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HomeMy WebLinkAboutVII(B) Annual Audit Report Agenda 3-06-2001 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item• MMI V B AYOR• SSIONER Ocoee I S.SCOTT VANDERGRIFT ° r,. o CITY OF OCOEE COMMISSIONERS �� a. 150 N.LAKESHORE DRIVE DANNY HOWELL SCOTT ANDERSON OCOEE,FoRID a 34761-2258 RUSTY JOHNSON " 1,.y' (407)656-2322 NANCY J.PARKER H of G001) CITY MANAGER ELLIS SHAPIRO Memorandum To Mayor and City Commissioners • From : Wanda Horton, Finance Director Date : February 28,2001 Re Comprehensive Annual Financial Report (CAFR)-Fiscal Year 1999/2000 Attached is the Comprehensive Annual Financial Report for fiscal year 1999/2000. This will be presented by Elden McDirmit at the March 6th commission meeting. Please contact me if you have any questions prior to the meeting. POINT" Protect Ocaee's,'dater Resources c t i CITY OF OCOEE, FLORIDA Ocoee o 4,nr,, #1r o C; ' ..,s tiii * : c ,. -::::- ,,, f. ,..:., : „ OF GOO COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF OCOEE, FLORIDA for the FISCAL YEAR ENDED SEPTEMBER 30, 2000 City of Ocoee, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2000 Prepared by: Finance Department CITY OF OCOEE, FLORIDA COMMISSION-MANAGER FORM OF GOVERNMENT CITY COMMISSION HONORABLE S. SCOTT VANDERGRIFT, Mayor DANNY HOWELL, Commissioner RUSTY JOHNSON, Commissioner SCOTT ANDERSON, Commissioner NANCY PARKER, Commissioner ACTING CITY MANAGER CITY ATTORNEY James Gleason Paul Rosenthal CITY CLERK CITY AUDITOR Jean Grafton McDirmit, Davis, Puckett & Company, P.A. FINANCE DIRECTOR Wanda Horton INTRODUCTORY SECTION This section contains the following subsections: . Table of Contents . Letter of Transmittal . City of Ocoee Organizational Chart . Certificate of Achievement CITY OF OCOEE TABLE OF CONTENTS Year Ended September 30, 2000 Page Introductory Section: Table of Contents Letter of Transmittal iii-xii City of Ocoee Organizational Chart xiii Certificate of Achievement xiv II. Financial Section: Independent Auditor's Report 1-2 General Purpose Financial Statements (Combined Statements - Overview): Combined Balance Sheet-All Fund Types and Account Groups 3-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types 7-8 Combined Statement of Revenues and Expenditures - Budget and Actual - General and Special Revenue Funds 9-10 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types 11 Combined Statement of Changes in Pension Fund Net Assets 12 Combined Statement of Cash Flows -All Proprietary Fund Types 13-14 Notes to Financial Statements 15-45 Combining and Individual Fund and Account Group Statements: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 46-47 Special Revenue Funds: Combining Balance Sheet 48-49 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 50-51 Debt Service Fund: Combining Balance Sheet 52-53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 54-55 Capital Projects Funds: Combining Balance Sheet 56-57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 58-59 Enterprise Funds: Combining Balance Sheet 60-61 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 62 Combining Statement of Cash Flows 63-64 CITY OF OCOEE TABLE OF CONTENTS Year Ended September 30, 2000 Page Introductory Section: Table of Contents Letter of Transmittal iii-xii City of Ocoee Organizational Chart xiii Certificate of Achievement xiv II. Financial Section: Independent Auditor's Report 1-2 General Purpose Financial Statements (Combined Statements - Overview): Combined Balance Sheet-All Fund Types and Account Groups 3-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types 7-8 Combined Statement of Revenues and Expenditures - Budget and Actual - General and Special Revenue Funds 9-10 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types 11 Combined Statement of Changes in Pension Fund Net Assets 12 Combined Statement of Cash Flows -All Proprietary Fund Types 13-14 Notes to Financial Statements 15-45 Combining and Individual Fund and Account Group Statements: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 46-47 Special Revenue Funds: Combining Balance Sheet 48-49 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 50-51 Debt Service Fund: Combining Balance Sheet 52-53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 54-55 Capital Projects Funds: Combining Balance Sheet 56-57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 58-59 Enterprise Funds: Combining Balance Sheet 60-61 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 62 Combining Statement of Cash Flows 63-64 CITY OF OCOEE TABLE OF CONTENTS - Continued Year Ended September 30, 2000 Page II. Financial Section - Continued: All Trust Funds: Combining Statement of Pension Fund Net Assets 65 Combining Statement of Changes in Pension Fund Net Assets 66 General Fixed Assets: Schedule of Changes in Fixed Assets - By Function and Activity 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 Schedule of Ten Largest Taxpayers 85 Miscellaneous Statistical Data 86-87 Schedule of Insurance in Force 88 IV. Internal Control and Compliance Section: Report on Compliance and on Internal Control over Financial 89-90 Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Federal Awards- Report on Compliance with Requirements Applicable to each 91-92 Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 Schedule of Findings and Questioned Costs 93 Schedule of Expenditures of Federal Awards 94 Notes to Schedule of Expenditures of Federal Awards 95 ii "(7:''TER O/- GOOD 1./1'/,N(:- /'R/I)E OE WEST ORA.\GI: MAYOR•(•UMN,ISSIONI K Ocoee S SCOTT VANDERGRII:I O� � CITY OF OCOEE (,>n,anssioNiRS r ap 150 N. LAKISIIORE DRIVE DANNY I lOV I:LI. SCOTT ANDERSON RUSTY JOIINSON OCOEE:, FLORIDARIDA 34761-2258 r�\/,�? (407)905 3100 NANCY J PARKER fQ Or G000�� Ar II\(.(111 NI\\\t,1 t< JIM GI.I:.ASON February 16, 2001 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, 2000 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 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, 1999. POW rr- (:c Qcu,:& t•• f ::i FINANCIAL REPORTING AND CONTENT -Continued II. Financial Section - The Financial Section contains the opinion of the City's independent auditors, McDirmit, Davis, Puckett & 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 29 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. III. Statistical Section - This section contains substantial financial information. However, the various tables differ from the Financial Section in that the tables present some non- accounting data, cover more than one fiscal year, and are designed to reflect social, demographic and economic data, financial trends, and the fiscal capacity of the City. IV. Internal Control and Compliance Section - This section includes the independent auditor's reports on the City's internal control and the City's compliance with laws and regulations. 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 23,531 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, and Lucent. 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 crossroads of several major highways, a new one-million square foot regional shopping mall was built in Ocoee 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 significant growth. From 1987 through January of 1990, 1504 acres of land were annexed into the City. From 1990 through the year 2000, Ocoee added an additional 2,500 acres of land. Through a Joint Planning Area Agreement with Orange County, these lands will be developed consistent with the City's adopted Comprehensive Plan. iv 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 Expressway 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 Expressway 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 even further north in the future. Clarke Road has spawned the development of many residential neighborhoods as well as neighborhood commercial centers and the West Oaks Mall. Additionally, Maguire Road is being expanded to four lanes in the southern portion of the community to open up further land for development. 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. A new middle school, elementary school and library have also been built to accommodate Ocoee's rapid growth. The City restructured its debt portfolio and secured additional funding during fiscal year 1999. This was achieved by refinancing the 1996 Capital Improvement note and advance refunding the 1991 Capital Improvement Revenue Bond Issue. The additional funds are earmarked for the family aquatic center, a new police facility, another fire station which will also house fire administration, park land, and expanding the public works facility. The City also refunded a portion of the Series 1990 Transportation refunding and Improvement Revenue Bonds and secured additional funds by issuing the Series 1998 Transportation Refunding and Improvement Revenue Bonds. The additional funds are for the acquisition of right-of-way and the design, construction, paving and improvement of various roadway projects including Maguire Road and Professional Parkway. 