HomeMy WebLinkAboutVII (C) Annual Audit Report for Fiscal Year 1998 Agenda��/) 2-16-99(�
CENTER OF GOOD G[Cf.VG- PRIM.ON II EST OR/IAGE" ItctM 'bsmnssioeax
S.SCOTT VANDERGRIEI
Ocoee COMMISSIONERS
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CITY OF OCOEE DANNvuowrLl.
..' �'j 150 N. LAKES!IORII DRIVE SCOTT ANDERSON
Q SCOI I A. GLASS
O OCOEE, FLORIDA 34761-2258 NANCY J.PARKER(407)656-2322
til 4� ('ITN MANAGER
fq OF GOO NN ELLIS SIIAPIRO
MEMORANDUM
To: The Honorable Mayor and City Commissionsio
From: Wanda Horton, Finance Director�N
Date: February 10, 1999
Re: Annual Audit Report for Fiscal Year 1998
Attached is the annual audit report for the fiscal year ended September 30, 1998.
Management comments from the auditors and response from staff are inserted on the
inside of the books.
Elden McDirmit will be present at the February 16'h commission meeting to present the
audit report to you. If you have any questions before then please contact me.
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MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, PA.
(erti tied rubI ie derou nt a ntn
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
MANAGEMENT COMMENTS
Honorable Mayor and City Commission
City of Ocoee, Florida
In connection with our audit of the general purpose financial statements of the City of Ocoee, Florida,
for the year ended September 30, 1998, we are submitting for your consideration the accompanying
recommendations designed to help you improve the internal control structure and achieve operational
efficiencies. Our comments deal exclusively with weaknesses noted in operational, accounting, and
recordkeeping systems and procedures, and should not be regarded as reflecting on the integrity or
capabilities of anyone in your organization. Our comments reflect our desire to be of continuing
assistance to management.
Since the comments and observations contained in this letter are a by-product of the audit of financial
statements, the cost justification and other aspects of our suggestions have not been fully evaluated;
these evaluations should be made by management. Therefore, we recognize that, after
consideration, certain suggestions and recommendations may not be practical to implement.
We have also provided comments as required by the Rules of the Auditor General of the State of
Florida.
We appreciate the cooperation we have received from the City's personnel in connection with
developing these recommendations. We appreciate the opportunity to have been of service to you.
Should you have any questions about our recommendations, this letter, or other matters, please
contact us at your convenience.
'Path mitt kri011
&r P. V , Voget t eirix f exit,P•a.
November 13, 1998
Members Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants
CPA,
Management Comments November 13, 1998
City of Ocoee, Florida Page Two
A. Status of Prior Year Comments
1. Compliance with Rules of the Auditor General
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. The custodian did not
take a physical inventory of fixed assets during the year ended September 30,
1998. Also, additions made during 1998 have not been properly tagged with an
identification number, as required by the Rules of the Auditor General.
Recommendation
We recommend that the City perform the required annual physical inventory and
tag all assets with an identification number so that additions, deletions, and
transfers for the year are properly accounted for.
Corrective Action
The City performed the annual physical inventory and tagged all assets with an
identification number during the year ended September 30, 1998.
2. Review and Reconciliation of General Ledger
We made several adjusting journal entries during the audit for posting errors made
during the year. These errors could have been discovered during the year if staff
had been reconciling the detail accounts with the general ledger.
Recommendation
We recommend that someone in the Finance Department be responsible for
reviewing and reconciling monthly activity in the general ledger so that posting
errors will be found during the month that the error occurs.
Corrective Action
During our audit of the year ended September 30, 1998, we noted that the Finance
Department has been reconciling the detail accounts to the general ledger.
3. Utility Denosit Refunds
Under the new computer system, utility deposit refunds must be manually entered
into the general ledger through accounts payable for each affected account in
water, sewer, solid waste and stormwater. Deposit refund checks are then
generated. Finally the utility billing department must manually enter the refund
amounts to each customer account history. This process is time consuming and
labor intensive, allowing many opportunities for error.
Management Comments November 13, 1998
City of Ocoee, Florida Page Three
A. Status of Prior Year Comments- Continued
3. Utility Deposit Refunds— Continued
Recommendation
We recommend that the utility deposit refund process be integrated with the
general ledger through modification of the computer system.
Corrective Action
The utility deposit refund process has been integrated with the general ledger and
is significantly more efficient.
4. Recreation Department Cash Receipts
Documentation pertaining to the recreation department's cash receipts was found
to be disorganized and incomplete. In addition, the recreation department receives
frequent small cash receipts from the many participants of the various programs.
Currently, manual receipts are being written for each cash receipt, which is a time-
consuming process. No reconciliation of receipt carbons to cash received is being
performed by a person independent of the cash receipts function. Cash received
late in the day after City Hall has closed must be held in a locked office until the
next day's deposit.
Recommendation
The recreation department should maintain a daily log of cash receipts. At the end
of each day, total receipts are turned in to one of the cashiers at City Hall and a
receipt is provided for the deposit. We recommend attaching these receipts to the
cash log, and submitting the log and receipts to the Finance Department for filing
on a monthly basis. The City may also wish to consider investing in a safe to store
cash received after regular business hours. We also recommend that the
department supervisor periodically reconcile cash deposited to manual receipt
carbons, as long as manual receipts continue to remain in use.
Corrective Action
The cash receipts procedures for the recreation department have been changed
as recommended above.
5. Documentation for Cash Receipts
During testing of controls over cash receipts, it was noted that documentation for
three receipts under revenue codes 135 - Police Reports, 129 - Program Activity
Fees and 026 - Cemetery Lots were missing.
Recommendation
We recommend that supporting documentation for all cash receipts be carefully
filed and maintained.
Management Comments November 13, 1998
City of Ocoee, Florida Page Four
A. Status of Prior Year Comments—Continued
5. Documentation for Cash Receipts—Continued
Corrective Action
During the audit for the year ended September 30, 1998, we observed that greater
effort was made in filing and maintaining supporting documentation for cash
receipts. No exceptions were noted.
6. Aging of Accounts Receivable in Utility Billing
The prior computer system provided an accounts receivable aging report of final
billed utility accounts by department, such as water, sewer and stormwater, and by
the age categories of Under 30 Days, 30-60 Days and Over 60 Days. The new
computer system does not provide a comparable report.
Recommendation
The new computer system should be modified so that an accounts receivable
aging report by department can be generated for both final billed and active
accounts.
Corrective Action
We noted during the audit that the delinquent final billed accounts report has been
modified to show aging status; however, it is still not possible to generate an aging
report for active accounts. In addition, the delinquent final billed accounts report
still does not have aged amounts broken down by department.
B. Current Year Comments
1. Accounts Receivable Aging
As discussed under prior year comments, the new computer system is still not
generating an aging report for active accounts, and the delinquent final billed
accounts report does not show totals by department, such as water, sewer and
stormwater. In addition, the final billed accounts report is not properly totaling the
60 and 90 day amounts.
Recommendation
We continue to recommend that the new computer system be modified so that an
accounts receivable aging report by department can be generated for both final
billed and active accounts.
Management Comments November 13, 1998
City of Ocoee, Florida Page Five
B. Current Year Comments - Continued
2. COPS Grant
As described in the Schedule of Findings and Questioned Costs in the Internal
Control and Compliance Section of the audit report, the quarterly Financial Status
Reports for the COPS Grant filed with the Department of Justice included some
salaries and benefits not allowed under the terms of the grant.
Recommendation
We recommend that the City amend total outlays on the next Financial Status
Report filed. In addition, procedures should be established for review of this report
by someone other than the preparer. Subsequent to September 30, 1998, the
Finance Department contacted the Department of Justice and was told to adjust
total outlays on the December 31, 1998 quarterly report.
C. Comments Reauired by the Rules of the Auditor General
1. The financial report filed with the Department of Banking and Finance pursuant to
Section 218.32(1)(b), Florida Statutes, is in agreement in all material respects with
the annual financial audit report for the same period.
2. The City is not, or during the fiscal year was not, in a state of financial emergency
as a consequence of conditions described in Section 218.503(1) Florida Statutes.
3. The City of Ocoee, Florida was created under State of Florida law in 1923. There
were no component units identified by the City.
'CENTER OF GOOD Ll17.NG-PRIDE OF WEST CRINGE'. MAYOR•COMMISSIONER
S_SCOI F VANDLRGRIEF
Ocoee COMMIS IONEKS
IO o CITY OF OCOEE DANNY ILOWELL
t'V •� _ I50N_1.ARI=SIIONEDRIVE SCO I I ANDERSON
4r SCO-IT A.GLASS
0 OCOEE, FLORIDA 34761-2258I`D NANCY L PARKER
p v (407)656-2322
'j CIIvMANAGER
fq of GooONi ELLIS SIIANRO
February 5, 1999
Mr. Elden McDirmit
McDirmit, Davis, lautcria,
Puckett, Vogel & Company, P.A.
605 East Robinson Street, Suite 635
Orlando, Florida 32802-1185
Dear Elden,
The following details corrective action taken on the Management Comments resulting from the
audit for fiscal year 1998.
1. The programmer has been notified of the problems existing with the totals on the aging report
for final billed utility accounts and the need for an aging report for active accounts.
2. The COPS Grant Financial Status Report for the quarter ending 12/31/98 was amended to
correct total outlays as recommended. The report will reflect only base salary and
applicable benefit costs. This report is now being reviewed by someone other than the
preparer.
Sincerely,
Wanda B. Horton
Finance Director
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
,�- CITY OF OCOEE, FLORIDA
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for the
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FISCAL YEAR ENDED SEPTEMBER 30, 1998
City of Ocoee, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 1998
Prepared by: Finance Department
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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 CITY ATTORNEY
Ellis Shapiro Paul Rosenthal
CITY CLERK CITY AUDITOR
Jean Grafton McDirmit, Davis, Lauteria
Puckett,Vogel & Company, P.A.
FINANCE DIRECTOR
Wanda Horton
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Ocoee
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INTRODUCTORY SECTION
This section contains the following subsections:
. Table of Contents
. Letter of Transmittal
. City of Ocoee Organizational Chart
. Certificate of Achievement
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Ocoee
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CITY OF OCOEE
TABLE OF CONTENTS
Year Ended September 30, 1998
Page
1. Introductory Section:
Table of Contents
Letter of Transmittal iv-xiii
City of Ocoee Organizational Chart xiv
Certificate of Achievement xv
II. Financial Section:
Independent Auditor's Report xvi-xvii
General Purpose Financial Statements (Combined Statements—Overview):
Combined Balance Sheet—AII Fund Types and Account Groups 1-4
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances —All Governmental 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 Proprietary Fund Types 11-12
Notes to Financial Statements 13-44
Combining and Individual Fund and Account Group Statements:
General Fund:
Statement of Revenues, Expenditures and Changes in Fund
Balance—Budget and Actual 45-46
Special Revenue Funds:
Combining Balance Sheet 47-48
Combining Statement of Revenue, Expenditures and Changes
in Fund Balances 49-50
Debt Service Fund:
Combining Balance Sheet 51
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 52
Capital Projects Funds:
Combining Balance Sheet 53-54
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 55-56
Enterprise Funds:
Combining Balance Sheet 57-58
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 59
Combining Statement of Cash Flows 60-61
CITY OF OCOEE
TABLE OF CONTENTS - CONTINUED
Year Ended September 30, 1998
Page
II. Financial Section —Continued:
All Trust Funds:
Combining Balance Sheet 62
Combining Statement of Pension Fund Net Assets 63
Combining Statement of Changes in Pension Fund Net Assets 64
General Fixed Assets:
Schedule of Changes in Fixed Assets— By Function and Activity 65 —
Supplementary Information
Schedule of Revenues and Expenses—Budget and Actual -
Water and Wastewater 0 & M Department 66 _
Schedule of Revenues and Expenses— Budget and Actual -
Solid Waste Fund 67
III. Statistical Section: —
General Governmental Expenditures and Other Financing Uses 68-69
General Governmental Revenues and Other Financing Sources 70-71
Tax Revenues by Source 72 —
Property Tax Levies and Collections 73
Assessed and Estimated Value of Taxable Property Net of Exemptions 74-75
Property Tax Rates and Tax Levies Direct and Overlapping Governments 76
Special Assessment Collections 77
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 78 -
Legal Debt Margin 79
Computation of Direct and Overlapping General Obligation Debt 80
Ratio of Annual Debt Service Expenditures for General Obligation Bonded _.
Debt to Total General Governmental Expenditures and Other Uses 81
Revenue Bond Coverage 82
Demographic Statistics 83
Property Value, Construction and Bank Deposits 84-85
Schedule of Ten Largest Taxpayers 86
Miscellaneous Statistical Data 87-88
Schedule of Insurance in Force 89
IV. Internal Control and Compliance Section:
Report on Compliance and on Internal Control over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards 90-91
Federal Awards -
Independent Auditor's Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133 92-93
ii -
CITY OF OCOEE
TABLE OF CONTENTS • CONTINUED
Year Ended September 30, 1998
Page
IV. Internal Control and Compliance Section:
Federal Awards—Continued
Schedule of Findings and Questioned Costs 94-96
Corrective Action Plan 97
Schedule of Expenditures of Federal Awards 98
Notes to Schedule of Expenditures of Federal Awards 99
iii
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Ocoee
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"CENTER OF GOOD LIIING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
S. SCOTT VASDERGRIFT
Ocoee CO‘:41410\ERS
o • CITY OF OCOEE DAKIY HGR'ELL
ile SCOTTAK DERSOS
`� _ 150 N. LAKESHORE DRIVE SCOTT A.GLASS
— v O OCOEE, FLORIDA 31761�258 K'AyC\"I.PARKER
et ?V CRT NIA%kGER
4t�q '�� ELIAS SHAPIRO
OF Go
-- November 13, 1998
Honorable Mayor and
Members of the City Commission
City of Ocoee, Florida
The Comprehensive Annual Financial Report of the City of Ocoee, Florida, for the year ended
September 30, 1998, is submitted herewith pursuant to Article III, Section 11 of the City Charter,
Florida Statutes Chapter 11, Section 45, and Chapter 10.550 of the Rules of the Auditor General
of the State of Florida. The Annual Financial Report was compiled by the staff of the Finance
Department, with close cooperation of the External Auditors, and represents the official report of
the City's financial operations and condition to the citizens, City 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
a Financial Statements, Reporting Entity for more details.)
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, 1997.
iv
FINANCIAL REPORTING AND CONTENT -CONTINUED `
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 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 finance-related, legal
and contractual requirements.
Ill. 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.
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 21,653 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 INITIATIVES
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.
v
MAJOR INITIATIVES -CONTINUED
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 Western Beltway now under construction 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 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.
Another factor which has influenced the growth of Ocoee is the amenities it has to offer, including
numerous lakes, recreational opportunities and excellent schools. The provision of services such
as municipal 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
Hall building and adjoining Police Department facility. These projects were accomplished 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 completed in December 1997, and a Public Works
facility has been acquired with planned renovations scheduled to begin by Spring of 1999.
