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HomeMy WebLinkAboutVII(B) Discussion/ Action Re: Audit Report FY 96/97 Agen�dlaTT3--17-98 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" It-IGiAYRII(OI nSIl SIONER S. SCOTT VANDERGRIFT 014 COMMISSIONERS CITY OF OCOEE DA HOWE L 150 N. LAKESHORE DRIVE N SCOTT A.GLASS OCOEE,FLORIDA 34761-2258 NANCY J.PARKER (407)656-2322 CITY MANAGER ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Wanda B. Horton, Finance Director. ) DATE: March 12, 1998 RE: Audit-Fiscal Year 1996/1997 Attached is the audit for fiscal year 1996/1997. The management comments and staff s response are included. Mr. Elden McDirmitt of McDirritt, Davis, Lauteria, Puckett, Vogel & Company will be at the commission meeting on March 17t'to present the report. . �l� CITY 07 r 0EL 11-4-140,R , _,A ,, „,,--- _,---- , Ocoee o . ,„..,• ... 0 1 •-- - cz i - - --- COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF OCOEE, FLORIDA for the FISCAL YEAR ENDED SEPTEMBER 30, 1997 it COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF OCOEE, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Prepared by: Finance Department 1_ This page intentionally left blank. Ocoee soy,. •�o -6. „ OF GOO I CITY OF OCOEE, FLORIDA COMMISSION-MANAGER FORM OF GOVERNMENT CITY COMMISSION HONORABLE S. SCOTT VANDERGRIFT, Mayor DANNY HOWELL, Commissioner SCOTT GLASS, Commissioner SCOTT ANDERSON, Commissioner NANCY PARKER, Commissioner CITY MANAGER CffY ATTORNEY Ellis Shapiro Paul Rosenthal CITY CLERK CITY AUDITOR Jean Grafton McDirmit, Davis, Lauteria, Puckett, Vogel. & Company, P.A. II FINANCE DIRECTOR Wanda Horton Ii LI I LJ I I This page intentionally left blank. Ocoee y � I_ OF GOO L- I ' r I I I I INTRODUCTORY SECTION This section contains the following subsections: . Table of Contents . Letter of Transmittal Li . City of Ocoee Organizational Chart . Certificate of Achievement I L J II i_� n This page intentionally left blank. Ocoee ,rr� • o � .S13 c5f3 ,p OF GOO'° I �- COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF OCOEE, FLORIDA - FOR THE YEAR ENDED SEPTEMBER 30, 1997 . TABLE OF CONTENTS PAGE NO. I. INTRODUCTORY SECTION TABLE OF CONTENTS i-iv LETTER OF TRANSMITTAL v-xvi CITY OF OCOEE ORGANIZATIONAL CHART xvii CERTIFICATE OF ACHIEVEMENT xviii IL FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT xix-xx 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 - ALL PROPRIETARY FUND TYPES 9 COMBINED STATEMENT OF CHANGES IN PENSION FUND NET ASSETS 10 COMBINED STATEMENT OF CASH FLOWS - ALL PRO- PRIETARY FUND TYPES 11-12 NOTES TO FINANCIAL STATEMENTS 13-48 II i i_! COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF OCOEE, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1997 TABLE OF CONTENTS CONTINUE D • PAGE NO. - - COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 49-50 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET 51-52 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 53-54 DEBT SERVICE FUNDS COMBINING BALANCE SHEET 55 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 56 CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET 57-58 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 59-60 ENTERPRISE FUNDS COMBINING. BALANCE SHEET 61-62 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS 63 - COMBINING STATEMENT OF CASH FLOWS 64-65 TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET 66 COMBINING STATEMENT OF PENSION FUND NET ASSETS 67 COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS 68 STATEMENT OF CHANGES IN ASSETS AND LIABIUTIES - AGENCY FUND 69 ii COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CRY OF OCOEE, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1997 TABLE OF CONTENTS - CONTINUED _ PAGE NO. GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN FIXED ASSETS - BY FUNCTION AND ACTIVITY 70 SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - WATER AND WASTEWATER 0 & M DEPARTMENT 71 SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - SOLID WASTE FUND 72 III: STATISTICAL SECTION GENERAL GOVERNMENTAL EXPENDITURES AND OTHER FINANCING USES 73-74 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES 75-76 TAX REVENUES BY SOURCE 77 PROPERTY TAX LEVIES AND COLLECTIONS 78 ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY NET OF EXEMPTIONS 79-80 ' PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS 81 SPECIAL ASSESSMENT COLLECTIONS 82 RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA 83 LEGAL DEBT MARGIN 84 COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT 85 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES 86 f iii ti COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CFIY OF OCOEE, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1997 TABLE OF CONTENTS - CONTINUED PAGE NO. III STATISTICAL SECTION CONTINUED REVENUE BOND COVERAGE 87 DEMOGRAPHIC STATISTICS 88 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS 89-90 SCHEDULE OF TEN LARGEST TAXPAYERS 91 MISCELLANEOUS STATISTICAL DATA 92-93 SCHEDULE OF INSURANCE IN FORCE 94 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 95-96 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 97-98 iv "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER S.SCOTT VANDERGRIFT Ocoee CITY OF OCOEE COMMISSIONERS O�` � DANNY HOWELL • f,, �� SCOTT ANDERSON c 150 N.LAKESHORE DRIVE p OCOEE,FLORIDA 34761-2258 SCOTT A.GLASS NANCY J.PARKER n1 (407)656-2322 yJE� . f %>�� CITY MANAGER °F G00� ELLIS SHAPIRO December 5, 1997 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, 1997, is submitted herewith pursuant to Article Ill, 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 Commission, 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.) I . LI V 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, 1996. II. Financial Section - The Financial Section contains the opinion of the City's independent auditors, McDirmit, Davis, Lauteria, Puckett, Vogel & 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 23 different funds). The General Purpose Financial Statements are the City's basic financial statements and provide an overview for readers who require less detailed information about the City's finances. The remainder of the Financial Section presents the combining statements, individual fund statements, and schedules • focusing on individual funds and account groups. The Financial Section necessarily _ contains the major portion of the report and has been subdivided into the various r 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 requirements. III. 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 auditor's reports on the City's internal control and the City's compliance with laws and regulations. vi iJ ECONOMIC CONDITION AND OUTLOOK The City of Ocoee, a municipal corporation of the State of Florida, operates under a commission/manager form of government. Located in Central Florida, Ocoee is the home of approximately 21,250 residents. In addition to its close proximity to many tourist attractions, including Disney.World, Universal Studios, and Sea World, Ocoee is also conveniently located near other major employers such as Lockheed Martin. These factors bring large numbers of people to the area, not only as visitors, but also as permanent residents. As a result of Ocoee's increasing population and its location at the crossroad of several major highways, a new one-million square foot mall was built in Ocoee which opened in October 1996. The top three other employers in Ocoee -- Health Central Hospital, Sysco Foods, Inc. and Florida Auto Auction -- have recently or are in the process of completing major expansions to their businesses as well. With such continuing economic growth, the financial position of the City remains sound. There were no significant or material changes in financial policy and all required debt service payments of principal and interest were met. MAJOR INfT1ATIVES Ocoee continues to experience 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. There are many factors that have influenced and continue to influence the growth of the City. Ocoee's proximity to Orlando and its location at the juncture of State Road 50, Florida's Turnpike, the East-West Expressway, and the planned Western Beltway make it convenient for people to live and work in the City. State Road 50 is a major east-west arterial that spans the State; Florida's Turnpike provides a limited-access highway for north-south traffic and has an exit in Ocoee; the East-West Expressway provides a 15-minute travel route from Ocoee to downtown Orlando and continues to the eastern limits of Orange County; and the planned Western Beltway will provide a similar highway to Walt Disney World and other points south to Osceola County. To meet the increasing demands of travel within Ocoee city limits, the City built Clarke Road, a four-lane divided roadway, which begins at the East-West Expressway terminus and State Road 50 and runs north to the City's current limits. Plans are underway to bring Clarke Road further north, eventually to Apopka's city limits. Clarke Road has spawned the development of many residential neighborhoods as well as neighborhood commercial centers and the West Oaks Mall. vii MAJOR INITIATIVES - CONTINUED Another factor which has influenced the growth of Ocoee is the amenities it has to offer, including numerous lakes, rolling hills, recreational opportunities and excellent schools. The provision of services such as central water and wastewater services is also an important aspect of Ocoee's growth management. As an example of combining services with amenities, the City's 240-acre effluent disposal site is also home to an 18-hole PGA designed golf course. Ocoee 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. Several major initiatives have been completed recently. In 1994, Ocoee completed a new City a facility. These projects were accomplished and adjoiningPolice Department f Hallbuilding P tY through the issuance of a $2.5 million bond. In April 1996, the City received loan proceeds of$2.2 million to finance stormwater drainage improvements. Those improvements included several projects which were prioritized by the Ocoee City Commission according to the severity of the drainage problems. Several of these projects have been completed and the next phase is under construction. Two new fire stations were also completed in December 1997, and a Public Works facility and new multi-purpose recreational facility are planned to be under construction by the Spring of 1998. These projects are part of a $4.8 million capital improvement loan. 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 preparation of financial statements in accordance with generally accepted accounting principles. - viii 1 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 approved 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 appropriation balances to be exceeded, are not released until additional appropriations or appropriation 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 support these functions for current and prior fiscal year: Increase Percent (Decrease) Revenue and Other Financing Sources Amount Of Total From 1996 Taxes $ 4,966,592 42.3% $ 696,598 Licenses & Permits 879,650 7.5 29,223 Intergovernmental Revenues 3,368,182 28.7 279,661 Charges for Services 208,119 1.8 21,956 Fines & Forfeitures 75,483 .6 (26,412) Investment Income 146,357 1.2 56,691 Miscellaneous Revenues 163.504 1.4 55.125 SUB TOTAL 9,807,887 83.5 1,112,842 Transfers from Other Funds 1,633,763 13.9 102,578 Capital Lease Proceeds 302,412 2.6 264.712 �J TOTAL $ 11,744,062 1100.0% 1,480,132 ix General Governmental Functions - Continued Property taxes are the source of local tax revenue. In fiscalyear 1996, the City's P rtY majorty property tax, all of which is for operating purposes, was 4.0 mills and for 1997, the rate was 4.0 mills. The related property values subject to taxes showed growth of 15.2 percent, representing $76,698,257 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 1997, total revenue from this tax reflected an increase of $229,793. Intergovernmental revenue consists primarily of shared revenue from other governmental agencies. The increase in intergovernmental revenues is due primarily to an increase of $223,188 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 1996 General Government $ 2,432,702 21.7% $ 525,605 Public Safety 5,826,668 , 51.9 1,137,665 Physical Environment 1,162,242 10.4 11,193 Culture & Recreation 466,593 4.2 49,098 Debt Service 339.375 3.0 205.959 SUB TOTAL 10,227,580 91.2 1,929,520 Transfers to Other Funds 989.477 8.8 (75,368) TOTAL $ 11,217,057 100.0% $ 1,854,152 The increase in General Government expenditures is due to over $250,000 of capital outlay primarily for a new computer system in the finance department. The remaining increase in primarily due to an increase in personal services expenditures due to the hiring of additional employees. The increase in Public Safety expenditures is due primarily to an increase in salaries and benefits for police and fire departments, as well as the hiring of additional new staff. Significant capital investment in the form of capital leases for equipment also contributed to the increase. The additional capital leases also caused the increase in debt service - expenditures. 