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. v 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 1999 Taxes $6,644,332 40.3% $ 435,449 Licenses & Permits 1,095,829 6.7 28,819 Intergovernmental Revenues 5,014,951 30.4 538,554 Charges for Services 570,863 3.5 16,200 Fines and Forfeitures 182,226 1.1 (9,789) Investment Income 230,049 1.4 92,719 Miscellaneous Revenues 141,861 9 (31,897) Subtotal 13,880,111 84.3 1,070,055 Transfers from Other Funds 2,325,250 14.1 66,386 Capital Lease Proceeds 265,765 1.6 (463,120) Total $16,471,125 100.0% $ 673,321 vi General Governmental Functions -Continued Property taxes are the major source of local tax revenue. In both fiscal years 2000 and 1999, the City's property tax, all of which is for operating purposes, was 4.0 mills. The related property values subject to taxes showed growth of 7.6 percent, representing $63,429,047 in added taxable property. Another principal source of local tax revenue consists of utility service taxes. These taxes are levied at the rate of 10 percent on telephone, electric, water, and natural and bottled gas services within the City. In 2000, total revenue from this tax reflected an increase of $113,232 Intergovernmental revenue consists primarily of shared revenue from other governmental agencies. The increase in intergovernmental revenues is due primarily to an increase of$310,021 in State shared sales tax and an increase in Cops Fast Grant of$167,578. The following summary shows the level of expenditures used in providing governmental services: Increase Percent (Decrease) Expenditures and Other Uses Amount Of Total From 1999 General Government $ 2,966,837 19.3% $ 21,294 Public Safety 7,944,122 51.1 293,398 Physical Environment 1,810,784 10.8 (194,059) Culture & Recreation 593,745 3.9 760 Debt Service 650,460 4.2 75,880 Subtotal 13,965,948 89.3 197,273 Transfers to Other Funds 1,639,027 10.7 (97,624) Total $15,604,975 100.0% $ 99,649 The increase in Public Safety expenditures is due primarily to an increase in salaries and benefits, as well as purchase of equipment under capital leases. vii Special Revenue Funds Special Revenue Funds account for revenue from special revenue sources which are legally restricted for specific purposes. The combined fund balances of these funds amount to $9,011,316 and the following represents an analysis of sources and uses in the Special Revenue Funds for 2000: Change In Fund Sources Uses Fund Balance Road Impact $ 1,199,708 $ 1,328,783 $ (129,075) Parks 107,346 98,658 8,688 Stormwater 1,066,841 792,205 274,636 Police Training 31,321 1,515 29,806 Police Trust 21,880 130,870 (108,990) Fire Impact 378,859 263,795 115,064 Police Impact 97,894 85,034 12,860 Ocoee Recreation 51,803 38,864 12,939 Founder's Day 63,239 53,500 9,739 Total $ 3,018,891 $ 2,793,224 $ 225,667 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. These bonds were partially refunded by the Transportation Refunding and Improvement Revenue Bonds, Series 1998. 2. 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. 3. Transportation Refunding and Improvement Revenue Bonds, Series 1998, totaling $19,255,000. The proceeds were used to refund a portion of the Series 1990 Transportation Bonds and to finance the design, construction, paving and improvement of certain roads and related drainage improvements within the City. The bonds are secured by certain public service taxes and the Local Option Gas Tax and is on a parity with the lien and pledge granted to the holders of the 1990 Transportation Bonds discussed above. 4. Capital Improvement Refunding Revenue Bonds, Series 1999, totaling $11,405,000. The proceeds were used to (1) refund the 1991 Capital Improvement Revenue Bonds, (2) pay off the 1996 Capital Improvement Revenue Promissory Note and (3) finance certain capital improvements, including the acquisition of land. viii 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: 1999-2000 1998-1999 Increase Fund Type Amount Amount (Decrease) General $ 230,049 $ 137,330 $ 92,719 Special Revenue 430,921 257,596 173,325 Debt Service 59,255 53,914 5,341 Capital Projects 1,007,085 785,053 222,032 Pension Trust 1,246,243 1,260,942 (14,699) Enterprise 702,831 793,924 (91,093) Total $ 3,675,336 $ 3,288,759 $ 386,577 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. ix 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. 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 2000, the Capital Projects Funds were used to account for major road and street improvements, stormwater drainage improvements, and other capital improvements. Proprietary Operations Proprietary Fund Types are those that are financed and operated in a manner similar to a private business enterprise where the intent of the governing body is that the cost of providing goods and services on a continuing basis be financed through user charges or where the governmental body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, budget policy, 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 1999-2000 1998-1999 Increase Description Amount Amount (Decrease) Operating Revenues $ 4,687,737 $ 4,529,953 $ 157,784 Operating Expenses 4,796,848 4,702,186 94,662 Operating Income (Loss) (109,111) (172,233) 63,122 Net Income (Loss) (679,235) (737,403) 58,168 Revenues Available for Debt Service 2,141,428 2,141,714 (286) Annual Bond Debt Service 1,342,476 1,345,315 (2839) Revenue Bond Coverage 1.60 1.59 .01 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. x Solid Waste Fund 1999-2000 1998-1999 Increase Description Amount Amount (Decrease) Operating Revenues $1,601,362 $1,482,083 $ 119,279 Operating Expenses 1,218,795 1,184,471 34,324 Operating Income 382,567 297,612 84,955 Net Income $ 264,881 $ 175,194 $ 89,687 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, 2000, the pension funds had net assets of$15,161,449. 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, 2000, the general fixed assets of the City of Ocoee totaled $22,364,752, including construction in progress. 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, Puckett & Company, P.A., whose opinion is included in the financial section of the report. xi 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, 1999 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 eleven 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 Acknowledgments 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 ' •spectfully sub I; t=,;. II 1 James Gleason. Acting City Manager `cria<mAdia9/iit-e,5‘2L-.) Wanda Horton, Finance Director xii CITY OF OCOEE ORGANIZATIONAL CHART Ocoee Voters City Attorney City Commission Appointed Boards Communications City Manager • Finance Police Fire City Clerk Recreation Public Works Planning Personnel Building Engineering/ Information Community Utilities Systems Relations Utility Billing CID Suppression Cemetery Solid Waste/ Development Employee Zoning Water Mapping Recycling Benefits Projects Patrol Investigation Elections Traffic Concurrency Risk Management Inspections Wastewater li Operations Management Payroll I DARE EMS Archives Facilities Projects Labor Negotiations Permits Stormwater Utility Maintenance Engineering Purchasing Fleet Say Code Utility Maintenance y Enforcement Inspections Street Maintenance Occupational Licensing Stormwater Drainage Animal Control Park Maintenance * Present Structure 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, 1999 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. jec.„,:7 UNTIED STATES -p Y . _ CCANADA ORPORATION MO s reside �y04, SEAL ,y goCKO Executive Director xiv FINANCIAL SECTION This section contains the following subsections: • Independent Auditor's Report • General Purpose Financial Statements • Combining Statements MCDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 605 E. Robinson Street,Suite 635 Telephone:(407) 843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail: info@mdpcpa.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, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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. In our opinion the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Ocoee, Florida, as of September 30, 2000, and the results of its operations and the cash flows of its proprietary fund types and the changes in pension fund net assets for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated November 17, 2000, 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. CPAMcmbcrs Pnvatc Companies Practice Scctton•Amcncan Institute of Ccrtdtcd Public Accountants•Florida Institute of Ccrtdicd Public Accountants 1 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 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 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. g�t�l �.�Gflldf4rral�aJ�.� McDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. November 17, 2000 2 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS -OVERVIEW) These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the detailed statements that follow in subsequent sections. CITY OF OCOEE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 2000 Governmental Fund Types Special Debt General Revenue Service Assets: Cash and cash equivalents $ 1,683,159 $ 3,014,435 $ 137,329 Investments 1,868,598 5,787,764 - Receivables (net of allowances for uncollectibles 100,042 121,187 - Inventories-at cost 17,562 - - Due from other funds 26,765 150,000 - Due from other governments 389,088 - - Prepaid costs 10,361 - - Restricted assets: Cash and cash equivalents - - - Investments - - 208,729 Cash with paying agent - - 1,431,472 Accrued interest receivable - - 4,761 Property, plant and equipment - - - Less: accumulated depreciation - - - Construction in progress - - - Unamortized bond issuance costs - - - Amount available in debt service funds - - - Amount to be provided for retirement of general long-term debt - - - Total assets $ 4,095,575 $ 9,073,386 $ 1,782,291 The accompanying notes are an integral part of the financial statements. -3- Governmental Proprietary Fiduciary Fund Types Fund Type Fund Type Account Groups General General Totals Capital Fixed Long-Term (Memorandum Projects Enterprise Trust Assets Debt Only) $ 5,594,536 $ 1,495,994 $ 109,545 $ - $ - $ 12,034,998 10,158,577 1,123,588 15,051,904 - - 33,990,431 112,302 833,508 18,408 - - 1,185,447 - 22,152 - - - 39,714 - - - - 176,765 - 134,230 - - - 523,318 9,993 750 - - - 21,104 - 4,140,021 - - - 4,140,021 - 5,325,886 - - - 5,534,615 - 881,238 - - - 2,312,710 - - - - 4,761 - 41,255,134 - 21,677,377 - 62,932,511 - (14,573,909) - - - (14,573,909) 8,473,535 - 687,375 - 9,160,910 514,037 - - - 514,037 - - - - - 324,054 324,054 - - - - 34,251,170 34,251,170 $15,875,408 $ 49,626,164 $15,179,857 $22,364,752 $34,575,224 $ 152,572,657 (Continued) -4- CITY OF OCOEE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 2000 Governmental Fund Types Special Debt General Revenue Service Liabilities and Fund Equity: Liabilities Accounts payable $ 89,956 $ - $ - Retainage payable - - - Accrued liabilities 509,504 58,074 - Due to other funds - - 26,765 Due to Other Governments 13,116 - - Deferred revenues 253,851 3,996 - Current liabilities(payable from restricted assets): Customer deposits - - - Matured bonds payable - - 685,000 Matured interest payable - - 746,472 Accrued annual leave - - - Bonds payable - - - Obligations under capital leases - - - Notes payable. - -Total liabilities 866,427 62,070 1,458,237 , Fund equity: Contributed capital - - - Investment in general fixed assets - - - Retained earnings: Reserved for renewal and replacement - - Unreserved - - - Total retained earnings - - - Fund balances: Reserved: Inventories 17,562 - - Prepaid costs 10,361 - - Renewal and replacement - 129,404 - Debt service - - 324,054 Employee's pension benefits - - - Unreserved: Designated for capital projects - - - Designated for subsequent year's budget - 8,881,912 - Undesignated 3,201,225 - Total fund balances 