Construction has begun on a new multi-purpose recreational facility. 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.
vi
FINANCIAL INFORMATION -CONTINUED
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.
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 1997
Taxes $ 5,733,592 42.1% $ 767,000
Licenses & Permits 856,448 6.3 (23,202)
Intergovernmental Revenues 4,160,011 30.5 791,829
Charges for Services 351,846 2.6 143,727
Fines and Forfeitures 120,259 .9 44,776
Investment Income 163,241 1.2 16,884
Miscellaneous Revenues 103.355 7 (60.149)
Sub total 11,488,752 84.3 1,680,865 —
Transfers from Other Funds 1,718,059 12.6 84,296
Capital Lease Proceeds 416.564 3,1 114 152 —
Total $13,623 375 100.0% $ 1.879.313
vii
General Governmental Functions —Continued
Property taxes are the major source of local tax revenue. In fiscal year 1997, the City's property
tax, all of which is for operating purposes, was 4.0 mills and for 1998, the rate was 4.0 mills. The
related property values subject to taxes showed growth of 29.0 percent, representing
$168,871,111 in added taxable property.
Another principal source of local tax revenue consists of utility service taxes. These taxes are
's• levied at the rate of 10 percent on telephone, electric, water, and natural and bottled gas services
within the City. In 1998, total revenue from this tax reflected an increase of $150,827.
Intergovernmental revenue consists primarily of shared revenue from other governmental
agencies. The increase in intergovernmental revenues is due primarily to an increase of
$226,729 in State shared sales tax and an increase in County 60 gas tax of$342,563.
The following summary shows the level of expenditures used in providing governmental services:
Increase
Percent (Decrease)
Expenditures and Other Uses Amount Of Total From 1997
General Government $ 2,826,467 20.2% $ 393,765
Public Safety 6,890,597 49.3 1,063,929
Physical Environment 1,522,812 10.9 360,570
Culture & Recreation 628,211 4.5 161,618
Debt Service 403 034 2.9 63.659
Sub total 12,271,121 87.8 2,043,541
Transfers to Other Funds 1 696.228 12.2 706,751
Total $13,967,349 100.0% $ 2,750 292
The increase in General Government expenditures is due primarily to an increase in salaries and
benefits. 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
increase in transfers out is due to transfers to a Capital Projects Reserve Fund for various
projects, including the City Hall/Police siding and trim project.
viii
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
$8,952,266 and the following represents an analysis of sources and uses in the Special Revenue
Funds for 1998:
Change In
Fund Sources Uses Fund Balance
Road Impact $1,285,264 $ 943,261 $ 342,003
Parks 123,839 123,461 378
Stormwater 914,681 880,360 34,321
Interim Services 38,073 41,415 (3,342)
Police Training 20,758 19,984 774
Police Trust 49,564 2,698 46,866
Fire Impact 587,984 559,770 28,214
Police Impact 115.414 93.042 22 372
Total $3 135.577 $2 663.991 $ 471 586
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, a
gymnasium and recreational facility and a public works facility. This note is payable solely
from non-ad valorem revenues of the City.
ix
Debt Administration—Continued
Proprietary Fund debt consists of:
1. Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993,
totaling $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, totaling
$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:
1997— 1998 1996— 1997 Increase
Fund Type Amount Amount (Decrease)
y General $ 163,241 $ 146,357 $ 16,884
Special Revenue 576,111 630,326 (54,215)
Debt Service 84,040 62,368 21,672
Capital Projects 276,218 353,268 (77,050)
Expendable Trust 10,583 - 10,583
Pension Trust 637,321 1,326,907 (689,586)
Enterprise 1.070 301 874 199 196 102
Total $2 817.815 $3393 425 $ (575 610)
The decrease in investment income in 1998 is a result of implementation of GASB Statement No.
31 during fiscal year ended September 30, 1997. This Statement required recording of
investment at fair value in 1997 when unrealized gains were significantly higher than 1998.
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.
x
Debt Administration -Continued
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.
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 1998, the Capital Projects
Funds were used to account for major road and street improvements, stormwater drainage
improvements, 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 body —
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 supported by user charges.
Water and Wastewater Fund —
1997— 1998 1996—1997 Increase
Description Amount Amount (Decrease)
Operating Revenues $4,700,456 $4,030,639 $ 669,817
Operating Expenses 4,265,718 3,931,320 334,398 —.
Operating Income 434,738 99,319 335,419
Net Income (Loss) (244,980) (536,502) 291,522
Revenues Available for Debt Service 2,911,806 2,225,130 686,676
Annual Bond Debt Service 1,346,875 1,160,907 185,968 —
Revenue Bond Coverage 2.16 1.92 .24
Operating revenues increased 16.6% because of a rate increase and also the very dry summer of
1998. Increase in expenses correlates to increase in revenues.
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.
xi
Solid Waste Fund
1997—1998 1996—1997 Increase
Description Amount Amount IDecreasel
Operating Revenues $ 1,418,913 $ 1,243,295 $ 175,618
Operating Expenses 1,242,422 1,121,437 120,985
Operating Income 176,491 122,858 53,633
" Net Income 61,964 23,354 38,610
Fiduciary Operations
Trust Funds are established to account for assets held by the City in a trustee capacity for
individuals, private organizations, other government units, and/or other funds.
Pension Trust Fund
The City maintains two separate single employer defined benefit pension plans which cover
virtually all full time employees of the City. In addition to a plan for general employees, the City
has a plan for the police officers and firefighters.
Further details concerning pension expense, vested benefits and actuarial assumptions are
included in the notes to the financial statements. At September 30, 1998, the pension funds had
total assets of$9,934,929.
General Fixed Assets
The General Fixed Assets of the City of Ocoee are those fixed assets used in the performance of
general governmental functions and exclude the fixed assets of the proprietary funds. As of
September 30, 1998, the general fixed assets of the City of Ocoee totaled $12,961,713. This
amount represents the original cost of the assets and does not include certain improvements,
such as streets, sidewalks and other items of an immovable nature.
Risk Management
Risk of loss from theft of, damage to or destruction of assets, errors and omissions, job-related
illnesses or injuries to employees, and natural disasters are transferred by the City to various
commercial insurers through the purchase of insurance. In addition, various control techniques,
including employee accident prevention training, have been implemented to minimize accident-
related losses.
OTHER INFORMATION
Independent Audit
_ Pursuant to the City of Ocoee Charter, Florida Statutes Chapters 11.45 and 218, and Chapter
10.550 of the rules of the State Auditor General, an audit of the accounts and financial 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.
xii
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, 1997. 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 nine 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.
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.
RespeAlly sub 'tted,
E is Sh •/ ity Manager
(�er Wanda Horton, Finance Director
xiii
I 1 I I I I 1 I I I I I 1 I I I I 1 1
CITY OF OCOEE
ORGANIZATIONAL CHART
Ocoee Voters
City Attorney City Commission Appointed Boards
Information I
City Manager — Systems Mapping
Finance l'ol ice 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
a< Operations Management
Payroll DARE EMS Archives Facilities Projects Labor Negotiation Permits Engineering
Maintenance
Purchasing Dispatch Fleet Safety Code Stomtwater Utility
Maintenance Enforcement Engineering
Street Occupational Utility
Maintenance Licensing Inspections
Stonnwater Animal
Drainage Control
Park
Maintenance
This page intentionally left blank.
Ocoee
• v43
q
n
o
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Ocoee,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
(/ / President/�-•L.eJ^P.'-vd�L
r,rAoe as 1 /✓
Executive Director
xv
This page intentionally left blank.
o` Ocoee
C of
FINANCIAL SECTION
This section contains the following subsections:
• Independent Auditor's Report
• General Purpose Financial Statements
• Combining Statements
• Supplementary Information
This page intentionally left blank.
Ocoee
done } o
Ri t�.i7 a
o
4). ,`
OF co00`�
MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, PA.
certified Public, Are 0 II to „ t .
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, 1998, 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.
Except as discussed in the following paragraph, we conducted our audit in accordance with
generally accepted auditing standards and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the 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.
Government Accounting Standards Board Technical Bulletin 98-1, Disclosures about Year 2000
Issues, requires disclosure of certain matters regarding the year 2000 issue. The City of Ocoee,
Florida has included such disclosures in Note 16. Because of the unprecedented nature of the
year 2000 issue, its effects and the success of related remediation efforts will not be fully
determinable until the year 2000 and thereafter. Accordingly, insufficient audit evidence exists to
support the City of Ocoee's disclosures with respect to the year 2000 issue made in Note 16.
Further, we do not provide assurance that the City of Ocoee is or will be year 2000 ready, that the
City of Ocoee's year 2000 remediation efforts will be successful in whole or in part, or that parties
with which the City of Ocoee does business will be year 2000 ready.
In our opinion, except for the effects of such adjustments, if any, as might have been determined
to be necessary had we been able to examine evidence regarding year 2000 disclosures, 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, 1998, 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.
Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Acommtenu
CPA; xvi
In accordance with Government Auditing Standards, we have also issued a report dated
November 13, 1998 on our consideration of the City of Ocoee, Florida's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grants.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, and supplementary information listed in the accompanying table of contents are
presented for purposes of additional analysis and are not a required part of the general purpose
financial statements of the City of Ocoee, Florida. The accompanying schedule of expenditures of _
federal awards is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States. Local Governments. and Non-Profit
Organizations, and is also not a required part of the 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.
McDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
November 13, 1998
xvii
a
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
These basic financial statements provide a summary overview of the
financial position of all funds and account groups as well as the operating
results of all funds. They also serve as an introduction to the detailed
a
statements that follow in subsequent sections.
CITY OF OCOEE, FLORIDA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1998
Governmental Fund Types
Special Debt _
General Revenue Service
Assets:
Cash and cash equivalents $ 371,942 $2,771,673 $ 340,601
Investments 1,536,804 6,130,732 -
Receivables (net of allowances for uncollectibles) 112,569 82,242 -
Inventories—at cost 5,651 - -
Due from other funds 9,694 - -
Due from other governments 394,415 - -
Prepaid costs 68,702 - -
Restricted assets:
Cash and cash equivalents - - -
Investments - - 843,794
Cash with paying agent - - 756,729
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
general long-term debt - - -
Total assets $2 499 777 $8 984,647 $1,941 124 _.
The accompanying notes are an integral part of the financial statements.
-1-
a
a
Governmental Proprietary Fiduciary
Fund Types Fund Types Fund Types Account Groups Totals
Capital General General Long- (Memorandum
Projects Enterprise Trust Fixed Assets Term Debt Onlv)_
$ 2,279,935 $ 668,237 $ 10,543 $ - $ - $ 6,442,931
2,383,877 1,171,968 11,048,030 - - 22,271,411
— 26 865,316 135,728 - - 1,195,881
22,152 - - - 27,803
- - - - - 9,694
— - 8,226 - - - 402,641
- -
- - 68,702
a - 5,014,219 - - - 5,014,219
- 10,806,073 - - - 11,649,867
- 868,437 - - - 1,625,166
- 39,283,751 - 12,961,713 - 52,245,464
—
- (11,197,285) - - - (11,197,285)
- 393,049 - 1,462,886 - 1,855,935
- 564,085 - - - 564,085
- - - - 1,184,395 1,184,395
- -
- 14 943.437 14,943.437
$ 4.663.838 $48,468,228 $11,194,301 $14,424599 $16,127832 $ 108 304.34$
a
a
a
_2- (Continued)
CITY OF OCOEE, FLORIDA —
COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - CONTINUED —
September 30, 1998
Governmental Fund Types _,
Special Debt
General Revenue Service
Liabilities and Fund Equity: _
Liabilities:
Accounts payable $ 78,562 $ - $ -
Retainage payable - - - _
Accrued liabilities 394,887 11,963 -
Due to other funds - 9,694 -
Deferred revenue 221,574 10,724 -
Current liabilities (payable from restricted assets):
Customer deposits - - -
Matured bonds payable - - 380,000
Matured interest payable - - 376,729 —
Accrued annual leave - - -
Bonds payable - - -
Obligations under capital leases - - -
Notes payable - - -
Total liabilities 695.023 322,381 756 729
Fund equity: —
Contributed capital - - -
Investment in general fixed assets - - -
Retained earnings: —.
Reserved for renewal and replacement - - -
Unreserved - - -
Total retained earnings - - - _.
Fund balances:
Reserved:
Inventories 5,651 - - _,
Prepaid costs 68,702 - -
Renewal and replacement - 39,723 -
Debt service - - 1,184,395
Employee's pension benefits -
Expendable trust - - -
Unreserved:
Designated for capital projects - - -
Designated for subsequent year's budget - 8,912,543 -
Undesignated 1,730401 - -
Total fund balances 1,804 754 8,952 266 1.184 395 •
Total Equity And Other Credits 1 804,754 8 952 266 1 184 395
Total Liabilities, Fund Equity and Other Credits $2 499 777 $8 984 647 $1.941 124
The accompanying notes are an integral part of the financial statements.
3- —
a
a
a
Governmental Proprietary Fiduciary
'- Fund Tvnes Fund Types Fund Types Account Groups Total
Capital General General Long- (Memorandum)
Projects Enterprise TrustFixed Assets Term Debt Only)
a
$ 17,500 $ 21,845 $ - $ - $ - $ 117,907
a 41,761 - - - - 41,761
- 209,706 - - - 616,556
- - - - 9,694
- - 40,006 - - - 272,304
344,045 - - - 344,045
390,000 - - - 770,000
478,438 a
- - - 855,167
- - - 536,492 536,492
_ - 17,059,679 - - 7,895,000 24,954,679
362,168 - - 1,066,340 1,428,508
- - - - 6.630 000 6,630 000
59.261 18,905.887 - - 16,127.832 36,577 113
- 25 437,939 - - - 25.437 939
_ - 14 424 599 - 14,424 599
a
- 2,439,875 - - - 2,439,875
- 1684.527 - - - 1684,527
a - 4,124 402 - - - 4,124,402
- -
- -
- 5,651
- - - 68,702
- - - - 39,723
-
-
-
- 1,184,395
- 9,934,929 - - 9,934,929
- - 1,259,372 - - 1,259,372
4,604,577 - - - - 4,604,577
- - - - - 8,912,543
- - - 1730.401
-
4 604,577 - 11.194301 - - 27.740 293
4 604,577 29 562,341 11 194.301 14.424 599 - 71,727.233
$ 4,663 838 $48,468,228 $11 194 301 $14,424 599 $16 127,837 $ 108,304,346
a
-4-
CITY OF OCOEE, FLORIDA —
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND —
FXPENDABLE TRUST FUNDS
For the Year Ended September 30, 1998 _.
