Firefighters -
$2,081,827) 1.605.605 1,830.870 3,436,475
Unfunded Pension Benefit Obligation $ 749,196 $1,170096 $1,919,292,
Changes in Pension Benefit Obligation as a
Result of a Change in Benefit Provisions, $ 207,695 $ 133,377 $ 341.072
Assumptions, etc.
-32-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
Contributions Required General Police and
and Made Employees Firefighters
Asa As a
Actuarially determined contribu- As a Percentage As a Percentage
button requirement for the Dollar of Covered Dollar of Covered
year ending 9/30/96: Amount Payroll Amount Payroll `
Normal Cost
Employer $ 235,820 8.6% $ 370,602 17.4%
Employee 135.058 5.0% 106.131 5.0%
370,878 13.6% 476,733 22.4%
Unfunded Actuarial
Accrued Liability 32,787 1.3% 49,026 3.4%
Total $ 403,665 1414®9% $ 525,759 24.8%
Actual Contributions Made:
Employer $ 302,249 11.2% $ 481,535 22.7%
Employee 149,053 5.5% 118,483 5.6%
Total $ 451 302 16.7% $ 600,018 23.3%
Payroll Characteristics:
Participating $2,701,164 88.5% $2,122,625 78.9%
Nonparticipating (ineligible
due to minimum service) 352,008 11.5% 569.150 21.1%
Total $3,053,172 100.0% $2,691,775 100.0%
The actuarial method employed to determine contributions to the fund is the
frozen entry age method. It is assumed that an annual contribution (normal cost)
is made each year for each participant. This normal cost, if contributed each
year from the participant's eligibility date (or what would have been such date if —
the Plan had been in existence on his employment date in its present form) to his
normal retirement date, is calculated to be sufficient to provide the retirement
benefits provided for him under the Plan.
-33-
Gin' OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - Continued
The initial liability is the accrual to the initial valuation date of all such normal
costs assumed payable in prior years for all present participants. The excess of
this over the assets (if any) in the fund on that date is the initial unfunded liability.
This unfunded liability is brought forward in each valuation year.
The normal cost for the second and each succeeding year is determined as
follows: first determine the excess of the actuarially redetermined present value
of future retirement benefits and ancillary death benefits for then active
participants plus any reserves for retired and terminated employees over the sum
of the unfunded liability brought forward to the valuation date and the assets then
in the fund. Then divide this figure by the present value of future compensation.
Finally, multiply the resulting fraction by the total current compensation for then
active participants.
To the extent that actual experience for a year is more favorable than that
assumed, an actuarial gain will result. This gain will tend to reduce future
required contributions. Similarly, if actual experience is less favorable than that
assumed, an actuarial loss will result, causing an increase in future required
contributions. Neither gains nor losses are separately determined, but either is
automatically spread over future normal cost.
The following is a three-year historical trend to reflect the progress being made
in the funding of the City's pension obligation:
Three-Year Historical Trend Information
as of September 30,
General Employees Police and Firefighters
1996 1995 1994 1996 1995 1994
Net assets available for benefits
expressed as a percentage of pension
benefit obligations 68.1% 66.5% 65.3% 61.0% 60.4% 54.5%
Unfunded pension benefit obligations
expressed as a percentage of annual
covered payroll 27.7% 24.5% 22.1% 55.1% 45.8% 46.9%
Employer contributions expressed as a
percentage of annual covered payroll 1111®2% 10.2% 9.6% 22.7% 22.4% 16.1%
-34-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - RETIREMENT PLANS - CONTINUED —
Defined Benefit Pension Plan and Trust - Continued
In the Supplementary Section are the required supplemental ten-year historical
trend information about progress being made in accumulating assets to pay
benefits when due. The required schedules only reflect the last five years for the
police and firefighters pension plan, since the effective date of the plan was
October 1, 1991.
Deferred Compensation Plan
The City has a single employer deferred compensation plan. The Plan is —
voluntary and any employee may elect to participate.
The City offers its employees a deferred compensation plan created in accord-
ance with Internal Revenue Code Section 457. The Plan, available to all City
employees, permits them 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.
All amounts of compensation deferred under the Plan, all property and rights —
purchased with those amounts, and all income attributable to those amounts,
property, or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the City (without being restricted to —
the provisions of benefits under the Plan), subject only to the claims of the City's
general creditors. Participants' rights under the Plan are equal to those of
general creditors of the City in an amount equal to the fair market value of the —
deferred account for each participant.
It is the opinion of the City that it has no liability for losses under the Plan, but —
does have the duty of due care that would be required of an ordinary prudent
investor.
In accordance with current professional pronouncements,the City has accounted
for its deferred compensation plan as an agency fund in its financial statements.
The assets are stated at the market value which is represented by the contract —
value provided by the City's third-party administrator.
Employee contributions to the Plan for the fiscal year ended September 30, 1996
were $141,560.
-35-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 9 - OVER 65 ASSISTANCE PROGRAM
The City of Ocoee, Florida began this program March 1, 1975. The program provides
that persons over 65 who qualify are entitled to receive free water and sanitation
services subject to limitations. They are also entitled to be reimbursed (up to $100)
for City of Ocoee, Florida ad valorem taxes after the taxes have been paid by the indi-
- vidual to the Orange County tax collector. Approximately 440 residents of the City par-
ticipated in this program during the fiscal year ended September 30, 1996.
All expenditures under this program are shown as expenditures of the general fund.
Water Excise Tax $ 5,428
Ad Valorem Taxes 14,678
Water Fees 54,453
Sanitation Fees 79.184
Total Over 65 Cost $ 153,743
NOTE 10 - BONDS AND NOTE PAYABLE
Summarized below are the City's bonds and note payable outstanding at September
30, 1996:
Water and Wastewater Fund Bonds Payable
Water and Sewer System Refunding and Improvement Revenue
Bonds, Series 1993 - payable in annual installments of $105,000
to 8610,000 through 2017, plus semi-annual interest at 2.60% to
5.75%. $ 8,055,000
Less: Current Maturities (205,000)
Unamortized Discounts (102,627)
$ 7,747,373
-36-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 10 - BONDS AND NOTE PAYABLE - CONTINUED
General Long-Term Debt Account Group
Bonds Payable - -`
Transportation Refunding and Improvement Revenue Bonds,
Series 1990 - payable in annual installments of $125,000 to
$575,000 through 2015 with semi-annual interest payments at
at 6.0% to 7.5%. $ 6,215,000
Capital Improvement Revenue Bonds, Series 1991 - payable —'
in annual installments of $70,000 to $230,000 through 2011
with semi-annual interest payments at 5.4% to 7.5%. 2,205,000
$ 8,420,000
Note Payable -
Stormwater Utility Revenue Promissory Note, Series 1996 -
payable in annual principal installments of $70,000 to —
$205,000 through 2011 with quarterly interest payments at
4.3% initially, adjusted annually using the five-year Eurodollar
rate. $ 2,200,000 —
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993
In February 1993, the City issued Water and Sewer System Refunding and
Improvement Revenue Bonds, Series 1993 to finance the refunding of
$10,160,000 outstanding Series 1989A and B Water and Sewer System Revenue —
Bonds.
These bonds are secured by the combined Water and Wastewater Fund operat- —
ing revenues, interest earnings, impact fees and a first priority pledge of cash
payments due from developers.
The major provisions of the ordinances authorizing the revenue bonds are as
follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the
next maturing principal and interest payment, respectively.
-37-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 10 - BONDS AND NOTE PAYABLE - CONTINUED
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993-
Continued
2) Each month, provisions shall be made of the gross revenues sufficient to pay,
in order of preference, cost of operation and maintenance of the systems,
then debt service/sinking fund requirements.
3) The City shall establish rates which will provide for necessary operating
expenses and 110% of the bond service requirement due that year.
4) The City shall establish a Reserve Fund and maintain the Reserve Fund
requirement of $649,875.
Florida Transportation Refunding and Improvement Revenue Bonds, Series 1990
In September 1990, the City issued revenue bonds to finance the advance
refunding of $1,895,000 outstanding series 1987 bonds and finance the paving,
_ extension, and improvement of certain streets within the corporate limits.
These bonds are secured by the Local Option Gas Tax and certain local Public
Service Taxes.
The major provisions of the ordinance authorizing the revenue bonds are as
follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the
next maturing principal and interest payment, respectively.
2) The City shall establish a revenue fund and will deposit all pledged revenues
to be used for funding the monthly sinking fund requirements. Any excess
funds may be withdrawn and used by the City for any legal purpose.
3) The City shall provide for the reserve requirement by purchasing a surety
bond.
Capital Improvement Revenue Bonds, Series 1991
In April 1991, the City issued revenue bonds to finance the construction of a new
City Hall and expansion of the Police Station.
These bonds are secured by non-ad valorem revenues of the City.
-38-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 10 - BONDS AND NOTE PAYABLE - CONTINUED
Capital Improvement Revenue Bonds, Series 1991 - Continued
The major provisions of the ordinance authorizing the revenue bonds are as —
follows:
1) The City shall make deposits on or before March 5 and September 5 to a
sinking fund such amounts sufficient to pay the next succeeding interest and
principal payments.
2) The City shall establish a Reserve Fund and maintain the Reserve Fund
requirement of $249,945. _
Stormwater Utility Revenue Promissory Notes, Series 1996
In May 1996, the City issued a promissory note to finance the acquisition,
construction and improvements of certain stormwater utility capital improvements.
This note is secured by a pledge of the net revenues of the Stormwater System _
levied and collected by the City.
The major provisions of the ordinance authorizing the promissory note are as _
follows:
1) The City shall establish rates which will always provide net revenues in each
year sufficient to pay 115% of the debt service requirement due that year.
2) The City shall establish a Reserve Fund and maintain the Reserve Fund —
Requirement of $200,000 until such time as the City has maintained a debt
service coverage ratio for at least 1.15 to 1.00 for two consecutive fiscal years.
-39-
—
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
—
NOTE 10 - BONDS AND NOTE PAYABLE - CONTINUED
—
Following is a maturity schedule of outstanding bonds payable:
—
General Long-Term
Year Ended Debt Enterprise Funds Total Debt
— Sept. 30: Principal Interest Principal Interest Service
1997 $ 255,000 $ 617,613 $ 205,000 $ 440,054 $ 1,517,667
— 1998 270,000 600,798 215,000 431,854 1,517,652
1999 285,000 582,722 225,000 422,716 1,515,438
2000 305,000 563,308 235,000 412,591 1,515,899
— 2001 330,000 542,167 245,000 401,723 1,518,890
2002-2006 2,015,000 2,323,050 1,425,000 1,811,962 7,575,012
2007-2011 2,885,000 1,458,750 1,855,000 1,380,613 7,579,363
-- 2012-2016 2,075,000 402,750 2,460,000 781,712 5,719,462
2017-2018 --- --- 1,190,000 103.500 1,293,500
— $ 8,420,000 $ 7 091,158 8 055 000 $ 6,186.725 $29,752,883
—
Following is a maturity schedule of principal payments on the stormwater note payable:
Year Ended
—
September 30:
1997 $ 70,000
—
1998 110,000
1999 115,000
2000 120,000
—
2001 125,000
Thereafter 1,660,000
—
$ 2 200 000
-40-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 10 - BONDS AND NOTE PAYABLE - CONTINUED
During the year ended September 30, 1996, the following changes in general long-term
debt occurred:
Accrued Capital Bonds and
Annual Lease Note
Leave Obligations Payable Total
Balance at
October 1, 1995 $ 332,392 $ 573,897 $ 8,660,000 $ 9,566,289
Additions 67,201 1,293,097 2,200,000 3,560,298
Principal payments --- (490,462) (240,000) (730,462)
Balance at Septem-
ber 30, 1996 $ 399 593 $ 1,376 532 $10,620,000 $12,396,125
NOTE 11 - DEBT DEFEASANCE
In 1990 the City defeased the Public Improvement Revenue Bonds, Series 1987, by
creating a separate irrevocable trust fund. New debt was issued and the proceeds
have been used to purchase U.S. government securities that were placed in the trust
fund. The investments and fixed earnings from the investments appear sufficient to
fully service the defeased debt until the debt is called or matures. For financial _
reporting purposes, the debt has been considered defeased and therefore removed
as a liability from the City's General Long-Term Debt Account Group. As of September
30, 1996, the amount of defeased debt outstanding, but removed from the General _
Long-Term Debt Account Group amounted to $570,000.
NOTE 12 - LEASE OBLIGATIONS
Capital Leases
The City has entered into lease agreements as lessee for financing the acquisition
of vehicles and trucks and data processing, communications, and office equip-
ment. These lease agreements qualify as capital leases for accounting purposes —
and, therefore, have been recorded at the present value of the future minimum
lease payments as of the date of their inception in either the General Fixed Asset
Account Group or the proprietary fund types.
-41-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 12 - LEASE OBLIGATIONS - CONTINUED
Capital I paces - Continued
Equipment under capital leases recorded in the General Fixed Asset Account
Group at September 30, 1996 consists of the following:
Fire Trucks and Minipumper $ 952,149
800 MHZ Radio System 666,834
Vehicles and Trucks 350,135
Equipment 112,552
$ 2,081,670
Debt service payments on equipment capitalized in the General Fixed Asset
Group are recorded as expenditures in either the General Fund or the Special
Revenue Funds.
The following is a schedule by years of future minimum lease payments under
capital leases, together with the present value of the net minimum lease
payments as of September 30:
Year Ending
September 30:
1997 $ 526,200
1998 394,808
1999 352,273
2000 226,103
2001 24.115
1,523,499
Total Minimum Lease Payments
Less, Amount Representing Interest (146.967)
Present Value of Net Minimum
Lease Payments $ 1,376,532
-42-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 12 - LEASE OBLIGATIONS - CONTINUED
Capital Leases - Continued
The total of assets capitalized under lease-financing arrangements in proprietary
fund types is as follows:
Water and
Wastewater Sanitation
Fund Fund Totals
Vehicles and
Equipment $ 43,527 $ 298,735 $ 342,262
Less Accumulated
Amortization (12.332) (118,086) (130,418)
Net Book Value $ 31,195 $ 180,649 $ 211,844
Amortization of equipment leased under capital leases is included in depreciation
expense.
The following is a schedule by years of future minimum lease payments under
the above capital leases, together with the present value of the net minimum
lease payments as of September 30:
Water and _
Year Ending Wastewater Sanitation
September 30: Fund Fund Totals
1997 $ 11,386 $ 71,571 $ 82,957 —
1998 11,386 26,538 37,924
1999 11,386 26,538 37,924
2000 11,386 26,538 37,924 _
2001 949 --- 949
Total Minimum Lease
Payments 46,493 151,185 197,678 —
Less, Amount Repre-
senting Interest (9504) (13,130) (22,634)
Present Value of Net
Minimum I ease
Payments $ 36,989 $ 138,055 $ 175,044
The current and noncurrent obligation under these capital leases are$72,887 and
$102,157, respectively.