3,229,148 9,011,316 324,054 Total Equity and Other Credits 3,229,148 9,011,316 324,054 Total Liabilities, Fund Equity and Other Credits $ 4,095,575 $ 9,073,386 $ 1,782,291 The accompanying notes are an integral part of the financial statements. - 5- Governmental Fund Proprietary Fiduciary Types Fund Type Fund Type Account Groups General • General Totals Capital Fixed Long-Term (Memorandum Projects Enterprise Trust Assets Debt Only) $ 571,476 $ 140,063 $ 18,408 $ - $ - $ 819,903 90,759 76,217 - - - 166,976 - 255,412 - - 822,990 150,000 - - - 176,765 - - 13,116 26,675 39,743 - - - 324,265 - 426,549 - - - 426,549 - 420,000 - - - 1,105,000 - 461,238 - - - 1,207,710 - - - 696,834 696,834 - 16,253,201 - - 31,285,000 47,538,201 - 335,594 - - 808,390 1,143,984 - - - - 1,785,000 1,785,000 838,910 18,408,017 18,408 - - 34,575,224 56,227,293 - 27,232,843 - - 27,232,843 - 22,364,752 - 22,364,752 2,767,901 - - - 2,767,901 - - 1,217,403 - - - 1,217,403 - 3,985,304 - - - 3,985,304 - _ - - - 17,562 - - - - - 10,361 - - - - - 129,404 - . - - - - - - 324,054- - 15,161,449 - - 15,161,449 15,036,498 - - - - 15,036,498 - - - - - 8,881,912 - - 3,201,225 15,036,498 - 15,161,449 - - 42,762,465 15,036,498 31,218,147 15,161,449 22,364,752 - 96,345,364 $15,875,408 $49,626,164 $15,179,857 $22,364,752 $34,575,224 $ 152,572,657 - 6- CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES For the Year Ended September 30,2000 Governmental Fund Types Special Debt General Revenue Service Revenues: Taxes $ 6,644,332 Licenses and permits 1,095,829 - - Intergovernmental revenues 5,014,951 21,168 - Charges for services 570,863 86,415 - Fines and forfeitures 182,226 21,466 - Impact fees/special assessments 2,413,227 - Investment Income 230,049 430,971 59,255 Miscellaneous revenues 141,861 45,694 - Total revenues 13,880,111 3,018,941 59,255 Expenditures: Current: General government 2,966,837 - - Public safety 7,944,122 130,267 - Physical environment 1,810,784 410,172 - Culture and recreation 593,745 124,564 - Capital outlay - - - Debt service: Principal retirement 585,153 90,620 685,000 Interest and fiscal charges 65,307 7,296 1,538,480 Total expenditures 13,965,948 762,919 2,223,480 Excess (Deficiency)of Revenues Over Expenditures (85,837) 2,256,022 (2,164,225) Other Financing Sources (Uses) Operating transfers in 2,317,090 - 2,136,735 Operating transfers out (1,639,027) (2,030,305) Capital lease proceeds 265,765 -Net other financing sources (uses) 943,828 (2,030,305) 2,136,735 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses 857,991 225,717 (27,490) Fund Balances-Beginning of Year 2,362,997 8,793,759 351,544 Residual Equity Transfers 8,160 (8,160) Fund Balances -End of Year $ 3,229,148 $ 9,011,316 $ 324,054 The accompanying notes are an integral part of the financial statements. -7- Governmental Fund Types Totals Capital (Memorandum Projects Only) $ - $ 6,644,332 1,095,829 - 5,036,119 657,278 203,692 - 2,413,227 1,007,085 1,727,360 132,435 319,990 1,139,520 18,097,827 - 2,966,837 - 8,074,389 - 2,220,956 718,309 5,990,949 5,990,949 - 1,360,773 - 1,611,083 5,990,949 22,943,296 (4,851,429) (4,845,469) 119,250 4,573,075 (119,250) (3,788,582) 265,765 - 1,050,258 (4,851,429) (3,795,211) 19,887,927 31,396,227 $ 15,036,498 $ 27,601,016 -8- CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS For the year Ended September 30, 2000 General Fund Variance Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 6,874,580 $ 6,644,332 $ (230,248) Licenses and permits 1,098,100 1,095,829 (2,271) Intergovernmental revenues 4,877,790 5,014,951 137,161 Charges for services 543,285 570,863 27,578 Fines and forfeitures 149,500 182,226 32,726 Impact fees/special assessments - - - Investment Income 108,000 230,049 122,049 Miscellaneous 149,250 141,861 (7,389) Total revenue 13,800,505 13,880,111 79,606 Expenditures: Current: General government 3,315,491 2,966,837 348,654 Public safety 8,298,139 7,826,134 472,005 Physical environment 1,969,035 1,663,007 306,028 Culture and recreation 693,380 593,745 99,635 Debt service 664,260 650,460 13,800 Total expenditures 14,940,305 13,700,183 1,240,122 Excess (Deficiency) of Revenues Over Expenditures (1,139,800) 179,928 1,319,728 Other Financing Sources (Uses) Operating transfers in 2,305,460 2,317,090 11,630 Operating transfers out (1,695,660) (1,639,027) 56,633 Net other financing sources (uses) 609,800 678,063 68,263 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (530,000) 857,991 1,387,991 Fund Balances - Beginning of Year 530,000 2,362,997 1,832,997 Residual Equity Transfer - 8,160 8,160 Fund Balances - End of Year $ - $ 3,229,148 $ 3,229,148 The accompanying notes are an integral part of the financial statements. -9- Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ - $ - $ 1,012,800 1,049,252 36,452 5,000 17,589 12,589 1,017,800 1,066,841 49,041 540,415 366,742 173,673 76,345 62,698 13,647 616,760 429,440 187,320 401,040 637,401 236,361 (401,040) (362,765) 38,275 (401,040) (362,765) 38,275 274,636 274,636 252,746 252,746 $ - $ 527,382 $ 527,382 -10- This page intentionally left blank. , Ocoee o\ n t v � O of G0V CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES For the Year Ended September 30, 2000 Proprietary Fund Types Enterprise Operating Revenues: User charges $ 6,289,099 Operating Expenses: Personal services 2,229,425 Materials and supplies 818,729 Heat, light and power 424,530 Depreciation and amorization 1,742,724 Other expenses 796,210 Recycling expenses 4,025 Total operating expenses 6,015,643 Operating income (loss) 273,456 Nonoperating Revenue (Expenses): Grant revenue 5,871 Investment Income 702,831 Interest expense (612,019) Total nonoperating revenue (expense) 96,683 Income (loss) before operating transfers 370,139 Operating Transfers: Operating transfers in 148,943 Operating transfers out (933,436) Net operating transfers (784,493) Net income (loss) $ (414,354) Disposition of Net Income(Loss): Net income (loss) - $ (414,354) _ Depreciation on fixed assets acquired from contributions 427,417 Net increase (decrease) in retained earnings 13,063 Retained Earnings -Beginning of Year 3,972,241 Retained Earnings -End of Year $ 3,985,304 The accompanying notes are an integral part of the financial statements. -11- This page intentionally left blank. (co) , r �F G CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF CHANGES IN PENSION FUND NET ASSETS For the Year Ended September 30, 2000 Additions: Contributions: Employer $ 984,659 State 157,244 Plan members 676,495 Total contributions 1,818,398 Investment income: Net appreciation in fair value of investments 1,226,397 Interest 19,846 1,246,243 Less investment expense . (101,099) Net investment income 1,145,144 Total additions 2,963,542 Deductions: Benefits 313,748 Administrative expenses 43,039 Total deductions 356,787 Net Increase 2,606,755 Net Assets Held in Trust for Pension Benefits: Beginning of Year 12,554,694 End of Year $ 15,161,449 -12- CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the Year Ended September 30, 2000 Proprietary Fund Types Enterprise Cash Flows from Operating Activities: Receipts from customers $ 6,233,611 Payments to suppliers (2,489,056) Payments to employees (2,230,310) Net cash provided by operating activities 1,514,245 Cash Flows from Non-Capital Financing Activities: Operating transfers in 148,943 Operating transfers out (933,436) Receipts from grants 5,871 Net cash provided (used) by non-capital financing activities (778,622) Cash Flows from Capital and Related Financing Activities Acquisition of fixed assets (139,520) Additions to construction in progress (3,965,592) Principal paid on bonds and leases (601,210) Interest paid on bonds and leases (958,211) Capital contributions received 1,138,384 Cash received on assessments receivable 54,956 Net cash provided (used) by capital and related financing activities (4,471,193) Cash Flows from Investing Activities Sales of investments 4,839,972 Investment income 577,735 Net cash provided (used) by investing activities 5,417,707 Net Increase(Decrease) in Cash and Cash Equivalents 1,682,137 Cash and Cash Equivalents at Beginning of Year 4,835,116 Cash and Cash Equivalents at End of Year $ 6,517,253 Classified As: Current assets $ 1,495,994 Restricted assets 5,021,259 Total $ 6,517,253 The accompanying notes are an integral part of the financial statements. -13- This page intentionally left blank. Ocoee o f+i„ylf� of G 0 0� • Proprietary Fund Types Enterprise • Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating income $ 273,456 Adjustments Not Affecting Cash: Depreciation 1,717,701 Amortization 25,024 Change in Assets and Liabilities: Increase in accounts receivable (123,604) Increase in prepaid costs 1,509 Increase (decrease) in accounts payable (291,844) Decrease in accrued expenses (885) Decrease in retainage payable (155,228) Increase in deferred revenue 39,743 Increase in customer deposits 28,373 Total adjustments 1,240,789 Net Cash Provided by Operating Activities $ 1,514,245 Noncash Investing, Capital and Financing Activities: Contributed property, plant and equipment $ 1,018,404 Decrease in the fair value of investments 125,096 Obligation under capital lease for acquisition of equipment 172,689 -14- NOTES TO FINANCIAL STATEMENTS This page intentionally left blank. Ocoee o� op, ti , _ e?....)4? o °f G0V CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS September 30, 2000 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, F/oridainclude 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 used by the City. -15- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 1 -Summary of Significant Accounting Policies (Continued): Governmental Fund Types General Fund To account for all financial resources except those required to be accounted for in another fund. All general tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. The general operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are paid from the general fund. Special Revenue Funds - To account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) requiring separate accounting because of legal, regulatory provisions or administrative action. Debt Service Funds - To account for the accumulation of resources for, and the payment of general long-term debt principal and interest. Capital Projects Funds - To account for financial resources to be used for the acquisition or 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. -16- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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. -17- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 1 -Summary of Significant Accounting Policies (Continued): The basis of accounting and measurement focus of the 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. -18- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 2000 fiscal year. Amortization of bond discount, included in interest expense, amounted to $9,261 for the 2000 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. -19- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 1 -Summary of Significant Accounting Policies (Continued): Postretirement Benefits - The City does not fund any postretirement health care and life insurance benefits for employees. Capitalization of Interest- Net interest cost relating to construction is capitalized. Capitalized Interest totaled $346,533 during fiscal year ended September 30, 2000. 