Governmental Fund Tvoes
Special Debt
General Revenue Service
Revenues:
Taxes $ 5,733,592 $ - $ -
Licenses and permits 856,448 -Intergovernmental revenues 4,160,011 18,000 - —
Charges for services 351,846 16,264 -
Fines and forfeitures 120,259 38,468 -
Impactfees/special assessments - 2,259,569
Investment income 163,241 576,111 84,040
Miscellaneous revenues 103 355 12,237 -
Total revenues 11,488.752 2,920,649 84,040
Expenditures:
Current:
General government 2,826,467 - - —
Public safety 6,890,597 156,181
Physical environment 1,522,812 863,089 -
Culture and recreation 628,211 23,461 - —.
Capital outlay - - -
Debt service:
Principal retirement 361,819 170,993 610,000
Interest and fiscal charges 41.215 18,785 908.748
Total expenditures 12 271 121 1,232,509 1 518.748
Excess (Deficiency) of Revenues Over
Expenditures (782,369) 1,688,140 (1,434,708)
Other Financing Sources (Uses): _.
Operating transfers in 1,718,059 175,793 1,588,947
Operating transfers out (1,696,228) (1,431,482) -
Capital lease proceeds 416,564 39.135 -
Net other financing sources (uses) 438 395 (1 216.554) 1 588.947
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures
and Other Financing Uses (343,974) 471,586 154,239
Fund Balance— Beginning of Year, As Restated - - - --
Fund Balances— Beginning of Year,As
Previously Reported 2,148,728 8,480.680 1.030.156
Fund Balances— End of Year $ 1.804,754 $8,952,266 $ 1 184 395 _
The accompanying notes are an integral part of the financial statements.
-5-
Governmental Fiduciary
Fund Types Fund Types Total
Capital Expendable (Memorandum)
Projects Trust Only)
$ - $ - $ 5,733,592
856,448
4,178,011
368,110
158,727
- 2,259,569
276,218 10,583 1,110,193
173 207 288.799
276 218 183.790 14 953 4491
— - 16,662 2,843,129
- 7,046,778
- - 2,385,901
651,672
2,073,099 - 2,073,099
- - 1,142,812
968 748
2,073 099 16 662 17 112,139
(1,796,881) 167,128 (2,158,690)
745,000 - 4,227,799
(223,651) - (3,351,361)
455 699
521,349 - 1.332 137
(1,275,532) 167,128 (826,553)
1,092,244 1,092,244
5 880.109 - 17 539.673
$ 4,604.577 $ 1 259.372 $17 805.364
-6-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND
BALANCES -BUDGET AND ACTUAL -GENERAL AND SPECIAL REVENUE FUNDS —
For the Year Ended September 30, 1998
General Fund
Variance
Favorable
Budget Actual 1Unfavorable)
Revenues:
Taxes $ 5,736,432 $ 5,733,592 $ (2,840)
Licenses and permits 857,205 856,448 (757)
Intergovernmental revenues 4,109,251 4,160,011 50,760
Charges for services 226,580 351,846 125,266
Fine and forfeitures 105,000 120,259 15,259
Impact fees/special assessments - - -
Investment income 117,000 163,241 46,241
Miscellaneous revenues 356.050 103,355 (252.6951 —
Total revenues 11,507,518 11 488,752 (18.766)
Expenditures:
Current:
General government 3,354,428 2,801,143 553,285
Public safety 7,167,435 6,514,730 652,705
Physical environment 1,609,169 1,419,493 189,676 —
Culture and recreation 634,667 549,343 85,324
Debt service - 403.034 (403.0341
Total expenditures 12 765 699 11.687.743 1 077,956
Excess (Deficiency) of Revenue Over
Expenditures (1,258,181) (198 991) 1,059,190
Other Financing Sources (Uses):
Operating transfers in 1,789,681 1,718,059 (71,622)
Operating transfers out (1.731,5001 (1.696,228) 35 272
Net other financing sources (uses) 58 181 21,831 (36 350)
Excess (Deficiency) of Revenues and
Financing Sources Over Expenditures
and Other Uses (1,200,000) (177,160) 1,022,840
Fund Balances— Beginning of Year 1,200,000 2 148 728 948.728
Fund Balances—End of Year $ - $1.971,568 $ 1,971.568
The accompanying notes are an integral part of the financial statements.
7
_apecial Revenue Funds
Variance
Favorable
Budget Actual (Unfavorablel
$ - $ - $
862,000 869,891 7,891
6,000 5,655 (345)
868.000 875,546 7,546
740,970 508,880 232,090
- 73.147 (73,147)
740 970 582,027 158,943
127 030 293.519 166 489
(296.030) (259,198) 36 832
(296 030) (259.198) 36 832
(169,000) 34,321 203,321
169.000 170,621 1 621
$ - $ 204.942 $ 204 942
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, 1998 —
Proprietary
Fund Tvoes
Enterprise
Operating Revenues:
User charges $ 6 119 369
Operating Expenses:
Personal services 2,080,957
Materials and supplies 778,982 —
Heat, light and power 373,724
Depreciation and amortization 1,697,834
Other expenses 571,651
Recycling expenses 4,992
Total operating expenses 5 508.140
Operating income 611 229
Nonoperating Revenues (Expenses):
Grant revenue 17,540
Investment income 1,070,301 --
Interest expense (988,712)
Loss on sale of fixed assets (16.936)
Total nonoperating revenues 82.193 —
Income before operating transfers 693.422
Operating Transfers:
Operating transfers in 15,620
Operating transfers out (892 0581
Net operating transfers (876 438) —
Net income (loss) $ (183 0161
Disposition of Net Income (Loss):
Net income (loss) $ (183,016)
Depreciation on contributed assets 402.751
Net increase in retained earnings 219,735
Retained Earnings— Beginning of Year 3 904 667
Retained Earnings—End of Year $4 124.402 —.
The accompanying notes are an integral part of the financial statements.
9
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
For the Year Ended September 30, 1998
Additions:
Contributions:
Employer $ 1,136,410
State 111,603
Plan Members 555284
Total contributions 1.803 297
Investment Income:
Net appreciation in fair value of investments 633,367
Interest 3 954
637,321
Less investment expense (66.6161
Net investment income 570.705
Total additions 2 374,002
Deductions:
Benefits 189,941
Administrative expenses 32 284
Total deductions 222.225
Net Increase 2,151,777
Net Assets Held in Trust for Pension Benefits:
Beginning of Year 7.783 152
End of Year $ 9 934 929
The accompanying notes are an integral part of the financial statements.
-10-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended September 30, 1998
Proprietary
Fund Types
Enterprise
Cash Flows from Operating Activities:
Receipts from customers $ 5,938,814
Payments to suppliers (1,933,693)
Payments to employees (2 033 970) _
Net cash provided by operating activities 1 971 151
Cash Flows from Noncapital Financing Activities:
Operating transfers in 15,620
Operating transfers out (892,058)
Receipts from grants 17,540
Decrease in due to other funds (20 610) _
Net cash used in noncapital financing activities (879 508)
Cash Flows from Capital and Related Financing Activities:
Proceeds from sale of property and equipment 7,827
Purchase of property, plant and equipment (477,176)
Additions to construction in progress (389,732)
Principal paid on bonds and leases (429,202)
Interest paid on bonds and leases (988,339)
Proceeds from bonds and capital leases 257,367 —•
Capital contributions received 1,167,574
Cash received on assessments receivable 55 598
Net cash used in capital and related financing activities (796 083)
Cash Flows from Investing Activities:
Sale of investments 989,293
Investment income 792 300
Net cash provided by investing activities 1 781,593
Net Increase In Cash and Cash Equivalents 2,077,153 —.
Cash and Cash Equivalents at Beginning of Year 4 473,749
Cash and Cash Equivalents at End of Year $ 6.550,891
Classified As: —
Current assets $ 668,237
Restricted assets 5.882.656
Total $ 6.550.893 —
The accompanying notes are an integral part of the financial statements.
-11-
.� Proprietary
Fund Tvoes
Enterprise
Reconciliation of Operating Income to Net Cash Provided by
Operating Activities:
Operating income $ 611.229
Adjustments Not Affecting Cash:
Depreciation 1,672,809
Amortization 25,025
Provision for uncolleclible accounts 31,500
Change In Assets and Liabilities:
Increase in accounts receivable (181,380)
Decrease in accounts payable (208,326)
Increase in accrued expenses 46,987
Decrease in retainage payable (27,518)
Increase in deferred revenue 1,004
Decrease in customer deposits (1791
Total adjustments 1.359.922
Net Cash Provided by Operating Activities $ 1,971.151
Noncash Investing, Capital and Financing Activities:
Contributed property, plant and equipment $ 552,734
Increase in the fair value of investments 278,001
-12-
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NOTES TO FINANCIAL STATEMENTS
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CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
Note 1 —Summary of Significant Accounting Policies:
The accounting policies of the City of Ocoee, Florida, conform to generally accepted
accounting principles as applicable to governments. The following is a summary of the more
significant policies:
Reporting Entity-The City operates under a commission-manager government whereby the
Mayor and Commission are elected by the registered voters of the City of Ocoee. The
Commission appoints the City Manager, who in turn performs as the 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 Government
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
a used by the City.
Governmental Fund Types
General Fund -To account for ail 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.
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.
-13-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 1 —Summary of Significant Accounting Policies -Continued:
Governmental Fund Types -Continued
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 construction of major capital facilities (other than those financed by _
proprietary funds).
Proprietary Fund Types
Enterprise Funds - To account for operations that are financed and operated in a
manner similar to private business enterprises, where the intent of the governing body
is that costs of providing goods or services to the general public on a continuing basis
be financed or recovered primarily through user charges, or where the governing body —'
has decided that periodic determination of net income is appropriate for capital
maintenance, public policy, management control, accountability, or other purposes.
Fiduciary Fund Types
Trust 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 non-expendable trust fund, or an expendable trust fund is used. The terms
"non-expendable" 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
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
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 susceptible 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 substantially 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 considered 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 current 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 requirements 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.
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.
-15-
CITY OF OCOEE, FLORIDA
NQIES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 1 —Summary of Significant Accounting Policies—Continued:
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 measurement 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.
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 connection
to the system. Amounts that substantially exceed the cost to connect are recorded as an
addition to contributed capital.
Deposits received which reserve capacity in the City's water and wastewater facilities are
recorded as contributed capital. Other deposits received from customers are recorded as
liability until all legal requirements, as stipulated by the City's water and wastewater
ordinances, are fulfilled.
Cash and Cash Equivalents - Cash balances from the majority of funds are pooled for
investment purposes. Earnings from such investments are allocated to the respective funds
based on applicable cash participation by each fund. _.
Cash and cash equivalents include cash on hand, demand deposits, repurchase agreement,
cash with paying agent, cash with State Board of Administration Local Government Surplus
Funds Trust Fund (SBA), and all highly liquid investments (including restricted assets) with a
maturity of ninety days or less when purchased. Each fund's equity in the City's pooled cash
(checking) account is included in cash and cash equivalents.
Investments - Investments 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.
16
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 1 —Summary of Significant Accounting Policies—Continued:
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 expenditures 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 $25,024 for the 1998 fiscal year. Amortization of bond discount,
included in interest expense, amounted to $9,261 for the 1998 fiscal year.
_ Restricted Assets - The use of certain assets of enterprise funds is restricted by specific
provisions of bond resolutions and agreements with various parties. Assets so designated are
identified as restricted assets on the balance sheet.
Property, Plant and Equipment - Property, plant, and equipment owned by the enterprise
funds is stated at historical 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. Depreciation 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.
-17-
CITY OF OCOEE, FLORIDA `
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 1 —Summary of Significant Accounting Policies—Continued:
Postretirement Benefits - The City does not provide any postretirement health care and life
insurance benefits for employees.
Capitalization of Interest- Net interest cost relating to construction is capitalized.
Compensated Absences - The City accrues accumulated unpaid vacation and sick leave
when earned by the employee. Upon termination, the employee receives a cash benefit for
the number of days accrued at the employee's current wage rate. The non-current portion
(the amount estimated not to be used in the following year) for Governmental Funds is
recorded in the General Long-Term Debt Account Group. The liability for compensated
absences for Proprietary Fund Types is shown as a current liability of those funds.
Long-Term Obligations- Long-term debt is recognized as a liability of a governmental fund —
when due, or when resources have been accumulated in the debt service fund for payment
early in the following year. For other long-term obligations, only that portion expected to be
financed from expendable available financial resources is reported as a fund liability of a
governmental fund. The remaining portion of such obligations is reported in the general
long-term debt account group. Long-term liabilities expected to be financed from
proprietary fund operations are accounted for in those funds.
Fund Equity
Proprietary Funds - Contributed capital consists of funds from developers, federal and
state (capital) grants, and a portion of connection fees charged to customers as
previously discussed. Grants received for operating assistance are recorded as non- _.
operating revenue.
Reservations of retained earnings are created by increases in assets restricted for debt
service, renewal and replacement, and other contractual obligations. These increases
result from earnings on restricted assets and other intrafund transfers to (from) restricted
accounts. Earnings on restricted assets are included in net income of the Proprietary _
Funds. Reserves are not established for bond proceeds deposited into construction
accounts.
Governmental Funds - Reserves of the governmental funds are limited to the portions
of fund balance which are either not subsequently appropriated for expenditures or
legally segregated for a specific use.
Interfund Transactions - Transactions which constitute reimbursements to a fund for
expenditures (expenses) initially made are recorded as expenditures or expenses (as
appropriate) in the reimbursing fund and as reductions of the expenditures (expenses) in
the reimbursed fund.
18
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUFD
September 30, 1998
Note 1 —Summary of Significant Accounting Policies - Continued
All interfund transactions except advances and reimbursements are accounted for as
transfers. Nonrecurring or non-routine transfers of equity between funds are considered
residual equity transfers. All other interfund transactions are treated as operating
transfers.
Total Columns on Combined Statements - Overview - Total columns on the combined
statements are captioned Memorandum Only to indicate that they are presented only to
facilitate financial analysis. Data in these columns do not present financial position, results of
,o 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:
Budgetary Information - The City follows these procedures in establishing the budgetary
data reflected in the financial statements:
1. Prior to August 1st, the City Manager submits to the City Commission a proposed
operating budget for the fiscal year commencing the following October 1st. The
operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted at the City Hall to obtain taxpayer comments.
3. Prior to October 1st, the budget is legally enacted through passage of a resolution.
4. The City cannot legally exceed the budget; however, the City Manager is authorized
to transfer budgeted amounts within departments within any fund. Any revisions that
a alter the total expenditures of any department must be approved by the City
Commission. The legal level of budgetary control is the department level.
5. Formal budgetary integration is employed as a management control device during
the year for the General and Enterprise Funds.
-19-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 2 -Stewardship, Compliance and Accountability-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 expenditures.