-43-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 12 - I FASE OBLIGATIONS - CONTINUED
Operating Leases
The City leases office equipment under a non-cancelable operating lease. Rental
expenditures for the year ended September 30, 1996 amount to $684. The
following is a schedule by years of future minimum rentals on these noncancel-
able leases as of September 30, 1996:
Year Ending
September 30:
1997 $ 2,736
1998 2,052
_ $ 4,788
NOTE 13 - INTERFUND RECEIVABLES AND PAYABLES
The following schedule as of September 30, 1996, represents interfund receivables and
payables:
Interfund Interfund
Fund Type Receivables Pavables
General Fund $ 1,515 $
Enterprise Funds:
Water and Wastewater --- 1,515
Pension Trust Funds:
General Employees --- 122
Police and Firefighters 122
$ 1,637 $ 1,637
NOTE 14 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; job-related illnesses or injuries to
employees; and natural disasters. Rick of loss from the above is transferred by the
City to various commercial insurers through the purchase of insurance. There has
been no significant reduction in insurance coverage from the previous year. There
have been no settlements in excess of insurance coverage in any of the prior three
fiscal years.
-44-
CRY OF OCOEE, FLORIDA —
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 15 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains two enterprise funds which provide water, wastewater, and
sanitation services. Segment information for the year ended September 30, 1996, is _
as follows:
Water and —
Wastewater Sanitation Total
Operating Revenues $ 3,873,669 $ 1,176,211 $ 5,049,880 —
Depreciation and Amortization $ 1,212081 $ 163,935 $ 1,376,016
Operating Income $ 527,208 $ 188,420 $ 715,628
Operating Grants $ --- $ 27,072 $ 27,072 —
Operating Transfers:
In $ 42,348 $ 19,165 $ 61,513 —
Out $ (962,339) $ (141,764) $ (1,104,103)
Net Income (Loss) $ (356,347) $ 94,846 $ (261,501)
Current Capital Contributions $ 1,840,645 $ --- $ 1,840,645
Property Additions $ 2,260,932 $ 243,077 $ 2,564,009, _
Property Deletions $ --- $ 2,047 $ 2,047
Net Working Capital $ 3,781,744 $ 88,228 $ 3,869,972
Total Assets $36,431,510 $ 739636 $37,171,146 —
Long-Term Debt $ 7,776,830 $ 72,700 $ 7,849,530
Total Equity $27,601,358 $ 566,085 $28,167,443
-45-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 16 - CONTRIBUTED CAPITAL
The following is a summary of changes in contributed capital of the water and
wastewater fund during the year ended September 30, 1996:
Contributed Capital - Beginning of Year $22,467,044
Additions (Reductions)
Connection Fees 704,961
Developers 1,135,684
Depreciation on Contributed Assets (350.576)
Contributed Capital - End of Year $23,957,113
NOTE 17 - SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES
Grants
_ Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies. If any expenditures are disallowed as a result
of these audits, the claims for reimbursement to the grantor agency would
become a liability of the City. In the opinion of management, any such
adjustments would not be significant.
Litigation
During the ordinary course of its operations, the City is a party to various claims,
legal actions, and complaints. In the opinion of the City's management and legal
counsel, these matters are not anticipated to have a material financial impact on
the City.
NOTE 18 - SUBSEQUENT EVENT
In December 1996, the City issued the City of Ocoee Capital Improvement Revenue
Promissory Note, Series 1996, in the principal amount of$4,840,000 to finance certain
capital projects including two fire stations, a gymnasium and recreational facility, and
_ a public works facility. The principal and interest on the note shall be payable solely
from non-ad valorem revenues. The loan, as evidenced by the note, will not constitute
a general debt, liability or obligation of the City.
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COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
These financial statements provide a more detailed view of the "General
Purpose Financial Statements" presented in the preceding subsection.
Combining statements are presented when there are more than one fund
of a given fund type.
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GENERAL FUND
The General Fund is the principal fund of the City and is used to account
for all activities not included in other funds.
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CITY OF OCOEE, FLORIDA
- GENERAL FUND
STATEMENT OF REVENUES, EXPENDRURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1996
- Variance
Favorable
Budget Actual (Unfavorable)
-
REVENUE
Taxes
-
Property Taxes $ 1,946,150 $ 1,953,410 $ 7,260
Franchise Taxes 948,650 969,107 20,457
- Utility Taxes 1,221,300 1,347,477 126,177
4,116.100 4,269,994 153,894
- Licenses And Permits
Building Permits 637,050 688,617 51,567
Occupational License 152,500 161,810 9,310
789,550 850,427 60,877
-
Intergovernmental Revenues
Cigarette Tax 90,900 93,139 2,239
State Revenue Sharing 307,840 338,465 30,625
Sales Tax 1,777,775 1,915,231 137,456
- Other State Shared Revenue 237,700 346,105 108,405
County 60 Gas Tax 348,135 361,581 13,446
Other County Shared Revenue 34.000 34,000 ---
- 2,796,350 3,088,521 292,171
Charges For Services
- Fire Contract 99,950 99,936 (14)
Program Activity Fees 37,800 72,664 34,864
City Staff Charges 12,000 13.563 1,563
- 149,750 186.163 36.413
Fines And Forfeitures
- Fines And Forfeitures 101,000 101,895 895
Investment Income
- Investment Income 55,000 89,666 34,666
Miscellaneous Revenues
-
Zoning And Election Fees 21,250 14,995 (6,255)
Other 138,374 93,384 (44,990)
159,624 108,379 (51,245)
-
Total Revenues $ 8,167,374, $ 8,695,045 $ 527,671,
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CRY OF OCOEE, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1996
r Variance
Favorable
Budget Actual 'Unfavorable)
EXPENDITURES
General Government
Legislative $ 130,546 $ 116,302 $ 14,244
Executive 399,545 363,095 36,450
Finance And Administrative 862,111 810,161 51,950
Legal 205,000 208,664 (3,664)
Planning And Zoning 293,054 259,456 33,598
General Government 311,558 16,818 294,740
Building Maintenance 152,880 132,601 20,279
2,354,694 1.907,097 447.597
Public Safety
Law Enforcement 2,399,585 2,284,465 115,120
Fire Control 1,951,827 1,872,437 79,390
Protective Inspections 500,383 494,401 5,982
4,851,795 4,651,303 200,492
Physical Environment
Roads And Streets 1,209,720 1,151,049 58.671
Culture And Recreation
Parks And Recreation 398,365 417,495 (19,130)
Debt Service
Principal Retirement - 124,281 124,281
_ Interest And Fiscal Charges - 9,135 9,135
133,416 (133,416)
Total Expenditures 8,814,574 8260,360 554214
Excess (Deficiency) Of Revenues
Over Expenditures (647,200) 434,685 1,081,885
Other Financing Sources (Uses)
_ Operating Transfers In 1,476,400 1,531,185 54,785
Operating Transfers Out (1,044,200) (1,064,845) (20,645)
Net Other Financing
Sources (Uses) 432,200 466,340 - 34,140
Excess (Deficiency) Of Revenues
And Other Sources Over Expend-
- itunes and Other Uses (215,000) 901,025 1,116,025
Fund Balance- Beginning of Year 215,000 730,751 515,751
Fund Balance-End of Year $ 1,631,776 $ 1,631,776
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues from specific taxes or other
earmarked revenue sources which because of legal or regulatory provisions or administrative
action are designed to finance particular functions or activities of government and which,
therefore, cannot be diverted to other uses.
Description Of Funds
_ Maguire House Grant - Accounts for the grant revenue and related expenditures on
improvements to the historical site, Maguire House.
Road Impact - Accounts for the Road Impact fees collected and for dis-
bursements made for the purpose of planning, acquisition,
expansion, and development of off-site improvements to the
_ road system.
Parks - Accounts for the land and/or money received from owners
or developers as a recreational facilities assessment when
lands are subdivided within the City. Funds must be used
for the improvement or expansion of City parks.
Stormwater - Accounts for the Stormwater Utility Fee revenues and the
related expenditures for drainage, stormwater, and other
related projects.
Interim Services - Accounts for impact fees collected and for disbursements
made for the purpose of providing additional municipal
services to new development within the City.
Police Training - Accounts for the revenues received pursuant to F.S.
943.25(8) which imposes a $2.00 court cost against every
person convicted for violation of state penal or criminal
statute or convicted of a municipal or county ordinance
violation where said offense occurred within the City of
Ocoee. Funds must be used to educate and train law
enforcement personnel.
Police Trust - Accounts for the proceeds from property confiscated in
police enforcement activities pursuant to F.S. 932.701
(Florida Contraband Forfeiture Act). Funds must be used for
police operations.
Fire Impact - Accounts for Fire Impact fees collected and for disburse-
- ments made for the purpose of acquisition of facilities and
equipment determined to be needed to provide fire protec-
tion for new development within the City.
Police Impact - Accounts for Police Impact fees collected and for disburse-
ments made for the purpose of acquisition of facilities and
equipment determined to be needed to provide police pro-
tection for new development within the City.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEEP
ALL SPECIAL REVENUE FUNDS
SEPTEMBER 30, 1996
Impact Parks Stormwater
Assets
Cash And Cash Equivalents $ 424,207 $ 261,830 $ 269,048
Investments 6,122,902 255,988 48,836 —
Receivable - Net 2,662 --- 62,455
Total Assets $ 6,549,771 $ 517,818 $ 380,339
Liabilities And Fund Balances
Debilities —
Accounts Payable $ $ $ 13,053
Deferred Revenue 17,000
Total Liabilities 17,000 13,053
Fund Balances
Reserved:
Encumbrances --- --- 66,498
Unreserved:
Designated For Subsequent
Year's Budget 6.549,771 500,818 300,788 —
Total Fund Balances (Deficit) 6,549,771 500,818 367,286
Total Liabilities And
Fund Balances $ 6,549,771 $ 517,818 $ 380,339
-49-
Total
Special
Interim Police Police Fire Police Revenue
Services Training Trust Impact Impact Funds
$ 6,368 $ 10,279 $ 44,262 $ 367,267 $ 94,596 $ 1,477,857
-- --- --- 1,464,648 73,253 7,965,627
--- -- --- --- --- 65,117
$ 6,368 $ 10,279 $ 44 262 $ 1,831,915 $ 167,849 $ 9,508,601
a $ --- $ --- $ --- $ 16,738 $ --- $ 29,791
17,000
--- --- --- --- --- 46,791
66,498
6,368 10,279 44,262 1,815,177 167,849 9,395,312
6.368 10,279 44,262 1,815,177 167,849 9.461.810
$ 6,368 $ 10,279 $ 44,262 $ 1,831,915 $ 167,849 $ 9,508,601
-50-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES, -
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Maguire -
House Road
Grant Impact Parks Stormwater
Revenues -
Intergovernmental Revenues $ $ --- $ 12,277 $ ---
Fines And Forfeitures --- --- --- ---
Impact Fees/Special Assessments --- 813,352 77,358 585,897 -
Investment Income --- 328,349 24,482 16,228
Miscellaneous Revenues 3.006 20,840 --- ---
Total Revenues 3,006 1,162,541 114,117 602.125
Expenditures -
Current:
Public Safety --- --- --- ---
Physical Environment --- 282,935 --- 703,989
Culture And Recreation 1,813 --- 12,277 ---
Debt Service: _
Principal Retirement --- --- --- 48,367
Interest And Fiscal Charges --- --- --- 10.323
-
Total Fvpnditures 1,813 282,935 12,277 762,679
Excess (Deficiency) Of Revenues _
Over Fxpenditures 1,193 879,606 101,840 (160,554)
Other Financing Sources (Uses) -
Operating Transfers In --- 60,000 ---
Operating Transfers Out --- (629,485) --- (49,885)
Capital Lease Proceeds -- --- --- 179,595 -
Net Other Financing
Sources (Uses) --- (629,485) 60.000 129,710 -
Excess (Deficiency) Of Revenues
And Other Financing Sources -
Over Expenditures And Other
Financing Uses 1,193 250,121 161,840 (30,844)
-
Fund Balances -
Beginning Of Year (1,193) 6,299.650 338,978 398,130
-
Fund Balances (Deficit) -
End of Year $ --- $ 6,549,771 $ 500,818 $ 367,286
-51-
Total
- Special
Interim Police Police Fire Police Revenue
Services Training Trust Impact Impact Funds
-
$ $ $ $ 18,050 $ --- $ 30,327
--- 1,475 19,854 --- --- 21,329
- 18,995 326,416 97,907 1,919,925
526 487 2,583 119,200 20,342 512,197
--- 3,844 3.828 --- --- 31,518
19,521 5.806 26,265 463,666 118.249 2,515,296
--- --- 17,367 669,063 666,833 1,353,263
- --- --- --- --- --- 986,924
--- --- 14,090
-
--- --- --- 181,187 136,627 366,181
--- --- --- 23,012 27,731 61.066
-
--- --- 17.367 873,262 831,191 2,781,524
- 19,521 5,806 8.898 (409,596) (712,942) (266,228)
--- --- --- --- 94,500 154,500
(23,195) --- --- --- (154,883) (857,448)
- --- --- --- 355.063 720,739 1,255,397
- (23,195) --- --- 355.063 660,356 552.449
(3,674) 5,806 8,898 (54,533) (52,586) 286,221
a
10,042 4.473 35,364 1,869,710 220,435 9,175,589
$ 6,368 $ 10,279 $ 44,262 $ 1,815,177 $ 167,849 $ 9,461,810
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a
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tie DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for the
payment of interest and principal on all general long-term debt other than that payable from
Proprietary Funds.
Description of Funds
Transportation Refunding - Accounts for the principal and interest payments on the 1990
and Improvement Transportation Refunding and Improvement Revenue Bonds
Revenue Bonds which funded the design, construction, paving and improve-
ment of roads and related drainage improvements within the
City.
_ Capital Improvement - Accounts for the principal and interest payments on the 1991
Revenue Bonds Capital Improvement Revenue Bonds which funded the
construction of the new City Hall and the expansion of the
police department facility.
Stormwater Revenue - Accounts for the principal and interest payments on the 1996
Promissory Note Stormwater Revenue Promissory Note issued to acquire,
construct, and improve certain stormwater utility capital
improvements.