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. -20- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued • September 30, 2000 Note 1 -Summary of Significant Accounting Policies (Continued): 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. All interfund transactions except advances and reimbursements are accounted for as transfers. Non-recurring 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 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 an ordinance. - - - 4. The City cannot legally exceed the budget; however, the City Manager is authorized to transfer budgeted amounts within departments within any fund. Any revisions that alter the total expenditures of any department must be approved by the City Commission. 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. -21- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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. -22- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 2000 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 $ 13,965,948 $ 943,828 Nonbudgeted capital lease transactions (265,765) (265,765) Budgetary basis $ 13,700,183 $ 678,063 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 $ 2,256,022 $ (2,030,305) Non-budgeted funds (1,618,621) 1,667,540 Budgetary basis $ 637,401 $ (362,765) -23- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 4 - Cash and Investments: Following are the components of the City's cash and investments at September 30, 2000: Unrestricted Restricted Total Cash and cash equivalents $ 12,034,998 $ 4,140,021 $ 16,175,019 Cash with paying agent - 2,312,710 2,312,710 Investments 33,990,431 5,534,615 39,525,046 $46,025,429 $ 11,987,346 $ 58,012,775 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, 2000 Bank balances: Category 1 $ 542,239 Category 3 2,312,710 Total bank balances $ 2,854,949 Carrying amount $ 406,439 Investments-The City's investment policies, except for pension fund 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; -24- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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, 2000: 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 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, 2000: Category Carrying 1 2 3 Amount Repurchase agreements $ - $ - $ 18,008,000 $18,008,000 U.S. Government obligations 22,640,458 - - 22,640,458 $ 22,640,458 $ - $ 18,008,000 Mutual funds investing In U.S. Government Securities 4,546,809 Pension funds investing in commingled bond and stock funds 12,411,069 $ 57,606,336 -25- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 - 98,253 - 635,553 - Assessments Current - - 55,000 - Non-current - - 101,774 - Maintenance fee (formerly Guaranteed revenue) - - 93,414 - Other receivables 102,701 27,934 112,302 6,882 18,408 Total 104,042 126,187 112,302 892,623 18,408 Less: allowance for uncollectible accounts (4,000) (5,000) - (59,115) - $100,042 $121,187 $112,302 $ 833,508 $ 18,408 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. 1The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 folowing 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, 2000, 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 $5,308,767 additional property tax revenue a year from the present assessed valuation of $884,794,580 before the limit is reached. -26- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 7 - Property, Plant and Equipment: During the fiscal year ended September 30, 2000, the following changes in general fixed assets occurred: Balance Balance 10-01-99 Additions Deletions 9-30-00 Land $ 1,766,395 $ 3,408,128 $ - $5,174,523 Buildings 7,405,986 0 - 7,405,986 Improvements 1,795,762 75,906 - 1,871,668 Equipment 6,735,738 489,462 - 7,225,200 17,703,881 3,973,496 - 21,677,377 Construction in progress 69,658 617,717 - 687,375 Total $17,773,539 $4,591,213 $ - $22,364,752 Construction in progress for general fixed assets as of September 30, 2000 consisted primarily of construction of a recreation center, a fire station and public works facility. The sources of investment in general fixed assets are as follows: General fund $ 6,442,566 Special revenue funds: Federal revenue sharing 750,610 Road impact 145,548 Police trust 244,790 Police training 8,106 Parks 384,969 Stormwater utility 468,780 Fire impact - 1,324,578 Police impact 683,568 Contributions - other 389,745 State grant 365,715 Capital projects fund 11,155,777 $ 22,364,752 -27- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 7 - Property, Plant and Equipment(Continued): The components of property, plant and equipment for the Proprietary Fund Types at September 30, 2000, are as follows: Proprietary Fund Types Enterprise Land and land improvements $ 4,565,719 Buildings 380,497 Improvements - 32,717,743 Equipment 3,591,175 41,255,134 Less: accumulated depreciation 14,573,909 $26,681,225 Proprietary Fund construction in progress at September 30, 2000, 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 full- time City employees which are included as part of the City's reporting entity in Pension Trust Funds. Each plan provides retirement and death benefits to Plan members and beneficiaries. In addition, the police and firefighters plan provides disability benefits to Plan members. 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, 2000 to be reserved for general employees and police and firefighter pension funds are $6,863,856 and $8,279,185 respectively. -28- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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, 1999: General Police and Membership and Plan Provisions Employees Firefighters Members: Retirees and beneficiaries receiving benefits 7 5 Terminated plan members entitled to but not receiving benefits 9 7 Active plan members: Vested 74 49 Non-vested 79. 52 169 113 • -29- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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. -30- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 9.8% 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 15.1%, 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, 2000. -31- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 b-a (a/b) Lo j(b-a)/cl General Employees 10/01/99 $5,542,993 $7,027,304 $1,484,311 78.88% $4,758.675 31.19% 10/01/98 4,294,480 5,769,386 1,474,906 74.44% 4,407,277 33.47% 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% 2,548,268 19.29% 10/01/93 941,671 1,461,756 520,085 64.42% 2,262,495 22.99% Police Officers and Firefighters 10/01/99 $6,656,107 $7,926,608 $1,270,501 83.97% 3,697,592 34.36% 10/01/98 5,160,384 6,460,583 1,300,199 79.87% 3,263,647 39.84% 10/01/97 3,685,001 5,123,641 1,438,640 71.92% 2,954,018 48.70% 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% SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES General Employees Police Officers & Firefighters Annual Annual Year Ended Required Percentage Required Percentage September 30 Contribution Contributed Contribution Contributed 2000 $460,161 100% $681,742 100% 1999 443,771 100% 659,313 100% 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% -32- • CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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, 1999) 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 -33- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 8 - Retirement Plans (Continued): Deferred Compensation Plan-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. 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, which conform to the new provisions of the law. Accordingly, all assets of these plans are no longer accounted for in the City's financial statements. 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 303 residents of the City participated in this program during the fiscal year ended September 30, 2000. All expenditures under this program are shown as expenditures of the general fund. Water Excise Tax $ 4,141 Water Fees 41,442 Solid Waste Fees 61,602 Total Over 65 Cost $ 107,185 -34- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 10 - Bonds and Notes Payable: Summarized below are the City's bonds and notes payable outstanding at September 30, 2000: 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%. $ 7,175,000 Less: Current Maturities (245,000) Unamortized Discounts (83,079) 6,846,921 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%. $ 9,695,000 Less: Current Maturities • (175,000) Unamortized Discounts (113,720) 9,406,280 $16,253,201 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%. $ 1,440,000 Transportation Refunding and Improvement Revenue Bonds, Series 1998—payable in annual installments of$150,000 to $1,240.000 through 2028 with semi-annual interest payments at 3.35% to 4.5%. V 18,800,000 Capital Improvement Refunding Revenue Bonds, Series 1999 - payable in annual installments of$150,000 to $680,000 through 2028 with semi-annual interest payments at 3.00% to 4.75%. 