Unencumbered appropriations are lapsed at year end, except an appropriation for a
capital expenditure. An appropriation for a capital expenditure shall continue in force
until the purpose for which it was made has been accomplished or abandoned; the
purpose of any such appropriation shall be deemed abandoned if three years pass
without any disbursement from or encumbrance of the appropriation. The budgets _
for the Enterprise Funds are prepared on a modified accrual basis of accounting,
which is not the same basis of accounting as that used to account for the actual
results of operations. The actual results of operations are accounted for on an
accrual basis. The following items indicate the primary differences between the `
budgetary basis and the GAAP basis used to account for the results of 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 available 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.
e. Retained earnings allocation is budgeted and recorded as revenue on the
budgetary basis, but eliminated 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.
-20-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
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 incurrence 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 1998 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 $ 12,271,121 $ 438,395
Encumbrances—prior year (166,814) -
Nonbudgeted capital lease transactions (416.564) (416.564)
Budgetary basis $ 11,687,743 $ 21 831
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)
GAAP basis $ 1,688,140 $ (1,216,554)
Non-budgeted funds (1,433,756) 996,491
Non-budgeted capital lease transactions 39.135 (39,135)
Budgetary basis $ 293 519 $ (259 198)
-21-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 4—Cash and Investments:
Following are the components of the City's cash and investments at September 30, 1998:
Unrestricted Restricted Total
Cash and cash equivalents $ 6,442,931 $ 5,014,219 $11,457,150 _
Cash with paying agent - 11,649,867 11,649,867
Investments 22.271 411 1,625.166 23.896.577
$28 714 342 $18,289252 $47,003,594
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. 1998
Bank balances:
Category 1 $ 304,178
Category 3 1 625 166
Total bank balances $ 1 929344
Carrying amount $ 871,316
Investments - The City's investment policies, except for pension fund and deferred
compensation assets, are governed by State statutes and City ordinances. City ordinance
allows investments in any financial institution that is a qualified public depository of the State of
Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida
Statutes. Authorized investments are:
1) The State Board of Administration Local Government Surplus Funds Trust Fund;
2) U.S. Treasury bills, notes and bonds with maturity dates of 5 years or less;
3) Insured or fully collateralized Certificates of Deposit with maturity date of 3 years or
less with financial institutions qualifying as public depositories;
4) Federal agencies and instrumentalities with maturity date of 5 years or less;
5) Money market funds placed with financial institutions qualifying as public
depositories;
22
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 4—Cash and Investments—Continued:
6) Securities of any open-end or closed-end management type investment company or
investment trust registered under the Investment Company Act of 1940, provided the
portfolio of such investment company is limited to U.S. Government obligations and
to repurchase agreements fully collateralized by such U.S. Government obligations;
or
7) Repurchase agreements collateralized by U.S. Treasury Securities or U.S.
Government Agency securities.
The City's investments are categorized to give an indication of the level of risk assumed by the
City at September 30, 1998:
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, 1998:
Category
Carrying
1 2 3 Amount
Repurchase agreements $ - $ - $ 12,211,000 $ 12,211,000
U.S. Government obligations 15 410 222 - - 15,410,222
$ 15 410 222 $ - $ 12211 000
Deferred compensation plan 1,259,372
Mutual funds investing In U.S. Government Securities 7,463,026
Pension funds investing in commingled bond and
stock funds 9 788 658
$46.132276
-23-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 5—Accounts Receivable:
The following is an analysis of Accounts Receivable:
Proprietary Fiduciary
Governmental Fund Fund
Fund Types Types Types
Special Capital Pension
General Revenue Projects Enterprise Funds
Property taxes $ 1,341 $ - $ - $ - $ -
Accounts receivable - 87,242 - 670,420 -
Assessments
Current - - - 60,000 -
Non-current - - - 196,177
Maintenance fee (formerly
Guaranteed revenue) - - - 94,620 -
Other receivables 115 228 - 26 99 135.728
Total 116,569 87,242 26 1,021,316 135,728
Less: allowance for
uncollectible accounts (4 000) (5.000) - (156 000) -
$112 569 $ 82.242 $ 26 $ 865 316 $ 135 728
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 following the year in which they are assessed. On -
or around May 31 following the tax year, certificates are sold for all delinquent taxes on real
property.
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, 1998, 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 $4,507,358 additional property
tax revenue a year from the present assessed valuation of $751,226,256 before the limit is
reached.
-24-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 7 - Property, Plant and Equipment:
During the fiscal year ended September 30, 1998, the following changes in general fixed
assets occurred:
Balance Balance
10-1-97 Additions Deletions 9-30-98
Land $ 1,312,883 $ 300,000 $ - $ 1,612,883
Buildings 3,473,099 1,323,728 151,853 4,644,974
Improvements 974,757 127,964 30,239 1,072,482
Equipment 5,009,015 1.188 153 565.794 5 631 374
10,769,754 2,939,845 747,886 12,961,713
Construction in progress 1.021 637 1 254 239 812 990 1,462,886
$11.791.391 $4,194,084 $1,560 876 $14 424 599
Construction in progress for general fixed assets as of September 30, 1998 consisted
primarily of improvements to the Ocoee Youth Center, construction of a fire station and a
public works facility, and the City Hall siding and trim project.
The sources of investment in general fixed assets are as follows:
General fund $ 5,021,414
Special revenue funds:
Federal revenue sharing 750,610
Road impact 127,948
Police trust 68,856
Police training 8,106
Parks 186,308
Stormwater utility 383,595
Fire impact 1,179,031
Police impact 666,834
Contributions—other 389,745
State grant 320,010
Capital projects fund 5,322.142
$14.424 599
-25-
CITY OF OCOEE, FLORIDA -
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 7 — Property, Plant and Equipment—Continued:
The components of property, plant and equipment for the Proprietary Fund Types at
September 30, 1998, are as follows:
Proprietary -
Fund Types
Enterprise
Land and land improvements $ 4,565,719
Buildings 373,757
Improvements 31,404,005
Equipment 2.940.270
39,283,751
Less: accumulated depreciation 11 197 285
$28 086 466
Proprietary Fund construction in progress at September 30, 1998, consisted primarily of
improvements to water distribution system and the reclaimed water program.
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, 1998 to be reserved for general employees
and police and firefighter pension funds are $4,500,924 and $5,434,005, respectively.
-26-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8-Retirement Plans-Continued:
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.
Plan Descriptions -The following schedule is derived from the respective actuarial
reports and City information for the two pension plans as of October 1, 1997:
General Police and
Membership and Plan Provisions Employees Firefighters
Members:
Retirees and beneficiaries receiving benefits 6 4
Terminated plan members entitled to but not
receiving benefits 8 4
Active plan members:
Vested 58 43
Non-vested 65 41
137
-27-
CITY OF OCOEE, FLORIDA `
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8— Retirement Plans—Continued:
General Police and
Membership and Plan Provisions Employees 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/Year of Service—Early Age 50 and 5 years of Age 45 and 5 years of
Credited service. Credited service.
Benefit—Normal 2.5%Average Monthly 3.0%of Average
Earnings times Credited Monthly
Service. Earnings times
Credited
Service.
Benefit—Early Accrued benefit. Accrued benefit.
Form of Benefit 10 year Certain and Life 10 year Certain and
Annuity. Life Annuity.
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. _.
Preretirement Death Benefits:
Vested Accrued Benefit payable Accrued Benefit
To beneficiary for 10 payable
Years. To beneficiary for 10
Years.
Nonvested Refund Accumulated Refund Accumulated —
Contributions without Contributions without
Interest. Interest.
-28-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8— Retirement Plans—Continued:
Funding Policy - All plans are contributory. The employees participating in the General
Employees' Pension Plan are required to contribute 7.4% of their salary. The City is
required to contribute at an actuarially determined rate; the current rate is 11.5% 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 7.6% of their salary. The City is required to contribute at an
actuarially determined rate; the current rate is 21.8%, including expected State
contribution, of annual covered payroll.
Costs to administer the plans are deducted from net assets of the respective plans.
Annual Pension Cost and Net Pension Obligation -The City has traditionally
contributed the annual required contribution (ARC) and thus has never actually had, or
had need to report, a net pension obligation (NPO). 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 none existed at September 30, 1998.
-29-
CITY OF OCOEE, FLORIDA `
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8—Retirement Plans—Continued:
The Plans' table of required supplementary information is presented below:
REQUIRED SUPPLEMENTARY INFORMATION _.
SCHEDULES OF FUNDING PROGRESS
Actuarial
Accrued UAAL as
Actuarial Liability Unfunded a %of
Actuarial Value of (AAL) AAL Funded Covered Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) f(b-a)/c)
General Employees
10/01/97 $3,109,511 $4,646,787 $ 1,537,276 66.92% $3,656,410 42.04%
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% 2,548,258 19.29% —.
10/01/93 941,671 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%
Police Officers and Firefighters
10/01/97 $3,685,001 $4,551,720 $826,719 81.68% $2,954,018 27.99%
10/01/96 2,661,713 3,492,197 830,484 76.22% 2,428,615 34.20%
10/01/95 1,961,760 2,696,842 735,082 72.74% 2,191,537 33.54%
10/01/94 1,416,034 2,174,014 757,980 65.13% 2,002,476 37.85% —
10/01/93 989,107 1,763,014 773,907 56.10% 1,706,230 45.36%
10/01/92 555,482 1,319,269 763,787 42.11% 1,592,110 47.97%
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES
General Employees Police Officers 8.Firefighters `
Annual Annual
Year Ended Required Percentage Required Percentage
September 3Q Contribution Contributed Contribution Contributed —
1998 $ 482,195 100% $765,818 100%
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% -
-30-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8—Retirement Plans—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, 1997) actuarial valuation
follows:
General Police and
Employees Firefighters
Assumptions:
Investment Earnings 8% 8%
Salary Increases -
Inflation 3% 3%
Merit, Longevity, etc. 6% 6%
Postretirement Benefit Increases 0°/ 0%
Mortality Table 1983 Group Annuity 1983 Group Annuity
Mortality Table Mortality Table
Retirement Age When First Eligible When First Eligible
Actuarial Valuation:
Frequency Annual Annual
Cost Method Frozen Entry Age Frozen Entry Age
Amortization Method Level Percent Level Percent
Amortization Period 30 Years Closed 30 Years Closed
Asset Valuation Method 4 Year Smoothed 4 Year 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 accordance 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.
Assets of the Plan are stated at fair value, which is represented by the contract value
provided by the City's third party administrator. Employee contributions to the Plan for the
year ended September 30, 1998 were $173,207.
-31-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 8— Retirement Plans—Continued:
Deferred Compensation Plan—Continued—
In accordance with changes in federal law brought about by the Small Business Job
Protection Act of 1996, eligible deferred compensation plans established and maintained
by governmental employers must be amended to provide that all assets of the Plan be
held in trust for the exclusive benefit of the plan participants and their beneficiaries. The
City has executed plans with all of its third party administrators and accordingly, all assets
of these plans are accounted for in an Expendable Trust Fund. See Note 17 for discussion
of this change in accounting principle.
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, 1998.
All expenditures under this program are shown as expenditures of the general fund.
Water Excise Tax $ 4,788
Water Fees 47,866
Solid Waste Fees 72.058
Total Over 65 Cost $ 124 712
32
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10— Bonds and Notes Payable:
Summarized below are the City's bonds and notes payable outstanding at September 30,
1998:
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%. $ 7,635,000
Less: Current Maturities (225,000)
Unamortized Discounts (92.853)
7.317 147
Water and Sewer System Improvement Revenue Bonds,
Series 1997 — payable in annual installments of$120,000
to $600,000 through 2026, plus semi-annual interest at
3.60% to 5.62%. 10,030,000
Less: Current Maturities (165,000)
-' Unamortized Discounts (122.468)
9.742,532
$17.059 679
a
General Long-Term Debt Account Group
Bonds Payable -
Transportation Refunding and Improvement Revenue
Bonds, Series 1990 — payable in annual installments of
$125,000 to $575,000 through 2015 with semi-annual
interest payments at 6.0% to 7.5%. $ 5,875,000
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% 2 020 000
to 7.5%.
$ 7.595.000
a
a
-33-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10-Bonds and Notes Payable-Continued:
General Long-Term Debt Account Group -Continued
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. $2,020,000
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. 4 610,000
$6 630 000
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993- In
February 1993, the City issued Water and Sewer System Refunding and Improvement
Revenue Bonds, Series 1993 to finance the refunding of $10,160,000 outstanding Series
1989A and B Water and Sewer System Revenue Bonds.
These bonds are secured by the combined Water and Wastewater Fund operating revenues, —
interest earnings, impact fees and a first priority pledge of cash payments due from
developers.
The major provisions of the ordinances authorizing the revenue bonds are as follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the next —
maturing principal and interest payment, respectively.
2) Each month, provisions shall be made of the gross revenues sufficient to pay, in
order of preference, cost of operation and maintenance of the systems, then
debt service/sinking fund requirements.
3) The City shah 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.
-34-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10—Bonds and Notes Payable—Continued:
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.
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 Transportation Refunding and Improvement Revenue Bonds, Series 1990 - In
.— September 1990, the City issued revenue bonds to finance the advance refunding of
$1,895,000 outstanding series 1987 bonds and finance the paving, extension, and
improvement of certain streets within the corporate limits.
These bonds are secured by the Local Option Gas Tax and certain local Public Service Taxes.
The major provisions of the ordinance authorizing the revenue bonds are as follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the next
maturing principal and interest payment, respectively.
2) The City shall provide for the reserve requirement by purchasing a surety bond.
-35-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10- Bonds and Notes Payable-Continued:
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.
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 Promissory Note, Series 1996 - 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 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.
-36-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10— Bonds and Notes Payable—Continued:
Capital Improvement Revenue Promissory Note, Series 1996— Continued
2) The City shall establish a Reserve Fund and maintain the Reserve Fund Requirement
of $440,000. Securities in the Reserve Fund shall be valued at market value annually
on each January 1. Deficiencies in the amounts on deposit in the Reserve Fund
resulting from a decline in market value shall be restored no later than the succeeding
interest payment date.
Following is a maturity schedule of outstanding bonds payable:
Year Ended General Long-Term Debt Enterprise Funds Total Debt
Sept. 30: Principal Interest Principal Interest Service
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 375,000 493,885 460,000 882,477 2,211,362
2004-2008 2,320,000 2,016,965 2,680,000 4,042,829 11,059,794
2009-2013 2,820,000 1,028,250 3,485,000 3,242,519 10,575,769
2014-2018 1,110,000 126,375 4,570,000 2,155,075 7,961,450
2019-2023 - - 2,380,000 1,101,093 3,481,093
2024-2028 - - 2 435.000 351.844 2 786 844
$7 895 000 $5,872 747 $17 665,000 515 498.870 $46 931 617
Following is a maturity schedule of principal payments on the stormwater and capital
improvement notes payable:
Year Ended
September 30:
1999 $ 370,000
2000 380,000
2001 390,000
2002 405,000
2003 420,000
Thereafter 4 665 000
$ 6 630 000
-37-
CITY OF OCOEE, FLORIDA `
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 10—Bonds and Notes Payable - Continued
During the year ended September 30, 1998, the following changes in general long-term debt
occurred:
Accrued Capital Bonds and
Annual Lease Notes
Leave Obligations Payable Total _
Balance at
October 1, 1997 $476,573 $ 1,143,452 $15,135,000 $16,755,025
Additions 59,919 455,699 - 515,618
Principal payments - (532.811) (610 000) (1142811)
Balance at
September 30, 1998 $536,492 $ 1,066 340 $14,525,000 $16 127 832
Note 11 — 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. —.