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 $8,480,680 and the following represents an analysis of sources and uses in the Special Revenue Funds for 1997: x Special Revenue Funds - Continued Prior Change Period in Fund Fund Sources ' Uses Adjustment Balance Road Impact $ 1,714,077 $ 2,652,699 $ (111,347) $(1,049,969) Parks 307,695 174,390 (11,315) 121,990 Stormwater 814,396 1,011,061 --- (196,665) Interim Services 60,339 50,874 --- 9,465 Police Training 1,884 --- --- 1,884 Police Trust 5,688 20,717 --- (15,029) Fire Impact 870,245 776,899 (39,503) 53,843 Police Impact 150,949 100.839 --- 50.110 TOTAL $3,925,273 $4,787,479 $ (162,165) $ L1,024,371) The increase in fund balance for the Road Impact Fund is primarily due to road construction at the intersection of Story Road/Kissimmee Marshall Farm. The prior period adjustment is due to the implementation of GASB #31 which changed the carrying amount of investments from cost to fair value. 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 were used 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 were used to finance the construction of the 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 are being 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. 4. Capital Improvement Revenue Promissory Note, Series 1996, totaling $4,840,000. The proceeds are being used to finance certain capital projects including two fire stations, L ' a gymnasium and recreational facility and a public works facility. This note is payable solely from Non-Ad Valorem Revenues of the City. xi J r Debt Administration - Continued 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. 2. Water and Sewer System Improvement Revenue Bonds, Series 1997, totalling $10,150,000. The proceeds are designated to expand the capacity of and construct and acquire other improvements to the City's Water and Sewer System (the "System"). These bonds are secured by prior lien upon and pledge of Net Revenues of the System, and the Water and Sewer system development charges to the extent of the bond service component (the "Pledged Funds"). Such prior lien and pledge of the Pledged Funds is on a parity with the lien and pledge granted to the holders of the City's Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993. 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: 1996-97 1995-96 Increase Fund Type Amount Amount (Decrease) General $ 146,357 $ 89,666 $ 56,691 Special Revenue 630,326 512,197 118,129 Debt Service 62,368 32,058 30,310 Capital Projects 353,268 74,767 278,501 Expendable Trust --- 2,473 (2,473) Pension Trust 1,326,907 67,939 1,258,968 Enterprise 874.199 440.268 433 931 TOTAL 3,425 $ 1219,368 $ 2,174,057 The significant increase in investment income is a result of implementation of GASB Statement - 9 P No. 31 which requires the recording of investments at fair value. In prior years, investments were recorded at cost. xii 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 1997, the Capital Projects Funds were used to account for major road and street improvements, stormwater drainage improvements, the acquisition of a new computer system, and other capital improvements including two new fire stations and a recreation center. 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 bodyy has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, budget policy, management control, accountability, or other purposes. The City accounts for its water, wastewater and solid waste funds as enterprise operations. These funds are primarily 7 supported by user charges. Water and Wastewater Fund • 1996-97 1995-96 Increase Description Amount Amount (Decrease) Operating Revenues $ 4,030,639 $ 3,873,669 $ 156,970 Operating Expenses 3,931,320 3,346,461 584,859 Operating Income 99,319 527,208 (427,889) Net Income (Loss) (536,502) (356,347) (180,155) Revenues Available for Debt Service 2,225,130 2,167,447 57,683 Annual Bond Debt Service 1,160,907 645,054 515,853 Revenue Bond Coverage 1.92 3.36 (1.44) xiii Water and Wastewater Fund - Continued Operating expenses increased 17.5%due primarily 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. Solid Waste Fund 1996-97 1995-96 Increase Description Amount Amount (Decrease) Operating Revenues $ 1,243,295 $ 1,176,211 $ 67,084 Operating Expenses 1,121,437 987,791 133,646 Operating Income 121,858 188,420 (66,562) Net Income 23,354 94,846 (71,492) 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 - virtuallyall full time employees of the City. In addition to aplan for general employees, the tY 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, 1997, the pension funds had total assets of $7,783,274. 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, 1997 , was $1,092,244. xiv r General Food 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, 1997, 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. 011-TER INFORMATION Independent Audit Pursuant to the City of Ocoee Charter, Florida Statutes Chapters 11.45 and 218, and Chapter j 10.550 of the rules of the State Auditor General, an audit of the accounts and financial statements has been completed by the City's independent certified public accountants, McDirmit, Davis, Lauteria, Puckett, Vogel & 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, 1996. 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 eight 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. ,hI xv L_. 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 anager Wanda Horton, Finance Director xvi ( I I 1- C 1 C -1 —- --- - - ------ --- - --- CITY OF OCOEE ORGANIZATIONAL CHART Ocoee Voters City Attorney City Commission Appointed Boards Information City Manager — Systems — Mapping Finance Police Fire City Clerk Recreation Public Works Planning Personnel Building Engineering/ Community Utilities Relations Utility Billing CID Suppression Cemetery Solid Waste/ Development Employee Zoning Water Recycling Benefits Projects Patrol Investigation Elections Traffic Concurrency Risk Management Inspections Wastewater Operations Management Payroll DARE EMS Archives Facilities Projects Labor Negotiations l'ermits Engineering Maintenance Purchasing Dispatch Fleet Safety Code Stormwater Utility Maintenance Enforcement Engineering Street Occupational Stormwater Utility Maintenance Licensing Inspections Stormwater Utility Drainage Construction Inspection Park . Maintenance * Fiscal Year 1997-1998 This page intentionally left blank. OiiD Vey i-, u' 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 3Q, 1996 A Certificate of Achievement for Excellence in Financial -J' 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. otE Of% • OFTNE 4,p UNITED STATES CANADA • CORPORATON S President ; SEAL ao�ti Nava Yil `� Executive Director n L xviii J . This page intentionally left blank. Ocoee nay C5 it FINANCIAL SECTION This section contains the following subsections: . Independent Auditor's Report . General Purpose Financial Statements . Combining Statements . Supplementary Information it L \ I This page intentionally left blank. _ Ocoee 0 jo Op G00 • li f MCDIRMIT, DAVIS, LAUTERIA PUCKETT, VOGEL & COMPANY, P. A. Certified Public Accountants 605 E.Robinson Street,Suite 635. Telephone:(407)843-5406 Post Office Box 1185 Fax: (407)649-9339 Orlando,Florida 32802-1185 E-Mail:mdlpv®aol.com 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, 1997, as listed in the table of contents. 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 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. 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 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, 1997, and the results of its operations and the cash flows of its proprietary fund types and the changes in pension fund net assets for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated L J December 5, 1997 on our consideration of the City of Ocoee, Florida's internal control structure and a report dated December 5, 1997 on its compliance with laws and regulations. (CPA Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants _ Our audit was made for the purpose of forming an opinion on the general purpo se 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 purpose 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. Pidgdi I A41), , v t errivonap Oa. McDIRMIT, DAVIS, LAUTERIA, PUCKETT, VOGEL & COMPANY, P.A. December 5, 1997 xx • GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) These basic statementsprovide a summaryoverview of the financial men 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. f CRY OF OCOEE, FLORIDA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1997 Governmental Fund Types Special Debt General Revenue Service Assets Cash And Cash Equivalents $ 648,461 $2,885,503 $ 196,367 Investments 1,592,410 5,601,684 --- Receivables (Net Of Allowances For Uncollectibles) 64,049 126,309 Inventories-At Cost 19,858 — — Due From Other Funds 21,392 — — Due From Other Governments 292,704 — — Prepaid Costs 28,770 — — Restricted Assets: Cash And Cash Equivalents — — — Investments — — 833,789 Cash With Paying Agent — — 821,132 Property, Plant And Equipment — • —Less: Accumulated Depreciation — — — Construction In Progress — — — Unamortized Bond Issuance Costs — — — Amount Available In Debt Service Funds — — — Amount To Be Provided For Retirement Of General Long-term Debt — — — Total Assets $ 2,667,644 $ 8,613,496 1 851 288 The accompanying notes are an integral part of the financial statements. -1- i Governmental Proprietary Fiduciary Account Groups Fund Types Fund Types Fund Types General General Totals Capital Trust And Fixed Long-Term (Memorandum Projects Enterprise Agency Assets Debt Only) $ 3,367,821 $ 744,805 $ 21,486 $ — $ — $ 7,864,443 — 2,586,528 1,856,095 8,753,721 — --- 20,390,438 26 771,034 100,189 — — 1,061,607 -- 22,152 — — — 42,010 — — 122 — --- 21,514 — 8,226 — — — 300,930 — — — — — . 28,770 — 2,906,609 — — — 2,906,609 — 10,833,216 — — — 11,667,005 - _ — 822,326 — — — 1,643,458 _ _ — 35,857,558 — 10,769,754 — 46,627,312 — (10,069,481) — — — (10,069,481) — 2,969,186 — 1,021,637 — 3,990,823 — 589,109 — — -- 589,109 - — — — — • 1,030,156 1,030,156 — — — — 15,724,869 15,724,869 $ 5,954,375, $ 47,310,835, $ 8,875,518 $ 11,791,391, $16,755,025, $103,819,572, L . 7, i 1-1 -2- (Continued) u CITY OF OCOEE, FLORIDA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS-CONTINUED SEPTEMBER 30, 1997 Governmental Fund Types Special Debt General Revenue Service Liabilities And Fund Equity Liabilities Accounts Payable $ 17,856 $ 123,154 $ — 1 Retainage Payable — — — Accrued Liabilities 257,060 — — Due To Other Funds — 782 — Deferred Revenue 244,000 8,880 — Current Liabilities (Payable From Restricted Assets): Customer Deposits — — Matured Bonds Payable — — 325,000 Matured Interest Payable — — 496,132 Deferred Compensation Payable — — — Accrued Annual Leave — — — Bonds Payable — — — Obligations Under Capital Leases — — — Notes Payable — — — Total Liabilities 518,916 132,816 821,132 Fund Equity Contributed Capital — — - — Investment In General Fixed Assets — — — Retained Earnings: Reserved For Renewal & Replacement — — — Unreserved — — — Total Retained Earnings — — --- Fund Balances: Reserved: Inventories 19,858 — — Prepaid Costs 28,770 — — I Debt Service — — 1,030,156 Employee's Pension Benefits — -- — I Encumbrances 192,599 — — Unreserved: Designated For Capital Projects — — — Designated For Subsequent Year's Budget — 8,480,680 — Undesignated 1,907,501 — — Total Fund Balances 2,148,728 8,480,680 1,030,156 I Total Equity And Other Credits 2,148,728 8,480,680 1,030,156 Total Liabilities, Fund Equity And n Other Credits $2,667,644 8 613 496 $ 1,8511288 The accompanying notes are an integral part of the financial statements. I , I Governmental Proprietary Fiduciary Account Groups Fund Types Fund Types Fund Types General General Totals Capital Trust And Faced Long-Term (Memorandum Projects Enterprise Aaencv Assets Debt Only) $ 8,192 $ 230,171 $ — $ — $ — $ 379,373 66,074 27,518 — — — 93,592 — 162,719 — — — 419,779 — 20,610 122 — — 21,514 J — 39,002 — — — 291,882 — 344,224 — — — 344,224 1 — 335,000 — — — 660,000 — 487,326 — — — 983,458 — — 1,092,244 — — 1,092,244 — — — — 476,573 476,573 _ — 17,440,418 — — 8,165,000 25,605,418 — 198,798 — — 1,143,452 1,342,250 — — — — 6,970,000 6,970,000 G - 74,266, 19,285,786 1,092,366 — 16,755,025 38.680.307 — 24,120,382 — — — 24,120,382 — — — 11,791,391 — 11,791,391 -I - 1,733,951 — — — 1,733,951 __ — 2.170,716 — — 2,170,716 — 3,904,667 — — — 3,904,667 — — — — — 19,858 — — — — — 28,770 — — — — -- 1,030,156 — — 7,783,152 — — 7,783,152 — — — — — 192,599 5,880,109 — — — — 5,880,109 — — — — — 8,480,680 — — — — — 1,907,501 5,880,109 — 7,783,152 — — 25,322,825 5,880,109 28,025,049 7,783,152 11,791,391 — 65,139265 $ 5,954,375 $ 47,310,835 $ 8,875,518 $11,791 391 S16,755,025 $103,819,572 -4- 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, 1997 Governmental Fund Types Special Debt General - Revenue Service Revenues Taxes $ 4,966,592 $ — $ — Licenses And Permits 879,650 — — Intergovernmental Revenues 3,368,182 9,718 — Charges For Services 208,119 — — Fines And Forfeitures 75,483 4,830 — Impact Fees/Special Assessments — 2,972,076 — , Investment Income 146,357 630,326 62,368 Miscellaneous Revenues 163,504 308.323 — Total Revenues 9.807,887 3,925,273 62,368 Expenditures Current: General Government 2,432,702 — — Public Safety 5,826,668 547,479 — Physical Environment 1,162,242 2,668,844 — Culture And Recreation 466,593 56,290 — Capital Outlay — — -- Debt Service: Principal Retirement 299,171 236,321 325,000 Interest And Fiscal Charges 40.204 33.042 932,041, Total Expenditures 10.227,580 3,541.976 1,257,041 Excess (Deficiency) Of Revenues Over Expenditures (419,693) 383,297 (1,194,673) • Other Financing Sources (Uses) Operating Transfers In 1,633,763 — 1,257,744 Operating Transfers Out (989,477) (1,245,503) — Capital Lease Proceeds 302,412 — — Promissory Note Proceeds — — 440,000 Net Other Financing Sources (Uses) 946.698 (1,245,503) . 