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CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
SEP ItMBER 30, 1996
Transportation Capital Stormwater
,— Refunding And Improvement Revenue Total
Improvement Revenue Promissory Debt Service
Revenue Bonds Bonds Note Funds
Assets
Cash And Cash Equivalents $ 22,528 $ 69,493 $ 9,863 $ 101,884
Restricted Assets:
Investments -- 249,945 193,875 443,820
Cash With Paying Agent 389,126 167,473 — 556,599
Total Assets $ 411 654 $ 486,911 $ J03 738 $ 1,102 303
Liabilities And Fund Balances
Liabilities
Matured Bonds Payable $ 155,000 $ 85,000 $ — $ 240,000
Matured Interest Payable 234,126 82,473 — 316,599
Total Liabilities 389,126 167,473 — 556,599
Fund Balances
Reserved For Debt Service 22,528 319,438 203,738 545,704
Total Liabilities And
Fund Balances $ 411,654 $ 486,911 $ 203738 $ 1,102,303
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GUY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL DEBT SERVICE FUNDS
FOR THE YEAR ENDED SEF TEMBER 30, 1996
Transportation Capital Storrmwater
Refunding And Improvement Revenue Total
Improvement Revenue Promissory Debt Service
Revenue Bonds Bonds Note Funds
Revenues
Investment Income $ 7,600 $ 20,720 $ 3,738 $ 32,058
Total Revenues 7,600 20,720 3,738 32,058
Expenditures
Debt Service:
Bond Principal Payments 155,000 85,000 -- 240,000
.. Bond Interest and Fiscal Charges 468,766 164,945 --- 633,711
Total Expenditures 623,766 249,945 --- 873,711
Excess (Deficiency) Of Revenues
Over Expenditures (616,166) (229,225) 3,738 (841,653)
Other Financing Sources
Operating Transfers In 623,253 249,945 200,000 1,073,198
Excess of Revenues And Other Financing
Sources Over Expenditures And Other
Financing Uses 7,087 20,720 203,738 231,545
Fund Balances-Beginning Of Year 15,441 298,718 -- 314,159
Fund Balances-End Of Year $ 22,528 $ 319,438 $ 203,738 $ 545,704
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CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for all resources used for the acquisition and/or
construction of capital facilities by the City except for those financed and accounted for in the
Proprietary and certain Fiduciary Funds.
Description of Funds
Road Construction - Accounts for the portion of building permits designated to
fund the design, construction, paving and improvement of
White Road in connection with the West Oaks Mall construc-
tion project.
City Hall/Police Depart- - Accounts for the proceeds of the 1991 Capital Improvement
ment Construction Revenue Bonds to fund the construction of a new City Hall
and expansion of the police department facility.
Stormwater Improvement - Accounts for the proceeds of the 1996 Stormwater Revenue
Promissory Note issued to acquire, construct, and improve
certain stormwater utility capital improvements.
Computer Acquisition - Accounts for funds budgeted for the acquisition and instal-
-
lation of a new computer system.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL CAPITAL PROJECT FUNDS
SEPTEMBER 30, 1996
•
City Hall/
Road Police Dept —
Construction Construction
Assets —
Cash and Cash Equivalents $ 82,125 $ 18,292
Investments 525,000 ---
Accounts Receivable 244
Total Assets $ 607,369 $ 18,292
Liabilities And Fund Balance
Liabilities
Accounts Payable $ $
Retainage Payable 27,403 1,213
Total Liabilities 27,403 1,213
Fund Balance
Unreserved - Designated
For Capital Projects 579,966 17,079
Total Liabilities And
Fund Balance $ 607,369 $ 18,292
-55-
Total
Stormwater Computer Capital Project
Improvement Acquisition Funds
$ 930,604 $ 401,907 $ 1,432,928
992,453 --- 1,517,453
244
$ 1,923,057 $ 401 907 $ 2.950,625
_ $ 8,192 $ $ 8,192
--- --- 28,616
8.192 --- 36,808
1.914,865 401,907 2,913.817
$ 1.923.057 $ 401,907 $ 2,950 625
-56-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND AND CHANGES IN FUND BALANCES
ALL CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
City HaUV
Road Police Dept. —
Construction Construction
Revenues —
Building Permits $ 318,143 $
Interest Revenues 35,514 2,085
Miscellaneous Revenues 3,947 —
Total Revenues 357,604 2,085
Expenditures
Capital Outlay:
General Government 4,555 —
Public Safety --- 3,034
Physical Environment 457,532 ---
Total Expenditures 457,532 7,589
Excess (Deficiency) Of Revenues
Over Expenditures (99.928) (5,504)
Other Financing Sources (Uses)
Operating Transfers In 6,000
Operating Transfers Out
Promissory Note Proceeds
Net Other Financing
Sources (Uses) --- 6,000
Excess (Deficiency) Of Revenues And Other Financing Sources
Over Expenditures And Other
Financing Uses (99,928) 496
Fund Balances - Beginning Of Year 679,894 16,583
Fund Balances - End Of Year $ 579,966 $ 17,079
-57-
Total
Stormwater Computer Capital Project
Improvement Acquisition Funds
$ --- $ --- $ 318,143
35,261 1,907 74,767
3,947
35,261 1,907 396,857
--- --- 4,555
-- --- 3,034
120.396 --- 577,928
120.396 --- 585,517
(85.135) 1,907 (188,660)
--- 400,000 406,000
(200,000) (200,000)
2,200,000 2,200,000
2,000,000 400,000 2,406,000
1,914,865 401,907 2,217,340
--- --- 696.477
$ 1,914,865 $ 401,907 $ 2,913,817
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ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprise or where the City has decided that periodic
determination of net income is appropriate for capital maintenance, management control,
accountability, public policy, or other purposes.
Description of Funds
Water and Wastewater - Accounts for the operations of the City's water system and
wastewater collection and treatment plant which provides
water and wastewater service to the residents of the City. All
activities necessary to provide such service are accounted
for in this fund.
Sanitation - Accounts for the collection of commercial and residential
garbage which is disposed of at a county landfill. All
activities necessary to provide such service are accounted
for in this fund.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS
SEPTEMBER 30, 1996
Water Total and Enterprise
Wastewater Sanitation Funds
ASSETS
Current Assets
Cash And Cash Equivalents $ 787,849 $ 42,064 $ 829,913
Investments 2,505,957 46,776 2,552,733 —
Receivables (Net Of Allowance
For Uncollectibles) 665,179 96,746 761,925
Inventory - Materials 22,152 -- 22,152 —
Due From Other Governments --- 3,493 3,493
Total Current Assets 3,981,137 189,079 4,170,216 —
Restricted Assets
Cash And Cash Equivalents 1,056,487 29,947 1,686,434
Investments 2,726,777 50,000 2,776,777
Cash With Paying Agent 425,027 --- 425,027
Total Restricted Assets 4,208,291 79,947 4,288,238 —
Fixed Assets
Property, Plant And Equipment 33,847,489 1,177,643 35,025,132
Less: Accumulated Depreciation (7,883,374) (707,033) (8,590,407) —
Construction In Progress 1,658,990 --- 1,658,990
Total Foxed Assets- Net 27,623,105 470,610 28.093.715
Other Assets
Assessments Receivable 312,293 --- 312,293 Unamortized Bond Issuance Costs 306,684 -- 306,684
Total Other Assets 618,977 -- 618,977
Total Assets $ 36,431,510 $ 739,636, $37,171,146,
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Total
Water and Enterprise
Wastewater Sanitation Funds
LIABILITIES AND FUND EQUITY
Current Liabilities (Payable
From Current Assets)
-
Accounts Payable $ 31,834 $ 15,670 $ 47,504
Accrued Expenses 112,786 19,826 132,612
Due To Other Funds 1,515 --- 1,515
- Deferred Revenue 45,726 -- 45,726
Obligations Under Capital Leases 7,532 65,355 72,887
- Total Current Liabilities (Payable
From Curren Assets) 199,393 100,851 300,244
Current U-I-rt " (Payable From
- Restricted Assets)
Customer Deposits 337,322 -- 337,322
Retalnage Payable 91,580 -- 91,580
-8 Accrued Interest Payable 220,027 -- 220,027
Revenue Bonds Payable 205,000 -- 205,000
- Total Current Liabilities (Payable
From Restricted Assets) 853,929 - 853,929
Long-Terrn Liabilities
- Revenue Bonds Payable 7,747,373 - 7,747,373
Obligations Under Capital Lexces 29,457 72,700 102,157
Total Long-Term Liabilities 7,776,830 72,700 7,849,530
Total Liabilities 8,830,152 173,551 9,003,703
-
Fund Equity
Contributed Capital 23,957,113 - 23,957,113
Retained Earnings (Deficit):
- Reserved For Renewal
And Replacement 1,280,937 79,947 1,360,884
Reserved for Debt Service 649,875 -- 649,875
Unreserved 1,713,433 486,138 2,199,571
Total Retained Earnings 3,644,245 566,085 4,210330
-
Total Fund Equity 27,601,358 566,085 28,167,443
Total Liabilities 8 Fund Equity $ 36,431,510 $ 739,636 $ 37,171,146
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
ALL ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
r Total
Water and Enterprise
Wastewater Sanitation Funds
Operating Revenues
User Charges $ 3,873,669 $ 1,176,211 $ 5,049,880
Operating Expenses
Personal Services 1,217,946 403,066 1,621,012
Materials And Supplies 272,318 311,380 581,698
Heat, Light And Power 298,622 --- 298,622
Depreciation And Amortization 1,212,081 163,935 1,376,016
Other Expenses 345,494 96,871 442,365
Recycling Expenses -- 12,539 12,539
No
Total Operating Expenses 3,346,461 987.791 4,334.252
., Operating Income (Loss) 527,208 188,420 715,628
Nonoperating Revenues
(Expenses)
Grant Revenue --- 27,072 27,072
Investment Income 428,158 12,110 440,268
Interest Expense (391,722) (10,157) (401,879)
Total Nonoperating Revenues 36,436 29,025 65.461
- Income Before Operating Transfers 563.644 217,445 781,089
Operating Transfers
Operating Transfers In 42,348 19,165 61,513
Operating Transfers Out (962,339) (141,764) (1.104,103)
Net Operating Transfers (919.991) (122,5991 (1,042,590)
a
Net Income (loss) $ (356,347) $ 94,846 $ (261,501)
_ Disposition Of Net Income (Loss)
Net Income (Loss) $ (356,347) $ 94,846 $ (261,501)
Depreciation On Contributed Assets 350.576 - 350.576
a Net Increase (Decrease) In
Retained Earnings (5,771) 94,846 89,075
Retained Earnings - Beginning of Year 3,650,016 471,239 4.121.255
Retained Earnings-End of Year $ 3,644,245 $ 566,085 $ 4,210,330
a
-61-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
ALL ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Total
Water and Enterprise
Wastewater Sanitation Funds —
Cash Flows From Operating Activities:
Receipts From Customers $ 3,890,524 $ 1,207,057 $ 5,097,581
Payments To Suppliers (818,088) (393,460) (1,211,548)
Payments To Employees (1,198,622) (404,673) (1,603,295)
Net Cash Provided By Operating Activities 1,873,814 408,924 2,282,738
—
Cash Flows From Noncapital
Financing Activities:
Net Operating Transfers In (Out) (919,991) (122,599) (1,042,590)
Receipts From Grants --- 27,072 27,072
Increase (Decrease) Due To Other Funds 1,455 (29,610) (28,155)
Increase Due From Other Funds 29,610 --- 29,610
—
Net Cash Used In Noncapital Financing Activities (888,926) (125,137) (1,014,063)
Cash Flows From Capital And Related Financing Activities: —
Purchase Of Property, Plant And Equipment (1,163,161) (243,077) (1,406,238)
Additions to Construction in Progress (1,197,766) --- (1,197,766)
Principal Paid On Bonds and Leases (210,506) (125,267) (335,773) _
Interest Paid On Bonds and Leases (452,024) (10,157) (462,181)
Proceeds from Capital Leases --- 116,375 116,375
Capital Contributions 704,961 -- 704,961
Cash Received On Assessments Receivable 53,804 -- 53804
Net Cash Provided By (Used In) Capital And
Related Financing Activities (2,264,692) (262,126) (2,526,818) —
Cash Flows From Investing Activities:
Sale Of Investments 80,230 --- 80,230 —
Purchase Of Investments -- (49,705) (49,705)
Interest On Investments 428,158 12,110 440,268
Net Cash Provided By In Investing Activities 508,388 (37,595) 470,793 —
Net Increase (Decease) In Cash And Cash Equivalents (771,416) (15,934) (787,350)
Cash And Cash Equivalents At Beginning Of Year 3,040,779 87,945 3,128,724
Cash And Cash Equivalents At End Of Year $ 2,269363 $ 72,011 $ 2,341,374
—
Classified As:
Current Assets $ 787,849 $ 42,064 $ 829,913
Restricted Assets 1,481,514 29.947 1,511.461
—
Total $ 2,269,363 $ 72,011 $ 2,341,374
-62-
Total
Water and Enterprise
Wastewater Sanitation Funds
Reconciliation Of Operating Income (Loss) To Net
Cash Provided By Operating Activities:
Operating Income (iess) $ 527,208 $ 188,420 $ 715,628
Adjustments Not Affecting Cash:
Depreciation 1,197,477 163,935 1,361,412
Amortization 14,604 --- 14,604
Provision For Uncollectible Accounts 9,000 5,000 14,000
Change In Assets And Liabilities:
(Increase) Decrease In Accounts Receivable (852) 30,846 29,994
(Increase) Decrease in Prepaid Costs 3,122 6,660 9,782
Increase (Decrease) In Accounts Payable 20,702 15,670 36,372
Increase (Decrease) In Accrued Expenses 19,324 (1,607) 17,717
Increase (Decrease) In Retainage Payable 65,522 — 65,522
Increase (Decrease) In Deferred Revenue (23,413) — (23,413)
Increase (Decrease) In Customer Deposits 41 120 -- 41,120
Total Adjustments 1,346,606 220,504 1.567,110
Net Cash Provided By Operating Activities $ 1,873,814 $ 408,924 $ 2,282,738
Noncash Investing, Capital And Financing Activities:
Contributed Property, Plant, And Equipment $ 1,097,771! $ -- $ 1,097,771
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TRUST AND AGENCY FUNDS
Expendable and Pension Trust Funds are used to account for assets held by the City in a
fiduciary capacity for individuals, governmental entities and others. Such trust funds are operated
by carrying out specific terms of trust indentures, statutes, ordinances, grant requirements, or
other governing regulations. The Agency Funds are used to account for assets held by the City
as agent for City employees.
Description of Funds
Fundable Trust Funds
HAC/Prairie Road Fund - Accounts for fund designated for improvement to HAC/Prairie
Road.
Pension Trust Funds
General Employees - Accounts for the accumulation of resources to be used for
retirement annuity payments at appropriate amounts and
times in the future for employees of the City, except police
officers and firefighters.
Police and
Firefighters - Accounts for the accumulation of resources to be used for
_ retirement annuities of all police officers and firefighters. The
State contributes funds based upon the number of police
officers and firefighters and the City and employees contribute
the balance as determined by an actuarial study.
Agency Funds
Deferred Compensation
Plan - Accounts for the accumulation of resources to be used for
retirement payments at appropriate amounts and times in the
future for employees of the City in accordance with the
provisions of Internal Revenue Code Section 457.
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CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
TRUST AND AGENCY FUNDS
SEPIEMBER 30, 1996
N.