Equipment under capital leases recorded in the General Fixed Asset Account Group at
September 30, 1998 consists of the following:
Fire Truck $ 355,063
800 MHZ Radio System 720,739
Vehicles and Trucks 1,140,946
Equipment 80.297
$ 2 297 045
Debt service payments on equipment capitalized in the General Fixed Asset Group are
recorded as expenditures in either the General Fund or the Special Revenue Funds.
-38-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
a
Note 11 —Lease Obligations -Continued
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:
a
Year Ending
September 30:
1999 $ 594,846
2000 372,556
2001 135,194
2002 41 247
Total Minimum Lease Payments 1,143,843
Less, Amount Representing Interest 77.503
Present Value of Net Minimum
Lease Payments $ 1.066 340
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 $ 149,862 $ 386,706 $ 536,568
Less: Accumulated Amortization (36.8321 (121,294) (158.126)
$ 113,030 $ 265,412 $ 378.442
Amortization of equipment leased under capital leases is included in depreciation expense.
a
a
a
-39-
a
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 11 — Lease Obligations—Continued:
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 _
September30: Fund Fund Totals
1999 $ 40,938 $ 89,217 $ 130,155 _
2000 40,938 89,217 130,155
2001 30,500 62,679 93,179
2002 14,775 32 880 47.655
Total Minimum Lease Payments 127,151 273,993 401,144
Less: Amount Representing Interest (12 937) (26.039) (38.976)
Present Value of Net
Minimum Lease Payments $ 114 214 $ 247.954 $ 362.168
The current and non-current obligation under these capital leases are $110,702 and $251.466,
respectively.
Operating Leases-The City leases office and computer equipment under non-cancelable
operating leases. Rental expenditures for the year ended September 30, 1998 amount to$40,557. The following is a schedule by years of future minimum rentals on these non-
cancelable leases as of September 30, 1998:
Year Ending
September 30•
1999 $ 24,535
2000 7,802
2001 7 802
$ 40.139
-40-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 12— Interfund Receivables and Payables:
r The following schedule as of September 30, 1998, represents interfund receivables and
payables:
Interfund Interfund
Fund Type Receivables Payables
General Fund $ 9,694 $ -
Special Revenue Funds:
Police Training - 9.694
$ 9.694 $ 9.694
Note 13—Risk Management:
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; job-related illnesses or injuries to employees; and natural
disasters. 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.
-41-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 14—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, 1998, is as follows:
Water and
Wastewater Solid Waste Total
Operating Revenues $ 4,700.456 $ 1,418 913 $ 6.119.369
Depreciation and Amortization $ 1,445 696 $ 252 13$ $ 1 697 834 _
Operating Income $ 434738 $ 176491 $ 611 229
Operating Grants $ - $ 17,540 $ 17.540
Operating Transfers:
In $ 14 610 $ 1.010 $ 15 620
Out $ (751 048) $ (141 010) $ (892 058)
Net Income (Loss) $ (244 980) $ 61 964 $ (183.016)
Current Capital Contributions $ 1 720 308 $ - $ 1 720 308
Property Additions $ 3,812.975 $ 182 804 $ 3,995.779
Property Deletions $ 403 225 $ 166 362 $ 569 587
Net Working Capital $ 1 818 722 $ 338 741 $ 2 157 463
Total Assets $47 537339 $ 930 889 $48 468 228 _.
Long-Term Debt $17,139 744 $ 171,401 $17 311145
Total Equity $28,910.938 $ 651 403 $29 562,341
-42-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 15—Contributed Capital:
The following is a summary of changes in contributed capital of the water and wastewater fund
during the year ended September 30, 1998:
Contributed Capital —Beginning of Year $24,120,382
Additions (Reductions)
.� Connection Fees 1,167,574
Developers 552,734
Depreciation on Contributed Assets (402.751)
Contributed Capital— End of Year $25.437,939
Note 16—Year 2000 Issue:
The year 2000 issue is the result of shortcomings in many electronic data processing systems
and other electronic equipment that may adversely affect the government's operations as
early as fiscal year 1999.
The City's computer hardware, operating systems and applications software have been
assessed and, where necessary, have been upgraded in the normal course of repair and
replacement to be year 2000 compliant. Other electronic systems have been assessed,
remediated, tested and validated, and are also believed to be year 2000 compliant. Since this
process was performed in house or based upon representations of various vendors, there
were no outside contracted amounts as of September 30, 1998.
Note 17—Change in Accounting Principle:
The City implemented GASB Statement No. 32, Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans, during 1998 for its
deferred compensation plans. The cumulative effect of applying this statement was to
increase the fund balance at October 1, 1997 of the Expendable Trust Fund by $1,092,244
and to close the Agency Fund. The adoption of GASB 32 also resulted in an increase in
excess of revenues over expenditures of $167,128 for the Expendable Trust Fund, and a
decrease in additions to the Deferred Compensation Payable in the Agency Fund for the year
ended September 30, 1998.
Note 18—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.
-43-
CITY OF OCOEE, FLORIDA _.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
Note 18-Summary Disclosure of Significant Contingencies-Continued:
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 19-Commitments:
At September 30, 1998, the City had entered into a contract for construction of the
recreational facility in the amount of $1,676,708. In addition, the City entered into contracts
totaling approximately $496,000 related to various projects and equipment.
Note 20-Subsequent Events:
In October 1998, the City issued the City of Ocoee Transportation Revenue and Improvement -"
Revenue Bonds, Series 1998, in the principal amount of $19,255,000. The purpose of these
bonds is to refund a portion of the City's Transportation Refunding and Improvement Revenue
Bonds, Series 1990, and to finance the design, construction, paving and improvement of
certain roads and related drainage improvements within the City. The principal and interest on
these bonds shall be payable solely from and secured by a prior lien upon and pledge of
monies received by the City from Local Option Gas Tax and Public Service Taxes. The Series -
1998 Bonds and the interest thereon shall not constitute a general indebtedness or general
obligation of the City.
-44-
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
These financial statements provide a more detailed view of the "General
Purpose Financial Statements" presented in the preceding subsection.
Combining statements are presented when there are more than one fund of
a given fund type.
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., GENERAL FUND
The General Fund is the principal fund of the City and is used to account for
all activities not included in other funds.
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CITY OF OCOEE, FLORIDA
GENERAL FUND
-
STATEMENT OF REVENUES. EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
-
For the Year Ended September 30, 1998
Variance
Favorable
Budget Actual (Unfavorable)
Revenue:
- Taxes:
Property taxes $ 2,892,032 $ 2,872,599 $ (19,433)
Franchise taxes 1,164,950 1,132,896 (32,054)
- Utility taxes 1,679 450 1 728,097 48,647
5,736 432 5 733,592 (2 840)
Licenses and permits:
Building permits 611,765 592,452 (19,313)
Occupational license 245,440 263,996 18,556
857.205 856 448 (757)
- Intergovernmental revenues:
Cigarette tax 102,950 105,115 2,165
State revenue sharing 530,050 558,390 28,340
Sales tax 2,414,250 2,365,148 (49,102)
Other state shared revenue 97,501 93,076 (4,425)
County 6¢ gas tax 725,500 729,413 3,913
Other county shared revenue 34,000 51,426 17,426
-
Federal grants 205,000 257.443 52.443
4,109,251 4,160.011 50,760
Charges for services:
Fire contract 131,580 231,586 100,006
Program activity fees 83,600 106,309 22,709
City staff charges 11.400 13,951 2,551
226.58Q 351 846 125 266
Fines and forfeitures:
Fines and forfeitures 105 000 120 259 15.259
- Investment income:
Investment income 117.000 163 241 46 241
Miscellaneous revenues:
Zoning and election fees 29,000 25,455 (3,545)
Other 327.050 77.900 (249.1501
356 050 _ 103.355 (252,695)
- Total Revenues S11507,518 $11,488 752 $ (18.766)
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CITY OF OCOEE, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES. EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
For the Year Ended September 30, 1998
Variance
Favorable
Budaet Actual 'Unfavorable)
Expenditures:
General government:
Legislative $ 166,265 $ 158,290 $ 7,975
Executive 875,336 759,504 115,832
Finance and administrative 919,632 868,140 51,492
Legal 237,100 204,758 32,342
Planning and zoning 474,819 424,788 50,031
General government 409,843 163,397 246,446
Building maintenance 271 433 222.266 49 167
3 354 428 2 801 143 553 285
Public safety:
Law enforcement 3,653,062 3,279,486 373,576
Fire control 2,822,115 2,576,566 245,549
Protective inspections 692.258 658 678 33 580
7 167.435 6.514 730 652 705
Physical environment:
Roads and streets 1 609 169 1.419,493 189 676
Culture and recreation:
Parks and recreation 634.667 549 343 85.324
Debt service:
Principal retirement - 361,819 (361,819)
Interest and fiscal charges - 41.215 (41 215)
- 403,034 (403 034)
Total expenditures 12 765 699 11 687 743 1,077 956
Excess (Deficiency) of Revenues
Over Expenditures (1,258,181) (198 991) 1 059,190
Other Financing Sources (Uses):
Operating transfers in 1,789,681 1,718,059 (71,622)
Operating transfers out (1.731,500) (1,696 228) 35.272
Net other financing sources (uses) 58 181 21 831 (36 350)
Excess (Deficiency) of Revenues and Other
Sources over Expenditures and Other
Uses (1,200,000) (177,160) 1,022,840
Fund Balance— Beginning of Year 1 200 000 2 148,728 948 728
Fund Balance - End of Year $ - $ 1 971 568 $ 1,971 568
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues from specific taxes or other earmarked
revenue sources which because of legal or regulatory provisions or administrative action are
designed to finance particular functions or activities of government and which, therefore, cannot
be diverted to other uses.
Description Of Funds
Road Impact - Accounts for the Road Impact fees collected and for disbursements made
for the purpose of planning, acquisition, expansion, and development of off-
site improvements to the road system.
Recreation - 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 the 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 disbursements made for the
purpose of acquisition of facilities and equipment determined to be needed
to provide fire protection for new development within the City.
Police Impact - Accounts for Police Impact fees collected and for disbursements made for
the purpose of acquisition of facilities and equipment determined to be
needed to provide police protection for new development within the City.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
September 30, 1998
Road
Impact Recreation Stormwater
Assets:
Cash and cash equivalents $1,213,490 $ 335,210 $ 91,977
Investments 4,671,556 291,972 49,414
Receivable—net - 82.242 _
Total assets $5 885 046 $ 627 182 $ 223 633
Liabilities and Fund Balances:
Liabilities:
Accrued liabilities $ - $ - $ 11,963
Due to other funds
Deferred revenue - 3 996 6.728
Total liabilities - 3.996 18.691
Fund balances:
Reserved:
Renewal and replacement - - 39,723
Unreserved:
Designated for subsequent year's budget 5.885 046 623.186 165.219
Total fund balances 5 885 046 623.186 204.942
Total liabilities and fund balances $5.885.046 $ 627 182 $ 223 633
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Total
Special
Interim Police Police Fire Police Revenue
Services TrainingTrust Impact Impact Funds
$ 12,491 $ 22,631 $ 76,099 $ 853,614 $ 166,161 $2,771,673
- 1,043,620 74,170 6,130,732
^- - - - - - 82 242
$ 12.491 $ 22 631 $ 76 099 $1 897 234 $ 240 331 $8 984.647
$ - $ - $ - $ - $ - $ 11,963
9,694 - - - 9,694
- - - - 10.724
9 694 - - - 32.381
- - - - - 39,723
12 491 12.937 76 099 1.897.234 240 331 8 912.543
12 491 12 937 76.099 1.897 234 240 331 8.952 266
$ 12.491 $ 22 631 $ 76.099 $1.897 234 $ 240.331 $8 984 647
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CITY OF OCOEE, FLORIDA —
COMBINING STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
For the Year Ended September 30, 1998 —
Road
Imoact Recreation Stormwater
Revenues:
Intergovernmental revenues $ - $ - $ -
Charges for services
Fines and forfeitures
Impact fees/special assessments 891,785 82,662 869,891
Investment income 392,510 41,177 5,655
Miscellaneous revenues 969 - -
Total revenues 1 285.264 123.839 875 546
Expenditures:
Current:
Public safety
Physical environment 315,074 - 548,015
Culture and recreation - 23,461 -
Debt service:
Principal retirement - - 63,860
Interest and fiscal charges - - 9 287
Total expenditures 315 074 23 461 621.162
Excess (Deficiency) of Revenue over
Expenditures: 970.190 100.378 254 384
Other Financing Sources (Uses):
Operating transfers in
Operating transfers out (628,187) (100,000) (259,198) —.
Capital lease proceeds - - 39.135
Net other financing sources (uses) (628.187) (100 000) (220 063)
Excess (Deficiency) of Revenues and Other
Financing Sources over Expenditures and
Other Financing Uses 342,003 378 34,321
Fund Balances—Beginning of Year 5 543,043 622,808 170,621
Fund Balances—End of Year $ 5.885046 $ 623 186 $ 204.942
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Total
-
Special
Interim Police Police Fire Police Revenue
Services Training Trust Impact Impact Funds
a
$ - $ 18,000 $ - $ - $ - $ 18,000
- 16,264 - 16,264
a
- 1,850 36,618 - - 38,468
37,234 - - 277,633 100,364 2,259,569
839 908 2,263 117,709 15,050 576,111
- - 10.683 585 - 12,237
38 073 20.758 49 564 412,191 115.414 2.920 649
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- 10,290 2,698 143,139 54 156,181
- - - - - - 863,089
- - - - - 23,461
- - - 107,133 - 170,993
- - - 9 498 - 18 785
- 10 290 2.698 259 770 54 1 232,509
38 073 10 468 46 866 152 421 115,360 1,688 140
a
- 175,793 - 175,793
(41,415) (9,694) - (300,000) (92,988) (1,431,482)
- - - - 39135
(41 415) (9.694) - (124.2071 (92 988) (1.216,554)
a
(3,342) 774 46,866 28,214 22,372 471,586
a
15,833 12 163 29,233 1.869,020 217 959 8 480.680
a $ 12,491 $ 12,937 $ 76,099 $ 1.897.234 $ 240 331 $ 8 952 266
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DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for the payment of
interest and principal on all general long-term debt other than that payable from Proprietary
Funds.