1,697,744 Excess (Deficiency) Of Revenues And Other Financing Sources Over Expenditures And Other Financing Uses 527,005 (862,206) 503,071 Fund Balances-Beginning Of Year As Previously Stated 1,631,776 9,461,810 545,704 Prior Period Adjustment (10,053) (162,165) (18,619) As Restated 1.621,723 9.299,645 527,085 Residual Equity Transfers — 43.241 — Fund Balances-End Of Year $ 2,148,728 $ 8,480,680 $1,030,156 The accompanying notes are an integral part of the financial statements. -5- - I- Governmental Fiduciary Fund Types Fund Types _ Capital Expendable Totals j Projects , Trust (Memorandum Only) $ — $ — $ 4,966,592 8,252 — 887,902 %-I, — — 3,377,900 — — 208,119 — — 80,313 — 2,972,076 353,268 — 1,192,319 900 — 472,727 362.420 — 14,157,948 — — 2,432,702 — — 6,374,147 . ._ .: — 3,831,086 — — 522,883 1,868,159 — 1,868,159 — — 860,492 . — — 1,005,287 1868,159 — 16,894,756 (1,505,739) _ — (2,736,808) . 100,000 — 2,991,507 (27,969) — (2,262,949) I — — 302,412 4,400,000 — 4,840,000 4.472,031 — 5,870,970 2,966,292 — 3,134,162 2,913,817 43,241 14,596,348 — — (190,837) 2,913,817 43,241 14,405,511 — (43,241) — $ 5,880,109 $ 17,539,673 -6- L_I • CITY OF OCOEE, FLORIDA COMBINED STATEMENTREVENUES, CHANGES IN OF EXPENDITURES AND FUND BALANCES-BUDGET AND ACTUAL-GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1997 General Fund Variance Favorable Bucket Actual (Unfavorable) Revenues Taxes $ 4,914,510 $ 4,966,592 $ 52,082 Licenses And Permits 740,900 879,650 138,750 Intergovernmental Revenues 3,432,070 3,368,182 (63,888) Charges For Services 182,160 208,119 25,959 � Fines And Forfeitures 97,000 75,483 (21,517) Impact Fees/Special Assessments — — — Investment Income 85,000 146,357 61,357 Miscellaneous Revenues 130.350 163.504 33.154 Total Revenues 9,581,990 9.807,887 225,897 -' Expenditures Current: General Government 3,119,454 2,432,702 686,752 Public Safety 6,169,544 5,696,726 472,818 Physical Environment 1,413,107 1,162,242 250,865 Culture And Recreation 677,515 486,722 190,793 Debt Service — 339,375 (339,375) I - Total Expenditures 11,379,620- 10.117,767 1.261,853 Excess (Deficiency) Of Revenues Over ewes (1,797,630) (309,880) 1,487,750 Other Financing Sources (Uses) Operating Transfers In 1,831,130 1,633,763 (197,367) Operating Transfers Out (883,500) (989,477) (105,977) Net Other.Financing Sources (Uses) 947.630 644.286 (303.344) Excess (Deficiency) Of Revenues And Other Financing Sources Over Expenditures And Other Uses (850,000) 334,406 1,184,406 Fund Balances-Beginning of Year, As Restated 850.000 1.621.723 771.723 Fund Balances-End of Year $ — $ 1,956,129 $ 1,956,129, The accompanying notes are an integral part of the financial statements. -7- r i- Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ — $ — $ — 826,000 804,199 (21,801) 20,000 10,197 (9,803) 846,000 814,396 (31.604) 710,700 578,900 131,800 — 82,806 (82,806) 710,700 661,706 48,994 135,300 152,690 17,390 — — (285,300) (282,857) 2,443, ji (285,300) (282,857) 2,443 j (150,000) (130,167) 19,833 150,000 367,286 217,286 237,119 -8- CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1997 Proprietary Fund Types Enterprise Operating Revenues User Charges $ 5,273,934 Operating Expenses Personal Services 1,919,582 Materials And Supplies 743,382 Heat, Light And Power 340, Depreciation And Amortization 1,531,387 Other Expenses 511,817 Recycling Expenses 5,739 Total Operating Expenses 5,052,757 Operating Income 221,177 Nonoperating Revenues (Expenses) Grant Revenue 29,000 Investment Income 874,199 Interest Expense (840,241) Loss on Sale of Fixed Assets (68,724) • Total Nonoperating Revenues (5,766) Income Before Operating Transfers 215,411 Operating Transfers Operating Transfers In 29,626 Operating Transfers Out (758,185) Net Operating Transfers (728,559) Net Income (Loss) $ (513,148) Disposition Of Net Income (Loss) Net Income (Loss) $ (513,148) Depreciation On Contributed Assets 366,739 Net Decrease In Retained Earnings (146,409) Retained Earnings Beginning Of Year As Previously Stated 4,210,330 Prior Period Adjustment (159,254) As Restated 4,051,076 Retained Earnings-End Of Year $ 3,904,667, The accompanying notes are an integral part of the financial statements. -9- CRY OF OCOEE, FLORIDA COMBINED STATEMENT OF CHANGES IN PENSION FUND NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 1997 Additions Contributions Employer $ 901,730 State 85,820 Plan Members 320.028 Total Contributions 1,307,578 Investment Income Net Appreciation in Fair Value of Investments 1,271,051 Interest 55,856 1,326,907 Less Investment Expense (45,435) Net Investment Income 1.281.472 Total Additions 2.589.050 Deductions Benefits 122,837 Administrative Expenses 33.016 Total Deductions 155.853 Net Increase 2.433,197 Net Assets Held in Trust for Pension Benefits Beginning of Year - As Previously Reported 4,377,530 Prior Period Adjustment 972.425 As Restated 5,349.955 I_ I End Of Year $ 7,783,15? The accompanying notes are an integral part of the financial statements. -10- CRY OF OCOEE, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEP'TEMBER 30, 1997 Proprietary Fund Tvaes Enterprise Cash Flows From Operating Activities: Receipts From Customers $ 5,238,496 Payments To Suppliers (1,473,683) Payments To Employees (1,889,475) Net Cash Provided By Operating Activities 1,875,338 Cash Flaws From Noncapital Financing Activities: Operating Transfers Out (728,559) Receipts From Grants 24,267 Increase In Due To Other Funds 19.095 Net Cash Used In Noncapital Financing Activities (685,197) Cash Flows From Capital And Related Financing Activities: Proceeds From Sale Of Property And Equipment 87,630 Purchase Of Property, Plant And Equipment (333,920) Additions To Construction In Progress (1,296,658) Principal Paid On Bonds And Leases (300,545) Interest Paid On Bonds And Leases (578,314) Proceeds from Bonds And Capital Leases 10,139,177 Capital Contributions Received 114,180 Cash Received On Assessments Receivable 60,518 Bond Issue Costs Paid (304.987) Net Cash Used In Capital And Related Financing Activities 7.587,081 Cash Flows From Investing Activities: Sale of Investments 537,200 Purchase Of Investments (7,705,920) Interest On Investments 523.864 Net Cash Provided By Investing Activities (6,644,856) Net Increase In Cash And Cash Equivalents 2,132,366 Cash And Cash Equivalents At Beginning Of Year 2,341,374 Cash And Cash Equivalents At End Of Year $ 4,473,740 Classified As: Current Assets $ 744,805 Restricted Assets 3,728,935 Total $ 4,473,740 The accompanying notes are an integral part of the financial statements. -11- . mil Proprietary Fund Types Enterprise Reconciliation Of Operating Income To Net Cash Provided By Operating Activities: Operating Income $ 221,177 Adjustments Not Affecting Cash: Depreciation 1,508,825 Amortization 22,562 Provision for Uncollectible Accounts 9,500 Change In Assets And Liabilities: Increase In Accounts Receivable (35,616) Increase In Accounts Payable 182,667 Increase In Accrued Expenses 30,107 (Decrease) In Retainage Payable (64,062) (Decrease) In Deferred Revenue (6,724) Increase In Customer.Deposits 6,902 Total Adjustments 1,654,161 I` I Net Cash Provided By Operating Activities $ 1,875,338 Noncash Investing, Capital and Financing Activities: • Contributed Property, Plant and Equipment $ 684,610 Write-off Capital Contributions Billed in Prior Year (268,782) Increase in the Fair Value of Investments 342,240 '�� -12- • This page intentionally left blank. Ocoee :•/ ii a 'W-V or GOO • • I-I 7 i I r NOTES TO FINANCIAL STATEMENTS ILi • IJ L_� • • This page intentionally left blank. \ Ocoee \ v � � jN iyf `J Of G00v P CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLJCIES 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 administrator 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 accountability. 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. l_ -13- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 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). re- 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. -14- COY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Basis 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. -15- CITY OF OCOEE, FLORIDA TO NOTES FINANCIAL STATEMENTS - CONTINUED _ O SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Basis of Accounting and Measurement Focus - Continued Utility operating revenues (solid waste, 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 ro osed operating budget for the fiscalyear commencingthe following P P 9 9 October 1 st. 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 within departments within any fund. Any revisions that alter the total expenditures of any department 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. -16- CITY OF OC.OEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 ! NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED i—� 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 1_, 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 j operations 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. -17- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 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. _I -18- I • CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED I_ SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POIJCIES - CONTINUED Investments Investments in all fund types are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices. Income from investments held by the individual funds is recorded in the respective fund as it is earned. Changes in the fair value of investments is recognized as revenue and included in investment income. Reporting investments at fair value is a change in accounting principle from prior years. The City adopted Government Accounting Standards Board (GASB), Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contributions Plans, GASB Statement No. 27,Accounting for Pensions by State and Local Governmental Employees, and GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools. These statements require the recording of investments at fair value and a new financial statement presentation for pension trust funds. The effect of adopting these Statements is described in Note 18. 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. • 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 $22,562 for the 1997 fiscal year. Amortization of bond dis- count, included in interest expense, amounted to $8,167 for the 1997 fiscal year. 11 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 L_ are identified as restricted assets on the balance sheet. -19- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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. 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. -20- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING_ POLICIES - CONTINUED 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. L. 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. 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 initiallymade are recorded as expenditures or expenses (as appro- priate)(expenses) xP P PP 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. -21- L CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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 Rules of the Auditor General The City did not take an annual physical inventory of fixed assets during 1997 as required by Rules of the Auditor General, Chapter 10.400 and Florida Statutes, Chapter 274. 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 1997 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 $10,227,580 $ 946,698 Encumbrances 192,599 --- Nonbudgeted Capital Lease Transactions (302,412) (302,412) BudgetaryBasis $10,117,767 64- 4,286 . ._. -22- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 3 - BUDGET BASIS OF ACCOUNTING - CONTINUED 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. A reconciliation of the above differences in the Special Revenue Funds is a follows: Excess (Deficiency) of Revenues Other Over Financing Expenditures Sources (Uses) ro GAAP Basis $ 383,297 $ (1,245,503) Nonbudgeted Funds (297,105) 962,646 Nonbudgeted Capital Lease Transactions 66.498 --- Budgetary Basis $ 152,690 $ (282,857) NOTE 4 - CASH AND INVESTMENTS Following are the components of the City's cash and investments at September 30, 1997: t^ Unrestricted Restricted Total Cash & Cash Equivalents $ 7,864,443 $ 2,906,609 $10,771,052 Cash With Paying Agent --- 1,643,458 1,643,458 Investments 20,390,438 11.667.005 32,057.443 $28,2541881 116,217,072 $44,471,953 -23- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 4 - CASH AND INVESTMENTS 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. September 30, 1997 Bank Balances: Category 1 $ 2,259,845 Category 3 1,643,458 Total Bank Balances $ 3,903,303 Carrying Amount $ 2,915,510 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: u 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 -24- I l LJ CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED • SEPTEMBER 30, 1997 NOTE 4 - CASH AND INVESTMENTS - CONTINUED Investments - Continued 7) Repurchase agreements collateralized by U.S. Treasury Securities or U.S. Government Agency securities. . The City's investments are categorized to give an indication of the level of risk assumed by the City at September 30, 1997: 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 a counterparty, its 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. As discussed in Note 1, investments are carried at fair value. • • Following is a summary of risk levels assumed by the City at September 30, 1997: Cateaory Carrying 1 2 3 Amount Repurchase Agreements $ — $ — $ 9,499,000 $ 9,499,000 U.S. Government Obligations 16,219,996 — — 16,219,996 Pension Fund Investments: Commingled Bond Fund 3,398,583 -- — 3,398,583 Commingled Stock Fund 4.262.894 — --- 4,262,894 $23,881,473 _ 9 499 000 Deferred Compensation Plan 1,092,244 Mutual Funds Investing In U.S. Government Securities . 