Expendable Pension Trust
Trust Fund Funds Agency Fund
HAC/Prairie Police Deferred
Road General And Compensation
Fund Employees Firefighters Plan Totals
Assets
Cash And Cash
— Equivalents $ 43,241 $ — $ — $ --- $ 43241
Investments — 1,989,878 2,305,144 801,305 5,096,327
,.. Receivables - Net — 37,510 44,998 -- 82,508
Due From Other Funds --- -- 122 — 122
"" Total Assets $ 43,241, $ 2027,388 ; 2350,264 $ 801305 $ 5,222,198
r `Talies And Fund
mi Balance
Liabilities
—
Due To Other Funds $ — $ 122 $ — $ -- $ 122
Deferred Compensation
Payable — --- -- 801,305 801,305
Total Liabilities -- 122 — 801.305 801.427
Fund Balances
Reserved For Employees'
Retirement System --- 2,027,266 2,350,264 -- 4,377,530
Resented For Other
".. Projects 43,241 -- -- --- 43,241
Total Fund Balances 43,241 2,027,266 2,350,264 — 4,420,771
Total Liabilities And
Fund Balances c 43,241 $ 2.027388 $ 2,350,264 $ 801,305 $ 5,222,198
—
-64-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
PENSION TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Pension Trust Funds
General Police And
Employees Firefighters Totals
Operating Revenues
Contributions $ 451,302 $ 600,018 $ 1,051,320 —
Revenue Earned On Investments 40,378 27,561 67.939
Total Operating Revenues 491,680 627,579 1,119,259
Operating Expenses
Benefit Payments 40,905 71,757 112,662 _
Administrative Expenses 29,114 36,428 65,542
Total Operating Expenses 70,019 108,185 178,204 —
Net Income 421,661 519,394 941,055 —
Fund Balance - Beginning Of Year 1,605,605 1,830,870 3,436,475
Fund Balance - End Of Year $ 2,027,266 $ 2,350,264 $ 4,377,530
-65-
CRY OF OCOEE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
_ FOR THE YEAR ENDED SEPTEMBER 30, 1996
Balance Balance
October 1, September 30,
1995 Additions Deductions 1996
Deferred Compensation
Assets:
Investments $ 663,458 $ 221,367 $ 83,520 $ 801,305
Liabilities:
Deferred Compensation
Payable $ 663,458 $ 221 367 $ 83,520 $ 801,305
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ACCOUNT GROUPS
General Fixed Assets
Account Group - To account for all fixed assets of the City, other than those
accounted for in the Enterprise Funds.
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CRY OF OCOEE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Culture
General Public Physical And
Government Safety Environment Recreation Total
Land $ 153,792 $ 188,621 $ 613,099 $ 357,371 $ 1,312,883
Buildings 1,972,541 1,214,108 262 281,488 3,468,399
Improvements 253,072 62,909 59,058 535,819 910,858
Equipment 625,371 2,581,831 807,006 165,483 4,179,691
Construction In Progress -- --- -- 32,353 32,353
Total $ 3,004,776 4 047,469 Llai7SE5 $ 1,372,514 $ 9,904,184
Balance Balance
10-01-95 Additions Deletions 09-30-96
,. General Government $ 2,896,697 $ 140,272 $ (32,193) $3,004,776
Public Safety 2,950,714 1,202,643 (105,888) 4,047,469
Physical Environment 1,071,891 422,392 (14,858) 1,479,425
Culture & Recreation 1,320326 73.316 (21,128) 1,372,514
Total $ (1239,628 $1 838,623 $ (174,067) $ 9,904,184
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SUPPLEMENTARY INFORMATION
Supplementary information is presented to provide greater detailed infor-
mation deemed useful for clarity. It is not necessary for presentation in
conformity with generally accepting accounting principles.
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- CITY OF OCOEE, FLORIDA
GENERAL EMPLOYEES' DEFINED BENEFIT PENSION PLAN
REQUIRED SUPPLEMENTARY INFORMATION
-
COMPARATIVE SUMMARY OF REVENUES
- BY SOURCE AND EXPENSES BY TYPE
LAST TEN FISCAL YEARS
-
- Revenues By Source
Employer Contributions
Percentage Of
- Fiscal Employee Annual Covered Investment
Year Contributions Amount Payroll Income Total
- 1987 (1) $ 73,165 4.58% $ 1,908 $ 75,073
1988 (1) 84,869 5.30% 7,274 92,143
1989 (1) 72,429 3.68% 20,377 92,806
- 1990 (1) 111,562 4.53% 28,211 139,773
1991 (1) 94,952 3.36% 32,627 127,579
1992 $ 103,361 183,911 8.90% 21,887 309,159
- 1993 102,876 177,101 8.57% 45,183 325,160
1994 126,448 216,806 9.58% 49,551 392,805
1995 136,122 258,894 10.16% 18,936 413,952
-
1996 149,053 302,249 11.20% 40,378 491,680
Expenses By Type
-
Fiscal Administrative
Year Benefits Refunds Expenses Total
-
1987 $ 1,946 $ --- $ 1 $ 1,947
1988 1,573 --- 9 1,582
a 1989 --- --- 31 31
1990 5,912 --- 95 6,007
1991 --- --- 7,933 7,933
.. 1992 12,018 --- 16,800 28,818
1993 23,881 --- 16,520 40,401
1994 34,452 --- 28,193 62,645
- 1995 31,218 -- 16,318 47,536
1996 40,905 --- 29,114 70,019
(1) Prior to October 1, 1991, City employees were not permitted to contribute to the Plan.
-68-
CITY OF OCOEE, FLORIDA
POLICE OFFICERS AND FIREFIGHTERS DEFINED BENEFIT PENSION PLAN -
REQUIRED SUPPLEMENTARY INFORMATION
COMPARATIVE SUMMARY OF REVENUES -
BY SOURCE AND EXPENSES BY TYPE
LAST TEN FISCAL YEARS
Revenues By Source -
Employer Contributions
Percentage Of
Fiscal Employee Annual Covered Investment
Year Contributions Amount Payroll Income Total
1987-1991(1) N/A N/A N/A N/A N/A -
1992 $ 85,755 $ 246,180 14.35% $ 15,157 $ 347,092
-
1993 94,230 308,477 18.30% 40,541 443,248
1994 101,588 282,702 16.06% 46,299 430,589
1995 110,276 447,949 22.37% 11,531 569,756
1996 118,483 481,535 22.7% 27,561 627,579
Expenses By Type
Fiscal Administrative
Year Benefits Refunds Expenses Total -
1987-1991(1) N/A N/A N/A N/A
-
1992 $ --- $ -- $ 15,346 $ 15,346
1993 1,362 --- 19,117 20,479 -
1994 16,778 --- 27,519 44,297
1995 56,870 - 32,987 89,857
1996 71,757 --- 36,428 108,185
(1) The Plan was effective as of October 1, 1991.
-69-
CITY OF OCOEE, FLORIDA
GENERAL EMPLOYEES' DEFINED BENEFIT PENSION PLAN
REQUIRED SUPPLEMENTARY INFORMATION
ANALYSIS OF FUNDING PROGRESS
—
LAST TEN FISCAL YEARS
(4)
—
Unfunded (Assets
(1) (2) (3) In Excess Of)
— Net Assets Pension Percentage Of Pension Benefit
Fiscal Available Benefit Funded Obligation
Year For Benefits Obligation (1)/(2) (2) - (11
—
1987(1) N/A N/A N/A N/A
1988 $ 117,345 $ 171,911 68.30% $ 54,566
— 1989 207,697 221,443 93.80% 13,746
1990 300,472 291,303 103.15% (9,169)
1991 434,238 367,176 118.30% (67,062)
— 1992 341,619 882,951 38.70% 541,332
1993 643,547 1,117,500 57.60% 473,953
1994 941,671 1,441,848 65.30% 500,177
— 1995 1,239,189 1,862,632 66.52% 623,443
1996 1,605,605 2,354,801 68.10% 749,196
—
Unfunded (Assets
in Excess of)
Pension Benefit
Obligation As A
(5) Percentage Of
— Fiscal Annual Covered Covered Payroll
Year Payroll (4)/(5)
1987 (1) N/A N/A
1988 $ 1,967,766 2.77%
1989 2,462,828 .56%
1990 2,829,357 (.32%)
1991 2,067,220 (3.24%)
1992 2,246,670 24.10%
—
1993 2,066,674 22.93%
1994 2,262,495 22.11%
— 1995 2,548,268 24.46%
1996 2,701,164 27.70%
(1) The Plan was effective as of October 1, 1985 and there was no actuarial report available
as of October 1, 1986.
-70-
CITY OF OCOEE, FLORIDA
POLICE OFFICERS AND FIREFIGHTERS DEFINED BENEFIT PENSION PLAN —
REQUIRED SUPPLEMENTARY INFORMATION
ANALYSIS OF FUNDING PROGRESS —
LAST TEN FISCAL YEARS
(4)
(1) (2) (3) Unfunded
Net Assets Pension Percentage Of Pension Benefit
Fiscal Available Benefit Funded Obligation
Year For Benefits Obligation (1)/(2) (2) - (1)
1987-1991(1) N/A N/A N/A N/A
1992 $ 210,164 $ 923,367 22.76% $ 713,203 —
1993 555,482 1,271,372 43.69% 715,890
1994 989,107 1,813,789 54.50% 824,682
1995 1,402,977 2,321,176 60.44% 918,199 —
1996 1,830,870 3,000,966 61.00% 1,170,096
(6)
Unfunded Pension
Obligation As A —
(5) Percentage Of
Fiscal Annual Covered Covered Payroll
Year Payroll (4)/(5)
1987-1991 (1) N/A N/A
1992 $ 1,382,151 51.60% _
1993 1,685,482 42.47% _
1994 1,759,798 46.86%
—
1995 2,002,476 45.85%
1996 2,122,625 55.10% —
(1) The Plan was effective as of October 1, 1991. -
-71-
CITY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
WATER 0 & M DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Variance
Favorable
Budget Actual (Unfavorable)
Operating Revenues
User Charges $ 1,870,750 $ 2,028,013 $ 157,263
Nonoperating Revenues
Interest Revenues 53,000 69,876 16,876
Miscellaneous 505,833 4,399 (501,434)
Operating Transfers In --- 24,208 24,208
Retained Earnings Allocation 200,000 --- (200,000)
758,833 98,483 (660,350)
Total Revenues $ 2,629,583 $ 2,126,496 $ (503,087)
Operating FxpPnses
Personal Services $ 641,540 $ 686,871 $ (45,331)
Materials And Supplies 165,928 168,307 (2,379)
Heat, Light And Power 140,312 140,312
Other Expenses 133,049 216,465 (83,416)
Reserve for Contingency 400,744 400,744
1.481,573 1,211,955 269,618
Nonoperating Fxpnses
Operating Transfers Out 538,050 546,541 (8,491)
Capital Lease Payments 14,752 10,506 4,246
Capital Outlay 591,242 527,957 63,285
Interest Expense 3,966 4,405 (439)
1,148.010 1,089,409 58.601
Total Fnses $ 2,629,583 $ 2,301,364 $ 328,219
(1) This schedule only reflects receipts and disbursements from operating accounts and not
capital improvement funds.
-72-
CffY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
WASTEWATER 0 & M DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Variance
Favorable
Budget Actual (Unfavorable)
Operating Revenues
User Charges $ 1,811,650 $ 1.833.384 $ 21,734
Nonoperating Revenues
Interest Revenues 40,000 79,985 39,985
Miscellaneous 506,375 7,873 (498,502)
Operating Transfers In --- 18,140 18,140
Retained Earnings Allocation 350.000 (350.000)
896,375 105,998 (790,377)
Total Revenues $ 2,708,025 $ 1.939,382 $ (768,643)
Operating Frpenses
Personal Services $ 540,490 $ 531,075 $ 9,415
Materials And Supplies 119,188 104,011 15,177
Heat, Light And Power 190,645 158,310 32,335
Other Expenses 186,967 129,030 57,937
Reserve For Contingency 434,556 434,556
1,471,846 922,426 549,420
Nonoperating Expenses _
Operating Transfers Out 441,750 415,798 25,952
Capital Outlay 794.429 225.944 568,485 _
1.236,179 641.742 594,437
Total Fxpenses 2708025 $ 1,564,168 $ 1,143,857,
(1) This schedule only reflects receipts and disbursements from operating accounts and not
capital improvement funds.
73
CITY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
SANITATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Variance
Favorable
Budget Actual (Unfavorablej
Operating Revenues
User Charges $ 1.160.000 $ 1,164.652 $ 4.652
Nonoperating Revenues
Interest Revenues 4,000 12,110 8,110
Operating Transfers In 5,000 19,165 14,165
Miscellaneous 37,900 11,559 (26,341)
® Recycling Grant 27,000 27,072 72
73,900 69,906 (3,994)
Total Revenues $ 1,233,902 $ 1,234,559 $ 658
Operating Expenses
Personal Services $ 409,823 $ 403,066 $ 6,757
Materials And Supplies 286,773 311,380 (24,607)
Other Expenses 96,748 96,871 (123)
Recycling Expenses 12,539 (12,539)
Reserve for Contingency 70,180 70.180
863,524 823,856 39,668
Nonoperating Expenses
Operating Transfers Out 151,406 141,764 9,642
Capital Outlay 110,070 109,076 994
Capital Lease Payments 108,900 125,267 (16,367)
Interest Expense 10.157 (10.157)
370,376 386,264 (15.888)
Total Fvivmses $ 1,233,900 $ 1,210,120 $ 23,780
-74-
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STATISTICAL SECTION
The statistical schedules differ from other financial statement presenta-
tions because they generally disclose more than one fiscal year and may
present non-accounting data, such as social and economic data and
financial trends of the City.
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STATISTICAL SECTION
UST OF SCHEDULES
General Governmental Expenditures and Other Financing Uses
— General Governmental Revenues and Other Financing Sources
Tax Revenues by Source
Property Tax Levies and Collections
Assessed and Estimated Value of Taxable Property Net of Exemptions
Property Tax Rates and Tax Levies Direct and Overlapping Governments
Special AMcessment Collections
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt per
Capita
Legal Debt Margin
Computation of Direct and Overlapping General Obligation Debt
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total
General Governmental Expenditures and Other Uses
Revenue Bond Coverage
Demographic Statistics
Property Value, Construction and Bank Deposits
Schedule of Ten Largest Taxpayers
Miscellaneous Statistical Data
Schedule of Insurance in Force
CRY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES
AND OTHER FINANCING USES
LAST TEN FISCAL YEARS
Fiscal Total H General Public Physical
Year Expenditures % Government % Safety % Environment
1987 $ 3,261,035 100.0 $ 846,360 26.0 $1,796,761 55.1 $ 281,576 m)
1988 3,838,373 100.0 1,113,825 29.0 2,016,496 52.5 262,939
1989 3,748,802 100.0 953,004 25.4 1,953,951 52.2 271,390
1990 5,060,097 100.0 1,478,026 29.2 2,600,066 51.4 565,066
1991 6,295,025 100.0 1,877,608 29.8 2,823,667 44.9 744,722
1992 6,335,748 100.0 1,523,768 24.1 2,968,180 46.8 706,974
1993 6,671,716 100.0 1,599,429 24,0 3,404,218 51.0 899,542
1994 8,629,065 100.0 1,705,399 19.7 4,253,374 49.3 1,103,372
1995 8,808,659 100.0 1,912,088 21.7 4,373,302 49.7 1,125,206
1996 9,362,905 100.0 1,907,097 20.3 4,689,003 50.1 1,151,049
w This schedule includes expenditures of the General Fund only. —
mi For the years 1987 through 1989, a special revenue fund was set up to account for the County Six-Cent Local
Option Gas Tax and the State Revenue Sharing 8th-Cent Motor Fuel Tax. These revenues must be used for
roads and streets. In all other years, expenditures for roads and streets are included in the General Fund —
Physical Environment Expenditures.