11,045,000 $31,285,000 -35- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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. $1,785,000 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 shall establish rates which will provide for necessary operating expenses and 110% of the bond service requirement due that year. 4) The City shall provide for the reserve requirement by purchasing a surety bond. -36- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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. These bonds were partially refunded by the Transportation Refunding and Improvement Revenue Bonds, Series 1998. -37- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 10 - Bonds and Notes Payable (Continued): 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. Transportation Refunding and Improvement Revenue Bonds, Series 1998 - In October 1998, the City issued Transportation Refunding and Improvement Revenue Bonds, Series 1998 to refund a portion of the Transportation Refunding and Improvement Revenue Bonds, Series 1990 and to finance the design, construction, paving and improvement of certain roads and drainage improvements within the City. These bonds are secured by a prior lien upon and pledge of Local Option Gas Tax monies and certain Public Service Taxes (the "Pledged Revenues"). Such prior lien on and pledge of the Pledge Revenues is on a parity with the lien and pledge granted to the holders of the Series 1990 Bonds described above. The major provisions of the ordinances authorizing these bonds are as follows: - 1) The City shall provide for the reserve requirement by purchasing a surety bond. 2) 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 1998 Bonds for immediately preceding bond year. -38- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 10 - Bonds and Notes Payable (Continued): Capital Improvement Refunding Revenue Bonds, Series 1999— February 1999, the City issued Capital Improvement Refunding Revenue Bonds, Series 1999 to (1) refund the 1991 Capital Improvement Revenue Bonds, (2) pay off the 1996 Capital Improvement Revenue Promissory Note and (3) finance certain capital improvements, including the acquisition of land. These bonds are secured by a pledge of half-cent sales tax revenue received by the City. The major provisions of the ordinances authorizing these bonds are as follows: 1) The City shall provide for the reserve requirement by purchasing a surety bond. 2) 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 1998 Bonds for immediately preceding bond year. 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 2001 $ 585,000 $ 1,423,615 $ 440,000 $ 903,366 $ 3,351,981 2002 610,000 1,401,510 460,000 882,476 3.353.986 2003 630,000 1,377,768 485,000 860,156 3,352,924 2004 660,000 1,352,683' 510,000 836,136 3,358,819 2005 690,000 1,322,943 535,000 810,266 3,358,209 2006-2010 3,890,000 6,153,978 3,125,000 3,595,161 16,764,139 -- -2011-2015 ---4,865,000. 5,178,808 4,100,000 2,627,163 16,770,970 2016-2020 6,150,000 3,901,288 3,330,000 1,450,850 ' 14,832,138 2021-2025 7,690,000 2,355,550 2,805,000 676,406 13,526,956 2026-2030 5,515,000 513,675 660,000 37,125 6,725,800 $ 31,285,000 $24,981,815 $16,450,000 $13,601,680 $85,395,921 -39- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 10 - Bonds and Notes Payable (Continued): Following is a maturity schedule of principal payments on the stormwater note payable: Year Ended September 30: 2001 $ 125,000 2002 130,000 2003 135,000 2004 140,000 2005 145,000 Thereafter 1,110,000 $ 1,785,000 During the year ended September 30, 2000, the following changes in general long-term debt occurred: Accrued Capital Bonds and Annual Lease Notes Leave Obligations Payable Total Balance at $646,827 $1,141,728 $33,755,000 $35,543,555 October 1, 1999 Additions 50,007 265,765 - 315,772 Principal payments - (599,103) - (685,000) _ (1,284,103) - Balance at September 30, 2000 $696,834 $ 808,390 $33,070,000 $34,575,224 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. -40- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 11 - Lease Obligations (Continued): Equipment under capital leases recorded in the General Fixed Asset Account Group at September 30, 2000 consists of the following: Fire Truck $ 180,535 Vehicles and Trucks 1,382,254 Equipment 112,334 $1,675,123 Debt service payments on equipment capitalized in the General Fixed Asset Group are recorded as expenditures in either the General Fund or the Special Revenue Funds. The following is a schedule by years of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments as of September 30: Year Ending September 30: 2001 $ 436,806 2002 292,513 2003 116,472 2004 16,472 Total Minimum Lease Payments 862,078 Less, Amount Representing Interest 53,689 Present Value of Net Minimum Lease Payments $ 808,390 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 $ 268,409 $ 606,658 $ 875,067 Less: Accumulated Amortization (104,612) (212,977) (317,589) $ 163,797 $ 393,681 $ 557,478 Amortization of equipment leased under capital leases is included in depreciation expense. -41- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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 September 30: Fund Fund Totals 2001 $ 62,854 $ 125,770 $ 188,624 2002 47,451 79,082 126,533 2003 23,370 15,037 38,407 • 2004 2,727 •2,727 Total Minimum tease Payments 136,402 219,889 356,291 Less: Amount Representing Interest (18,590) (2,107) (20,697) Present Value of Net Minimum Lease Payments $ 117,812 $ 217,782 $ 335,594 The current and non-current obligation under these capital leases is $171,437 and $164,157, respectively. Operating Leases-The City leases office and computer equipment under non-cancelable operating leases:. Rental expenditures for the year ended September 30, 2000 amount to $79,665. The following is a schedule by years of future minimum rentals on these non- cancelable leases as of September 30, 2000: Year Ending September 30: 2001 $ 61,828 2002 8,816 2003 678 $ 71,322 -42- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 Note 12 - Interfund Receivables and Payables: The following schedule as of September 30, 2000, represents interfund receivables and payables: Interfund Interfund Fund Type Receivables Payables General Fund $ . 26,765 $ - Special Revenue Funds: Road Impact Fund 150,000 - Debt Service Funds Transportation Refunding and Improvement - 26,765 Capital Projects Funds Capital Projects Reserve - 150,000 $ 176,765 $ 176,765 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. -43- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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, 2000, is as follows: Water and Wastewater Solid Waste Total Operating Revenues $ 4,687,737 $1,601,362 $6,289,099 Depreciation and Amortization $ 1,594,020 $ 148,704 $1,742,724 Operating Income (Loss) $ (109,111) $ 382,567 $ 273,456 Operating Grants $ - $ 5,871 $ 5,871 Operating Transfers: In $ 148,943 $ - $ 148,943 Out $ (779,584) $ 153,852 $ 933,436 Net Income (Loss) $ (679,235) $ 264,881 $ (414,354) Current Capital Contributions $ 2,156,838 $ - $ 2,156,838 Property Additions $ 1,153,231 $ 1,495 $ 1,154,726 Property Deletions $ - $ - $ - Net Working Capital $ 1,885,661 $ 884,915 $ 2,770,576 Total Assets $48,267,867 $ 1,358,297 $49,626,164 Long-Term Debt $16,313,136 $ 104,222 $16,417,358 Total Equity $30,126,669 $ 1,091,478 $31,218,147 -44- CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2000 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, 2000. Contributed Capital - Beginning of Year $25,503,472 Additions (Reductions) Connection Fees 1,079,869 Developers 1,018,404 Other 58,565 Depreciation on Contributed Assets (427,417) Contributed Capital - End of Year $27,232,843 Note 16 -Summary Disclosure of Significant Contingencies: Grants - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the City. In the opinion of management, any such adjustments would not be significant. Litigation- During the ordinary course of its operations, the City is a party to various claims, legal actions, and complaints. In the opinion of the City's management and legal counsel, these matters are not anticipated to have a material financial impact on the City. Note 17 -Commitments: At September 30, 2000, the City had entered into contracts for construction in the amount of $12,418,998. Note 18 -Subsequent Events: In December 2000, the City issued a note to finance the acquisition of real property to be used for a fire station, park, and school in a joint venture with the school board. The City entered into an agreement with Mannheim Partnership to construct a road estimated to cost $2.6 million The City is obligated to begin construction by year 2003. -45- This page intentionally left blank. Ocoee ti 0 dip of G000 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. This page intentionally left blank. Ocoee o\ po 4 o �Il� a � ., e_?},.., o of GOO) 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. This page intentionally left blank. Ocoee o Ft ti --6:..., v O y�f� Gf G00�``� CITY OF OCOEE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Revenues: Taxes: Property taxes $ 3,437,020 $ 3,394,071 $ (42,949) Franchise taxes 1,431,560 1,323,333 (108,227) Utility taxes 2,006,000 1,926,928 (79,072) 6,874,580 6,644,332 (230,248) Licenses and permits: Building permits 805,100 774,895 (30,205) Occupational license 293,000 320,934 27,934 1,098,100 1,095,829 (2,271) Intergovernmental revenues: Cigarette tax 98,100 86,293 (11,807) State revenue sharing 543,400 629,201 85,801 Sales tax 2,859,570 2,950,551 90,981 Other state shared revenue 134,040 122,660 (11,380) County 6 cent gax tax 860,000 857,306 (2,694) Other county shared revenue 40,000 90,000 50,000 Federal grants 342,680 278,940 (63,740) 4,877,790 5,014,951 137,161 Charges for services: Fire contract 431,585 431,086 (499) Program activity fees 104,500 129,232 24,732 City staff charges 7,200 10,545 3,345 543,285 570,863 27,578 Fines and forfeitures: Fines and forfeitures 149,500 182,226 32,726 Investment income: Investment income 108,000 230,049 122,049 Miscellaneous revenues: Zoning and election fees 37,850 23,860 (13,990) Other 111,400 118,001 6,601 149,250 141,861 (7,389) Total Revenues $13,800,505 $13,880,111 $ 79,606 (Continued) -46- This page intentionally left blank. o\ Ocoee o et Of G00V` CITY OF OCOEE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Expenditures: General government: Legislative $ 211,389 $ 176,378 $ 35,011 Executive 897,361 787,999 109,362 Finance and administrative 965,576 900,107 65,469 Legal 285,000 275,995 9,005 Planning and zoning 436,153 413,901 22,252 General government 214,867 147,249 67,618 Building maintenance 305,145 265,208 39,937 3,315,491 2,966,837 348,654 Public safety: Law enforcement 4,478,105 4,099,985 378,120 Fire control 3,020,790 2,950,761 70,029 Protective inspections 799,244 775,388 23,856 8,298,139 7,826,134 472,005 Physical environment: Roads and streets 1,969,035 1,663,007 306,028 Culture and recreation: Parks and recreation 693,380 593,745 99,635 Debt service: Principal retirement 595,110 585,153 9,957 Interest and fiscal charges 69,150 65,307 3,843 664,260 650,460 13,800 Total expenditures 14,940,305 13,700,183 1,240,122 Excess (Deficiency) of Revenues Over Expenditures (1,139,800) 179,928 1,319,728 Other Financing Sources (Uses): Operating transfers in 2,305,460 2,317,090 11,630 Operating transfers out (1,695,660) (1,639,027) 56,633 Net other financing sources (uses) 609,800 678,063 68,263 Excess (Deficiency) of Revenues and Other Sources over Expenditures and Other Uses (530,000) 857,991 1,387,991 Fund Balance-Beginning of Year 530,000 2,362,997 1,832,997 Residual Equity Transfer - 8,160 8,160 Fund Balance- End of Year $ - $ 3,229,148 $ 3,229,148 -47- 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. 