7,083,726 41 t556A43 1 -25- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS-CONTINUED SEPTEMBER 30, 1997 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 Protects Enterprise Funds Property Taxes $ 1,341 $ — $ — $ --- $ — Accounts Receivable • — 82,044 — 531,765 —_ Assessments Current — — — 60,000 Noncurrent — — — 251,775 --- Maintenance Fee (Formerly — — — 51,559 — Guaranteed Revenue) Other Receivables 66,708 49.265 . 26 435 100,189 Total 68,049 131,309 26' 89.5,534 100,189 Less: Allowance for Uncollectible Accounts (4,000) (5,000) — (124,500) — L.6..„._4 049 LT§309 _ 26 $ 771,034 $ .100,189 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 December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 fol- - lowing the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. 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, 1997, 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 $3,494,131 additional property tax revenue a year from the present assessed valuation of $582,355,145 before the limit is reached. -26- H CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 - NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT During the fiscal year ended September 30, 1997, the following changes in general fixed assets occurred: Balance Balance 10-1-96 Additions Deletions 9-30-97 Land $ 1,312,883 $ --- $ --- $ 1,312,883 Buildings 3,468,399 4,700 --- 3,473,099 Improvements 910,858 63,899 --- 974,757 - Equipment 4,179,691 1.093,919 264,595 5,009,015 9,781,831 1,162,518 264,595 10,769,754 Construction in Progress 32,353 993,984 4,700 1,021,637 $ 9,904,184 $ 2,156,502 $ 269,295, $11,791,391, Li Construction in progress for general fixed assets as of September 30, 1997 consisted primarily of improvements to the Ocoee Youth Center, and construction of two fire stations and a public works facility. The sources of general fixed assets are as follows: L Balance Balance r-, 10-1-96 Additions Deletions 9-30-97 General Fund $3,607,340 $1,115,913 $ 269,295 $ 4,453,958 Special Revenue Funds: Federal Revenue Sharing 750,610 --- --- 750,610 Road Impact 127,948 --- --- 127,948 Police Trust 49,922 18,934 -- 68,856 Parks 106,153 56,290 --- 162,443 Stormwater Utility 348,737 32,668 --- 381,405 Fire Impact 1,050,272 27,728 --- 1,078,000 Police Impact 666,834 --- --- 666,834 Contributions - Other 389,745 -- --- 389,745 State Grant 320,010 --- --- 320,010 Capital Projects Fund 2.486.613 904,969 --- 3.391:582 $ 9,904,184 $2,156,502 $ 269,295 $11,791,391, • -27- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT- CONTINUED The components of property, plant and equipment for the Proprietary Fund Types at September 30, 1997, are as follows: Proprietary Fund Types Enterprise Land and Land Improvements $ 4,565,719 Buildings 379,339 Improvements 28,028,299 Equipment 2,884201 35,857,558 Less: Accumulated Depreciation (10,069,481) $25,788,077 Proprietary Fund construction in progress at September 30, 1997, consisted primarily ofimprovements to well pumpandground storage tanks. mp g During the year, the City capitalized interest expense on construction in progress in the following amounts: Water and Wastewater Fund Total Interest Expense Incurred $ 843,146 - Interest Associated with Construction Projects 549,833 Interest Earned in Construction Accounts 536,295 Net Interest Capitalized 13,538 Interest Expense $ - 829,608 -28- CRY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 - RETIREMENT PLANS Defined Benefit Pension Plan and Trust The City maintains two separate single employer defined benefit pension plans for police officers and firefighters and substantially all other fulltime City employees which are included as part of the City's reporting entity in Pension Trust Funds. Each Plan provides retirement, disability, and death benefits to Plan members and beneficiaries. Florida Statutes, Chapter 175 and 185, establish minimum benefit provisions. The City of Ocoee Commission appoints a board of trustees to administer the pension trust funds. This board of trustees may not amend any provisions of the pension plans without the approval of the City Commission. The investments of the pension trust funds are managed by SunTrust Bank, and there are no undue investment concentrations. Neither plan issues a stand-alone financial report. The amounts legally required as of September 30, 1997 to be reserved for general employees and police and firefighter pension funds are $3,559,952 and $4,223,200, respectively. Summary of Significant Accounting Policies Basis of Accounting - The Plans' financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions to each Plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Method Used to Value Investments - Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. 1 -29- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 - RETIREMENT PLANS - CONTINUED Summary of Significant Accounting Policies - Continued Plan Descriptions The following schedule is derived from the respective actuarial reports and City information for the two pension plans as of October 1, 1996: General Police and Membership and Plan Provisions - Employees Firefighters Members Retirees and Beneficiaries Receiving Benefits 4 3 Terminated Plan Members Entitled to But Not Receiving Benefits 9 4 Active Plan Members Vested 61 42 Nonvested 49 32 123 81 -30- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 _ RETIREMENT PLANS - CONTINUED Defined Benefit Pension Plan and Trust - Continued General Police and Membership and Plan Provisions- EmDlovees Firefighters Normal Retirement Benefits: Eligibility Full-Time Full-Time Employment Employment Age/Years of Service - Normal 60 Earlier of age 55 and 10 years of credited service, or age 52 and 25 years of credited service. Age/Years of Service - Early Age 50 and 5 years of Age 45 and 5 years of credited service. credited service. Benefit - Normal 2%Average Monthly 2.5% of Average Monthly Earnings times Credited Earnings times Credited Service. • Service. Benefit - Early Accrued benefit. Accrued benefit. Form of Benefit 10 year Certain and Life 10 year Certain and Life Annuity. Annuity. J Years to Vest 5 years 5 years Disability Benefits: Service Incurred None Accrued Benefit, but not less than 42% Average Monthly Earnings. Non-Service Incurred None Accrued Benefit, but not less than 25% of Average • Monthly Earnings if 10 years credited service. Pre-Retirement Death Benefits: Vested Accrued Benefit payable Accrued Benefit payable to beneficiary for 10 to beneficiary for 10 years. years. Nonvested Refund Accumulated Refund Accumulated Contributions without Contributions without interest. interest. -31- CITY OF OCOEE, FLORIDA - NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 - RETIREMENT PLANS - CONTINUED Defined Benefit Pension Plans and Trust - Continued Funding Policy All plans are contributory. The employees participating in the General r Employees' Pension Plan are required to contribute 5% of their salary. The City is required to contribute at an actuarially determined rate; the current rate is 10.3% of annual covered payroll. 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 Plan members, City contributions, State contributions and income from investments of accumulated funds. Contributions from the State of Florida are received under Florida Statutes, Chapters 175 and 185. The Plan members are required to contribute 5% of their salary. The City is required to contribute at an actuarially determined rate; the current rate is 20.2%, including expected State contribution, of annual covered payroll. -- Subsequent to September 30, 1997, the City Commission approved certain changes to both of the pension plans. They amended the required contribution from general employees to 7.4% and from police officers and firefighters to 7.6%. The Commission also increased the benefit payable to members upon retirement. _- Annual Pension Cost and Net Pension Obligation The City has traditionally contributed the annual required contribution (ARC) 77 and thus has never actually had, or had need to report, a net pension obligation (NPO). As discussed in Notes 1 and 18, the City implemented GASB Statements No. 25 and 27 during the fiscal year ending September 30, • 1997. At the point of transition (October 1, 1996), the City had no pension liability reflected in either the General Long-Term Debt Account Group or any individual fund. In accordance with GASB Statement No. 27, the City calculated the potential for a net pension liability (asset) and reaffirmed that 1 none existed at September 30, 1997. The Plans' table of required supplementary information is presented below: -32- 1 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED L-' SEPTEMBER 30, 1997 II NOTE 8 - RETIREMENT PLANS - CONTINUED Defined Benefit Pension Plans and Trust - Continued REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF FUNDING PROGRESS Actuarial Accrued UAAL as Actuarial Liability Unfunded a% of __ Actuarial Value ci (AAL). AAL Funded Covered Covered Valuation Assets Entry Age` (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) J(b-a)/cl General Employees 10/01/96 $ 2,297,183 $3,036,060 $ 738,877 75.66% $3,191,788 23.15% 10/01/95 1,728,549 2,460,185 731,636 70.26% 2,785,834 26.26% 10/01/94 1,257,218 1,748,822 491,604 71.89% 2,548,268 19.29% I 1.0/01/93 941,671 1,461,756 520,085 64.42% 2,262,495 22.99% 10/01/92 643,547 1,193,844 550,297 53.91% 2,066,674 26.63% 10/01/91 210,164 761,269 551,105 27.61% 2,246,670 24.53% Police Officers and Firefighters 10/01/96 $ 2,661,713 $3,488,432 $ 826,719 76.30% $2,428,615 34.04% — 10/01/95 1,961,760 2,792,244 830,484 70.26% 2,191,537 37.90% 10/01/94 1,416,034 2,151,116 735,082 65.83% 2,002,476 36.71% 10/01/93 989,107 1,747,087 757,980 56.61% 1,706,230 44.42% 10/01/92 555,482 1,329,389 773,907 41.78% 1,592,110 48.61% 10/01/91 210,164 973,951 763,787 21.58% 1,346,398 56.73% I SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES General Employees Police Officers&Firefighters Annual Annual Year Ended Required Percentage Required Percentage September 30 Contribution Contributed Contribution Contributed 1997 $ 381,590 100% $ 605,960 100% 1996 302,249 100% 481,535 100% 1995 258,894 100% 447,949 100% __ 1994 216,806 100% 282,702 100% 1993 177,101 100% 308,477 100% Li 1992 183,911 100% 246,180 100% I -33- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 - RETIREMENT PLANS - CONTINUED Defined Benefit Pension Plans & Trust - Continued Notes to the Required Supplementary Information The information presented in the required supplementary schedules was determined as part of the actual valuations at the date indicated. Additional information as of the latest (October 1, 1996) actuarial valuation follows: General Police and Employees Firefighters Assumptions: Investment Earnings 8% 8% Salary Increases - Inflation 3% 3% Merit, Longevity, etc. 6% 6% Post-Retirement Benefit 0% 0% Increases Mortality Table 1983 Group 1983 Group Annuity Annuity Mortality Mortality Table Table Retirement Age When First When First Eligible Eligible Actuarial Valuation: Frequency Annual Annual Cost Method Frozen Entry Frozen Entry Age Age Amortization Method Level Percent Level Percent Amortization Period 30 Years Closed 30 Years Closed Asset Valuation Method 4 Year 4 Year Smoothed Smoothed Market Market • 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. -34- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 8 - RETIREMENT PLANS - CONTINUED Deferred Compensation Plan - Continued 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, 1997 were $146,386. . -35- CETY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 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 solid waste services subject to limitations. Approximately 440 residents of the City participated in this program during the fiscal year ended September 30, 1997. All expenditures under this program are shown as expenditures of the general fund. Water Excise Tax $ 4,037 Water Fees 53,306 Solid Waste Fees 77.582 Total Over 65 Cost p 134,925 NOTE 10 - BONDS AND NOTES PAYABLE Summarized below are the City's bonds and notes payable outstanding at September 30, 1997: 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 $610,000 through 2017, plus semi-annual interest at 2.60% to 5.75%. $ 7,850,000 Less: Current Maturities (215,000) Unamortized Discounts (97,740) 7.537,260 Water and Sewer System Improvement Revenue Bonds, Series 1997.- payable in annual installments of$120,000 to $660,000 through 2026, plus semi-annual interest at 3.60% to 5.62% 10,150,000 Less: Current Maturities (120,000) _ Unamortized Discounts (126,842) 9,903,158 $17,440,418 -36- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 10 - BONDS AND NOTES 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 pay- ments at 6.0% to 7.5%. $ 6,050,000 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%. 