(`) Beginning 1992, debt service on capital leases was reported as an expenditure of the General Fund. Prior
to 1992, these debt service amounts were transferred to the Debt Service Fund and reported as an expendi-
ture in the Debt Service Fund.
-75-
Culture And Debt Transfers To
Recreation % Service % Other Funds %
8.6 $ 199,718 6.1 $ - - $ 136,620 4.2
6.9 166,532 4.3 -- -- 278,581 7.3
7.2 175,643 4.7 - - 394,814 10.5
11.2 202,206 4.0 --- --- 214,733 4.2
11.8 167,749 2.7 - - 681,279 10.8
11.1 152,762 2.4 41,626 .7 942,438 14.9
13.5 179,232 2.7 79,723 1.2 509,572 7.6
12.8 325,331 3.8 156,509 1.8 1,085,080 12.6
12.8 319,341 3.6 159,526 1.8 919,196 10.4
12.3 417,495 4.5 133,416 1.4 1,064,845 11.4
-76-
Cf1Y OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL REVENUES
AND OTHER FINANCING SOURCES
LAST TEN FISCAL YEARS
-
Licenses Inter-
Fiscal Total a And Governmental
Year Revenues % Taxes % Permits % Revenues %
-
1987 $ 2,746,881 100.0 $1,248,182 45.4 $ 123,255 4.5 $1,098,703 " 40.0
1988 3,200,750 100.0 1,362,805 42.6 137,009 4.3 1,300,030 40.6 -
1989 3,957,983 100.0 1,508,606 38.1 227,241 5.7 1,685,641 42.6
1990 5,027,968 100.0 1,967,285 39.1 591,160 11.8 1,890,285 37.6
1991 5,845,228 100.0 2,328,029 39.8 587,064 10.0 1,844,812 31.7
-
1992 6,981,337 100.0 2,631,241 37.7 488,522 7.0 1,967,790 28.2
1993 7,161,664 100.0 3,018,139 42.1 612,036 8.5 2,216,879 31.0 -
1994 8,416,346 100.0 3,466,712 41.2 663,191 7.9 2,315,056 27.5
1995 8,992,823 100.0 3,819,210 42.5 634,263 7.0 2,684,446 29.9 -
1996 10,263,930 100.0 4,269,994 41.6 850,427 8.3 3,088,521 30.1
w This schedule includes revenues of the General Fund only. -
mi For the years 1987 through 1989, a special revenue fund was set up to account for the County Six-Cent Local
Option Gas Tax and the State Revenue Sharing 8th-Cent Motor Fuel Tax. These revenues must be used for roads
and streets. In all other years, these revenues were included in General Fund Intergovernmental Revenues. -
(`) Other financing sources for 1995 includes a residual equity transfer of$53,640.
-77-
-
Charges Other
For Fines And Investment Misc. Financing
Services % Forfeitures % Income % Revenue % Sources %
$ 37,500 1.4 $ 80,277 2.9 $ 64,699 2.4 $ 75,230 2.7 $ 19,035 0.7
54,479 1.7 103,316 3.2 24,428 .8 53,518 1.7 165,165 5.1
65,087 1.6 105,894 2.7 6,920 .2 104,779 2.7 253,815 6.4
a 66,231 1.3 105,927 2.1 17,097 .3 98,723 2.0 291,260 5.8
94,690 1.6 81,615 1.4 7,825 .1 18,395 .3 882,798 15.1
76,923 1.1 97,184 1.4 11,045 .2 165,148 2.3 1,543,484 22.1
83,404 1.2 83,583 1.2 28,339 .4 64,096 .9 1,055,188 14.7
95,109 1.1 102,024 1.2 29,551 .4 84,520 1.0 1,660,183 19.7
- 138,481 1.5 93,007 1.0 9,329 .1 79,007 .9 1,535,080 lc) 17.1
186,163 1.8 101,895 1.0 89,666 .9 108,379 1.0 1,568,885 15.3
a
a
a
-78-
a
CITY OF OCOEE, FLORIDA
TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Property Franchise Utility Total
Year Taxes Taxes Taxes Taxes
1987 $ 392,536 $ 315,269 $ 540,377 $1,248,182 _.
1988 471,349 335,969 555,487 1,362,805
1989 567,410 353,007 588,189 1,50,9,606
1990 844,080 433,529 689,676 1,967,285
1991 1,061,160 498,617 768,252 2,328,029
1992 1,295,309 571,072 764,860 2,631,241 _
1993 1,455,968 666,811 895,360 3,018,139
1994 1,647,742 777,783 1,041,187 3,466,712
1995 1,803,405 856,678 1,159,127 3,819,210
1996 1,953,410 969,107 1,347,477 4,269,994
_79_
CITY OF OCOEE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY
— LAST TEN FISCAL YEARS
Percentage
Total Total Of Total Col-
Fiscal Tax Tax lections To
Year Levy Collections Delinquent Tax levy
1987 $ 405,448 $ 392,536 $ 1,568 96,82
1988 490,488 471,349 5,228 96.10
1989 588,036 567,410 3,279 96.49
1990 847,080 844,080 3,000 99.65
1991 1,064,847 1,061,160 3,687 99.65
1992 1,338,563 1,295,309 4,745 96.77
1993 1,503,231 1,455,968 4,941 96.86
1994 1,697,751 1,647,742 1,753 97.05
1995 1,877,240 1,803,405 -- 96.07
1996 2,022,628 1,953,410 -- 96.50
-80-
CITY OF OCOEE, FLORIDA
ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY —
NET OF EXEMPTIONS
LAST 7EN FISCAL YEARS
Real Prup erty Personal Properly
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
1987 $107,665,821 $107,665,821 $ 10,423,536 $ 18,412,888
1988 126,876,147 126,876,147 12,708,713 22,437,700 —
1989 180,610,206 180,610,206 16,583,819 30,300,000
1990 198,284,327 198,284,327 20,307,367 36,922,000 --
1991 249,015,145 249,015,145 24,635,177 38,185,000
1992 305,993,279 305,993,279 28,647,558 44,762,000
1993 343,180,649 343,180,649 32,627,218 32,627,218
1994 389,507,198 389,507,198 34,930,466 34,930,466
1995 430,582,556 430,582,556 38,727,447 38,727,447 —
1996 463,889,629 463,889,629 41,767,259 41,767,259
-81-
Totals
Assessed Estimated
Value Actual Value
$ 118,089,357 $ 126,078,709
139,584,860 149,313,847
197,194,025 210,910,206
- 218,591,694 235,206,327
273,650,322 287,200,145
334,640,837 350,755,279
375,807,867 375,807,867
424,437,664 424,437,664
,- 469,310,003 469,310,003
505,656,888 505,656,888
_82_
CITY OF OCOEE, FLORIDA —
PROPERTY TAX RATES AND TAX LEVIES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS —
Millage Rates ($1 per$1,000 of taxaha value) —
Fiscal City Of Orange School
Year Ocoee County Board Total (a)
—
1987 2.90 4.5144 7.550 14.9644
1988 2.80 4.5144 7.347 14.6614 —
1989 4.00 5.2889 8.414 17.7029
1990 4.00 5.2889 8.271 17.5599 —
1991 4.00 5.2889 9.149 18.4379
1992 4.00 5.2889 9.003 18.2919
1993 4.00 5.2889 8.930 18.2189
1994 4.00 5.2889 8.930 18.2189
1995 4.00 5.2889 9.324 18.6129 —
1996 4.00 5.2889 9.375 18.6639
—Tax Levies
Fiscal City Of Orange School
Year Ocoee County Board Total (a) —
1987 405,448 82,967,403 138,756,875 222,129,726
—
1988 490,488 106,584,419 180,932,152 288,007,059
1989 588,036 124,196,244 215,618,692 340,402,972
—
1990 847,080 135,534,312 242,412,856 378,794,248
1991 1,064,847 155,011,166 287,746,102 443,822,115 —
1992 1,338,563 166,541,712 290,845,109 458,725,384
—
1993 1,503,231 170,859,789 280,973,951 453,336,971
1994 1,697,751 174,905,763 294,730,923 471,334,437
1995 1,877,240 185,923,621 317,282,778 505,083,639
1996 2,022,628 186,439,938 330,479,770 518,942,336 _
(a) Tax Rates and Levies of a fraction of one mill assessed in various years by other units against districts`
covering less than the entire City or County were omitted here.
-83-
CffY OF OCOEE, FLORIDA
SPECIAL ASSESSMENT COLLECTIONS
LAST TEN FISCAL YEARS
The City of Ocoee, Florida did not have any material special assessment collections in the last
ten fiscal years.
-84-
CITY OF OCOEE, FLORIDA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT —
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Debt Ratio Of
Gross Service Net Net Bonded Net Bonded
Fscal Assessed Bonded Funds Bonded Debt To Debt Per
Year Population Value Debt Available Debt Assessed Value Capita
1987 11,552 $118,089,357 $ — $ -- $ -- $ -- $ —
1988 11,765 139,584,860 — --- --- --- —
—
1989 11,822 197,194,025 — — --- --- --
1990 13,852 218,591,694 — — -- -- --- —
1991 14,926 273,650,322 — — — -- —
1992 15,107 334,640,837 — — — — —
1993 16,418 375,807,867 — — — -- —
1994 17,489 424,437,664 — — — -- --
1995 18,578 469,310,003 — -- -- -- --
1996 19,261 505,656,888 — -- --- -- --
Note: The City of Ocoee does not have any general obligation debt which is being repaid through general
property taxes.
-85-
CITY OF OCOEE, FLORIDA
LEGAL DEBT MARGIN
SEPTEMBER 30, 1996
Assessed Value $ 505,656,888
Debt Limit: 50% of Assessed Value $ 252,929,444
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt 16,475.000
Legal Debt Margin $ 236353444
Article VII Section 39 of the City Charter states that the City shall have the power to issue general
obligation bonds in an aggregate principal amount of bonds outstanding at any time not in
excess of fifty percent (50%) of the assessed value of the taxable property within the City as
shown on the pertinent tax records at the time of the authorization of the general obligation bonds
for which the full faith credit of the City is pledged.
-86-
CITY OF OCOEE, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT
SEPTEMBER 30, 1996
Applietle To _
Bonds City Of Ocoee
Government Unit Outstanding Percent (1) Amount
Library District Refunding Bonds -
Series 1993 $ 10,045,000 1.43% $ 143,643
Total Overlapping Debt 143'643 `
Total Direct Debt (2)
Total Direct and
Overlapping Debt $ 143,643
(1) Ratio of accessed valuation of taxable property in overlapping unit to that within the City of Ocoee.
(2) The City of Ocoee does not currently have any general obligation debt which is being repaid through
general property taxes.
_87_
CITY OF OCOEE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES
LAST TEN FISCAL YEARS
Ratio Of
Total Debt Service
General To Total
Fiscal Total Debt Expenditures General
Year Principal Interest Service (2) Expenditures
1987I1l N/A N/A N/A N/A N/A
1988 $ 3,706 $ 141,164 $ 144,870 $3,838,373 3.8%
1989 74,505 148,954 223,459 3,748,802 6.0%
1990 213,655 176,530 390,185 5,060,097 7.7%
1991 105,000 589,760 694,760 6,295,025 11.0%
_ 1992 185,000 683,333 868,333 6,335,748 13.7%
1993 195,000 672,432 867,432 6,671,716 13.0%
1994 210,000 660,568 870,568 8,629,065 10.1%
1995 225,000 647,503 872,503 8,808,659 9.9%
1996 240,000 633,198 873,198 9,362,905 9.3%
(1) The City of Ocoee did not have any General Obligation Bonded Debt during these years.
(2) Includes expenditures of the General Fund only.
-88-
CITY OF OCOEE, FLORIDA
REVENUE BOND COVERAGE -
LAST TEN FISCAL YEARS
WATER AND WASTEWATER REVENUE BONDS -
Water Fund
Net Revenue
Fiscal Gross Operating Available For Debt Service Requirements
Year Revenue(2) Expenses(31 Debt Service Principal Interest Total Coverage
1987-
1989(1) N/A N/A N/A N/A N/A N/A N/A -
1990 $ 1,019,746 $ 629,387 $ 390,359 $ -- $ 98,090 $ 98,090 3.98
1991 $ 1,244,492 $ 737,261 $ 507,231 $ -- $ 129,720 $ 129,720 3.91
1992 $ 1,467,315 $ 830,328 $ 636,987 $ -- $ 141,567 $ 141,567 4.50
1993 $ 1,484,293 $ 972,925 $ 511,368 $ --- $ 117,850 $ 117,850 4.34
1994 $ 1,558,606 $ 981,904 $ 576,702 $ 46,800 $ 108,1339 $ 155,639 3.71
1995 $ 2,085,987 $ 1,035,963 $ 1,050,024 $ 48,000 $ 107,341 $ 155,341 6.76
Wastewater Fund
Net Revenue
Fiscal Gross Operating Available For Debt Service Requireupds Year Revenue(2) Expenses(3) Debt Service Principal Interest Total Coverage
1987(1) N/A N/A N/A N/A N/A N/A N/A -
1988 $ 789,607 $ 334,548 $ 455,059 $ - $308,951 $308,951 1.47
1989 $ 1,156,111 $ 435,039 $ 721,072 $ -- $491,411 $ 491,411 1.47
1990 $ 1,346,151 $ 519,561 $ 826,590 $ - $374,692 $ 374,692 2.38 -
1991 $ 1,494,661 $ 579,698 $ 914,963 $ - $556,560 $ 586,560 1.56
1992 $ 1,696,995 $ 637,6n9 $ 1,002,392 $ - $640,129 $ 640,129 1.57 -
1993 $ 1,920,150 $ 664,527 $ 1,255,623 $ - $443,865 $443,865 2.83
1994 $ 1,706,450 $ 887,455 $ 818,995 $148,200 $344,655 $ 492,855 1.66
1995 $ 1,945,095 $ 878,102 $ 1,056,993 $152,000 $339,913 $491,913 2.17 -
Water and Wastewater Fund (4)Net Revenue
Fiscal Gross Operating Available For Debt Service Requii mires as
Year Revenue(2) Ezpenses(3) Debt Service Principal Interest Total Coverage -
1996 $ 4,301,827 $ 2,134,380 $ 2,167,447 $205,000 $440,054 $645,054 3.36
(1) The City of Ocoee did not have any Revenue Bond Debt in this fund during these years.