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. Ocoee Recreation - Accounts for fees collected for various athletic leagues. Founders Day - Accounts for revenues and disbursements related to the celebration of the City's Founder's Day. CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS September 30, 2000 Road Police Impact Recreation Stormwater Training Assets: Cash and cash equivalents $1,168,754 $ 333,664 $ 393,464 $ 55,772 Investments 4,238,881 313,471 51,498 - Due from other funds 150,000 - - - Receivables-net 27,246 - 93,038 833 Total assets $5,584,881 $ 647,135 $ 538,000 $ 56,605 Liabilities and Fund Balances: Liabilities: Accrued liabilities $ 47,456 $ - $ 10,618 $ - Deferred revenue - 3,996 Total liabilities 47,456 3,996 10,618 - Fund Balances: Reserved: Renewal and replacement - - 129,404 - Unreserved: Designated for subsequent year's budget 5,537,425 643,139 397,978 56,605 Total fund balances 5,537,425 643,139 527,382 56,605 Total liabilities and fund balances $5,584,881 $ 647,135 $ 538,000 $ 56,605 -48- Total Special Police Fire Police Ocoee Founders Revenue Trust Impact Impact Recreation Day Funds $ 90,359 $ 749,005 $ 196,236 $ 17,442 $ 9,739 $3,014,435 - 1,106,530 77,384 - - 5,787,764 - - - - - 150,000 - 70 - - - 121,187 $ 90,359 $1,855,605 $ 273,620 $ 17,442 $ 9,739 $9,073,386 $ - $ - $ - $ - $ - $ 58,074 - - - 3,996 - - - - - 62,070 - - - - - 129,404 90,359 1,855,605 273,620 17,442 9,739 8,881,912 90,359 1,855,605 273,620 17,442 9,739 9,011,316 $ 90,359 $1,855,605 $ 273,620 $ 17,442 $ 9,739 $9,073,386 -49- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS For the Year Ended September 30,2000 Road Interim Police Impact Recreation Stormwater Services Training Revenues: Intergovernmental revenues $ - $ - $ - $ - $ 21,168 Charges for services - - - - - Fines and forfeitures - - - - 7,619 Impact fees/special assessments 945,724 71,328 1,049,252 - - Investment income 253,984 36,018 17,589 50 2,534 Miscellaneous revenues _ - - - - Total revenues 1,199,708 107,346 1,066,841 50 31,321 Expenditures: , Current: Public safety - - - - 1,515 Physical environment 43,430 - 366,742 - - Culture and recreation - 32,200 - - - Debt Service: Principal retirement - - 58,872 - - Interest and fiscal charges - - 3,826 - - Total expenditures 43,430 32,200 429,440 - 1,515 Excess (Deficiency)of Revenues over Expenditures 1,156,278 75,146 637,401 50 29,806 Other Financing Sources (Uses): Operating transfers in - - - - - Operating transfers out (1,285,353) (66,458) (362,765) - - Net other financing sources (uses) (1,285,353) (66,458) (362,765) - - Excess(Deficiency)of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (129,075) 8,688 274,636 50 29,806 Fund Balance-Beginning of Year 5,666,500 634,451 252,746 8,110 26,799 Residual Equity Transfer Out - - - (8,160) - Fund Balance-End of Year $ 5,537,425 $ 643,139 $ 527,382 $ - $ 56,605 -50- Total Special Police Fire Police Ocoee Founders Revenue Trust Impact Impact Recreation Day Funds $ - $ - $ - $ - $ - $ 21,168 - 16,264 - 51,032 19,119 86,415 13,847 - - - - 21,466 - 263,252 83,671 - - 2,413,227 8,033 96,721 14,223 771 1,048 430,971 - 2,622 - - 43,072 45,694 21,880 378,859 97,894 51,803 63,239 3,018,941 102,786 25,844 122 - - 130,267 - - - - - 410,172 - - - 38,864 53,500 124,564 25,510 6,238 - - - 90,620 2,574 896 - - - 7,296 130,870 32,978 122 38,864 53,500 762,919 (108,990) 345,881 97,772 12,939 9,739 2,256,022 (230,817) (84,912) - - (2,030,305) (230,817) (84,912) - - (2,030,305) (108,990) 115,064 12,860 12,939 9,739 225,717 199,349 1,740,541 260,760 4,503 - 8,793,759 - - - - - (8,160) $ 90,359 $ 1,855,605 $ 273,620 $ 17,442 $ 9,739 $ 9,011,316 -51- This page intentionally left blank. Ocoee OF G000 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 and Improvement 1990 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. Stormwater Revenue - Accounts for the principal and interest payments on the Promissory Note 1996 Stormwater Revenue Promissory Note issued to acquire, construct, and improve certain stormwater utility capital improvements. Transportation Refunding - Accounts for Principal and interest payments on the 1998 and Improvement Transportation Refunding and Improvement Revenue Revenue Bonds, Series Bonds issued to refund a portion of the 1990 1998 Transportation Refunding and Improvement Revenue Bonds and to finance the design, construction, paving and improvement of certain roads and drainage improvements within the city. Capital Improvement - Accounts for principal and interest payments on the 1999 Refunding Revenue Capital Improvement Refunding Revenue Bonds, issued Bonds, Series 1999 to (1) refund the 1991 Capital Improvement Revenue Bonds, (2) pay off 1996 Capital Improvement Revenue Promissory Note and (3) finance certain capital improvements, including acquisition of land. CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS September 30, 2000 Transportation Transportation Stormwater Refunding and Refunding And Revenue Improvement Improvement Promissory Revenue Bonds Revenue Bonds Note Series 1998 Assets: Cash and cash equivalents $ 31,819 $ 51,236 $ 20,651 Restricted assets: Investments - 208,729 - Cash with paying agent 105,296 142,745 721,767 Accrued interest receivable - 4,761 - Total assets $ 137,115 $ 407,471 $ 742,418 Liabilities and Fund Balances: Liabilities: Due to other funds $ 26,765 $ - $ - Matured bonds payable 50,000 120,000 305,000 Matured interest payable 55,296 22,745 416,767 Total liabilities 132,061 142,745 721,767 Fund Balances: Reserved for debt service 5,054 264,726 20,651 Total liabilities and fund balances $ 137,115 $ 407,471 $ 742,418 • -52- Capital Improvement Total Refunding Debt Revenue Bonds Service Series 1999 Funds $ 33,623 $ 137,329 208,729 461,664 1,431,472 - 4,761 $ 495,287 $ 1,782,291 $ - $ 26,765 210,000 685,000 251,664 746,472 461,664 1,458,237 33,623 324,054 $ 495,287 $ 1,782,291 -53- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS For the Year Ended September 30, 2000 Transportation Transportation Stormwater Refunding and Refunding And Revenue Improvement Improvement Promissory Revenue Bonds Revenue Bonds Note Series 1998 Revenues: Investment income $ 4,224 $ 16,432 $ 17,063 Total revenues 4,224 16,432 17,063 Expenditures Debt Service: Bond principal payments 50,000 120,000 305,000 Bond interest and fiscal charges 111,067 90,550 833,535 Total expenditures 161,067 210,550 1,138,535 Excess(Deficiency) of Revenues over Expenditures (156,843) (194,118) (1,121,472) Other Financing Sources (Uses) Operating transfers in _ 133,827 210,487 1,138,535 Net other financing sources (uses) 133,827 210,487 1,138,535 Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (23,016) 16,369 17,063 Fund Balance- Beginning of Year 28,070 248,357 3,588 Fund Balance- End of Year $ 5,054 $ 264,726 $ 20,651 -54- Capital Improvement Total Refunding Debt Revenue Bonds Service Series 1999 Funds $ 21,536 $ 59,255 21,536 59,255 210,000 685,000 503,328 1,538,480 713,328 2,223,480 (691,792) (2,164,225) 653,886 2,136,735 653,886 2,136,735 (37,906) (27,490) 71,529 351,544 $ 33,623 $ 324,054 -55- This page intentionally left blank. Ocoee o t if 0 coy 0 ,4' jfRaF G00) 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. 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 Fund for certain capital projects including City Hall/Police siding and trim project, sidewalks, and public restrooms at Starke Lake. Transportation - Accounts for proceeds of the 1998 Transportation Improvements, 1998 Bond Refunding and Improvement Revenue Bonds issued to Issue finance the design, construction, paving and improvement of certain roads and drainage improvements within the City. Capital Improvements, - Accounts for proceeds of the 1999 Capital Improvement 1999 Bond Issue Refunding Revenues Bonds Issued to finance certain capital improvements, including acquisition of land. CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS September 30, 2000 Road Stormwater Computer Capital Construction Improvement Acquisition Improvement Assets: Cash and cash equivalents $ 213,555 $ 547,419 $ 59,138 $ 132,206 Investments - 4,468 - 398,718 Accounts Receivable - - - 4,621 Prepaid Expenses - - - - Total assets $ 213,555 $ 551,887 $ 59,138 $ 535,545 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Retainage payable - - Due to other funds - - - Deferred Revenue - - - - Total liabilities - - - - Fund Balances: Unreserved: Designated for capital projects 213,555 551,887 59,138 535,545 Total liabilities and fund balances $ 213,555 $ 551,887 $ 59,138 $ 535,545 -56- Total Capital Transportation Capital Capital Projects Improvements Improvements Projects Reserve 1998 Bond Issue 1999 Bond Issue Funds $ 196,134 $ 3,489,989 $ 956,095 $ 5,594,536 - 7,454,332 2,301,059 10,158,577 - 61,370 46,311 112,302 - - 9,993 9,993 $ 196,134 $ 11,005,691 $ 3,313,458 $ 15,875,408 $ - $ 571,476 $ - $ 571,476 - 90,759 - 90,759 150,000 - - 150,000 26,675 - - 26,675 176,675 662,235 - 838,910 19,459 10,343,456 3,313,458 15,036,498 $ 196,134 $ 11,005,691 $ 3,313,458 $ 15,875,408 -57- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECT FUNDS For the Year Ended September 30, 2000 Road Stormwater Computer Capital Construction Improvement Acquisition Improvements Revenues: Investment income $ 12,447 $ 29,870 $ 3,801 $ 29,994 Miscellaneous revenues - - - - Total revenues 12,447 29,870 3,801 29,994 Expenditures - Capital outlay: . General government - - 1,043 - Public Safety - - - 35,064 Physical environment 26 109,990 - 127,257 Culture and recreation - -_ - Total expenditures 26 109,990 1,043 162,321 Excess(Deficiency)of Revenues over Expenditures 12,421 (80,120) 2,758 (132,327) Other Financing Sources (Uses) Operating transfers in - - - 119,250 Operating transfers out - - - - Net other financing sources (uses) - - - 119,250 Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses 12,421 (80,120) 2,758 (13,077) Fund Balances -Beginning of Year 201,134 632,007 56,380 548,622 Fund Balances-End of Year $ 213,555 $ 551,887 $ 59,138 $ 535,545 -58- Total Capital Transportation Capital Capital Projects Improvements Improvements Project Reserve 1998 Bond Issue 1999 Bond Issue Funds $ 13,888 $ 698,336 $ 218,749 $ 1,007,085 131,193 1,242 - 132,435 145,081 699,578 218,749 1,139,520 281,410 - 91,376 373,829 - - 42,859 77,923 20,615 3,315,850 1,051,114 4,624,852 702 - 913,643 914,345 302,727 3,315,850 2,098,992 5,990,949 (157,646) (2,616,272) (1,880,243) (4,851,429) - - 119,250 (119,250) - - (119,250) (119,250) - - - (276,896) (2,616,272) ' (1,880,243) (4,851,429) 296,355 12,959,728 5,193,701 19,887,927 $ 19,459 $ 10,343,456 $ 3,313,458 $ 15,036,498 -59- This page intentionally left blank. Ocoee o r:3 :3 �r a v o 00- fE 0......)4' N HofGoov 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, 2000 Water Total And Enterprise Wastewater Solid Waste Funds Assets: Current assets: Cash and cash equivalents $ 786,913 $ 709,081 $ 1,495,994 Investments 922,733 200,855 1,123,588 Receivables (net of allowance for uncollectibles) 547,384 129,350 676,734 Inventory- materials 22,152 - 22,152 Due from other governments 126,004 8,226 134,230 Prepaid costs 750 - 750 Total current assets 2,405,936 1,047,512 3,453,448 Restricted assets: Cash and cash equivalents 4,140,021 - 4,140,021 Investments 5,325,886 - 5,325,886 Cash with paying agent 881,238 - 881,238 Total restricted assets 10,347,145 - 10,347,145 Fixed assets: Property, plant and equipment 39,665,938 1,589,196 41,255,134 Less: accumulated depreciation (13,295,498) (1,278,411) (14,573,909) Construction in progress 8,473,535 - 8,473,535 Total fixed assets - net 34,843,975 310,785 35,154,760 Other assets: Assessments receivable 156,774 - 156,774 Unamortized bond issuance costs 514,037 - 514,037 Total other assets 670,811 - 670,811 Total assets $48,267,867 $ 1,358,297 $49,626,164 -60- Water Total And Enterprise Wastewater Solid Waste Funds Liabilities and Fund Equity: Current liabilities (payable from current assets): Accounts payable $ 137,115 $ 2,948 $ 140,063 Retainage payable 76,217 - 76,217 Accrued expenses 209,323 46,089 255,412 Deferred revenue- Grant 39,743 - 39,743 Obligations under capital leases 57,877 113,560 171,437 Total current liabilities (payable from current assets) 520,275 162,597 682,872 Current liabilities (payable from restricted assets): Customer deposits 426,549 - 426,549 Revenue bonds payable 420,000 - 420,000 Accrued interest payable 461,238 - 461,238 Total current liabilities (payable from restricted assets) 1,307,787 - 1,307,787 Long-term liabilities: Revenue bonds payable 16,253,201 - 16,253,201 Obligations under capital leases 59,935 104,222 164,157 Total long-term liabilities 16,313,136 104,222 16,417,358 Total liabilities 18,141,198 266,819 18,408,017 Fund Equity: Contributed capital 27,232,843 - 27,232,843 Retained earnings: Reserved for renewal and replacement 2,576,724 191,177 2,767,901 Unreserved 317,102 900,301 1,217,403 Total retained earnings 2,893,826 1,091,478 3,985,304 Total fund equity 30,126,669 1,091,478 31,218,147 Total liabilities &fund equity $48,267,867 $ 1,358,297 $49,626,164 -61- This page intentionally left blank. Oc oee .rr o aeV v O C+�, O /�`�v 4 of G 00� CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS For the Year Ended September 30, 2000 Water Total And Enterprise Wastewater Solid Waste Funds Operating Revenues: User charges $4,687,737 $1,601,362 $6,289,099 Operating Expenses: Personal services 1,792,974 436,451 2,229,425 Materials and supplies 519,362 299,367 818,729 Heat, light and power 424,530 - 424,530 Depreciation and amorization 1,594,020 148,704 1,742,724 Other expenses 465,962 330,248 796,210 Recycling expenses - 4,025 4,025 Total operating expenses 4,796,848 1,218,795 6,015,643 Operating income (loss) (109,111) 382,567 273,456 Nonoperating Revenue (Expenses): Grant revenue - 5,871 5,871 Investment Income 656,519 46,312 702,831 Interest expense (596,002) (16,017) (612,019) Total nonoperating revenue (expense) 60,517 36,166 96,683 Income (loss) before operating transfers (48,594) 418,733 370,139 Operating Transfers: Operating transfers in 148,943 - 148,943 Operating transfers out (779,584) (153,852) (933,436) Net operating transfers (630,641) (153,852) (784,493) Net income (loss) (679,235) 264,881 (414,354) Disposition of Net Income(Loss): Net income(loss) $ (679,235) $ 264,881 $ (414,354) Depreciation on fixed assets acquired from contributions 427,417 - 427,417 Net increase (decrease) in retained earnings (251,818) 264,881 13,063 Retained Earnings-Beginning of Year 3,145,644 826,597 3,972,241 Retained Earnings -End of Year $2,893,826 $1,091,478 $3,985,304 -62- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS For the Year Ended September 30, 2000 Water Total And Enterprise Wastewater Solid Waste Funds Cash Flows from Operating Activities: Receipts from customers $4,634,065 $1,599,546 $6,233,611 Payments to suppliers (1,858,364) (630,692) (2,489,056) Payments to employees (1,793,635) (436,675) (2,230,310) Net cash provided by operating activities 982,066 532,179 1,514,245 Cash Flows from Non-Capital Financing Activities: Operating transfers in 148,943 - 148,943 Operating transfers out (779,584) (153,852) (933,436) Receipts from grants - 5,871 5,871 Net cash provided (used) by non-capital financing activities (630,641) (147,981) (778,622) Cash Flows from Capital and Related Financing Activities Acquisition of fixed assets (138,025) (1,495) (139,520) Additions to construction in progress (3,965,592) - (3,965,592) Principal paid on bonds and leases (467,886) (133,324) (601,210) Interest paid on bonds and leases (942,194) (16,017) (958,211) Capital contributions received 1,138,384 - 1,138,384 Cash received on assessments receivable 54,956 - 54,956 Net cash provided (used) by capital and (4,320,357) (150,836) (4,471,193) related financing activities Cash Flows from Investing Activities Sales (Purchases) of investments 4,989,972 (150,000) 4,839,972 Investment income 535,347 42,388 577,735 Net cash provided (used) by investing activities 5,525,319 (107,612) 5,417,707 Net Increase (Decrease) in Cash and Cash Equivalents 1,556,387 125,750 1,682,137 Cash and Cash Equivalents at Beginning of Year 4,251,785 583,331 4,835,116 Cash and Cash Equivalents at End of Year $5,808,172 $ 709,081 $6,517,253 Classified As: Current assets $ 786,913 $ 709,081 $1,495,994 Restricted assets 5,021,259 - 5,021,259 Total $5,808,172 $ 709,081 $6,517,253 -63- Water Total And Enterprise Wastewater Solid Waste Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) $ (109,111) $ 382,567 $ 273,456 Adjustments Not Affecting Cash: Depreciation 1,568,997 148,704 1,717,701 Amoritization 25,024 - 25,024 Change in Assets and Liabilities: Increase in accounts receivable (121,788) (1,816) (123,604) Increase in prepaid costs 1,509 - 1,509 Increase (decrease) in accounts payable (294,792) 2,948 (291,844) Decrease in accrued expenses (661) (224) (885) Decrease in retainage payable (155,228) - (155,228) Increase in deferred revenue 39,743 - 39,743 Increase in customer deposits 28,373 - 28,373 Total adjustments 1,091,177 149,612 1,240,789 Net Cash Provided by Operating Activities $ 982,066 $ 532,179 $ 1,514,245 Noncash Investing, Capital and Financing Activities: Contributed property, plant and equipment $ 1,018,404 $ - $ 1,018,404 Increase in the fair value of investments 121,172 3,924 125,096 Obligation under capital lease for acquisition $ 39,359 $ 133,330 $ 172,689 of equiment • -64- This page intentionally left blank. Ocoee n. o , v � O �.�4 ,`mac, FQ of G0OS) FIDUCIARY FUND TYPES 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 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. CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF PENSION FUND NET ASSETS September 30, 2000 • Pension Trust Funds General Police and Employees Firefighters Totals Assets: Cash and short-term investments $ 55,450 $ 54,095 $ 109,545 Receivables: Employer contribution 18,408 - 18,408 Employee contribution _ Total receivables 18,408 - 18,408 Investments, at fair value: Commingled bank bond fund 2,728,614 3,287,521 6,016,135 Commingled bank stock fund 4,098,200 4,937,569 9,035,769 Total investments 6,826,814 8,225,090 15,051,904 Total assets 6,900,672 8,279,185 15,179,857 Liabilities: Accounts Payable 18,408 - 18,408 Total liabilities 18,408 - 18,408 Net Assets Held in Trust for Pension Benefits (A schedule of funding progress for each Plan is.presented on page 32) $ 6,882,264 $ 8,279,185 $15,161,449 -65- CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS • For the Year Ended September 30, 2000 Pension Trust Funds General Police and Employees Firefighters Totals Additions: Contributions: Employer $ 460,161 $ 524,498 $ 984,659 State - 157,244 157,244 Plan Members 367,926 308,569 676,495 Total contributions 828,087 990,311 1,818,398 Investment income: Net appreciation in fair value investments 567,051 659,346 1,226,397 Interest 10,403 _ 9,443 19,846 577,454 668,789 1,246,243 Less investment expense (46,146) (54,953) (101,099) Net investment income 531,308 613,836 1,145,144 Total additions 1,359,395 1,604,147 2,963,542 Deductions: Benefits 153,321 160,427 313,748 Administrative expenses 18,657 24,382 43,039 Total deductions 171,978 184,809 356,787 Net Increase 1,187,417 1,419,338 2,606,755 Net Assets Held in Trust for Pension Benefits: Beginning of year 5,694,847 6,859,847 12,554,694 End of year $ 6,882,264 $ 8,279,185 $15,161,449 -66- This page intentionally left blank. Ocoee o pti . o C. O lE4 of G00o 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. This page intentionally left blank. Ocoeo yr�R of GOO CITY OF OCOEE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS -BY FUNCTION AND ACTIVITY For the Year Ended September 30, 2000 Culture General Public Physical And Government Safety Environment Recreation Total Land $ 928,797 $ 188,621 $ 3,699,734 $ 357,371 $ 5,174,523 Buildings 1,944,220 2,817,267 378,847 2,265,652 7,405,986 Improvements 565,125 63,125 147,749 1,095,669 1,871,668 Equipment 871,845 4,202,188 1,752,242 398,925 7,225,200 Construction in Progress 98,868 45,736 93,472 449,299 687,375 Total $ 4,408,855 $ 7,316,937 $ 6,072,044 $ 4,566,916 $22,364,752 Deletions Balance and Balance 10/1/99 Additions Transfers 9/30/00 General Government $ 3,801,106 $ 508,880 $ - $ 4,309,986 Public Safety 7,028,702 242,499 - 7,271,201 Physical Environment 2,809,757 3,168,816 - 5,978,573 Culture & Recreation 4,064,316 53,301 - 4,117,617 Construction in Progress 69,658 617,717 _ - 687,375 Total $17,773,539 $ 4,591,213 $ - $22,364,752 -67- This page intentionally left blank. Ocoee o�/ Rr idint ag a 0 Cry /( 5.