2,115.000 $ 8,165,000 Notes 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. $ 2,130,000 Capital Improvement Revenue Promissory Note, Series 1996- payable in annual principal installments of $230,000 to $445,000 through 2012 with quarterly interest payments at 4.55% initially, increasing to 5.08% on January 1, 2007. Interest rate reset on January 1, 2008 in accordance with Loan Agreement. 4,840,000 $ 6,970,000 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 L_) $10,160,000 outstanding Series 1989A and B Water and Sewer System Revenue Bonds. I 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. -37- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993- Continued 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. 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, r 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 provide for the reserve requirement by purchasing a surety bond. Water and Sewer System Improvement Revenue Bonds, Series 1997 In January 1997, the City issued Water and Sewer System Improvement Revenue Bonds, Series 1997 to expand the capacity of and construct and acquire other improvements to the City's Water and Sewer System (the "System"). These bonds are secured by prior lien upon and pledge of Net Revenues of the System, and the Water and Sewer system development charges to the extent of the bond service component (the "Pledged Funds"). Such prior lien and pledge of the Pledged Funds is on a parity with the lien and pledge granted to the holders of the City's Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993. The major provisions of the ordinances authorizing the revenue bonds are as follows: 1) The City shall establish rates which will provide for necessary operating _ expenses and 110% of the bond service requirement due that year. 2) The City shall provide for the reserve requirement by purchasing a surety bond. -38- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED Water and Sewer System Improvement Revenue Bonds, Series 1997 - Continued 3) Amounts deposited into Debt Service Fund shall be depleted at least once a year except for any carryover amount which will not exceed greater of (a) the earnings on such fund for the immediately preceding bond year and (b) one- twelfth. of the debt service on the Series 1997 Bonds for immediately preceding bond year. Florida TransportationRefunding and ImprovementRevenue Bonds, Series 1990 li 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, iJ 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 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. 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. -39- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED 2) The City shall establish a Reserve Fund and maintain the Reserve Fund requirement of $249,945. Stormwater Utility Revenue Promissory Note, 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 of at least 1.15 to 1.00 for two consecutive fiscal years. Capital Improvement Revenue PromissoryNote, Series 1996 Pr In December 1996, the City issued a promissory note to finance certain capital projects including two fire stations, a gymnasium and recreational facility, and a - public works facility. This note is payable solely able from Non-ad Valorem Revenues of the City. The major provisions of the ordinance authorizing the promissory note are as follows: 1) The City will not issue non-self-supporting revenue debt if after the issuance of such debt, maximum annual debt service resulting from the total outstanding non-self-supporting revenue debt service of the City exceeds 50% of total general purpose Non-ad Valorem Revenues of the City received in the _ immediately preceding Fiscal Year of the City. Non-self-supporting revenue debt shall not include any debt payable from revenues of a utility system. 2) The City shall establish a Reserve Fund and maintain the Reserve Fund Requirement of $484,000. Securities in the Reserve Fund shall be valued at market value annually on each January 1. Deficiencies in the amounts on r_ deposit in the Reserve Fund resulting from a decline in market value shall be restored no later than the succeeding interest payment date. -40- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 • I`I NOTE 10 - BONDS AND NOTES 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 1998 $ 270,000 $ 600,798 $ 335,000 $ 835,713 $ 2,041,511 1999 285,000 582,722 390,000 956,875 2,214,597 2000 305,000 563,308 405,000 940,315 2,213,623 2001 330,000 542,167 420,000 922,477 2,214,644 2002 350,000 519,075 440,000 903,366 2,212,441 2003-2007 2,160,000 2,175,975 2,550,000 4,171,931 11,057,906 2008-2012 2,855,000 1,242,375. 3,300,000 3,424,707 10,822,082 2013-2017 1,610,000 247,125 4,330,000 ' 2,397,562 8,584,687 2018-2022 --- --- 2,865,000 1,263,012 4,128,012 2023-2027 --- --- 2,965,000 518,625 3,483,625 $ 8,165,000 $ 6,473,545 $18,000,000, 16 334 583 $48,973,128 Following is a maturity schedule of principal payments on the stormwater and capital improvement notes payable: Year Ended September 30: 1998 $ 340,000 1999 370,000 2000 380,000 2001 390,000 U 2002 405,000 Thereafter 5,085,000 _ $ 6,970,00Q -41- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED During the year ended September 30, 1997, the following changes in general long-term debt occurred: Accrued Capital Bonds and Annual Lease Notes Leave Obligations Payable Total Balance at October 1, 1996 $ 399,593 $ 1,376,532 $10,620,000 $12,396,125 1 4,840,000 5,219,392 Additions 76,980 302,4 2 Principal payments --- (535,492) (325,000) (860,492) Balance at Septem- ber 30, 1997 $ 476,573 $ 1,143,452 $15,135,000 16 755 025 NOTE 11 - DEBT DEFEASANCE defeased the Public Improvement Revenue Bonds, Series 1987, In 1990 the City p 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, 1997, the amount of defeased debt outstanding, but removed from the General Long-Term Debt Account Group amounted to $295,500. 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 equipment. 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. -42- f 'L-J CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 r NOTE 12 - LEASE OBLIGATIONS - CONTINUED Capital Leases - Continued Equipment under capital leases recorded in the General Fixed Asset Account Group at September 30, 1997 consists of the following: Fire Trucks $ 595,542 800 MHZ Radio System 666,834 Vehicles and Trucks 704,047 Equipment 80.297 } _2,046,729 Debt service payments on equipment capitalized in the General Fixed Asset Group are recorded as expenditures in either the General Fund or the Special 22.. 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: 1998 $ 522,967 1999 455,184 2000 232,894 2001 24,116 n Total Minimum Lease Payments 1,235,161 Less, Amount Representing Interest (91.709) Present Value of Net Minimum Lease Payments $ .1,143,452 -43- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 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 Solid Waste Fund Fund Totals Vehicles and Equipment $ 43,527 $ 235,674 $ 279,201 Less Accumulated Amortization 21,038 48,782 69.820 Net Book Value $ 22,489 $ 186,892 $ 209,381 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 Solid Waste September 30: Fund Fund Totals 1998 $ 11 387 $ 53 613 $ 65,000 1999 11,387 53,613 65,000 2000 11,387 53,613 65,000 2001 949 27.075 28.024 Total Minimum Lease Payments 35,110 187,914 223,024 Less, Amount Repre- senting Interest (5.653) (18,573) (24.226) Present Value of Net Minimum Lease Payments $ 29,457 $ 169.341 2 198,798 The current and noncurrent obligation under these capital leases are$53,538 and $145,260, respectively. • -44- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 12 - LEASE OBLIGATIONS - CONTINUED Operating Leases • The City leases office and computer equipment under non-cancelable operating leases. Rental expenditures for the year ended September 30, 1997 amount to $40,157. The following is a schedule by years of future minimum rentals on these noncancelable leases as of September 30, 1997: Year Ending September 30: 1998 $ 39,473 1999 16.733 • $ 56,206 • NOTE 13 - INTERFUND RECEIVABLES AND PAYABLES The following schedule as of September 30, 1997,represents interfund receivables and payables: Interfund Interfund Fund Type -- Receivables Payables General Fund $ 21,392 $ --- Special Revenue Funds: • Police Training --- 782 Enterprise Funds: Solid Waste --- 20,610 _ Pension Trust Funds: General Employees --- 122 Police and Firefighters 122 --- $ 21,514, $ 21,514, 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. -45- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 15 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains two enterprise funds which provide water, wastewater, and solid waste services. Segment information for the year ended September 30, 1997, is as follows: Water and Wastewater Solid Waste Total Operating Revenues $ 4,030,639 1,243,295 $ 5,273,934 - Depreciation and Amortization $ 1,329,432 $ 201,955 $ 1,531 L387 Operating Income $ 99,319, $ 121,858 $ 221,177 Operating Grants $ --- $ 29,000, $ 29,000 - Operating Transfers: In $ 22,819 $61307. $ 29,626 Out $ (625,411) $ (132,774) $ (758185) Net Income (Loss) $ (536,502) $ 23,354 $ (513,148) -- Current Capital Contributions $ 798,790 --- $ 798,790 Property Additions $ 875,240 $ 143,290 $ 1,018,530 Property Deletions $ 186,105 $_ --- _ $ 186,105 Net Working Capital $ 2,438,701 $ 205,796 $ 2,644,497 - Total Assets • $46,506,771 $ 804,064 $47,310,835, Long-Term Debt $17,461,433 $ 124,245 $17,585,678 Total Equity $27,435,610 $ 589,439 $28,025,049 -4- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 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, 1997: Contributed Capital - Beginning of Year $23,957,113 Additions (Reductions) Connection Fees 114,180 Write-off Connection Fees Billed in Prior Year (268,782) Developers 684,610 Depreciation on Contributed Assets (366,739) Contributed Capital - End of Year $24,120,382 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 - CHANGES IN ACCOUNTING PRINCIPLE As discussed in Note 1, the City adopted GASB Statements No. 25, 27 and 31 during fiscal year 1997. The City was required to implement GASB Statement No. 25 in 1997; however, the City early implemented GASB Statements No. 27 and 31 since the GASB encouraged early implementation. The statements require a new financial statement presentation and disclosures for pension trust funds as well as recording investments at fair value. Fund balances of governmental funds, retained earnings of proprietary funds, and net assets held in trust for pension benefits in pension trust funds have been restated at October 1, 1996 as follows to account for the cumulative effect of applying these Statements: -47- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1997 NOTE 18 - CHANGES IN ACCOUNTING PRINCIPLE - CONTINUED Increase (Decrease) General Fund $ (10,053) Special Revenue Funds (162,165) Debt Service Funds (18,619) Enterprise Funds (159,254) Pension Trust Funds 972,425 The adoption of these Statements resulted in the following increases in excess of revenues over expenditures in governmental funds, net income in proprietary funds and net assets held in trust for pension benefits in pension trust funds for the year ended September 30, 1997: Increase General Fund $ 31,284 Special Revenue Funds 318,770 Debt Service Funds 8,866 Capital Projects Funds 45,811 Enterprise Funds 342,240 Pension Trust Funds 1,271,051 NOTE 19 - COMMITMENTS At September 30, 1997, the City had entered into contracts totaling $762,683 related to projects for improvements to the City's Water and Sewer System. In addition, the remaining commitment on the contract for construction of the two fire stations is approximately $753,300 at September 30, 1997. -48- II i I 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. it This page intentionally left blank. Ocoee tit4 � fl ylE,p N> 0pG000 Ii I • 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. I • • ,LiI L • This page intentionally left blank. Ocoee I►' / • Op G00� • • 1 , CITY OF OCOEE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1997 Variance Favorable Budget Actual (Unfavorable) REVENUE Taxes L Property Taxes $ 2,240,210 $ 2,243,488 $ 3,278 Franchise Taxes 1,161,000 1,145,834 (15,166) Utility Taxes 1,513,300 1,577270 63.970 4.914,510 4.966.592 52,082 Licenses And Permits Building Permits 502,700 629,201 126,501 Occupational License 238200 250.449 12.249 , 740.900 879.650 138.750 Intergovernmental Revenues Cigarette Tax 96,900 95,635 (1,265) State Revenue Sharing 508,000 519,778 11,778 Sales Tax 2,095,000 2,138,419 43,419 j Other State Shared Revenue 49,100 36,588 (12,512) County 60 Gas Tax 368,000 386,850 18,850 Other County Shared Revenue 109,000 66,347 (42,653) Federal Grants 206.070 124,565 (81,505) 3.432,070 3.368,182 (63,888) i Charges For Services Fire Contract 117,260 114,188 (3,072) Program Activity Fees 56,750 85,943 29,193 '; City Staff Charges 8,150 7.988 (162) 182,160 208.119 25,959 I Fines And Forfeitures Fines And Forfeitures 97.000 75,483 (21,517) ,-_I Investment Income Investment Income 85,000 146,357 61,357 i _ Miscellaneous Revenues Zoning And Election Fees 30,000 35,320 5,320 1 Other 100.350 128,184 27,834 130.350 163.504 33,154 Total Revenues $ 9,581,990 $ 9,807,887, $ 225,897 L -49- • This page intentionally left blank. Ocoee c#4. mac, OP GO CO • CRY OF OCOEE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1997 Variance Favorable Budaet _ Actual (Unfavorable) EXPENDITURES General Government Legislative $ 125,431 $ 99,763 $ 25,668 Executive 563,569 495,235 68,334 Finance And