(2) Total revenues (including interest and gain on sale of property, plant and equipment).
(3) Excludes depreciation, amortization and interest expense.
(4) The City of Ocoee combined the Water and Wasterwater Funds into one fund during the fiscal year ended
September 30, 1996. -
-89-
a
CITY OF OCOEE, FLORIDA
— DEMOGRAPHIC STATISTICS
- Population
City of Ocoee Orange County
Year Population % Increase Population % Increase
—
1987 11,552 3.7 603,074 4.4
— 1988 11,765 1.8 623,425 3.4
1989 11,822 .5 653,982 4.9
—
1990 13,852 17.17 665,312 1.7
1991 14,926 7.75 677,491 1.8
1992 15,107 1.21 698,847 3.2
— 1993 16,418 8.68 727,780 4.1
1994 17,489 6.52 740,167 1.7
— 1995 18,578 6.23 758,962 2.5
1996 19,261 3.67 777,556 2.4
a
Population Projections
— Orange Slate Of
Year County Florida
1996 777,556 14,411,563
—
2000 842,660 15,527,384
—
Population Distribution by Age
— Orange State Of
Year County Florida
0-14 21.1% 19.6%
a
15-24 15.4 11.7
— 25-44 34.0 29.1
45-64 18.4 20.8
— 65 and over 11.1 18.8
Source: University of Florida, Bureau of Economic and Business Research
— East Central Florida Planning Council, Council Quarterly, Second Quarter, 1994
-90-
a
CITY OF OCOEE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN YEARS
—
Residential Construction (a) Commercial (a)
Number of Units Construction
One- Multi-
Year Fame Fami Value Value
1987 118 6 $ 5,610,000 $ 9,553,000
1988 143 14 9,291,000 2,339,000
1989 239 6 14,656,699 8,183,652
1990 297 265 30,956,225 8,585,195
1991 314 10 26,453,025 36,322,749 —
1992 438 0 35,622,069 1,040,010
1993 411 0 36,188,257 5,667,958
1994 402 0 35,211,374 3,569,955
—
1995 331 0 28,836,035 21,823,750
1996 366 0 33,950,817 63,337,471 —
(a) Source: City of Ocoee Building Department.
(b) Source: Florida Bankers A=s.riation. Amounts for 1978-1986 are as of December 31;thereafter amount
is as of September 30. Bank deposits are for entire Orange County.
(c) Source: Federal Home Loan Bank Board Research Department. Amounts for 1978-1983, 1986 and 1987
are as of June 30. 1984 and 1985 amounts are as of December 31. Source for 1990 is Florida
Bankers Association. Amount is as of September 30. Savings and Loan deposits are for entire ..
Orange County.
-91-
.� Bank Deposits
Additions/ (a) On thousands)
Alternations Savings
Total And
Value Value (a) Banks (b) Loans (c)
$ 983,000 $ 16,146,000 4,195,881 2,315,245
1,107,876 12,737,876 4,530,190 2,501,530
1,012,399 23,852,750 4,888,783 3,050,283
780,078 40,321,498 5,524,771 1,803,816
1,618,759 64,394,503 5,648,154 1,568,318
546,550 38,208,629 5,614,174 2,936,546
1,908,581 43,764,796 5,743,997 1,133,135
1,432,460 40,213,789 5,874,598 1,078,501
701,252 51,361,038 6,147,414 628,351
2,327,526 99,615,814 6,937,918 859,921
-92-
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CRY OF OCOEE, FLORIDA
SCHEDULE OF TEN LARGEST TAXPAYERS
SEPTEMBER 30, 1996
Taxpayer Type of Business Valuation Percentage
1. GGPI Homan, Inc. West Oaks Mall $ 15,489,250 3.1 %
2. Oak Forest Partners, Ltd. Developer 9,600,606 1.9 %
3. Manhein Remarketing, LP Developer 9,405,293 1.9 %
4. Good Homes Plaza, Inc. Shopping Center 9,302,171 1.8 %
5. Towne Square Associates Shopping Center 6,685,168 1.3 %
6. West Orange Health Care District Health Care 6,383,453 1.2 %
7. Westlake Partners, Ltd. Developers 6,151,569 1.2 %
8. Lk Olympia Square Partnership Shopping Center 5,306,914 1.0 %
9. Sysco Corporation Food Distribution 5,051,752 1.0 %
10. Teacher's Insurance & Annuity Investments Investments 4.375,720 0.9 %
Total Taxable Assessed Value
of 10 Largest Taxpayers 77,651,296 15.3 %
Total Taxable Assessed Value of
Other Taxpayers 428,005,592 84.7 %
Total Taxable Assessed Value of
All Taxpayers $ 505,656,888 100.0%
-93-
CfTY OF OCOEE, FLORIDA
MISCELLANEOUS STATISTICAL DATA —
SEPTEMBER 30, 1996
Date Of Incorporation May 13, 1925 ..
City Charter Adopted November 8, 1988
Commission Composed of: 1 Mayor, 4 Commissioners —
Terms Of Office:
Mayor 2 years —
Commissioners 2 years
City Manager Appointed
Areas Of City 14.4 Square Miles
Municipal Employees 193
Elections:
Registered Voters 7,200
Votes Cast In Last Municipal Elections (November 1994) 1,001 —
Miles of Streets, Sidewalks And Bike Paths
Streets - Paved 74.42 miles
Streets - Unpaved 3.2 miles
Streets - Brick 1.1 miles
Sidewalks 52.9 miles
Bike Paths .5 miles —
Fire Protection:
Stations 2 —
Employees 40
Police Protection:
Stations 1
Employees 64
Vehicular Patrol Units:
Patrol Cars 13 —
Other Vehicles 8
Recreation: —
Community Center 1
Athletic Fields 8
Tennis Courts 7
Racquetball Courts 2 —
Shuffleboard Courts 2
City Playgrounds And Passive Parks 6
Parks and Recreation Developed Areas 3 -
-94-
CM(OF OCOEE, FLORIDA
MISCELLANEOUS STATISTICAL DATA-CONI1NUED
SEPTEMBER 30, 1996
Water System
Miles Of Water Mains 97.46
Daily Average Consumptions (Gallons) 4.571 MGD
Plant Capacity (Gallons) 8.136 MGD
-11 Service Connections 7,136
Deep Wells
Fire Hydrants 6
700
Sewer System
Miles Of Sanitary Sewers 44.12
Lift Stations
34
Daily Average Treatment 1,080,000 GPD
Plant(s) Capacity (MGD)
Disposal Plants 3.01
1
-95-
CRY OF OCOEE, FLORIDA
SCHEDULE OF INSURANCE IN FORCE
SEPTEMBER 30, 1996
Buildings And Personal Property:
Multi-period, 'all risk'
100% Of Replacement Value Stated Values
Blanket Building Coverage $ 7,547,500
Blanket Contents Coverage Inc. in Bldg Limit
Boiler & Machinery 6,000,000
Inland Marine - Computer 119,395 —
Inland Marine - Equipment 391,266
Valuable Papers 150,000
Radio Equipment 203,000 �.
Comprehensive General Liability:
Combined Single Limit For Bodily & Property $ 2,000,000/$ 2,000,000
Automobile Liability:
Combined Single Limit $ 1,000,000/$ 2,000,000
Uninsured Motorist $ 30,000
Law Enforcement Liability:
Combined Single Limit For Bodily & Property $ 2,000,000/$ 2,000,000
Blanket Fidelity $ 50,000
Public Official Errors & Omission Insurance $ 2,500 per Loss Deductible
Aggregate $ 2,000,000/$2,000,000
Worker's Compensation Statutory
-96-
REPORTS ON INTERNAL CONTROL AND COMPLIANCE
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CDIRMIT
- AVIS
AUTERIA & COMPANY, P.A.
— CERTIFIED PUBLIC ACCOUNTANT'S
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
.� November 6, 1996.
We have conducted our audit in accordance with generally accepted auditing standards and
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 general purpose financial statements are free of material misstatement.
The management of the City of Ocoee, Florida is responsible for establishing and maintaining
an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to pro-
-
vide management with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, and that transactions are executed in
accordance with management's authorization and recorded properly to permit the preparation
of financial statements in accordance with generally accepted accounting principles. Because
of inherent limitations in any internal control structure, errors or irregularities may nevertheless
occur and not be detected. Also, projection of any evaluation of the structure to future
periods is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies and procedures
may deteriorate.
In planning and performing our audit of the general purpose financial statements of the City
of Ocoee, Florida for the year ended September 30, 1996, we obtained an understanding of
the internal control structure. With respect to the internal control structure, we obtained an
understanding of the design of relevant policies and procedures and whether they have been
placed in operation, and we assessed control risk in order to determine our auditing
procedures for the purpose of expressing our opinion on the general purpose financial
statements and not to provide an opinion on the internal control structure. Accordingly, we
do not express such an opinion.
612 E.COLONIAL DRIVE•SUITE 350.ORLANDO.FLORIDA 32803-4603•(407)648-0713•FAX(407)839-3975
— PRIVRIY.(OMPANIES I'RACILI!SIi COON•AMERICAN INS I'PfI OF1:EMOM)PUBLIC ACCO1:NTANTS•ILORIIIA INS Ern IForCIR(IIIGU NMI IC AU 011V'IAR'I'I,
-97-
Our consideration of the internal control structure would not necessarily disclose all matters
in the internal control structure that might be material weaknesses under standards estab-
lished by the American Institute of Certified Public Accountants. A material weakness is a
reportable condition in which the design or operation of one or more of the internal control
structure elements does not reduce to a relatively low level the risk that errors or irregularities
in amounts that would be material in relation to the general purpose financial statements being
audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal
control structure and its operation that we consider to be material weaknesses as defined
above.
However, we noted certain matters involving the internal control structure and its operation
that we have reported to the management of the City of Ocoee in a separate letter dated
November 6, 1996.
This report is intended for the information of management,the City Commission, and the Audi-
tor General of the State of Florida. However, this report is a matter of public record and its
distribution is not limited.
97zzDiaanit, Dauo, &aututia feampanto,PQ.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
-98-
TCDIRMIT
- AVIS
AUTERIA & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
November 6, 1996.
We conducted our audit in accordance with generally accepted auditing standards and
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 general purpose financial statements are free of material misstatement.
— Compliance with laws, regulations, contracts, and grants applicable to the City of Ocoee,
Florida is the responsibility of City management. As part of obtaining reasonable assurance
about whether the financial statements are free of material misstatement, we performed tests
of City of Ocoee compliance with certain provisions of laws, regulations, contracts, and grants.
However, the objective of our audit of the general purpose financial statements was not to
provide an opinion on overall compliance with such provisions. Accordingly, we do not
express such an opinion.
The results of our test disclosed no instances of noncompliance that are required to be
reported under Government Auditing Standards.
We noted certain immaterial instances of noncompliance that we have reported to the
management of City of Ocoee is a separate letter dated November 6, 1996.
This report is intended for the information of management, the City Commission, and the
Auditor General of the State of Florida. However, this report is a matter of public record and
its distribution is not limited.
9772Diiumit, Dona, 14444441.
zcfta 4Cmy2 "a,P.R.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
612 E.COI.ONIAI.DRIVE•SUITE 3.50.ORLANDO,FLORIDA 32503-4603•(407)648-0913•FAX(407)83 J.3g75
as. um COMPANIES PRACTICE sEcr[o'.•AMI kit:AN INSTITUTE OFLLRTIFIF0 PUBLIC AIC'OIINTANIS•FlORNA INSTITIJ I11OF f.LHrrv'H,PUBLIC ALCUNTAAI'S
_gg_
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CDIRMIT
- DAVIS
AUTERIA & COMPANY, P.A.
— CER'I'IFIEO PUBLIC ACCOr1NTANTS
INDEPENDENT AUDITOR'S REPORT ON SCHEDULE OF
FEDERAL AND STATE FINANCIAL ASSISTANCE
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
November 6, 1996. These general purpose financial statements are the responsibility of the
City's management. Our responsibility is to express an opinion on these general purpose
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United States and
the provisions of Office of Management and Budget Circular A-128,Audits of State and Local
Governments. Those standards and OMB Circular A-128 require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general purpose financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements of the City of Ocoee, Florida, taken as a whole. The accompanying
Schedule of Federal and State Financial Assistance is presented for purposes of additional
analysis and is not a required part of the general purpose financial statements. The
information in this schedule has been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and, in our opinion, is fairly presented in all
material respects in relation to the general purpose financial statements taken as a whole.
"Thr-Dimnit. Dana, *au tuucv (a' mpata,P4
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
612 E.COLONIAL DRIVE•SUITE 350.ORLANDO,FLORIDA 32803-4603•(407)648-1ID 13•FAX(407)53J-3J75
PRIVA'RI COMPANIES PHM'I'[GE sumo6•AMERICAN INS'1'mom OP IIERI'IYIHI]PI'RUC 1000IINTAN'IE•IILRIIIA(MST]ruin of CERTIFIED PI 111.IC MIN TIERS
-100-
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CITY OF OCOEE, FLORIDA
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Federal State
CFDA Grant Grant
Program Title Number Number Amount Expenditures
FEDERAL ASSISTANCE
Other Federal Assistance
U.S.Department of
Justice Direct Program -
Office of Community
Oriented Policing Services
(COPS) Fast Grant 16.726 95CFWX4000 $ 75,000 $ 34,115
Total Federal Assistance 75.000 34,115
STATE ASSISTANCE
Florida Department of Environmental
Protection: Florida Boating
Improvement Program 89525 150,000 93.713
Total State Assistance 150.000 93,713
Total $ 225,000 $ 127,828
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CITY OF OCOEE
NOTES TO SCHEDULE OF FEDERAL AND STATE
FINANCIAL ASSISTANCE
FOR THE YEAR ENDED SEPTEMBER 30, 1996
NOTE 1 - BASIS OF ACCOUNTING
The accompanying Schedule of Federal and State Financial Assistance has been
prepared on the modified accrual basis of accounting, which is the same basis used
in the accompanying audited general purpose financial statements.
NOTE 2 - RECONCILIATION OF EXPENDITURES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
Total expenditures on the COPS Fast Grant are reported in the General Fund as public
safety and total expenditures on the Florida Boating Improvement Program are
reported in the General Fund as recreation.
-102-
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1CDIRMIT
- AVIS
�AUTERIA & COMPANY, P.A.
_ CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT ON THE INTERNAL
_ CONTROL STRUCTURE USED IN ADMINISTERING
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
November 6, 1996.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States; and
Office of Management and Budget (OMB) Circular A-128, Audits of State and Local
Governments. Those standards and OMB Circular A-128 require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement.