,. Description of Funds
Transportation Refunding - Accounts for the principal and interest payments on the 1990
and Improvement Transportation Refunding and Improvement Revenue Bonds
Revenue Bonds which funded the design, construction, paving and
improvement 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 Note 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.
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CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL DEBT SFRVICE FUNDS
September 30, 1998
Capital
Transportation Capital Stormwater Improvement
Refunding And Improvement Revenue Revenue Total
Improvement Revenue Promissory Promissory Debt Service
Revenue Bonds Bonds Note Note Funds
Assets:
Cash and cash equivalents $ 44,494 $ 111,158 $ 27,728 $ 157,221 $ 340,601
aRestricted assets:
Investments - 236,548 209,749 397,497 843,794
Cash with paying agent 398 484 171 915 133 891 52 439 756 729
Total assets $ 442 978 $ 519.621 $ 371363 S 607 157 $ 1 941 124
a
Liabilities and Fund Balances:
Liabilities:
Matured bonds payable $ 175,000 $ 95,000 $ 110,000 $ - $ 380,000
Matured interest payable 223 484 76 915 23 891 52 439 376 729
Total liabilities 398 484 171 915 133 891 52 439 756 729
Fund balances:
Reserved for debt service 44 494 347 706 237 477 554 718 1 184 395
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Total liabilities and
fund balances $ 442 978 $ 519 621 S 371 368 $ 607 157 $ 1 941 124
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES
e- EXPENDITURES AND CHANGES IN FUND BALANCES
ALL DEBT SERVICE FUNDS
For the Year Ended September 30, 1998
'.I Capital
Transportation Capital Stormwater Improvement
Refunding And Improvement Revenue Revenue Total
Improvement Revenue Promissory Promissory Debt Service
Revenue Bonds Bonds Note Note Funds
Revenues:
Investment income $ 12 977 $ 29 778 5 14 783 S 26 504 4 84 04Q
Total revenues 12 977 29 776 14 783 26 504 84 040
Expenditures:
— Debt service:
Bond principal payments 175,000 95,000 110,000 230,000 610,000
Bond interest and fiscal charges 447 442 153 83Q 94 785 212 691 908 748
Total expenditures 622 442 248 83Q 204 785 442 691 1 518 748
Excess(Deficiency of Revenue over
Expenditures (609 465) (219 054) (1900021 (416 187) (1 434 7081
Other Financing Sources:
Operating transfers in 621 967 248 830 204 785 513 365 1 588 947
Total other financing sources 621 967 248 830 204 785 511 365 1 588 947
Excess of Revenues and Other Financing
Sources over Expenditures and Other
Financing Uses 12,502 29776 14,783 97,178 154,239
Fund Balances-Beginning of Year 31 992 317 930 222 694 457 54Q 1 030 15Q
Fund Balances-End of Year $ 44,494 S 347 705 $ 237 477 5 554 718 $ 1184395
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.� CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for all resources used for the acquisition and/or construction
of capital facilities by the City except for those financed and accounted for in the Proprietary and
certain Fiduciary Funds.
Description of Funds
Road Construction - Accounts for the portion of building permits designated to fund
the design, construction, paving and improvement of White
Road in connection with the West Oaks Mall construction
project.
City Hall/Police Department - Accounts for the proceeds of the 1991 Capital Improvement
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 installation
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.
Capital Projects Reserve - Accounts for transfers from the General Funds for certain
capital projects including City Hall/Police siding and trim
project, sidewalks, and public restrooms at Starke Lake.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL CAPITAL PROJECT FUNDS `
September 30, 1998
Road Stormwater
Construction Improvement
Assets:
Cash and cash equivalents $ 1,638 $ 744,904
Investments 189,738 800,414
Accounts receivable 26 -
Total assets $ 191 402 $ 1 545a318
Liabilities and Fund Balance:
Liabilities:
Accounts payable $ - $ -
Retainage payable - 13.583
Total liabilities - 13.583
Fund balance:
Unreserved —designated for capital projects 191 402 1 531.735
Total Liabilities and Fund Balance $ 191 402 $ 1 545 318
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Capital Total
Computer Capital Projects Capital Project
Acquisition Improvement Reserve Funds
$ 71,052 $ 953,034 $ 509,307 $ 2,279,935
- 1,393,725 - 2,383,877
26
$ 71 052 $ 2.346.759 $ 509.307 $ 4 663 838
$ 17,500 $ - $ - $ 17,500
19193 8,985 41.761
17 500 19,193 8 985 59 261
53 552 2,327.566 500.322 4.604,577
$ 71.052 $ 2 346.759 $ 509.307 $ 4.663.838
-54-
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, 1998 ..
City Hall/
Road Police Dept.
Construction Construction
Revenues:
Investment income $ 17 387 $ 125
Total revenues 17 387 125
Expenditures:
Capital outlay:
General government - 244
Public safety - 780
Physical environment 140,724 -
Culture & recreation -
-
Total expenditures 140 724 1 024
Excess (Deficiency) of Revenues Over Expenditures (123 337) (899)
Other Financing Sources (Uses):
Operating transfers in - -
Operating transfers out - -
Net other financing sources (uses) - - —
Excess (Deficiency) of Revenues and Other Financing
Sources Over Expenditures and Other Financing Uses (123,337) (899)
Fund Balances—Beginning of Year 314,739 1,506
Residual Equity Transfer In (Out) - (607)
Fund Balances—End of Year $ 191,402 $ -
-55-
Capital Total
Stormwater Computer Capital Projects Capital Project
Improvement Acquisition Improvements Reserve Funds
$ 83 334 $ 4 815 $ 151 838 $ 18 719 $ 276.218
83.334 4.815 151,838 18 719 276.218
- 91,717 - 244,408 336,369
- 744,787 - 745,567
162,690 - 454,725 17,426 775,565
- - 213,428 2.170 215 598
162 690 91,717 1.412.940 264.004 2 073.099
(79.356) (86 902) (1.261 102) (245 285) (1,796.881)
- - 745,000 745,000
- (3 858) (219.793) - (223.6511
- (3 858) (219 793) 745 000 521 , 49
(79,356) (90,760) (1,480,895) 499,715 (1,275,532)
1,611,091 144,312 3,808,461 - 5,880,109
607 -
$ 1 531 735 $ 53.552 $ 2 327 566 $ 500,322 $ 4.604.577
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ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprise or where the City has decided that periodic determination of
net income is appropriate for capital maintenance, management control, accountability, public
policy, or other purposes.
Description of Funds
Water and Wastewater - Accounts for the operations of the City's water system and
wastewater collection and treatment plant which provides
water and wastewater service to the residents of the City. All
activities necessary to provide such service are accounted for
in this fund.
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.
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL ENTERPRISE FUNDS
September 30, 1998
Water Total _.
And Enterprise
Wastewater Solid Waste Funds
Assets:
Current assets:
Cash and cash equivalents $ 393,531 $ 274,706 $ 668,237 —
Investments 1,124,597 47,371 1,171,968
Receivables (net of allowance for
Uncollectibles) 552,616 116,523 669,139
Inventory - materials 22,152 - 22,152
Due from other governments - 8.226 8,226
Total current assets 2 092.896 446 826 2.539 722
Restricted assets: —.
Cash and cash equivalents 4,872,318 141,901 5,014,219
Investments 10,806,073 - 10,806,073
Cash with paying agent 868 437 - 868,437
Total restricted assets 16 546,828 141 901 16 688.729
Fixed assets:
Property, plant and equipment 37,946,375 1,337,376 39,283,751 _.
Less: accumulated depreciation (10,202,071) (995,214) (11,197,285)
Construction in progress 393,049 - 393 nag
Total fixed assets—net 28,137,353 342 162 28 479 515 —
Other assets:
Assessments receivable 196,177 - 196,177
Unamortized bond issuance costs 564,085 - 564.085
Total other assets 760,262 - 760 262
Total assets $47 537 339 $ 930,889 $48,468 228
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Water Total
And Enterprise
Wastewater Solid Waste Funds
Liabilities and Fund Equity:
Current liabilities (payable from current assets):
Accounts payable $ 21,725 $ 120 $ 21,845
Accrued expenses 178,294 31,412 209,706
Deferred revenue 40,006 - 40,006
Obligations under capital leases 34 149 76 553 110 702
Total current liabilities (payable from
current assets) 274 174 108 085 382.259
Current liabilities (payable from restricted
assets):
Customer deposits 344,045 - 344,045
Revenue bonds payable 390,000 - 390,000
Accrued interest payable 478.438 - 478.438
Total current liabilities (payable from
restricted assets) 1 212 483 - 1,212 483
Long-term liabilities:
Revenue bonds payable 17,059,679 - 17,059,679
Obligations under capital leases 80 065 171 401 251.466
Total long-term liabilities 17.139 744 171 401 17,311 145
Total liabilities 18.626 401 279 486 18.905 887
Fund Equity:
Contributed capital 25.437,939 - 25 437 939
Retained earnings:
Reserved for renewal and replacement 2,297,974 141,901 2,439,875
Unreserved 1.175.025 509.502 1 684 527
Total retained earnings 3.472 999 651 403 4,124.402
Total fund equity 28 910.938 651 403 29,562.341
Total liabilities &fund equity $47,537,339 $ 930,889 $48 468 228
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES. EXPENSES
AND CHANGES IN RETAINED EARNINGS
ALL ENTERPRISE FUNDS
— For the Year Ended September 30, 1998
Water Total
And Enterprise
- Wastewater Solid Waste Funds
Operating Revenues:
User charges $ 4.700 456 $ 1 418,913 $ 6.119.369
Operating Expenses:
Personal services 1,677,871 403,086 2,080,957
Materials and supplies 468,764 310,218 778,982
a Heat, light and power 373,724 - 373,724
Depreciation and amortization 1,445,696 252,138 1,697,834
Other expenses 299,663 271,988 571,651
— Recycling expenses - 4,992 4 992
Total operating expenses 4 265 718 1,242,422 5,508,140
Operating income 434,738 176 491 611 229
Nonoperating Revenues (Expenses):
Grant revenue - 17,540 17,540
— Investment income 1,049,559 20,742 1,070,301
Interest expense (974,652) (14,060) (988,712)
Loss on sale of fixed assets (18 187) 1.251 (16.936)
Total nonoperating revenues 56 720 25,473 82 193
Income Before Operating Transfers 491.458 201.964 693.422
—
Operating Transfers:
Operating transfers in 14,610 1,010 15,620
Operating transfers out (751 048) (141 010) (892 058)
—
Net operating transfers (736 438) (140 000) (876.438)
Net income (loss) $ (244,980) $ 61.964 $ (183,016)
—
Disposition of Net Income (Loss):
Net income (loss) $ (244,980) $ 61,964 $ (183,016)
a Depreciation on contributed assets 402.751 - 402.751
Net increase in retained earnings 157,771 61,964 219,735
— Retained Earnings— Beginning of Year 3 315 228 589 439 3 904,667
Retained Earnings— End of Year $ 3,472.999 $ 651.403 $ 4.124 402
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CITY OF OCOEE, FLORIDA —
COMBINING STATEMENT OF CASH Fl OWS
ALL ENTERPRISE FUNDS
For the Year Ended September 30, 1998
Water Total —
And Enterprise
Wastewater Solid Waste Funds
Cash Flows from Operating Activities: -
Receipts from customers S 4,530,719 $ 1,408,095 $ 5,938,814
Payments to suppliers (1,347,810) (585,883) (1,933.693)
Payments to employees (1 639.427) (394.543) (2 033,970) •
—
Net cash provided by operating activities 1 543.482 427.669 1 971.151
•
Cash Flows from Noncapital Financing Activities:
Net operating transfers in (out) (736,438) (140,000) (876,438)
Receipts from grants - 17,540 17,540
Decrease in due to other funds - (20,610) (20.610)
Net cash used in noncapital financing activities (736 438) (143 070) (879,508) —
Cash Flows from Capital and Related Financing Activities:
Proceeds from sale of property and equipment 6,127 1,700 7,827
Purchase of property, plant and equipment (294,372) (182,804) (477,176)
Additions to construction in progress (389,732) - (389,732)
Principal paid on bonds and leases (356,783) (72,419) (429,202)
Interest paid on bonds and leases (974,279) (14,060) (988,339) —
Proceeds from bonds and capital leases 106,335 151,032 257,367
Capital contributions 1,167,574 - 1,167,574
Cash received on assessments receivable 55,598 - 55,598
Net cash used in capital and related
financing activities (67%532) (116551) (796063)
Cash Flows from Investing Activities: -
Sale of investments 989,293 - 989,293
Investment income 772,534 19 766 792 300
Net cash provided by investing activities 1 761 827 19 766 1 781 593 —.
Net Increase in Cash and Cash Equivalents 1,889,339 187,814 2,077,153
Cash and Cash Equivalents at Beginning of Year 4 244 947 228 793 4 473 740
Cash and Cash Equivalents at End of Year $ 6 134 286 $ 416 607 $ 6 550 893
Classified As:
Current assets $ 393,531 $ 274.706 $ 668,237
Restricted assets 5 740.755 141.901 5 882 656
Total $ 6134,286 $ 416.607 $ 6,550 893
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Water Total
and Enterprise
Wastewater Solid Waste Funds
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities:
Operating Income $ 434,738 $ 176491 $ 611 229
Adjustments Not Affecting Cash:
Depreciation 1,420,671 252,138 1,672,809
Amortization 25,025 - 25,025
Provision for uncollectible accounts 28,500 3,000 31,500
Change in Assets and Liabilities:
Increase in accounts receivable (170,562) (10,818) (181,380)
Decrease in accounts payable (206,641) (1,685) (208,326)
Increase in accrued expenses 38,444 8,543 46,987
Decrease in retainage payable (27,518) - (27,518)
Increase in deferred revenue 1,004 - 1,004
Decrease in customer deposits (179) - (179)
Total adjustments 1,108,744 251178 1359922
Net Cash Provided By Operating Activities $ 1.543,482 $ 427,669 $ 1 971 151
Noncash Investing, Capital and Financing Activities:
Contributed property, plant and equipment $ 552,734 $ - $ 552,734
Increase in the fair value of investments 277,025 976 278,001
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4rF4 OF 0000�`,\
FIDUCIARY FUND TYPES
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
Description of Funds
Pension Trust Funds:
General Employees - Accounts for the accumulation of resources to be
y 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.
Expendable Trust Fund:
aDeferred Compensation Plan Accounts for the accumulation of resources to be
used for retirement payments at appropriate amounts
and times in the future for employees of the City in
accordance with the provisions of Internal Revenue
Code Section 457.