Administrative 877,579 828,435 49,144 Legal 232,000 221,648 10,352 Planning And Zoning 411,240 379,535 31,705 General Government 593,252 246,749 346,503 Building Maintenance 316,383 161,337 155,046 1 3119454 2,432,702 686,752 Pubic Safety 1 Law Enforcement 3,039,984 2,750,322 289,662 Fire Control 2,434,625 2,302,194 132,431 Protective Inspections 694,935 644,210 50,725 _ 6,169,544 5,696,726 472,818 Physical Environment Roads And Streets 1,413,107 1,162,242 250,865 Culture And Recreation Parks And Recreation 677,515 486,722 190,793 ' `" Debt Service Principal Retirement - 299,171 (299,171) . Interest And Fiscal Charges _ 40,204 (40,204) - 339,375 (339,375) Total Expenditures 11,379,620 10,117,767 1,261,853 Excess (Deficiency) Of Revenues Over Expenditures (1,797,630) (309,880) 1,487,750 Other Financing Sources (Uses) Operating Transfers In 1,831,130 1,633,763 (197,367) Operating Transfers Out (883,500) (989,477) (105,977) Net Other Financing Sources (Uses) 947,630 644,286 (303,344) Excess (Deficiency) Of Revenues And Other Sources Over Expend- hires and Other Uses (850,000) 334,406 1,184,406 Fund Balance-Beginning of Year, As Restated (850,000) 1,621,723 771,723 Li Fund Balance- End of Year $ - $ 1,956,129 § 1,956,129 -50- • This page intentionally left blank. Ocoee o ,. -\ cb° lfR v> OF GOO° 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 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 SHEET ALL SPECIAL REVENUE FUNDS SEPTEMBER 30, 1997 Road Impact Parks Stormwater Assets - Cash And Cash Equivalents $ 1,368,332 $ 363,222 $ 70,803 - Investments 4,225,457 268,466 48,438 Receivable - Net 49.265 --- 74.523 Total Assets $ 5,64.3,654 $ 631,688 $ 193,764 Liabilities And Fund Balances Liabilities - Accounts Payable $ 100,011 $ --- $ 23,143 _ Due to Other Funds --- --- --- Deferred Revenue --- 8,880 --- Total Liabilities 100.011 8.880 23,143 Fund Balances Unreserved: Designated For Subsequent - Year's Budget 5,543,043 622.808 170,621 Total Fund Balances 5.543.043 622.808 170.621 Total Liabilities And Fund Balances $ 5,643,054, $ 631,688 $ 193 764 -51- Total L Special Interim Police Police Fire Police Revenue Services Training Trust Impact Impact Funds $ 15,833 $ 12,945 $ 29,233 $ 879,833 $ 145,302 $ 2,885,503 --- --- --- 986,666 72,657 5,601,684 --- --- --- 2,521_ --- 126,309 $ 15,833 12 945 $ 29,233 $ 1,869,020 $ 217,959 $ 8,613,496 $ --- $ --- $ -- $ --- $ --- $ 123,154 --- 782 --- --- --- 782 --- 8,880 782 --- 132.816 15,833 12,163 29,233 1.869,020 217,959 8,480,680 15,833 12,163 29,233 1,869,020 217,959 8,480.680 $ 15�833 $ 12,945 $ 29,233 $ 1,869,020 217,959 $ 8,613,496 -52- CRY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL.SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1997 Road ImrIn& Parks Stormwater Revenues Intergovernmental Revenues $ — $ 2,348 $ — Fines And Forfeitures — — — Impact Fees/Special Assessments 1,298,620 261,430 804,199 Investment Income 415,457 43,917 10,197 Miscellaneous Revenues — — — Total Revenues 1,714,077 307.695 814.396 Current: Public Safety — — — Physical Environment 2,023,446 — 645,398 Culture And Recreation — 56,290 — Debt Service: Principal Retirement — — 67,633 Interest And Fiscal Charges — — 15,173 Total Expenditures 2.023.446 56.290 728.204 Excess (Deficiency) Of Revenues Over Expenditures (309.369) 251.405 86.192 Other Financing Sources (Uses) I— Operating Transfers Out (629,253) (118,100) (282,857) Net Other Financing Sources (Uses) (629,253) (118,100) (282,857) Excess (Deficiency) Of Revenues And Other Financing Sources Over Expenditures And Other Financing Uses (938,622) 133,305 (196,665) Fund Balances-Beginning Of Year As Previously Reported 6,549,771 500,818 367,286 Prior Period Adjustment (111,347) (11,315) — - As Restated 6.438.424 489.503 367.286 Residual Equity Transfer In 43,241, — — Fund Balances-End of Year $ 5,543,043 622 808 $ 170,621 _53 n LI J i Total Special Interim Police Police Fire Plaice Revenue Services Trainina Trust Impact Impart Funds $ - $ - $ - $ $ 7,370 $ 9,718 - 1,242 3,588 - - 4,830 59,371 - - 415,633 132,823 2,972,076 968 642 2,100 146,289 10,756 630,326 -- - - 308,323 - 308,323 1 60,339 1,884 5,688 870,245 150,949 3,925,273 i - - 20,717 526,762 - 547,479 - - - - - 2,668,844 1 - - - - - 56,290 - - - 168,688 - 236,321 - - - 17,869 - 33,042 I - - - 20,717 713,319 - 3,541,976 I- L 60,339 1,884 (15,029) 156,926 150,949 383,297 (50,874) - - (63.580) (100,839) (1,245,503) I (50,874) - - (63,580) (100,839) (1,245,503) 9,465 1,884 (15,029) 93,346 50,110 (862,206) 6,368 10,279 44,262 1,815,177 167,849 9,461,810 -- (39.503) - (162,165) I i_ 6,368 10,279 44,262 1,775,674 167,849 9,299,645 - - - - - 43,241 i $ 15`833 $ 12,163 $ 29,233 $ 1,869,020 $ 217,959, $ 8,480,680 -54- This page intentionally left blank. Ocoee �� O Of GOOV 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. Descriptionof Funds Transportation Refunding - Accounts for the principal and interest payments on the 1990 and Improvement Transportation Refunding and Improvement Revenue Bonds I` 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. • Capital Improvement - Accounts for the principal and interest payments on the 1996 Revenue Promissory Capital Improvement Revenue Promissory Note issued to Note finance certain capital projects including two fire stations, a gymnasium and recreational facility, and a public works facility. This page intentionally left blank. Ocoee 6`tc,11 Ffit- 1-6V g CRY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS SEPTEMBER 30, 1997 Capital Transportation Capital Stormnwater Improvement Refunding And improvement Revenue Revenue Total Improvement Revenue Promissory Promissory Debt Service Revenue Bonds Bonds Note Note Funds Assets Cash And Cash Equivalents $ 31,992 $ 88,644 $ 15,174 $ 60,557 $ 196,367 Restricted Assets: Investments - 229,286 207,520 396,983 833,789 Cash With Paying Agent 394,011 169,795 202,271 55,055 821,132 Total Assets $ 426,003 $ 487,725, $ 424,965 $ 512,595 $ 1,851,288 Liabilities And Fund Balances Liabilities Matured Bonds Payable $ 165,000 $ 90,000 $ 70,000 $ - $ 325,000 Matured Interest Payable 229,011 79,795 132,271 55,055 496132 Total Liabilities 394,011 169,795 202,271 55,055 821,132 Fund Balances Reserved For Debt Service 31,992 317,930 222,694 457,540 1,030,156 Total Liabilities And Fund Balances $ 426,003 $ 487,725, $ 424,965_ 512 595 $ 1,8511288 it -55- This page intentionally left blank. Ocoee 015, r31 0 nay OF G 000 Il I,J Cl1Y OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1997 Capital Transportation Capital Stom,water Improvement Refunding And Improvement Revenue Revenue Total Improvement Revenue Promissory Promissory Debt Service Revenue Bonds Bonds Note. Note Funds Revenues Investment Income $ 9,940 $ 17,111 $ 17,775 $ 17,542 $ 62,368 Total Revenues 9,940 17,111 17,775 17,542 62,368 Expenditures Debt Service: Bond Principal Payments 165,000 90,000 70,000 - 325,000 Bond Interest and Fiscal Charges 458,498 159,590 132,271 , 181,682 932,041 Total Expenditures 623,498 249,590 202,271 181,682 1,257,041 Excess (Deficiency) Of Revenues Over Expenditures (613,558) (232,479) (184,496) (164,140) (1,194,673) Other Financing Sources Operating Transfers In 623,022 249,590 203,452 181,680 1,257,744 Bond Proceeds - - - 440,000 440.000 Total Other Financing Sources 623,022 249,590 203,452 621,680 1,697,744 li Excess of Revenues And Other Financing Sources Over Expenditures And Other Financing Uses 9,464 17,111 18,956 457,540 503,071 Fund Balances-Beginning of Year As Previously Reported 22,528 319,438 203,738 - 545,704 Prior Period Adjustment - (18,619) - - (18,619) As Restated 22,528 300,819 203,738 - 527,085 Fund Balances-End Of Year $ 31,992 $ 317,930 $ 222,694 $ 457,540 $ 1,030,156 • jI -56- This page intentionally left blank. Ocoee 6'7 r IF 's OF G 000 ! CAPITAL PROJECTS FUNDS i 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- 1 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. Capital Improvement - Accounts for the proceeds of the 1996 Capital Improvement Revenue Promissory Note issued to finance certain capital projects including two fire stations, a gymnasium and recreational facility, and a public works facility. CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS SEPTEMBER 30, 1997 City Hall/ Road Police Dept Construction Construction Assets Cash and Cash Equivalents $ 370,307 $ 2,720 Investments --- --- Accounts Receivable 26 --- Total Assets $ 370.333, $ 2,720 Liabilities And Fund Balance Uabilities Accounts Payable $ --- $ --- Retainage Payable 55.594 1214 Total Liabilities 55.594 1.214 Fund Balance Unreserved - Designated For Capital Projects 314.739 1.506 Total Liabilities And Fund Balance $ 370.333 -57- I-' Total Stormwater Computer Capital Capital Project Improvement Acquisition Improvements Funds $ 1,034,035 $ 144,312 $ 1,816,447 $ 3,367,821 594,514. --- 1,992,014 2,586,528 --- --- --- 26 1 628 549 $ 144,3.12 $ 3,808,461 $ 5,954,375, $ 8,192 $ --- $ --- $ 8,192 9,266 --- --- 66.074 17.458 --- --- 74.266 1.611,091 144.312 3.808,461 5.880.109 $ 1,628,549 $. 144,312 $ 3,808,461 $, 5,954,375 -58- 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, 1997 City Hall/ Road Police Dept. Construction Construction Revenues Building Permits $ 8,252 $ --- Investment Income 27,286 1,394 Miscellaneous Revenues --- --- Total Revenues 35.538 1,394 Expenditures Capital Outlay: General Government --- 9,907 Public Safety --- 7,060 Physical Environment 284,293 --- Culture & Recreation --- --- Total Expenditures 284.293 16,967 Excess (Deficiency) Of Revenues Over Expenditures (248,755) (15,573) Other Financing Sources (Uses) Operating Transfers In --- - Operating Transfers Out (16,472) --- Promissory Note Proceeds - --- Net Other Financing l Sources (Uses) (16,472) --- Excess (Deficiency) Of Revenues And Other Financing Sources Over Expenditures And Other 1 Financing Uses (265,227) (15,573) Fund Balances - Beginning Of Year 579,966 17,079 - Fund Balances - End Of Year $ 314.739 $ 1,506 -59- Total Stormwater Computer Capital Capital Project Improvement Acquisition Improvements Funds --- $ 8,252 98,052 17,700 208,836 353,268 --- --- 900 900 98,052 17.700 209.736 362,420 --- 364,810 --- 374,717 --- --- 715,048 722,108 400,814 --- 14,128 699,235 --- --- 72.099 72.099 400,814 364.810 801.275 1,868.159 (302,762) 347,110 591,539) (1,505,739) u --- 100,000 --- 100,000 (1,012) (10,485) --- (27,969) --- --- 4.400,000 4,400,000 (1,012) 89.515 4,400.000 4.472.031 (303,774) (257,595) 3,808,461 2,966,292 1,914.865 401,907 --- 2.913.817 $ 1,611,091 $ 144,312 $ 3,808.461 $ 5,880,109 -60- This page intentionally left blank. Ocoee�,�, oey. lN OF G000 r it IhI 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. Solid Waste - 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. • l__ CRY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS SEPTEMBER 30, 1997 , Water Total and Enterprise Wastewater Solid Waste Funds ASSETS Current Assets I- Cash And Cash Equivalents $ 611,955 $ 132,850 $ 744,805 Investments 1,809,700 46,395 1,856,095 Receivables (Net Of Allowance For Uncollectibles) 410,554 108,705 519,259 Inventory - Materials 22,152 — 22,152 ' Due From Other Governments —-- 8,226 8,226 Total Current Assets 2,854,361 296,176 3150537 Restricted Assets Cash And Cash Equivalents 2,810,666 95,943 2,906,609 Investments 10,833,216 — 10,833,216 Cash With Paying Agent 822,326 — 822,326 Total Restricted Assets 14,466,208 95,943 14,562,151 Food Assets Property, Plant And Equipment 34,536,625 1,320,933 35,857,558 - Less: Accumulated Depreciation (9,160,493) (908,988) (10,069,481) Construction In Progress 2,969,186 — 2,969,186 Total Food Assets-Net 28,345,318 411,945 28;757,263 Other Assets Assessments Receivable 251,775 — 251,775 Unamortized Bond Issuance Costs 589,109 — 589,109 Total Other Assets 840,884 — 840,884 Total Assets $ 46,506z771 804 064 $47,310,835 -61- Total Water and Enterprise Wastewater Solid Waste Funds LIABILITIES AND FUND EQUITY Current Liabilities (Payable From Current Assets) Accounts Payable $ 228,366 $ 1,805 $ 230,171 Accrued Expenses 139,850 22,869 162,719 r Due To Other Funds - 20,610 20,610 Deferred Revenue 39,002 - 39,002 Obligations Under Capital Leases 8,442 45,096 53,538 Total Current Liabilities (Payable From Current Assets) 415,660 90,380 506,040 Current Liabilities (Payable From - Restricted Assets) Customer Deposits 344,224 - 344,224 Retainage Payable • 27,518 - 27,518 Accrued Interest Payable 487,326 - 487,326 Revenue Bonds Payable 335,000 - 335,000 Total Current Liabilities (Payable From Restricted Assets) 1,194,068 - 1,194,068 . Long-Term Liabilities Revenue Bonds Payable 17,440,418 - 17,440,418 Obligations Under Capital Leases 21,015 124,245 145,260 ,___) Total Long-Term liabilities 17,461,433 124,245 17,585,678 Total Liabilities 19,071,161 214,625 19,285,786 Fund Equity Contributed Capital 24,120,382 - 24,120,382 Retained Earnings: Reserved For Renewal And Replacement 1,638,008 95,943 1,733,951 Unreserved 1,677,220 493,496 2,170,716 Total Retained Earnings 3,315,228 589,439 3,904,667 Total Fund Equity 27,435,610 589,439 28,025,049 Total Liabilities&Fund Equity $46,506,771, 804 064 $ 47,310L835 -62- This page intentionally left blank. Ocoee O� �y � o p. 5 OF6000 CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1997 --i Total Water and Enterprise Wastewater Solid Waste Funds Operating Revenues User Charges $ 4,030,639 $ 1,243,295 $ 5,273,934 Operating Expenses Personal Services 1,514,777 404,805 1,919,582 Materials And Supplies 383,422 359,960 743,382 Heat, Light And Power 