In planning and performing our audit for the year ended September 30, 1996, we considered
the internal control structure of the City of Ocoee, Florida, in order to determine our auditing
procedures for the purpose of expressing our opinion on the City of Ocoee, Florida's general
purpose financial statements and to report on the internal control structure in accordance with
OMB Circular A-128. This report addresses our consideration of internal control structure
policies and procedures relevant to compliance with requirements applicable to federal
financial assistance programs. We have addressed internal control structure policies and
procedures relevant to our audit of the general purpose financial statements in a separate
report dated November 6, 1996.
The management of the City of Ocoee, Florida is responsible for establishing and maintaining
an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition,that transactions are executed
in accordance with management's authorization and recorded properly to permit the
preparation of general purpose financial statements in accordance with generally accepted
accounting principles, and that federal financial assistance programs are managed in
compliance with applicable laws and regulations. Because of inherent limitations in any
612 E.COLONIAL DRIVE•SITIT 350•ORLANDO.FLORIDA 32803-4603•(407)646-0713•FAx (407)814a095
— IRIYATICOMPAN]Y.5 MA( IRI.SFCI ION•A.MERICAN INSTITIUTC NI.I:P:NTIFI811 PIINIl1 A(LLNN'FANIS•ILORII)A TNS I I r111U1 (IFMf1Y@:IW MERLINAC:cxlA :AVIS
-103-
internal control structure, errors, irregularities, or instances of noncompliance may
nevertheless occur and not be detected. Also, projection of any evaluation of the structure
to future periods is subject to the risk that procedures may become inadequate because of
changes in conditions or that the effectiveness of the design and operations of policies and
procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control structure
policies and procedures used in administering federal financial assistance programs into the
following categories:
General Requirements
• Political Activity
• Civil Rights
• Cash Management
• Federal Financial Reports
• Allowable Costs/Cost Principles
• Drug Free Workplace Act
Specific Requirements —
• Types of Services Allowed or Not Allowed —.
• Matching, Level of Effort, or Earmarking
• Reporting and Claims for Advances and Reimbursements
For all of the internal control structure categories listed above, we obtained an understanding
of the design of relevant policies and procedures and determined whether they have been
placed in operation, and we assessed control risk. —
During the year ended September 30, 1996, the City of Ocoee, Florida had no major federal
financial assistance programs and expended 100% of its total federal financial assistance —
under the following nonmajor federal financial assistance program: U.S. Department of Justice
- Office of Community Oriented Policing Services (COPS) Fast Grant.
We performed tests of controls, as required by OMB Circular A-128, to evaluate the
effectiveness of the design and operation of internal control structure policies and procedures
that we have considered relevant to preventing or detecting material noncompliance with
specific requirements,general requirements,and requirements governing claims for advances
and reimbursements and amounts claimed or used for matching that are applicable to the
aforementioned nonmajor program. Our procedures were less in scope than would be
necessary to render an opinion on these internal control structure policies and procedures.
Accordingly, we do not express such an opinion. —
Our consideration of the internal control structure policies and procedures used in
administering federal financial assistance would not necessarily disclose all matters in the _
internal control structure that might constitute material weaknesses under standards
established by the American Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of the internal control structure .•
-104-
elements does not reduce to a relatively low level the risk that noncompliance with laws and
regulations that would be material to a federal financial assistance program may occur and
not be detected within a timely period by employees in the normal course of performing their
assigned functions. We noted no matters involving the internal control structure and its
operations that we consider to be material weaknesses as defined above.
However, we noted certain matters involving the internal control structure and its operation
that we have reported to the management of the City of Ocoee, Florida, in a separate letter
dated November 6, 1996.
This report is intended for the information of management, the City Commission, and the
Auditor General of the State of Florida. However, this report is a matter of public record and
its distribution is not limited.
771cDiirrnit, Dnnno, iatcttallU. f�,P.R.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
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DIRMIT
- DAVISAV
AUTERIA & COMPANY, P.A.
CERTIFIED PUBLIC ACCOIINTA NTS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH GENERAL REQUIREMENTS APPLICABLE TO FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
November 6, 1996.
We have applied procedures to test City of Ocoee, Florida's compliance with the following
,r requirements applicable to its federal financial assistance program, which is identified in the
Schedule of Federal and State Financial Assistance, for the year ended September 30, 1996:
Political Activity
Civil Rights
Cash Management
Federal Financial Reports
Allowable Costs/Cost Principles
Drug Free Workplace Act
Our procedures were limited to the applicable procedures described in the Office of
Management and Budget's "Compliance Supplemental for Single Audits of State and Local
Governments". Our procedures were substantially less in scope than an audit, the objective
of which is the expression of an opinion on City of Ocoee, Florida's compliance with the
requirements listed in the preceding paragraph. Accordingly, we do not express such an
opinion.
With respect to the items tested, the results of those procedures disclosed no material
instances of noncompliance with the requirements listed in the preceding paragraph. With
respect to items not tested, nothing came to our attention that caused us to believe that City
of Ocoee, Florida had not complied, in all material respects, with those requirements. Also,
the results of our procedures did not disclose any immaterial instances of noncompliance with
those requirements.
612 R.COLONIAL DRIVE•SMITE 3511•ORLANDO, FLORIDA:I2RO3-4603•(407)648-0713•FAX 141127 839-3975
PRIVATE COMPANIES PRATI ICE ShArl ION•AMRICAN INS fITCTT OF NI-RIMED V111111 Nf IlUNI'ANTS.FLUHIDA INSTITL I UFCEIITWIMII 611CACOCN'rANTS
' -106-
This report is intended for the information of management, the City Commission and the
Auditor General of the State of Florida. However, this report is a matter of public record and
its distribution is not limited.
7II&Dutnrat, Dawth, lautvithi Comp tM,PA.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A. —
November 6, 1996
-107-
CDIRMIT
AVIS
AUTERIA & COMPANY, P.A.
CERTIFIED PUBLIC ACCOIINPANIS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH REQUIREMENTS APPLICABLE TO STATE
FINANCIAL ASSISTANCE PROGRAM
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1996, and have issued our report thereon dated
November 6, 1996.
We conducted our audit in accordance with generally accepted auditing standards and
Goventment Auditing.Standards, issued by the Comptroller General of the Untied States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement.
We have applied procedures to test City of Ocoee, Florida's compliance with requirements
applicable to its state financial assistance program, which is identified in the Schedule of
Federal and State Financial Assistance, for the year ended September 30, 1996. Our
procedures were substantially less in scope than an audit, the objective of which is the
expression of an opinion on City of Ocoee, Florida's compliance with the requirements
applicable to its state financial assistance program. Accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance that are required to be
reported under Government Auditing Standards or Chapter 10.600 of the Rules of the Auditor
General.
This report is intended for the information of management, the City Commission and the
Auditor General of the State of Florida. However, this report is a matter of public record and
its distribution is not limited.
VZ2Dinmut. Da>yio, ftuLo i COMpang.P4.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
612 E.COLONIAL DRIVE•SI IEEE 350•ORI.A NmO,FLORIDA 32803-4603•(409)648-071:1•FAX I41I91 H14-3975
PN6llHCOMPANIES PRACTICE..SECTION•AMERICAN INS'S]I II FE OF NHS IIF IND PUBLIC ACCIIIINTANTS•SLORINA INS Ill F OF ChM I F NI YIAIRACCOUNTANES
-108-
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_ FINANCIAL STATEMENTS OF THE
WATER AND WASTEWATER FUND OF THE
CITY OF OCOEE, FLORIDA
FOR THE
YEAR ENDED SEPTEMBER 30, 1996
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS
PAGE NO.
INDEPENDENT AUDITOR'S REPORT 1
BALANCE SHEET 2-3
STATEMENT OF REVENUES, EXPENSES AND
'- CHANGES IN RETAINED EARNINGS 4
STATEMENT OF CASH FLOWS 5-6
NOTES TO FINANCIAL STATEMENTS 7-18
TCDIRMIT
— AVIS
AUTERIA & COMPANY, P.A.
CER'rIFIEI PI MLR: ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the accompanying financial statements of the Water and Wastewater Fund
of the City of Ocoee, Florida as of and for the year ended September 30, 1996 as listed in
the table of contents. Theses financial statements are the responsibility of City of Ocoee,
Florida management. Our responsibility is to express an opinion on these financial
statements based on our audit.
— We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1,the financial statements present only the Water and Wastewater Fund
and are not intended to present fairly the financial position of the City of Ocoee, Florida, and
the results of its operations and the cash flows of its proprietary fund types and
nonexpendable trust funds in conformity with generally accepted accounting principles.
In our opinion, the financial statements referred to in the first paragraph present fairly, in all
— material respects, the financial position of the Water and Wastewater Fund of the City of
Ocoee, Florida as of September 30, 1996, and the results of its operations and its cash flows
for the year then ended in conformity with generally accepted accounting principles.
711thismit. Davth, *4ta &Nowt P.R.
McDIRMIT, DAVIS, LAUTERIA & COMPANY, P.A.
November 6, 1996
0121.: COLON I AL DRIVE•SUI)T:350•ORLANI)O.FLORIDA 32803-4f11:1•I4091h48-9913•FAX ODD 639-3•D5
I'lir.11ItDMI'A NIPS PRV[ I IW Sit IIN•AMU( iAN INS... 01C1:KI1(11.I)PI1111ACCOIrN FAN IS•PL12111.q INS IIII I01 ( RTII7IEDLIII IC Af 101 IN I%N1'S
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
BALANCE SHEET
SEPTEMBER 30, 1996
ASSETS
Current Assets
Cash and Cash Equivalents $ 787,849
Investments 2,505,957
Receivables (Net of Allowance for Uncollectibles) 665,179
Inventory - Materials 22,152
Total Current Assets 3,981.137
Restricted Assets
Cash and Cash Equivalents 1,056,487
Cash with Paying Agent 425,027
Investments 2,726 777
Total Restricted Assets 4,208,291
Fixed Assets
Property, Plant and Equipment 33,847,489 `
Less: Accumulated Depredation (7,883,374)
Construction in Progress 1,658,990
Total Fixed Assets - Net 27,623,105
Other Assets
Assessments Receivable 312,293
Unamortized Bond Issuance Costs 306,684
Total Other Assets 618,977
TOTAL ASSETS $ 36,431,510 +
The accompanying notes are an integral part of the financial statements.
-2-
LIABILf17ES AND FUND EQUITY
Current Liabilities (Payable from Current Assets)
Accounts Payable $ 31,834
Accrued Expenses 112,786
Due to Other Funds 1,515
Deferred Revenue 45,726
Obligations under Capital Leases 7,532
Total Current Liabilities (Payable from Current Assets) 199,393
Current Liabilities (Payable from Restricted Assets)
Customer Deposits 337,322
Retainage Payable 91,580
Accrued Interest Payable 220,027
Current Portion of Revenue Bonds Payable 205,000
Total Current Liabilities (Payable from Restricted Assets) 853,929
Long-Term Liabilities
Revenue Bonds Payable 7,747,373
Obligations Under Capital Lease 29,457
Total Long-Term Liabilities 7,776,830
Total Liabilities 8.830.152
Fund Equity
Contributed Capital 23.957,113
Retained Earnings:
Reserved for Renewal and Replacement 1,280,937
Reserved for Debt Service 649,875
Unreserved 1,713,433
Total Retained Earnings 3,644,245
Total Fund Equity 27,601,358
TOTAL LIABILIl1ES AND FUND EQUITY $ 36,431,510
-3-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Operating Revenues
User Charges
$ 3,873,669
Operating Expenses
Personal Services 1,217,946
Materials and Supplies 272,318
Heat, Light and Power 298,622
Depredation and Amortization 1,212,081
Other Expenses
345,494
Total Operating Expenses 3,346,461
Operating Income 527,208
Nonoperating Revenues (Expenses)
Interest Revenue
Interest Expense 428,158
(391,722)
Total Nonoperating Revenues 36,436
Income Before Operating Transfers 563,644
Operating Transfers
Operating Transfers In 42,348
Operating Transfers Out (962,339)
Net Operating Transfers (919,991 )
Net Income (Loss) 356 347)
Disposition of Net Income (Loss)
Net Income (Loss) $ (356,347)
Depreciation on Contributed Assets 350,576
Net Decrease in Retained Earnings (5,771 )
Retained Earnings - Beginning of Year 3,650,016
Retained Earnings - End of Year 3 644 245
The accompanying notes are an integral part of the financial statements.
-4-
WATER AND WASTEWATER FUND OF -
THE CITY OF OCOEE, FLORIDA
STATEMENT OF CASH FLOWS _
FOR THE YEAR ENDED SEPTEMBER 30, 1996
Increase (Decrease) in Cash and Cash Equivalents:
Cash Flows from Operating Activities: 0,524
89,
Receipts from Customers $ 30,524)
(1,198,622)8
Payments to Suppliers 1
Payments to Employees 1,873,814
Net Cash Provided by Operating Activities
-
Cash Flows from Noncapital Financing Activities: 9,991 )
9,991
Net Operating Transfers In (Out) (91
Decrease In Due From Other Funds 2 ,610 1
Increase In Due to Other Funds (88 ,455)
55
Net Cash Used In Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: )
Purchase of Property, Plant and Equipment (1 1,163,163,1661 ) -
Additions to Construction in Progress )
Principal Paid on Capital Leases ((10,506 0,506)
Interest Paid on Bonds and Leases 704,961 -
Capital Contributions from Developers and Customers04,964
Cash Received on Assessments Receivable (253,804)
Principal Paid on Bonds 2(200,000
Net Cash Used In Capital and Related Financing Activities (2,264,692) -
Cash Flows from Investing Activities: 80,230 -
Sale of Investments 480 138
,
Interest on Investments 42858
Net Cash Provided by Investing Activities -
Net Decrease in Cash and Cash Equivalents (771,416)
Cash and Cash Equivalents at Beginning of Year 3,040,779
Cash and Cash Equivalents at End of Year $ 2 269 363 -
Classified As: 9
Current Assets 1,481,514
$ 787,849
Restricted Assets
Total $ 2 269 363 -
The accompanying notes are an integral part of the financial statements.
-5-
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income $ 527,208
Adjustments Not Affecting Cash:
Depreciation 1,197,477
Amortization 14,604
Provision for Uncollectible Accounts 9,000
Change in Assets and Liabilities:
Increase in Accounts Receivable (852)
Decrease in Prepaid Costs 3,122
Increase in Accounts Payable 20,702
Increase in Accrued Expenses 19,324
Increase in Retainage Payable 65,522
Decrease in Deferred Revenue (23,413)
Increase in Customer Deposits 41,120
Total Adjustments 1,346,606
Net Cash Provided by Operating Activities $ 1 873 814
Noncash Investing, Capital, and Financing Activities:
Contributed Property, Plant and Equipment $ 1,097,771
-6-
NOTES TO FINANCIAL STATEMENTS
WATER AND WASTEWATER FUND OF
' THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Water and Wastewater Fund of the City of Ocoee.