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CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL TRUST FUNDS
September 30, 1998
Expendable
Trust Fund
Pension Deferred
Trust Compensation
Funds Plan Totals
Assets:
Cash and cash equivalents $ 10,543 $ - $ 10,543
Investments 9,788,658 1,259,372 11,048,030
Receivables—net 135,728 - 135,728
Total assets $ 9,934 929 $ 1 259 372 $11,194 301
Liabilities and Fund Balance:
Liabilities:
Due to employee $ - $ - $ -
Fund Balances:
Reserved for employee's pension
benefits 9,934,929 - 9,934,929
Reserved for expendable trust - 1 259,372 1.259 372
Total fund balances 9.934,929 1,259.372 11 194.301
Total liabilities and fund
balances $ 9.934.929 $ 1 259.372 $ 1 194.301
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF PENSION FUND NET ASSETS
September 30, 1998
Pension Trust Funds
General Police And
Employees Firefighters Totals
Assets:
Cash and short-term investments $ 3,671 $ 6.872 $ 10 543
Receivables:
Employer contribution 38,671 53,167 91,838
Employee contribution 24,821 19,069 43.890
Total receivables 63,492 72 236 135,728
Investments, at fair value:
Commingled bank bond fund 1,851,021 2,220,199 4,071,220
Commingled bank stock fund 2.582,740 3.134 698 5.717.438
Total investments 4433,761 5.354.897 9,788,658
Total assets 4,500,924 5,434,005 9,934,929
Liabilities:
Due to employees - - -
Net Assets Held in Trust for Pension Benefits
(A schedule of funding progress for each
Plan is presented on page 30) $ 4,500.924 $ 5.434.005 $ 9,934 929
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
For the Year Ended September 30, 1998
Pension Trust Funds
General Police and
a Employees Firefighters Totals
Additions:
Contributions:
Employer $ 482,195 $ 654,215 $ 1,136,410
State - 111,603 111,603
Plan members 310,159 245,125 555.284
Total contributions 792,354 1 010.943 1,803.297
Investment Income:
Net appreciation in fair value investments 272,135 361,232 633,367
Interest 3.954 - 3 954
276,089 361,232 637,321
Less investment expense (30.100) (36.516) (66 616)
Net investment income 245 989 324,716 570 705
Total additions 1,038 343 1 335,659 2 374,002
Deductions:
Benefits 80,886 109,055 189,941
Administrative expenses 16 485 15 799 32 284
Total deductions 97.371 124 854 222 225
Net Increase 940,972 1,210,805 2,151,777
Net Assets Held in Trust for Pension Benefits:
Beginning of Year 3,559 952 4 223,200 7,783.152
End of Year $ 4,500 924 $ 5 434 005 $ 9,934 929
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rfylF4 OF G 00�♦�4:•• _.
ACCOUNT GROUPS
General Fixed Assets - To account for all fixed assets of the City, other than those
Account Group accounted for in the Enterprises Funds.
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CITY OF OCOEE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
For the Year Ended September 30, 1998
Culture
General Public Physical And
Government Safety Environment Recreation Total
Land $ 453,792 $ 188,621 $ 613,099 $ 357,371 $ 1,612,883
Buildings 1,972,541 1,894,945 378,847 398,641 4,644,974
Improvements 283,311 64,712 45,000 679,459 1,072,482
Equipment 793,202 3,341,108 1,186,936 310,128 5,631,374
Construction in
Progress 228 389 822 638 91 809 320 050 1 462 886
Total $ 3 731 235 $6 312 024 $ 2,315.691 $2,065,649 $14 424 599
Balance Balance
10-01-97 Additions Deletions 09-30-98
General Government $ 3,260,550 $ 543,832 $ 301,536 $3,502,846
Public Safety 4,403,933 1,392,278 306,825 5,489,386
Physical Environment 1,579,653 725,104 80,875 2,223,882
Culture & Recreation 1,525,618 278,630 58,649 1,745,599
Construction in
Progress 1 021 637 1,254.240 812,991 1,462.886
Total $11 791 391 $4,194.084 $1560,876 $14,424,599
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°et% OF G000 Of
SUPPLEMENTARY INFORMATION
Supplementary information is presented to provide greater detailed information
deemed useful for clarity. It is not necessary for presentation in conformity with
generally accepting accounting principles.
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CITY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND FXPENSES - BUDGET AND ACTUAL
WATER AND WASTEWATER 0 & M DEPARTMENT
For the Year Ended September 30, 1998
Variance
Favorable
Bud a Actual "' JUnfavorable)
Operating Revenues:
User charges $ 4,106,190 $ 4.700 456 $ 594 266
Nonoperating Revenues
Interest revenues 120,000 152,040 32,040
Miscellaneous 205,100 - (205,100)
Operating transfers in 5,500 14,610 9,110
.� Retained earnings allocation 2,026.700 2 026 700 -
2 357 300 2 193 350 (163.950)
Total revenues $ 6 463 490 $ 6,893,806 $ 430.316
Operating Expenses:
Personal services $ 1,625,402 $ 1,620,547 $ 4,855
Materials and supplies 482,946 418,924 64,022
Heat, light and power 376,500 373,724 2,776
Other expenses 317,214 291,220 25,994
Reserve for contingency 304 438 - 304,438
3 106 500 2,704,415 402,085
Nonoperating Expenses:
Operating transfers out(2) 2,948,725 2,868,479 80,246
Loss on sale of fixed assets - 18,187 (18,187)
Capital outlay 404,115 294,372 109,743
Interest expense 4 150 8 516 (4 366)
3 356 990 3 189.554 167 436
Total expenses $ 6.463,490 $ 5.893.969 $ 569,521
(1)This schedule only reflects receipts and disbursements from operating accounts and not
capital improvement funds.
(2)Transfers out includes intrafund transfers to water and wastewater capital improvement
and debt service funds.
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CITY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
SOLID WASTE FUND
For the Year Ended September 30, 1998
Variance
Favorable
Budget Actual (Unfavorable)
Operating Revenues:
User charges $ 1 406 360 $ 1 418.913 $ 12 553
Nonoperating Revenues:
Interest revenues 10,500 20,742 10,242
Operating transfers in 6,000 1,010 (4,990)
Recycling grant 15 000 17 540 2.540
31500 39 292 7 792
.. Total revenues $ 1.437.860 $ 1.458,205 $ 20 345
Operating Expenses:
Personal services $ 408,228 $ 403,086 $ 5,142
Materials and supplies 316,650 310,218 6,432
Other expenses 315,547 271,988 43,559
Recycling expenses 14,400 4,992 9,408
Reserve for contingency 82 095 - 82 095
1 136.920 990 284 146 636
Nonoperating Expenses:
Operating transfers out 174,230 180,658 (6,428)
Capital outlay 38,580 31,928 6,652
Capital lease payments 88,130 86.480 1 650
300,940 299.066 1 874
Total expenses $ 1,437.860 $ 1.289 350 $ 148 510
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STATISTICAL SECTION
The statistical schedules differ from other financial statement presentations
because they generally disclose more than one fiscal year and may present
non-accounting data, such as social and economic data and financial trends
of the City.
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STATISTICAL SECTION
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
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 General Public Physical
Year Expenditures °A_ Government Safety Ji Environment
1989 $ 3,748,802 100.0 $ 953,004 25.4 $ 1,953,951 52.2 $ 271,390
1990 5,060,097100.0 1,478,026 29.2 2,600,066 51.4 565,066
1991 6,295,025100.0 1,877,608 29.8 2,823,667 44.9 744,722 —
1992 6,335,748100.0 1,523,768 24.1 2,968,180 46.8 706,974
1993 6,671,716100.0 1,599,429 24.0 3,404,218 51.0 899,542
1994 8,629,065100.0 1,705,399 19.7 4,253,374 49.3 1,103,372 —
1995 8,808,659100.0 1,912,088 21.7 4,373,302 49.7 1,125,206
1996 9,362,905100.0 1,907,097 20.3 4,689,003 50.1 1,151,049
1997 11,217,057100.0 2,432,702 21.7 5,826,668 51.9 1,162,242
1998 13,967,349 100.0 2,826,467 20.2 6,890,597 49.3 1,522,812
Ca) This schedule includes expenditures of the General Fund only.
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. —.
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a
Culture and Debt Transfers to
_S_ Recreation `Lei _ Service j Other Funds %
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
10.9 628,211 4.5 403,034 2.9 1,696,228 12.2
-69-
CITY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL REVENUES
AND OTHER FINANCING SOURCES
Last Ten Fiscal Years
Licenses Inter-
Fiscal Total (a) And Governmental
Year Revenues % Taxes _%_ Permits Revenues .10_
1989 $3,957,983 100.0 $1,508,606 38.1 $227,241 5.7 $1,685,641 42.6
1990 5,027,968 100.0 1,967,285 39.1 591,160 11.8 1,890,285 37.6
1991 5,845,228 100.0 2,328,029 39.8 587,064 10.0 1,844,812 31.7 _
1992 6,981,337 100.0 2,631,241 37.7 488,522 7.0 1,967,790 28.2
1993 7,161,664 100.0 3,018,139 42.1 612,036 8.5 2,216,879 31.0
1994 8,416,346 100.0 3,466,712 41.2 663,191 7.9 2,315,056 27.5
1995 8,992,823 100.0 3,819,210 42.5 634,263 7.0 2,684,446 29.9
1996 10,263,930 100.0 4,269,994 41.6 850,427 8.3 3,088,521 30.1
1997 11,744,062 100.0 4,966,592 42.3 879,650 7.5 3,368,182 28.7
1998 13,623,375 100.0 5,733,592 42.1 856,448 6.3 4,160,011 30.5
mi This schedule includes revenues of the General Fund only. _
'b' Other financing sources for 1995 includes a residual equity transfer of$53,640.
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Charges Other
For Fines And Investment Misc. Financing
Services % Forfeitures % Income °la Revenue % Sources °l_u
$ 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
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 (b) 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
351,846 2.6 120,259 .9 163,241 1.2 103,355 .7 2,134,623 15.7
_71_
CITY OF OCOEE, FLORIDA
TAX REVENUES BY SOURCE
Last Ten Fiscal Years
Fiscal Property Franchise Utility Total
Year Taxes Taxes Taxes Taxes
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
1998 2,872,599 1,132,896 1,728,097 5,733,592
72-
CITY OF OCOEE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
—
REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY
Last Ten Fiscal Years
Percentage
Total Total of Total Col-
Fiscal Tax Tax lections to
— Year Levy Collections Delinquent Tax Levy
1989 $ 588,036 $ 467,410 $ 3,279 96.49
1990 847,080 844,080 3,000 99.65
a
1991 1,064,847 1,061,160 3,687 99.65
1992 1,338,563 1,295,309 4,745 96.77
—
1993 1,503,231 1,455,968 4,941 96.86
—
1994 1,697,751 1,647,742 1,753 97.05
1995 1,877,240 1,803,405 - 96.07
1996 2,022,628 1,953,410 2,247 96.50
1997 2,329,421 2,243,488 1,388 96.31
1998 3,004,905 2,872,599 - 95.60
a
a
a
a
a
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a
CITY OF OCOEE, FLORIDA
ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY
NET OF EXEMPTIONS —
Last Ten Fiscal Years
Real Property Personal Property --
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
1989 $180,610,206 $180,610,206 $16,583,819 $30,300,000
1990 198,284,327 198,284,327 20,307,367 36,922,000
1991 249,015,145 249,015,145 24,635,177 38,185,000 _
1992 305,993,279 305,993,279 28,647,558 44,762,000
1993 343,180,649 343,180,649 32,627,218 32,627,218
1994 389,507,198 389,507,198 34,930,466 34,930,466
1995 430,582,556 430,582,556 38,727,447 38,727,447
1996 463,889,629 463,889,629 41,767,259 41,767,259
1997 541,006,278 541,006,278 41,348,867 41,348,867
1998 682,982,233 682,982,233 68,244,023 68,244,023
_74_
a
a
a
Totals
Assessed Estimated
Value Actual Value
$197,194,025 $210,910,206
a
218,591,694 235,206,327
— 273,650,322 287,200,145
334,640,837 350,755,279
a
375,807,867 375,807,867
— 424,437,664 424,437,664
469,310,003 469,310,003
—
505,656,888 505,656,888
582,355,145 582,355,145
—
751,226,256 751,226,256
a
a
a
a
a
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a
—
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 (a1 _
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 9.177 18.4659
—
1998 4.00 5.2889 9.077 18.3659
Tax Levies
Fiscal City Of Orange School _
Year Ocoee County Board Total (a)
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 —
1998 3,004,905 198,742,271 366,170,753 567,917,929
(a) Tax Rates and Levies of a fraction of one mill assessed in various years by other
units against districts covering less than the entire City or County were omitted here.
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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.
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CITY OF OCOEE, FLORIDA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA —
Last Ten Fiscal Years
Ratio Of —
Debt Net Bonded
Gross Service Net Debt To Net Bonded
Fiscal Assessed Bonded Funds Bonded Assessed Debt Per
Year Population Value Debt Available Debt Value Capita —
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 - - - - - —
1998 21,653 751,226,256 - - - - -
—
Note: The City of Ocoee does not have any general obligation debt which is being repaid
through general property taxes.
78
CITY OF OCOEE, FLORIDA
LEGAL DEBT MARGIN
September 30, 1998
Assessed Value $ 751 226 256
Debt Limit: 50% of Assessed Value $ 375,613,128
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt 7.895.000
Legal Debt Margin $ 367 718 128
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.
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CITY OF OCOEE, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBI IGATION DEBT
September 30, 1998
Applicable To —
Bonds City Of Ocoee
Government Unit Outstanding Percent (11 Amount
Library District Refunding Bonds—
Series 1993 $8,335,000 1.43% $ 119 190
Total Overlapping Debt 119,190
Total Direct Debt (2) -
Total Direct and Overlapping Debt $ 119,190
(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.
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CITY OF OCOEE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBI IGATION BONDED DEBT TO TOTAL
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES
Last Ten Fiscal Years
Ratio Of
Total Debt Service
General To Total
Fiscal Total Debt Expenditures General
Year Principal Interest Service (1) Expenditures
1989 $ 74,505 $ 148,954 $ 223,459 $3,748,802 6.0%
a 1990 213,655 176,530 390,185 5,060,097 7.7%
1991 105,000 589,760 694,760 6,295,025 11.0%
1992 185,000 683,333 868,333 6,335,748 13.7%
1993 195,000 672,432 867,432 6,671,716 13.0%
1994 210,000 660,568 870,568 8,629,065 10.1°/
1995 225,000 647,503 872,503 8,808,659 9.9%
1996 240,000 633,198 873,198 9,362,905 9.3%
1997 255,000 618,088 873,088 11,217,057 7.8%
1998 270,000 600,798 870,798 13,967,349 6.2%
(1) Includes expenditures of the General Fund only.