340,850 - 340,850 Depreciation And Amortization 1,329,432 201,955 1,531,387 Other Expenses 362,839 148,978 511,817 Recycling Expenses - 5,739 " 5,739 Total Operating Expenses 3,931,320 1,121,437 5,052,757 Operating Income (Loss) 99,319 121,858 221,177 Nonoperating Revenues ) Grant Revenue J - 29',000 29,000 Investment Income 865,103 9,096 874,199 Interest Expense (829,608) (10,633) (840,241) Loss on Sale of Fixed Assets (68,724) - (68,724) . Total Nonoperating Revenues (Expenses) (33,229) , 27,463 (5,766) Income Before Operating Transfers 66,090 149,321 215,411 Operating Transfers i- Operating Transfers In 22,819 , 6,807 29,626 Operating Transfers Out (625,411) (132,774) (758,185) L_, Net Operating Transfers (602,592) (125,967) (728,559) • Net Income (Loss) $ (536,502) L 23,354 $ (5513,148 I Disposition Of Net Income (Loss) Net Income (Loss) $ (536,502) $ 23,354 $ (513,148) j Depreciation On Contributed Assets 366,739 - 366,739 Net Increase (Decrease) In Retained Earnings (169,763) 23,354 (146,409) Retained Earnings-Beginning of Year ( As Previously Stated 3,644,245 566,085 4,210,330 H Prior Period Adjustment (159,254) - (159,254) As Restated 3,484,991 566,085 4,051,076 ' Retained Earnings-End of Year $ 3,315,228 $ 589,439 $ 3,904,667 -63- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1997 Total Water and Enterprise Wastewater Solid Waste Funds Cash Flows From Operating Activities: Receipts From Customers $ 4,011,160 $ 1,227,336 $ 5,238,496 Payments To Suppliers (949,141) (524,542) (1,473,683) Payments To Employees (1,487,713) (401,762) (1,889,475) Net Cash Provided By Operating Activities • 1,574,306 301,032 1,875,338 Cash Flows From Noncapital Financing Activities: Net Operating Transfers In (Out) (602,592) (125,967) (728,559) Receipts From Grants — 24,267 24,267 Increase (Decrease) Due To Other Funds (1,515) 20,610 19,095 Net Cash Used In Noncapital Financing Activities (604,107) (81,090) (685,197) Cash Flows From Capital And Related Financing Activities: Proceeds From Sale of Property and Equipment 87,630 — 87,630 Purchase Of Property, Plant And Equipment (190,630) • (143,290) (333,920) Additions to Construction in Progress (1,296,658) — (1,296,658) Principal Paid On Bonds and Leases (212,532) (88,013) (300,545) , Interest Paid On Bonds and Leases (567,681) (10,633) (578,314) Proceeds from Bonds and Capital Leases 10,019,878 119,299 10,139,177 Capital Contributions 114,180 — 114,180 Cash Received On Assessments Receivable 60,518 — 60,518 Bond Issue Costs Paid (304,987) — (304,987) Net Cash Provided By (Used In) Capital And Related Financing Activities 7,709,718 (122,637) 7,587,081 Cash Flows From Investing Activities: Sale Of Investments 487,200 50,000 537,200 Purchase Of Investments (7,705,920) — (7,705,920) Investment Income 514,387 9,477 523,864 Net Cash Provided By (Used In) In Investing Activities (6,704,333) 59,477 (6,644,856) Net Increase (Decrease) In Cash And Cash Equivalents 1,975,584 156,782 2,132,366 Cash And Cash Equivalents At Beginning Of Year 2,269,363 72,011 2,341,374 Cash And Cash Equivalents At End Of Year $ 4,244,947 $ = 228 793 $ 4,473,740 Classified As: Current Assets $ 611,955 $ 132,850 $ 744,805 Restricted Assets 3,632,992 95,943 3,728,935 Total $ 4,244,947 228 793 $ 4,473,740 -64- • Total Water and Enterprise Wastewater Solid Waste Funds Reconciliation Of Operating Income (Loss) To Net Cash Provided By Operating Activities: Operating Income (Loss) $ 99,319 $ 121,858 $ 221,177 Adjustments Not Affecting Cash: Depreciation 1,306,870 201,955 1,508,825 Amortization 22,562 — 22,562 Provision For Uncollectible Accounts 5,500 4,000 9,500 Change In Assets And I i gin• (Increase) Decrease In Accounts Receivable (19,657) (15,959) (35,616) Increase (Decrease) In Accounts Payable 196,532 (13,865) 182,667 Increase (Decrease) In Accrued Expenses 27,064 3,043 30,107 Increase (Decrease) In Retainage Payable (64,062) — (64,062) Increase.(Decrease) In Deferred Revenue (6,724) — (6,724) Increase (Decrease) In Customer Deposits 6,902 — 6,902 Total Adjustments 1.474,987 179,174 1,654,161 Net Cash Provided By Operating Activities $ 1,574,306, $ 301,032 $ 1,875,338, • • Noncash Investing, Capital And Financing Activities: Contributed Property, Plant, And Equipment $ 684,610 $ — $ 684,610 Write Off Capital Contributions Billed in Prior Year (268,782) — (268,782) L_ Increase (Decrease) in the Fair Value of Investments 342,621 (381) 342,240 $ 758,449 $ (381) $ 758,068 . i._ -65- • • • This page intentionally left blank. Ocoee oy,„, 4 OF GOOV 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 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. This page intentionally left blank. Ocoee ti\<‘\°2-2_ fG00• CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET TRUST AND AGENCY FUNDS SEPTEMBER.30, 1997 Trust Funds Agency Fund Pension Deferred Trust Compensation Funds Plan Totals Assets Cash And Cash Equivalents $ 21,486 $ --- $ 21,486 Investments 7,661,477 1,092,244 8,753,721 Receivables - Net 100,189 --- 100,189 Due From Other Funds 122 --- 122 Total Assets $ 7,783,274, $ 1,092,244 $ 8,875,518 Liabilities And Fund Balance Liabilities Due To Other Funds $ 122 $ --- $ 122 Deferred Compensation Payable --- 1,092,244 1,092,244 --I Total Liabilities 122 1,092,244 1,092,366 Fund Balances Reserved For Employees' Pension Benefits 7,783,152 --- 7,783,152 Total Fund Balances 7,783,152 --- 7,783,152 Total Liabilities And Fund Balances $ 7,783,274, $ 1,092,244 $ 8,875,518 -66- EEFLORIDA CITY OF OCOEE, FLORI COMBINING STATEMENT OF PENSION FUND NET ASSETS • SEPTEMBER 30, 1997 Pension Trust Funds General Police And Employees Firefighters Totals Assets Cash and Short-Term Investments $ 8.930 $ 12.556 $ 21,486 Receivables - Employer Contribution 31,799 43,345 75,144 Employee Contribution 13,997 11,048 25,045 Due From Other Funds --- 122 122 Total Receivables 45,796 54,515 100,311 Investments, at Fair Value Commingled Bank Bond Fund 1,554,204 1,844,379 3,398,583 Commingled Bank Stock Fund 1.951.144 2,311,750 4.262.894 Total Investments 3505,348 4.156,129 7.661,477 Total Assets 3,560,074 4,223,200 7,783,274 Liabilities Due To Other Funds 122 --- 122 Net Assets Held in Trust for Pension Benefits (A schedule of funding progress for each Plan is presented on page 33) $ 3,559,952 4,223,200 $ 7,783,152 -67- I CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 1997 I Pension Trust Funds General Police And Employees Firefighters Totals Additions Contributions ` Employer $ 381,590 $ 520,140 $ 901,730 State --- 85,820 85,820 LI Plan Members 181,606 138.422 320,028 Total Contributions 563,196 744.382 1,307,578 1 Investment Income Net Appreciation in Fair Value Investments 573,683 697,368 1,271,051 Interest 40,157 15.699 55.856 - 613,840 713,067 1,326,907 j , Less Investment Expense (20.725) (24,710) (45.435) L-' Net Investment Income 593.115 688.357 1.281,472 Total Additions 1.156.311 1.432,739 2,589.050 �' Deductions Benefits 50,544 72,293 122,837 Administrative Expenses 17,458 15,558 33,016 Total Deductions 68,002 87.851 155.853 Net Increase 1,088,309 1,344,888 2,433,197 Net Assets Held in Trust for Pension Benefits Beginning Of Year - As Previously Reported 2,027,266 2,350,264 4,377,530 Prior Period Adjustment 444.377 528.048 972.425 As Restated 2.471.643 2,878.312 5,349,955 End Of Year $ 3,559,952 $ 4,223,200 $ 7,783,152, 1 -68- L_ , CITY OF OCOEE, FLORIDA STATEMENT OF CHANGES IN ASSETS AND LIABI1111ES AGENCY FUND FOR THE YEAR ENDED SEPTEMBER 30, 1997 . • Balance Balance October 1, September 30, 1996 Additions Deductions 1997 Deferred Compensation Assets: • . Investments $ 801,305, $ 307,339 $ 16,400 $. 1,_092,244 Liabilities: Deferred Compensation - Payable $ 801,305 $ 307,339, $ 16,400 $ 1,092,244 • -69- L_1 • L_ • Ij 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. . r Err • This page intentionally left blank. Ocoee o 01.0 0; G 00 U CITY OF OCOEE, FLORIDA SCHEDULE OF GENERAL FDCED ASSETS-.BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 1997 Culture General Public Physical And Govemment Safety Environment Recreation Total Land $ 153,792 $ 188,621 $ 613,099 $ 357,371 $ 1,312,883 Buildings 1,972,541 1,214,108 262 286,188 3,473,099 Improvements 253,072 62,909 59,058 599,718 974,757 Equipment 881,145 2,938,295 905,234 282,341 5,009,015 Construction In Progress 16,916, 890,841 14,128 99,752 1,021,637 Total _$ 3,277,466_ $ 5,294,774 $ 1,593,781 $ 1,625,370 $11,791,391 Balance Balance 10-01-96 Additions Deletions 09-30-97 General Government $ 3,004,776 $ 274,555 $ 18,781 $3,260,550 Public Safety 4,047,469 496,623 140,159 4,403,933 Physical Environment 1,479,425 205,883 105,655 1,579,653 Culture& Recreation 1,340,161 185,457 — 1,525,618 Construction in Progress 32,353 993,984 4,700 1,021,637 Total $ 9,904,184, $2,156,502 $ 269,295 $11,791,391 • I _ I I -70- Th • is page intentionally left blank. Ocoee � n 0 v � 1C15_. c� !f� v> °F GOO �ll 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. Lis —I U . Li 11 This page intentionally left blank. �lOcoee o/ �,. .\o K.,........ Ej�` ���` OF 0000 II CITY OF OCOEE, FLORIDA SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL WATER AND WASTEWATER 0 & M DEPARTMENT FOR THE YEAR ENDED SEPTEMBER 30, 1997 i Variance Favorable Budget Actual (Unfavorable Operating Revenues User Charges $ 3.903.300 $ 4,030,639 $ 127,339 Nonoperating Revenues Interest Revenues 118,000 170,024 52,024 Miscellaneous 879,100 --- (879,100) Operating Transfers In 5,500 46,369 40,869 Retained Earnings Allocation 900.000 --- (900.000) 1,902,600 216.393 (1,686.207) Total Revenues $ 5,805,900 $ 4.247.032, $ (1,558,868) Operating Expenses Personal Services $ 1,551,569 $ 1,445,477 $ 106,092 1 Materials And Supplies 423,725 381,366 42,359 L_i Heat, Light And Power 330,000 340,850 (10,850) Other Expenses 330,041 242,725 87,316 Reserve for Contingency 489.431, --- 489,431 3,124.766, 2.410.418 714.348 Nonoperating Expenses Operating Transfers Out 1,612,600 1,568,433 44,167 Loss On Sale Of Fixed Assets --- 68,724 (68,724) Capital Outlay 1,064,534 565,630 498,904 -j Interest Expense 4,000 9.071 (5.071) 2.681.134 2.211,858 469.276 Total Expenses $ 5,805,900 $ 4,622,276, $ 1,183,624 (1) This schedule only reflects receipts and disbursements from operating accounts and not capital improvement funds. -71- This page intentionally left blank. Ocoee 6`74,1, 04> Q..:;N:Y.S Of GOO _ CITY OF OCOEE, FLORIDA SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL SOLID WASTE FUND r-, FOR THE YEAR ENDED SEPTEMBER 30, 1997 Variance L- Favorable Budget Actual (Unfavorable) Operating Revenues User Charges $, 1,215,000 $ 1,243,295 $ 28,295 r Nonoperating Revenues Interest Revenues 4,000 9,096 5,096 Operating Transfers In 5,000 6,807 1,807 Recycling Grant 22.000 29.000 7,000 31,000 44,903 13,903 I Total Revenues $ 1,246,000 $ 1.288,198, $ 42,198 1 Operating Expenses UI Personal Services $ 429,320 $ 404,805 $ 24,515 Materials And Supplies 320,027 359,960 (39,933) , Other Expenses 159,310 148,978 10,332 -' Recycling Expenses 22,000 5,739 16,261 Reserve for Contingency 54,903 --- 54,903 985.560 919,482 66.078 Nonoperating Expenses Operating Transfers Out 157,750 169,957 (12,207) --) Capital Outlay 30,580 30,566 14 1 Capital Lease Payments 72.110 72,108 2 260.440 272.631 (12,191) Total Expenses $ 1.246.000, $ 1,192,113 $ 53,887 U . ' ' -72- _J This page intentionally left blank. �lOcoee\,� O/' 4. . `o a fEQ OF GOOV 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. ii i - 1 This page intentionally left blank. Ocoee oy,. r = nay 44.5 lf� OFG001) STATISTICAL SECTION LIST 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 J \ Assessed and Estimated Value of Taxable Property Net of Exemptions Property Tax Rates and Tax Levies Direct and Overlapping Governments Special Assessment 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 CITY OF OCOEE, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER FINANCING USES LAST TEN FISCAL YEARS Fiscal Total w General Pubic Physical Year Expenditures % Government % Safety % Environment 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 1997 11,217,057 100.0 2,432,702 21.7. 5,826,668 51.9 1,162,242 (a) This schedule includes expenditures of the General Fund only. (b) 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 expenditure in the Debt Service Fund. • • -73- Culture And Debt Transfers.To Recreation % Service % Other Funds % 6.9 $ 166,532 4.3 -- - $278,581 7.3 7.2 175,643 4.7 - - 394,814 10.5 11.2 202,206 4.0 - - 214,733 4.2 11.8 167,749 2.7 - - 681,279 10.8 11.1 152,762 2.4 41,626 m .7 942,438 14.9 13.5 179,232 2.7 79,723 1.2 509,572 7.6 12.8 325,331 3.8 156,509 1.8 1,085,080 12.6 ' 12.8 319,341 3.6 159,526 1.8 919,196 10.4 12.3 417,495 4.5 133,416 1.4 1,064,845 11.4 10.4 466,593 4.2 339,375 3.0 989,477 8.8 • -74- -SL- •Ob9` s$;o aejsueA nbe lenpisei a sepnlou! 9661. 1o4 seoanos 6uioueull aeylO ca 'Apo pund ieieue0 NI jo senuenai sepnloul appayos s1U1 �) L'8Z Z81'89£'£ S'L 099'618 E'Zb Z69'99647 0'00 L Z90'b17L'11 L661 l'OE 1Z9'880'E E'8 L3171098 9'Lb 1766'69Z'b 0'001 OE6'E9Z 01 966 L 6'6Z 9117' '89'Z 0'L £9Z'b£9 SZb O In L8'E 0'001 EZ8`Z66'8 9661 S'LZ 990'S 16'Z 6'L L61'£99 Z'Lb Z LL'9917'£ 0'001 90£'911718 b661 0'LE 6L9'9 LZ'Z 9'8 9E0'3 19 L'Zb 6E 1'9 IO`E 0'001 b99'l9 L'L 8661 Z'8Z 06L'L96'L 0'L ZZS'88P L'LE In'1E9'Z 0'001 LEE'186'9 3661 L'LE Z L8'bb8'L 0'0 I. 1790'18S 8'6E 6ZO'8ZE`Z O'001 8ZZ'Sb8'S 1661 9'LE 99Z'068'L 9'1 L 09 L'169 1'6e 58Z'L96`L 0'00 I 896'LZ0'9 066 L 9'Z17 L179'989'1 L'S LbZ'LZZ l'8E 909'809'1 WOO £86'L96'E 6861. 