Florida, conform to generally accepted accounting principles as applicable tc
proprietary funds. The following is a summary of the more significant policies:
Reporting Entity
The accompanying financial statements include only the Water and Wastewatei
Fund and are not intended to present fairly the financial position of the City o-
Ocoee, Florida, and the results of its operations and the cash flows of its
proprietary and similar trust fund types in conformity with generally acceptec
accounting principles. The Water and Wastewater Fund is an enterprise fund
which is a proprietary fund type.
Basis of Accounting and Measurement Focus
The proprietary fund type measurement focus is upon determination of capita
maintenance (net income, financial position, and changes in financial position)
These funds are maintained on the accrual basis of accounting. Under this
method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. The City adopted GASB Statement No. 20 and chosE
not to apply all FASB pronouncements issued after November 30, 1989.
Budget
An operating budget for the Water and Wastewater Fund is legally adopted on ar
annual basis in accordance with the bond indentures and submitted to thE
bondholders.
Tap and Impact Fees
The City of Ocoee collects water and wastewater tap fees which are recorded as
operating revenue only to the extent that the amount equals the cost of physica
connection to the system. Amounts that substantially exceed the cost to conned
are recorded as an addition to contributed capital.
' Deposits received which reserve capacity in the City's water and wastewater
facilities are recorded as contributed capital. Other deposits received frorr
customers are recorded as liability until all legal requirements, as stipulated by thE
City's water and wastewater ordinances, are fulfilled.
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
a NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, cash with
paying agent, and all highly liquid investments (including restricted assets) with s
maturity of ninety days or less when purchased. The Water and Wastewater
Fund's equity in the City of Ocoee's pooled cash (checking) account is includec
in cash and cash equivalents.
Investments
Investments are stated at cost or amortized cost. Income from investments helc
by the Water and Wastewater Fund is allocated based upon its share of tota
investment.
Inventories
Inventories are stated at cost, using the FIFO method.
Amortization of Bond Discount and Issuance Costs
Bond discount and issuance costs are amortized on a straight-line basis, which
approximates the interest method, over the life of the bonds. Amortization of bonc
issuance costs amounted to $14,604 for the 1996 fiscal year. Amortization of boric
discount, included in interest expense, amounted to$4,887 for the 1996 fiscal year
Restricted Assets
The use of certain assets of the Water and Wastewater Fund is restricted b}
specific provisions of bond resolutions and agreements with various parties
Assets so designated are identified as restricted assets on the balance sheet.
Property, Plant and Equipment
Property, plant, and equipment owned by the Water and Wastewater Fund ie
stated at historical cost or estimated historical cost. Additions, improvements, ant
other capital outlays that significantly extend the useful life of an asset are
capitalized. Other costs incurred for repairs and maintenance are expensed ae
incurred. Depreciation of plant and equipment is provided on the straight line
basis over the following estimated useful lives:
Buildings, 10-30 years Improvements, 20-40 years
Equipment, 5-10 years
-8-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
_ Property, Plant and Equipment - Continued
Contributions of property, plant, and equipment are recorded at cost provided b}
the developer which approximates fair market value at the date of contribution
Depreciation on contributed property, plant, and equipment is recorded as a re-
-
duction of contributed capital.
Postretirement Benefits
The Water and Wastewater Fund does not provide any postretirement health care
and life insurance benefits for employees.
Capitalization of Interest
Net interest cost relating to construction is capitalized.
Compensated Absences
The Water and Wastewater Fund accrues accumulated unpaid vacation and sic',
leave when earned by the employee. This liability for compensated absences LE
reported as a current liability.
Fund Equity
Contributed capital consists of funds from developers, federal and state (capital;
grants and a portion of connection fees charged to customers as previously dis-
cussed. Grants received for operating assistance are recorded as non-operatinc
revenue.
Reservations of retained earnings are created by increases in assets restricted for
debt service, renewal and replacement and other contractual obligations. These
increases result from earnings on restricted assets and other intrafund transfers
to (from) restricted accounts. Earnings on restricted assets are included in nel
income of the Water and Wastewater Fund. Reserves are not established for bonc
proceeds deposited into construction accounts.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
The City has no material violations of finance-related legal and contractual provisions
-9-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 3 - CASH AND INVESTMENTS
Following are the components of the Water and Wastewater Fund's cash anc
investments at September 30, 1996:
Unrestricted Restricted Total
Cash and Cash Equivalents $ 787,849 $ 1,056,487 $ 1,844,336
Cash with Paying Agent --- 425,027 425,027
Investments 2,505,957 2,726,777 5,232,734
$ 3,293 806 $ 4,208,291 $ 7,502,097
Deposits
In accordance with GASB Statement No. 3, the Water and Wastewater Func
deposits are categorized to give an indication of the level of custodial credit risk
assumed at year end. Category 1 includes deposits which are insured of
collateralized pursuant to the Public Depository Security Act of the State of Florida
Category 3 deposits are uncollateralized, and represent amounts wired to the
City's paying agents around September 30 for bond principal and interest
payments due on October 1.
Bank Balances:
Category 1 $ 211,360
Category 3 425.027
Total Bank Balances $ 636,387
Carrying Amount $ 391,900
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 qualifiec
public depository of the State of Florida as identified by the State Treasurer, it
accordance with Chapter 280 of the Florida Statutes. Authorized investments are
1) The State Board of Administration Local Government Surplus Fund Trust Fund
-10-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 3 - CASH AND INVESTMENTS - CONTINUED
Investments - Continued
2) U.S. Treasury bills, notes and bonds with maturity dates of 5 years or less;
3) Insured or fully collateralized Certificates of Deposit with maturity date of 3 year:
or less with financial institutions qualifying as public depositories;
4) Federal agencies and instrumentalities with maturity date of 5 years or less;
5) Money market funds placed with financial institutions qualifying as public
depositories;
6) Securities of any open-end or closed-end management type investment
company or investment trust registered under the Investment Company Act 0
1940, provided the portfolio of such investment company is limited to U.S
Government obligations and to repurchase agreements fully collateralized by
such U.S. Government obligations: or
7) Repurchase agreements collateralized by U.S. Treasury Securities or U.S
Government Agency securities.
The Water and Wastewater Fund's investments are categorized to give ar
indication of the level of risk assumed by the City at September 30, 1996:
Category 1 includes investments that are insured or registered for which the
securities are held by the City or its agent in the City's name.
Category 2 includes uninsured and unregistered investments for which the
securities are held by a counterparty's trust department or agent in the City':
name.
Category 3 includes uninsured and unregistered investments for which the
securities are held by the broker or dealer, or by a trust department or agent, bur
not in the City's name.
Investments in mutual funds are not required to be categorized since the
investments are not evidenced by securities that exist in physical or book entry
form.
-11-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 3 - CASH AND INVESTMENTS - CONTINUED
Investments - Continued
Following is a summary of risk levels assumed by the City at September 30, 1996.
Category
Carrying Market
1 2 3 Amount Value
_ Repurchase Agreements $ --- $ --- $1,877,462 $1,877,462 $1,877,462
U.S. Government Obligations 1,830,733 --- --- 1,830,733 1,830,733
$1,830,733 $ --- $1,877,462
Mutual Funds Investing In U.S. 3,402.002 3.240,578
Government Securities
$7,110,197 $6,948,773
NOTE 4 - ACCOUNTS RECEIVABLE
The following is an analysis of Accounts Receivable at September 30, 1996:
Water and Wastewater Fees Receivable $ 362,540
Assessments Receivable - Current Portion 60,000
Maintenance Fees (Formerly Guaranteed Revenue) 318,639
Total 741,179
_ Less: Allowance for Uncollectible Accounts (76,000)
$ 665,179
Wastewater Assessments Receivable
During 1992, the City acquired a wastewater treatment facility serving approximately
250 customers. In accordance with the acquisition settlement, the City made certair
wastewater improvements, connected the customers to its present system anc
imposed a connection charge through a special assessment. This special assess-
ment is due from the customers annually over ten years plus interest at 8%. At Sep-
tember 30, 1996, the current and noncurrent assessments receivable are $60,00C
and $312,293, respectively.
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sin WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT
The components of property, plant and equipment at September 30, 1996, are as
follows:
Land $ 4,772,072
Buildings 379,339
Improvements 27,343,689
Equipment 1,402,389
33,847,489
Less: Accumulated Depreciation (7,883,374)
$25,964,115
Construction in progress at September 30, 1996, consisted primarily of improvement:
to water treatment plants, water supply wells and storage tanks.
During the year, the Water and Wastewater Fund capitalized interest expense or
construction in progress in the following amounts:
Total Interest Expense Incurred $ 453,312
Interest Associated with Construction Projects 118,734
Interest Earned in Construction Accounts 57,144
Net Interest Capitalized 61,590
Interest Expense $ 391,722
NOTE 6 - RETIREMENT PLAN
Defined Benefit Pension Plan and Trust
The City of Ocoee contributes to a single employer defined benefit pension plar
and trust. The contribution made by the City of Ocoee is allocated to the Water
and Wastewater Fund based on covered payroll of employees whose salaries are
charged to the Water and Wastewater Fund. The Water and Wastewater Fund':
payroll for employees covered by the plan for the year ended September 30, 199E
was approximately $906,000. The Water and Wastewater Fund's total payroll for
the year ended September 30, 1996 was $906,202.
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WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 6 - RETIREMENT PLAN - CONTINUED
All general employees shall become members of this plan as a condition of
employment; however, certain employees may elect not to be a member of the
plan. Benefits fully vest on reaching five years of service. The plan provides
death, but not disability benefits. These benefit provisions and all other require-
-
ments are established by City ordinance.
Members of the plan are required to make regular contributions to the plan in the
amount of five percent (5%) of their salary. The City is required to make quarterly
contributions to the plan equal to the difference in each year, between the total
aggregate member contributions and the total cost as shown by the most recent
actuarial valuation of the plan.
Information regarding plan asset matters, funding status and progress and contri-
butions required and made for the year ended September 30, 1996 by the City of
Ocoee is presented in the Comprehensive Annual Financial Report of the City of
Ocoee, Florida for the year ended September 30, 1996.
Deferred Compensation Plan
The City offers its employees a single employer deferred compensation plan
created in accordance with Internal Revenue Code Section 457. The plan is volun-
- tary and any employee may elect to participate. The plan permits them to defer
a portion of their salary until future years. The deferred compensation is not avail-
able to employees until termination, retirement, death, or an unforeseeable emer-
- gency.
Information regarding the deferred compensation plan for the year ending Sep-
" tember 30, 1996 is presented in the Comprehensive Annual Financial Report of the
City of Ocoee, Florida.
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WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 7 - BONDS PAYABLE
Summarized below are the Water and Wastewater Fund's bonds payable outstandin
at September 30, 1996:
Water and Sewer System Refunding and Improvement
Revenue Bonds, Series 1996 - payable in annual
installments of $105,000 to $610,000 through
2017, plus semi-annual interest at 2.60% to 5.75%. $ 8,055,OC
Less: Current Maturities (205,00(
Unamortized Discounts (102,6E
$ 7,747,37;
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 19c,
In February 1993, the City issued Water and Sewer System Refunding an
Improvement Revenue Bonds, Series 1993 to finance the refunding of prior ou
standing bonds and improvements to the City's water and wastewater systems.
These bonds are secured by the Water and Wastewater Fund operating revenue:
interest earnings, impact fees and a first priority pledge of cash payments du
from developers.
_ The major provisions of the ordinances authorizing the revenue bonds are s
follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of th
next maturing principal and interest payment, respectively.
2) Each month, provisions shall be made of the gross revenues sufficient to pa:
in order of preference, cost of operation and maintenance of the systems, the
debt service/sinking fund requirements.
3) The City shall establish rates which will provide for necessary operatin
expenses and 110% of the bond service requirement due that year.
4) The City shall establish a Reserve Fund and maintain the Reserve Fund requin
ment of $649,875.
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WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 7 - BONDS PAYABLE - CONTINUED
During the fiscal year ended September 30, 1996, the City was in compliance wit
the above provisions.
Following is a maturity schedule of outstanding bonds payable:
Year Ended
Sept. 30: Principal Interest Total
1997 $ 205,000 $ 440,054 $ 645,054
1998 215,000 431,854 646,854
1999 225,000 422,716 647,716
2000 235,000 412,591 647,591
2001 245,000 401,723 646,723
2002-2006 1,425,000 1,811,962 3,236,962
2007-2011 1,855,000 1,380,613 3,235,613
2012-2016 2,460,000 781,712 3,241,712
2017-2018 1,190,000 103,500 1,293,500
$ 8,055,000 $ 6,186,725 $ 14,241,725
NOTE 8 - CAPITAL LEASE OBLIGATION
The Water and Wastewater Fund has entered into a lease agreement as lessee fc
financing the acquisition of equipment. This lease agreement qualifies as a capit
lease for accounting purposes and, therefore, has been recorded at the present vale.
of the future minimum lease payments as of the date of inception. The following is E
analysis of equipment leased under capital leases as of September 30, 1996:
Equipment $ 43,526
Less Accumulated Amortization (12,332)
Net Book Value $ 31,194
Amortization of equipment leased under capital leases is included in depreciatic
expense.
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WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 8 - CAPITAL LEASE OBLIGATION - CONTINUED
The following is a schedule by years of future minimum lease payments under the
above capital lease, together with the present value of the net minimum lease pay-
ments as of September 30:
Year Ending
September 30
1997 $ 11,387
1998 11,387
1999 11,387
2000 11,387
2001 948
Total Minimum Lease Payments 46,496
Less Amount Representing Interest (9,507)
Present Value of Net Minimum Lease Payments $ 36 989
+ The current and long-term obligation under this capital lease is $7,532 and $29,457,
respectively.
NOTE 9 - DUE TO OTHER FUNDS
The amount of$1,515 due to other funds at September 31, 1996 is due to the General
Fund.
NOTE 10 - CONTRIBUTED CAPITAL
The following is a summary of changes in contributed capital during the year ended
September 30, 1996:
Contributed Capital - Beginning of Year $ 22,467,044
Additions (Reductions)
Connection Fees 742,874
Assets Contributed by Developers 1,097,771
Depreciation on Contributed Assets (350,576)
Contributed Capital - End of Year $ 23.957,113
-17-
WATER AND WASTEWATER FUND OF
THE CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1996
NOTE 11 - SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES
Litigation
During the ordinary course of its operations, the City of Ocoee is a party to various
claims, legal actions, and complaints. In the opinion of the City's management and
legal counsel, these matters are not anticipated to have a material financial impact
on the Water and Wastewater Fund of the City of Ocoee.
_ Commitments
Construction Contracts - At September 30, 1996, the Water and Wastewater Fund
had outstanding construction contracts for various projects totaling approximately
$802,000.
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