_81_
CITY OF OCOEE, FLORIDA -
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS -
WATER AND WASTEWATER REVENUE BONDS
Water Fund -
Net Revenue Debt Service Requirements
Fiscal Gross Operating Available For
Year Revenue(2) Expenses(3) Debt Service Principal Interest Total Coverage
-
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 --- S 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 _ -
Nat Revenue Debt Service Requirements
Fiscal Gross Operating Available For
Year Revenue(2) Exnxnses131 Debt Service Principal Interest Total Coverage
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(41
Net Revenue Debt Service Reauirements
Fiscal Gross Operating Available For
Year Revenue(2) Expenses(3) Debt Service principal Jnterest Total Coverage -
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
1998 5731,828 2,820.022 2,911806 390,000 956,875 1,346,875 2.16 -
(1) The City of Ocoee did not have any Revenue Bond Debt in this fund during this year. -
(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.
-
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CITY OF OCOEE, FLORIDA
DEMOGRAPHIC STATISTICS
a
Population
City of Ocoee Orange County
Year Population % Increase Population % Increase
1989 11,822 .5 653,982 4.9
a
1990 13,852 17.17 665,312 1.7
1991 14,926 7.75 677,491 1.8
a1992 15,107 1.21 698,847 3.2
1993 16,418 8.68 727,780 4.1
1994 17,489 6.52 740,167 1.7
"' 1995 18,578 6.23 758,962 2.5
1996 19,261 3.67 777,556 2.4
1997 20,560 6.74 803,614 3.3
a
1998 21,653 5.30 824,095 2.5
a
Population Projections
Year Orange County State Of Florida
1998 824,095 14,999,105
a 2000 928,562 15,527,384
Population Distribution_.v Me
Year Orange County State Of Florida
a
0-14 21.0% 19.2%
15-24 14.8 12.0
a
25-44 34.0 28.7
45-64 19.4 21.7
a65 and over 10.8 18.4
— Source: University of Florida, Bureau of Economic and Business Research
East Central Florida Planning Council, Council Quarterly, Second Quarter, 1996
a
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a
CITY OF OCOEE, FLORIDA —
PROPERTY VALUE. CONSTRUCTION AND BANK DEPOSITS
Last Ten Years
Commercial (a)
Residential Construction (a) Construction —
Number of Units
Year One-Family Multi-Family Value Value
—
1989 239 6 $ 4,656,699 $ 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
1998 381 0 38,054,799 6,770,000
(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 SEPTEMBER 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. -
-84-
Additions/(a) Bank Deposits
Alternations (In thousands)
Savings
And
Value Total Vali P Banks (b) Loans (c)
$1,012,399 $23,852,750 $ 4,888,783 $ 3,050,283
780,078 40,321,498 5,524,771 1,803,816
1,618,759 64,394,533 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
52,200 44,876,999 7,729,844 783,683
-85-
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Ocoee
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CITY OF OCOEE, FLORIDA
SCHEDULE OF TEN LARGEST TAXPAYERS
September 30, 1998
Taxable Assessed
Type of Valuation As of
Taxpayer Business 1997 Tax Roll (11 Percentage
1. GGP Homart, Inc. West Oaks Mall $ 64,187,905 8.5%
2. Mercantile Properties, Inc. Developer 11,302,187 1.5
3. Manheim Remarketing, LP Developer 10,683,674 1.4
4. Oak Forest Partners, Ltd. Developer 10,458,431 1.4
5. Dillards Department Store, Inc. Retail Sales 10,457,550 1.4
6. Good Homes Plaza Shopping Center 9,564,599 1.3
7. Sears Roebuck & Company Retail Sales 8,088,499 1.1
8. West Orange Healthcare District Health Care 7,890,580 1.0
9. Westlake Partners, Ltd. Developers 6,545,421 .9
10. Town Square Associates Shopping Center 6 458,023 .9
Total taxable assessed value of 10 largest
taxpayers 145,636,869 19.4
Total taxable assessed value of other
taxpayers 605 589 387 80.6
Total taxable assessed value of all
taxpayers $ 751 226 256 100.0%
Note:
The tax levy for the fiscal year ended September 30, 1998 is based on the 1997 taxable value.
-86-
CITY OF OCOEE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
September 30, 1998
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) 270
Elections:
Registered voters 8,882
Votes cast in last municipal elections (February 1997—No votes 2,321
Cast @ Feb. 1998 election—seat unopposed)
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 3
Employees 50
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
Passive parks 2
Parks and recreation developed areas (including city playgrounds) 9
Water System:
Miles of water mains 103.92
Daily Average Consumptions (gallons) 4,400,000 (GPD)
Plant capacity (gallons) 20,160,000 (GPD)
Service connections 7,447
Deep wells 7
Fire hydrants 754
-87-
CITY OF OCOEE, FLORIDA
MISCELLANEOUS STATISTICAL DATA - CONTINUED
September 30, 1998
Sewer System:
Miles of sanitary sewers 48.96
Lift stations 36
Daily average treatment 1,200,000 (GPD)
Plant(s) capacity (MGD) 3.0
Disposal plants 1
a
a
-88-
CITY OF OCOEE, FLORIDA
SCHEDULE OF INSURANCE IN FORCE
September 30, 1998
Buildings and Personal Property:
Multi-period, "all risk"
100% of replacement value Stated values
Blanket building coverage $20,220,974 _
Blanket contents coverage Incl. in bldg. limit
Boiler& machinery 5,000,000
Inland marine—computer 632,113 _
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 limit 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 `
-89-
REPORTS ON INTERNAL CONTROL AND COMPLIANCE
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Ocoee
csi\
N. rag
o
fyrF4 ``4%.
OF 000a
MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
c art i lied Public- Ave „ n IItnII
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
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF
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, 1998, and have issued our report thereon dated November 13,
1998, which was qualified because insufficient audit evidence exists to support the City of Ocoee's
disclosures with respect to the year 2000 issue. Except as discussed in the preceding sentence,
we conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States.
Compliance — As part of obtaining reasonable assurance about whether the City of Ocoee,
Florida's general purpose financial statements are free of material misstatement, we performed
tests of its compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards. However, we noted certain immaterial instances of noncompliance that we
have reported to management of City of Ocoee, Florida, in a separate letter dated November 13,
1998.
Internal Control Over Financial Reporting — In planning and performing our audit, we
considered the City of Ocoee, Florida's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the general
purpose financial statements and not to provide assurance on the internal control over financial
reporting. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control over financial reporting that might be material
weaknesses. A material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the risk that
misstatements 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 over financial reporting and its operation that we consider to be material
weaknesses. However, we noted other matters involving the internal control over financial
reporting that we have reported to the management of City of Ocoee, Florida, in a separate letter
dated November 13, 1998.
Members:Pnvate Companies Practice Section•American Institute of Certified Public Accountunm•Panicle Institute of Certified Public Accountants
- (CPA;
-90-
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
,d� i distribution is not limited.
i eA ,kv aw,.IAtS.
&cbtt,Vo tl E (a y<pw ',P•R. —
McDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL& COMPANY, P.A.
November 13, 1998
-91-
MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, PA.
Ccrtiripd Public Accountants
605 E.Robinson Street,Suite 635 Telephone:(407)843-6406
Post Office Box 1185 Fax: (407)649-9339
+� Orlando,Florida 32802-1185 E-Mail:mdlpv@aal.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and Commissioners
City of Ocoee, Florida
Compliance - We have audited the compliance of the City of Ocoee, Florida with the types of
compliance requirements described in the U.S. Office of Management and Budget(OMB) Circular
A-133 Compliance Supplement that are applicable to its major federal program for the year ended
September 30, 1998. Compliance with the requirements of laws, regulations, contracts and grants
applicable to its major federal program is the responsibility of the City of Ocoee, Florida's
management. Our responsibility is to express an opinion on the City of Ocoee, Florida's
compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards,
the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, and OMB Circular A-133, Audits of States, Local
Governments and Other Nonprofit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about the City of Ocoee, Florida's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination on the City of Ocoee, Florida's compliance with those requirements.
In our opinion, the City of Ocoee, Florida complied, in all material respects, with the requirements
referred to above that are applicable to its major federal program for the year ended September
30, 1998. However, the results of our auditing procedures disclosed an instance of noncompliance
with those requirements that are required to be reported in accordance with OMB Circular A-133,
and which are described in the accompanying schedule of findings and questioned costs as item
1.
Internal Control Over Compliance - The management of the City of Ocoee, Florida is
responsible for establishing and maintaining effective internal control over compliance with
requirements of laws, regulations, contracts and grants applicable to federal programs. In
planning and performing our audit, we considered the City of Ocoee, Florida's internal control over
compliance with requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of expressing our opinion
on compliance and to test and report on internal control over compliance in accordance with OMB
Circular A-133.
Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Fronde Institute of Certified Public Accountants
" CPA -92-
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does
not reduce to a relatively low level the risk that noncompliance with applicable requirements of
laws, regulations, contracts and grants that would be material in relation to a major federal
program 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 over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of the audit committee, management and federal —'
awarding agencies and pass-through entities. However, this report is a matter of public record
and its distribution is not limited.
771A&1 nitaRl 14,le
eta, en-Kea
MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
November 13, 1998
-93-
THE CITY OF OCOEE , FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended September 30, 1998
SECTION I —SUMMARY OF AUDITOR'S RESULTS
FINANCIAL STATEMENTS
Type of Auditor's Report Issued: Qualified
Internal Control over Financial Reporting:
• Material weakness identified? No
• Reportable condition identified that is not considered
to be material weakness? None Reported
Noncompliance Material to Financial Statements Noted? No
FEDERAL AWARDS
Internal Control Over Major Programs:
• Material weakness identified No
• Reportable condition identified that is not considered
to be material weakness? None Reported
Type of Auditor's Report Issued on Compliance for
Major Programs: Unqualified
Any Audit Findings Disclosed that are Required to be
Reported in Accordance with Section 510(a) of Circular
A-133? Yes
Identification of Major Programs:
CFDA Number Name of Federal Program
16.710 Department of Justice
Public Safety Partnership and
Community Policing Grants
Dollar Threshold Used to Distinguish Between Type A and
Type B Programs: $300,000
y Auditee Qualified as Low-Risk Auditee? No
SECTION II — FINANCIAL STATEMENT FINDINGS
No matters were reportable.
-94-
THE CITY OF OCOEE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended September 30, 1998
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Questioned
Costs
DEPARTMENT OF JUSTICE
Public Safety Partnership and Community Policing Grants—CFDA No. 16.710
1. Grant No. 95-CF-WX-4000
Criteria: Financial reports, including Financial Status Reports
due quarterly, must contain accurate financial data in _
accordance with the conditions of the COPS FAST Grant
Owners Manual. The grant allows salary and certain fringe
benefits of community-oriented police officers. Over the three-
year period of the grant, the Department of Justice will pay up to
75% of salary and benefits per officer. The City must pay the
remaining 25%.
Condition: Off-duty police officers in Ocoee sometimes provide
security for various businesses and are paid by the City of
Ocoee. However, the City is then reimbursed by the businesses
where security was provided. These amounts should not be
included in total amounts requested for reimbursement from the
Department of Justice. When the Financial Status Reports were
prepared, the person preparing the reports accidentally included
these amounts paid to off-duty police officers. As a result, totals
for FICA, retirement and workers compensation were also
overstated since they are calculated as a percentage of salaries.
Effect: The excess salaries and fringe benefits are questioned
costs.
Cause: The person preparing Financial Status Reports was
unaware that salaries included amounts paid to off-duty police
officers.
Population and Items Tested:
Numbers Dollars
Population size 312 $253,512
Items tested 42 $ 56,734
Items not in compliance 28 $ 21,417 $ 21,417
-95-
THE CITY OF OCOEE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended September 30, 1998
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS - CONTINUED
Questioned
Costs
Perspective Information: Because this grant pays for 75°/ of
salaries and benefits with the federal share decreasing from year
to year over the three-year grant period, the City will still meet
the required 25% matching requirement if totals on the Financial
Status Reports (FSR) are adjusted for the above error.
Auditor's Recommendation: We recommend that the City of
Ocoee amend total outlays for the above questioned costs on
the next FSR that is filed. In addition, procedures should be
established for review of the quarterly FSR by someone other
than the preparer.
Grantee's Resoonse: The City agrees with the finding and will
adopt the auditor's recommendation.
Total — Department of Justice 21.417
•- Total $ 21 417
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Ocoee
•
epti
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91F4
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OF G00o
+ "CENTER OF GOOD LIVING-PRIDE OF REST ORANGE" MAYOR•COMMISSIONER
S SCOTT VANDERGRIFT
Ocoee
rqt CITY OF OCOEE ANY HOWE
NERS
+ O DANNY HOWELL
�� 150 N. LAKESHORE DRIVE SCOTT ANDERSON
���..dJJ Q SCOTT A.GLASS
v' p OCOEE,FLORIDA 34761-2258 NANCY J. PARKER
r,yF\ �, {:'._' ] � ca (407)656-2322
4 \\\�V/"/V, CITY MANAGER
Of GOO ELLIS SHAPIRO
CORRECTIVE ACTION PLAN
January 29, 1999
U.S. Department ofJustice
The City of Ocoee respectfully submits the following corrective action plan for the year ended
September 30, 1998. The findings from the schedule of findings and question costs are discussed
+ below. Sections I and II do not include findings and are not addressed.
Section III - Federal Award Findings
DEPARTMENT OF JUSTICE
1. Public Safety Partnership and Community Policing Grant- CFDA No. 16.710; Grant
No. 95-CF-WX-4000
Recommendation: We recommend that the City of Ocoee amend total outlays for
the above questioned costs on the next FSR that is filed. In addition, procedures
+ should be established for review of the quarterly FSR by someone other than the
preparer.
Action Taken: We have discussed the questioned costs with our grant coordinator at
the Department of Justice and have been told to amend total outlays on our FSR filed
for the quarter ended December 31, 1998. We have done this and also plan on
implementing procedures for review by someone other than the preparer.
If the Department of Justice has questions regarding this plan, please call Ms. Wanda Horton at
(407)656-2322, ext. 150.
+ Sincerely yours, ,f� L��
LLs�.o�ial0�0�/
Wanda Horton, Finance Director
-97-
CITY OF OCOEE, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 1998
Federal Agency
CFDA Grant Federal —
Federal Grantor/Program Title Number Number Expenditures
U.S. Department of Justice —
Public Safety Partnership and Community
Policing (COPS) Grant 16.710 95-CF-WX-4000 $ 253,512 _.
Local Law Enforcement Block Grant 16.592 96-LB-VX-2308 51,013
Local Law Enforcement Block Grant 16.592 97-LB-VX-3601 19,759
Total $ 324,284
-98-
CITY OF OCOEE, FLORIDA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 1998
Note 1 - Basis of Presentation:
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of the City of Ocoee, Florida and is presented on the accrual basis of accounting in
accordance with generally accepted accounting principles. The information in this schedule is
presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations.
Note 2 —COPS Grant:
The total Federal funds authorized for the three-year period ending September 30, 1999 is
$450,000. The Department of Justice pays for 75% of salaries and benefits with the Federal
share decreasing over the three-year grant period. The City of Ocoee, Florida must expend
matching amounts totaling 25% during the three-year period.
-99-
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