9'017 080'00E'1 $ £'b 600'LE1 $ 9'Zb 908'Z9E'L$ 0'001 09L'00Z'£ $ 8861 96 sanuanaH % S!wied % SeXB1 . % SOCIUeF9H !BOA 1 ILWOUIWAA09 PW 0) 1n01 1133S14 -J0viI S8eSUESOrl St'IV3A 1VOSIA N311SV1 S30Hf1OS.ONIONVNId H3H1O aNV S3f1N3A311 1V.w3WNH3nOO 1V113N39 V011:101i '33000 d0 AJYJ I- - Charges Other For Fines And investment Misc. Financing Services % Forfeitures % Income % Revenue % Sources % $ 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 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 it • - 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 ro> 17.1 186,163 1.8 101,895 1.0 89,666 .9 108,379 1.0 1,568,885 15.3 208,119 1.8 75,483 .6 146,357 1.2 163,504 1.4 1,936,175 16.5 i • L j -76- CITY OF OCOEE, FLORIDA TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Property Franchise Utility Total Year Taxes Taxes Taxes Taxes 1988 $ 471,349 $ 335,969 $ 555,487 $1,362,805 1989 567,410 353,007 588,189 1,508,606 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 1997 2,243,488 1,145,834 1,577,270 4,966,592 -77- i ; CITY OF OCOEE, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS - REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY LI LAST TEN FISCAL YEARS I 'i Percentage Total Total Of Total Col- Fiscal Tax Tax factions To Year Levy Collections Delinquent Tax Lew 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 jI 1991 1,064,847 1,061,160 3,687 99.65 1992 1,338,563 1,295,309 4,745 96.77 J 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 L' 1996 2,022,628 1,953,410 — 96.50 j 1997 2,329,421 2,243,488 1,388 96.31 L L -1 I 1 -78- -6L- L99(Ste 117 L98 817E 137 82 900 1179 8LZ 900 L179 L661. 69Z'L9L'Lb 69Z'L9L'Lb 639'688'£9b 6Z9'688'S917 966 L Lbb'LZL'8£ Lbb'LZL'8£ 999'399'0 17 9SS'Z9S'OEb 9661. 9917'0£647E 99680£647£ 86 L'L09'68E 86 L'L09'69E b66 L 8 LZ'LZ9'Z£ 8 LZ'LZ9'Z£ 6b9'08 VE17E 6179'09 L'£b£ 8661 000'Z9L'1717 999'Lb9'8Z 6LZ'E66'90E 6LZ'B66'90£ Z66 L 000'99 L'8E LL L'S£9'bZ 917 L'91O'6n 917 L'S LO'6bZ L66 L 000 ZZ6 9E L9£L0E 0Z LZE 178Z 86 L LZ£178Z 86 L 066 L 000'00£'0£ 618'E89'91. 90Z'0 19'08 L 90Z'0 L9 08 L 686 L 00L'LEb'ZZ$ E LL'80L'Z L $ Lb L'9L8'9Z L$ Lb L'9L8'9Z L$ 886 L enIBA Ieni3V anleA enleA Ief13V enleA JeaA Pa1ewgs3 passes► Polewns3 pessessy lead AUadOid IBUOsJad AuadOud lead • S&IV3A 1VOSid N31 IS1f1 SNOLLdW3X3 dO 13N ALd3dOdd 319VXV1 d0 3MVA a31VWLLS3 aNV a3SS3SSV Valdold '33030 dO ALIO _J � I L_ � I Totals Assessed Estimated Value Actual Value II $ 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,f367 375,807,867 I_ 424,437,664 424,437,664 469,310,003 469,310,003 505,656,888 505,656,888 L_ 582,355,145 582,355,145 L—� 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 taxable value) Fiscal City Of Orange School Year Ocoee County Board Total (a) 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 1997 4.00 5.2889 9.077 18.3659 Tax levies Fiscal City Of Orange School Year Ocoee County Board Total (a) 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 1997 2,329,421 196,778,976 341,439,747 540,548,144 (a) Tax Rates and Levies of a fraction of one mill assessed in various years by other units against dis- tricts covering less than the entire City or County were omitted here. -81-. CITY 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. I • • -82- `_; CITY OF OCOEE, FLORIDA ' RATIO OF NET GENERAL OBIJGATION 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 Fiscal Assessed Bonded Funds Bonded Debt To Debt Per Year Population Value Debt Available Debt Assessed Value Capita 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 — — — — — 1997 20,560 582,355,145 • — — — — - Note: The City of Ocoee does not have any general obligation debt which is being repaid through general property taxes. -83- CITY OF OCOEE, FLORIDA LEGAL DEBT MARGIN SEPTEMBER 30, 1997 Assessed Value $ 582,355,145 Debt Limit: 50% of Assessed Value $ 291,177,573 J Amount of Debt Applicable to Debt Limit: Total Bonded Debt 8,165,000 Legal Debt Margin $ 21,012,573 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. L J, • -84- CITY OF OCOEE, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT SEPTEMBER 30, 1997 Applcable To Bonds City Of Ocoee Government Unit Outstanding Percent (1) Amount Library District Refunding Bonds - Series 1993 $ 9,205,000 1.43% $ 131,632 i_ Total Overlapping Debt 131,632 Total Direct Debt (2) Total Direct and Overlapping Debt 131,632 (1) Ratio of assessed 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. -85- U CITY OF OCOEE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBUGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES J LAST TEN FISCAL YEARS h Ratio Of Total Debt Service General To Total Fiscal Total Debt Expenditures General Year Principal Interest Service (1) Expenditures 1 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% J 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% —� 1997 255,000 618,088 873,088 11,217,057 7.8% (1) Includes expenditures of the General Fund only. 1 -1 -86- 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(3) Debt Service Principal Interest Total Coverage 1988- 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 $ 108,839 $ 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 Requirements Year Revenue(2) Expenses(3) Debt Service Principal Interest Total Coverage 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 $ - $586,560 $ 586,560 1.56 1992 $ 1,696,995 $ 637,603 $ 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 $ 1,066,993 $152,000 $339,913 $ 491,913 2.17 Water and Wastewater Fund (4) Net Revenue Fiscal Gross Operating Available For Debt Service Requirements Year Revenue(2) Expenses(3) Debt Service Principal Interest Total Coveraqe 1996 $4,301,827 $ 2,134,380 $ 2,167,447 $205,000 $440,054 $ 645,054 3.36 1997 4,827,018 2,601,888 2,225,130 335,000 825,907 1,160,907 1.92 (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 Wastewater Funds into one fund during the fiscal year ended September 30, 1996. -87- II I LJ CFIY OF OCOEE, FLORIDA j DEMOGRAPHIC STATISTICS L' Population ,_, City ci Ocoee Orange County Year Population % Increase Population % Increase 1988 11,765 1.8 623,425 3.4 — 1989 11,822 .5 653,982 4.9 L_ 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 li 1995 18,578 6.23 758,962 2.5 1996 19,261 3.67 777,556 2.4 L' 1997 20,560 6.74 803,614 3.3 Population Protections Orange State Of Year County Florida 1997 803,614 14,411,563 2000 846,697 15,428,873 Population Distribution bV Ape Orange State Of Year County Florida 0-14 21.1% 19.3% 15-24 14.8 11.9 25-44 34.4 29.0 , 45-64 18.9 21.3 IT 65 and over 10.8 . 18.5 I Source: University of Florida, Bureau of Economic and Business Research East Central Florida Planning Council, Council Quarterly, Second Quarter, 1996 -88- 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 Family Family Value Value 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 36,622,069 1,040,010 1993 411 0 36,188,257 5,667,958 1994 402 0 35,211,374 3,569,955 1995 331 0 28,836,036 21,823,750 • 1996 366 0 33,950,817 63,337,471 1997 497 0 44,475,342 4,818,000 (a) Source: City of Ocoee Building Department. (b) Source: Florida Bankers Association. 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. -89- i H Bank Deposits Additions/(a) (In thousands) Alternations Savings Total And Value Value (a) Banks (b) Loans (c) $ 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 `j 1,618,759 64,394,533 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 6,147,414 828,351 2,327,526 99,615,814 6,937,918 859,921 155,575 49,448,917 7,128,190 793,849 • it j -90- II This page intentionally left blank. Ocoee a OFG00 i J CITY OF OCOEE, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS J SEPTEMBER 30, 1997 __ j Taxable Assessed Valuation As of Taxpayer Type of Business 1996 Tax Roll (1) Percentage 1. GGP/Homart, Inc. West Oaks Mall $ 15,489,250 2.7 % 2. Oak Forest Partners, Ltd. Developer 9,600,006 1.6 % 3. Manheim Remarketing, LP Developer 9,405,293 1.6 % 1 4. Good Homes Plaza Shopping Center 9,302,171 1.6 % 5.' Towne Square Associates Shopping Center 6,585,168 1.1 % L_( 6. West Orange Healthcare District • Health Care 6,383,453 1.1 % 7. Westlake Partners, Ltd. Developers 6,151,569 1.0 % Ir i_J 8. Lake Olympia Square Partnership Shopping Center 5,306,914 .9 % 9. Sysco Food Services of Central Florida Food Distribution 5,051,752 .9 % ,— 10. Teachers Insurance &Annuity Investments 4.375.720 0.8 % Total Taxable Assessed Value of 10 Largest Taxpayers 77,651,296 13.3 % LJ ! Total Taxable Assessed Value of Hi Other Taxpayers 504.703.849 86.7 % 1 Total Taxable Assessed Value of J All Taxpayers 2 582,355,145 100.0 % J Note: (1) The tax levy for the fiscal year ended September 30, 1997 is based on the 1996 taxable value. _J} I I -91- CITY OF OCOEE, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 1997 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 16.8 Square Miles Municipal Employees (Including Part-Time) 249 Elections: Registered Voters 8,567 Votes Cast In Last Municipal Elections (February 1997) 2,321 Miles of Streets, Sidewalks And Bike Paths Streets - Paved 103.4 miles Streets - Unpaved 3.2 miles Streets - Brick 1.1 miles Sidewalks 68.7 miles Bike Paths 5 miles Fire Protection: Stations 2 Employees 43 Police Protection: Stations 1 Employees 73 Vehicular Patrol Units: Patrol Cars 17 Other Vehicles 11 Recreation: • _ Community Center 1 Athletic Fields 8 Tennis Courts 7 Racquetball Courts 2 Shuffleboard Courts 2 City Playgrounds And Passive Parks 8 Parks and Recreation Developed Areas 3 -92- CRY OF OCOEE, FLORIDA MISCELLANEOUS STATISTICAL DATA-CONTINUED �—� SEPTEMBER 30, 1997 it Water System Miles Of Water Mains 100.47 Daily Average Consumptions (Gallons) 4,400,000 (GPD) Plant Capacity (Gallons) 20,160,000 (GPD) Service Connections 7,447 Deep Wells 7 Fire Hydrants 722 Sewer System Miles Of Sanitary Sewers 46.84 Lift Stations 36 Daily Average Treatment 1,100,000 (GPD) Plant(s) Capacity (MGD) 3.0 Disposal Plants 1• • i—I • • -93- CRY OF OCOEE, FLORIDA SCHEDULE OF INSURANCE IN FORCE SEPTEMBER 30, 1997 Buildings And Personal Property: Multi-period, 'all risk' 100% Of Replacement Value Stated Values Blanket Building Coverage $ 18,143,474 Blanket Contents Coverage Inc. in Bldg Limit -, Boiler& Machinery 5,000,000 Inland Marine -Computer 440,268 Inland Marine - Equipment 681,071 Valuable Papers 5,000 Radio Equipment 1,387,564 Comprehensive General Liability: Combined Single Limit For Bodily & Property $2,000,000/occurrence $ 6,000,000/aggregate Automobile Liability: Combined Single Limit $ 2,000,000/person $2,000,000/occurrence Uninsured Motorist $ 20,000 Law Enforcement Liability: Combined Single Umit For Bodily & Property $2,000,000/occurrence $2,000,000/aggregate Blanket Fidelity $ 50,000 Public Official Errors & Omission Insurance $ 2,500 per Loss Deductible Aggregate $2,000,000/$2,000,000 Worker's Compensation $ 1,000,000/occurrence $ 1,000,000/aggregate • -94- 1 j • • • awl • I � i I REPORTS ON INTERNAL CONTROL AND COMPLIANCE , L I I • I� I This page intentionally left blank. Ocoee\,. o�i. po , pip !...,-.<4.701. 2. c� .K `?� y orG00V • '- MCDIRMIT, DAVIS, LAUTERIA, PUCKETT, VOGEL & COMPANY, P.A. Certified Public Accountants 605 E.Robinson Street,Suite 635 Telephone:(407)843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail:mdlpv@aol.com Li INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDIT7NG 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, 1997, and have issued our report thereon dated Ji December 5, 1997. 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 L provide 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 J of Ocoee, Florida for the year ended September 30, 1997, 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. Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants (CPA) -95- 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 established 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 December 5, 1997. 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. radah m t via,itataat, McDIRMIT, DAVIS, LAUTERIA, PUCKETT, VOGEL & COMPANY, P.A. December 5, 1997 -96- -' MCDIRMIT, DAVIS, LAUTERIA, PUCKETT, VOGEL & COMPANY, P.A. Certified Public Accountants 605 E.Robinson Street,Suite 635 Telephone:(407)843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail:mdlpv@aol.com 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, 1997, and have issued our report thereon dated December 5, 1997. We conducted our audit in accordance with generally accepted auditing standards and Govemment 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 tests disclosed the following instance of noncompliance that is required to be reported herein under Government Auditing Standards. (1) The City did not take a physical inventory of fixed assets during 1997. Rules of the Auditor General, Chapter 10.400 and Florida Statutes, Chapter 274, require that once each year, and whenever there is a change in custodian, each custodian shall inventory all property in his or her custody. We considered these instances of noncompliance in forming our opinion on whether the City of Ocoee, Florida's 1997 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated December 5, 1997 on those general purpose financial statements. Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants (C PA) -97- We also noted certain immaterial instances of noncompliance that we have reported to the management of City of Ocoee is a separate letter dated December 5, 1997. 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. McDIRMIT, DAVIS, LAUTERIA, PUCKETT, VOGEL & COMPANY, P.A. December 5, 1997 -98-