__}f2 rE Of G00' 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. This page intentionally left blank. Ocoee o -c-,_ y Of G00S) 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(a) General Public Physical Year Expenditures % Government % Safety % Environment(2) 1991 $ 6,295,025 100.0% $ 1,877,608 29.8% $ 2,823,667 44.9% $ 744,722 1992 6,335,748 100.0% 1,523,768 24.1% 2,968,180 46.8% 706,974 1993 6,671,716 100.0% 1,599,429 24.0% 3,404,218 51.0% 899,542 1994 8,629,065 100.0% 1,705,399 19.8% 4,253,374 49.3% 1,103,372 1995 8,808,659 100.0% 1,912,088 21.7% 4,373,302 49.6% 1,125,206 1996 9,362,905 100.0% 1,907,097 20.4% 4,689,003 50.1% 1,151,049 1997 11,217,057 100.0% 2,432,702 21.7% 5,826,668 51.9% 1,162,242 1998 13,967,349 100.0% 2,826,467 20.2% 6,890,597 49.3% 1,522,812 1999 15,239,562 100.0% 2,945,543 19.3% 7,532,736 49.4% 1,857,066 2000 15,604,975 100.0% 2,966,837 19.0% 7,944,122 50.9% 1,810,784 (a)This schedule includes expenditures of the General Fund only. (b)Beginning 1992,debt service on capital leases was reported as an expenditure of the General Fund. Prior to 1992,these debt service amounts were transferred to the Debt Service Fund and reported as an expenditure in the Debt Service Fund. -68- Culture and Debt(b) Transfers to % Recreation % Service % Other Funds % 11.8% $ 167,749 2.7% $ - 0.0% $ 681,279 10.8% 11.2% 152,762 2.4% 41,626 0.7% 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% 12.2% 592,985 3.9% 574,581 3.8% 1,736,651 11.4% 11.6% 593,745 3.8% 650,460 4.2% 1,639,027 10.5% -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 % 1991 $ 5,845,228 100.0% $ 2,328,029 39.8% $ 587,064 10.0% $ 1,844,812 31.6% 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 7.1% 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% 1999 15,797,804 100.0% 6,208,882 39.3% 1,067,010 6.8% 4,476,397 28.3% 2000 16,471,126 100.0% 6,644,332 40.3% 1,095,829 6.7% 5,014,951 30.4% (a)This schedule includes expenditures of the General Fund only. (b) Other financing sources for 1995 includes a residual equity transfer of$53,640. -70- Charges Other For Fines and Investment Misc. Financing Services % Forfeitures % Income % Income % Sources % $ 94,690 1.6% $ 81,615 1.4% $ 7,825 0.1% $ 18,395 0.3% $ 882,798 15.1% 76,923 1.1% 97,184 1.4% 11,045 0.2% 165,148 2.4% 1,543,484 22.1% 83,404 1.2% 83,583 1.2% 28,339 0.4% 64,096 0.9% 1,055,188 14.7% 95,109 1.1% 102,024 1.2% 29,551 0.4% 84,520 1.0% 1,660,183 19.7% 138,481 1.5% 93,007 1.0% 9,329 0.1% 79,007 0.9% 1,535,080 17.1% 186,163 1.8% 101,895 1.0% 89,666 0.9% 108,379 1.1% 1,568,885 15.3% 208,119 1.8% 75,483 0.6% 146,357 1.2% 163,504 1.4% 1,936,175 16.5% 351,846 2.6% 120,259 0.9% 163,241 1.2% 103,355 0.8% 2,134,623 15.7% 554,663 3.5% 192,015 1.2% 137,330 0.9% 173,758 1.1% 2,987,749 18.9% 570,863 3.5% 182,226 1.1% 230,049 1.4% 141,861 0.9% 2,591,015 15.7% -71- CITY OF OCOEE, FLORIDA TAX REVENUE BY SOURCE Last Ten Fiscal Years Property Franchise Utility Total Fiscal Year Taxes Taxes Taxes Taxes 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 1999 3,162,838 1,201,185 1,844,859 6,208,882 2000 3,394,071 1,323,333 1,926,928 6,644,332 -72- CITY OF OCOEE, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY Last Ten Fiscal Years Percentage of Total Total Tax Total Collections Fiscal Year Tax Levy (1) Collections Delinquent To Tax Levy 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 96.58% 1997 2,329,421 2,243,488 1,388 96.31% 1998 3,004,905 2,872,599 - 95.60% 1999 3,285,462 3,162,838 - 96.27% 2000 3,539,178 3,394,071 - 95.90% (1) Gross taxes before discounts. -73- CITY OF OCOEE, FLORIDA ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY • NET OF EXEMPTIONS Last Ten Fiscal Years Real Property Personal Property Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value 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 1999 747,443,436 747,443,436 73,922,097 73,922,097 2000 805,163,068 805,163,068 79,631,512 79,631,512 -74- Totals Assessed Estimated Value Actual Value $ 273,650,322 $ 287,200,145 334,640,837 350,755,279 375,807,867 375,807,867 424,437,664 424,437,664 469,310,003 469,310,003 505,656,888 505,656,888 582,355,145 582,355,145 751,226,256 751,226,256 821,365,533 821,365,533 884,794,580 884,794,580 -75- CITY OF OCOEE, FLORIDA PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years Millage Rates ($1 per$1,000 of taxable value) Fiscal City of Orange School Year Ocoee County Board Total(a) 1991 4.00 5.2889 9.149 18.4379 1992 4.00 5.2889 9.003 18.2919 1993 4.00 5.2889 8.93 18.2189 1994 4.00 5.2889 8.93 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 1999 4.00 5.2889 9.042 18.3309 2000 4.00 5.2264 8.612 17.8384 Tax Levies Fiscal City of Orange School Year Ocoee County Board Total(a) 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 1999 3,285,462 284,615,135 393,750,228 681,650,825 2000 3,539,178 245,058,507 383,327,261 631,924,946 (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. -76- 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. -77- 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 Net Bonded Debt Net Bonded Assessed Gross Bonded Debt Service Net Bonded to Assessed Debt Per Fiscal Year Population Value Debt Funds Available Debt Value Capita 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 - - - - - 1999 22,746 821,365,533 - - - - - 2000 23,531 884,794,580 - - - - - 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, 2000 Assessed Value $ 884,794,580 Debt Limit: 50% of Assessed Value 442,397,290 Amount of Debt Applicable to Debt Limit: Total Bonded Debt 31,285,000 Legal Debt Margin $ 411,112,290 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. -79- CITY OF OCOEE, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30, 2000 Applicable To Bonds City Of Ocoee Government Unit Outstanding Percent(1) Amount Library District Refunding Bonds - Series 1993 $6,495,000 1.43% $ 92,878 Total Overlapping Debt 92,878 Total Direct Debt (2) Total Direct and Overlapping Debt $ 92,878 (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. -80- CITY OF OCOEE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES Last Ten Fiscal Years Ratio of Debt Service to Total Total General Total General Fiscal Year Principal Interest Debt Service Expenditures (1) Expenditures 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% 1999 485,000 1,245,936 1,730,936 15,239,561 11.4% 2000 565,000 1,447,930 2,012,930 15,604,975 12.9% (1) Includes expenditures for 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(1) Expenses (2) Debt Service Coverage Principal Interest Total 1991 $ 1,244,492 $ 737,261 $ 507,231 --- $ 129,720 $ 129,720 3.91 1992 $ 1,467,315 $ 830,328 $ 636,987 -- $ 141,567 $ 141,567 4.50 1993 $ 1,484,293 $ 972,925 $ 511,368 --- $ 117,850 $ 117,850 4.34 1994 $ 1,558,606 $ 981,904 - $ 576,702 $46,800 $ 108,839 $ 155,639 3.71 1995 $2,085,987 $ 1,035,963 $ 1,050,024 $48,000 $ 107,341 $155,341 6.76 Wastewater Fund Net Revenue Debt Service Requirements Fiscal Gross Operating Available For Year Revenue(1) Expenses (2) Debt Service Coverage Principal Interest Total 1991 $1,494,661 $579,698 $ 914,963 $ --- $ 586,560 $ 586,560 1.56 1992 $ 1,696,995 $637,603 $ 1,002,392 $ --- $ 640,129 $ 640,129 1.57 1993 $ 1,920,150 $664,527 $ 1,255,623 $ --- $ 443,865 $ 443,865 2.83 1994 $1,706,450 $887,455 $ 818,995 $ 148,200 $ 344,655 $ 492,855 1.66 1995 $ 1,945,095 $878,102 $ 1,066,993 $ 152,000 $ 339,913 $ 491,913 2.17 Water and Wastewater Fund(4) Net Revenue Debt Service Requirements Fiscal Gross Operating Available For Year Revenue(1) Expenses (2) Debt Service Coverage Principal Interest Total 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 5,731,828 2,820,022 2,911,806 390,000 956,875 1,346,875 2.16 1999 5,286,200 3,144,486 2,141,714 405,000 940,315 1,345,315 1.59 2000 5,344,256 3,202,828 2,141,428 420,000 922,476 1,351,476 1.59 (1) Total revenues (including interest and gain on sale of property, plant and equipment). (2) Excludes depreciation, amortization and interest expense. (3) The City of Ocoee combined the Water and Wastewater Funds into one fund during the fiscal year ended September 30, 1996. -82- CITY OF OCOEE, FLORIDA DEMOGRAPHIC STATISTICS Population Year City of Ocoee Orange County Population % Increase Population % Increase 1991 14,926 7.75 677,491 1.8 1992 15,107 1.21 698,847 3.2 1993 16,418 8.68 727,780 4.1 1994 17,489 6.52 740,167 1.7 1995 18,578 6.23 758,962 2.5 1996 19,261 3.67 777,556 2.4 1997 20,560 6.74 803,614 3.3 1998 21,653 5.30 824,095 2.5 1999 22,746 5.05 839,095 1.8 2000 23,531 3.34 846,328 .87 Population Projections Year Orange County State Of Florida 2005 965,909 16,882,830 2010 1,061,559 18,121,273 Population Distribution by Age Year Orange County State Of Florida 0-14 20.8% 18.9% 15-24 14.7 12.0 25-44 33.3 28.0 45-64 20.4 22.7 65 and over 10.8 18.4 Source: University of Florida, Bureau of Economic and Business Research East Central Florida Planning Council, Council Quarterly -83- CITY OF OCOEE, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Additions/ Residential Construction (1) Construction (1) Alterations (1) Number of Units Single Multi Total Year Family Family Value Value Value Value 1991 314 10 26,453,025 36,322,749 1,618,759 64,394,533 1992 438 0 36,622,069 1,040,010 546,550 38,208,629 1993 411 0 36,188,257 5,667,958 1,908,581 43,764,796 1994 402 0 35,211,374 3,569,955 1,432,460 40,213,789 1995 331 0 28,836,036 21,823,750 701,252 51,361,038 1996 366 0 33,950,817 63,337,471 2,327,526 99,615,814 1997 497 0 44,475,342 4,818,000 155,575 49,448,917 1998 381 0 38,054,799 6,770,000 52,200 44,876,999 1999 226 282 44,022,409 1,502,716 784,902 46,310,027 2000 269 199 35,696,151 12,206,191 1,734,806 49,637,148 (1) Source: City of Ocoee Building Department (2) Source: Florida Bankers Association -84- CITY OF OCOEE, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS September 30, 2000 Taxable Assessed Type of Valuation As of Taxpayer Business 1999 Tax Roll (1) Percentage 1. GGP/Homart, Inc. West Oaks Mall $ 67,404,761 7.6% 2. Manheim Remarketing, LP Developer 12,512,879 1.4 3. Good Homes Plaza Shopping Center 11,049,522 1.3 4. Parisian, Inc. Retail Sales 10,598,960 1.2 5. Oak Forest Partners, Ltd. Developer 10,386,757 1.2 6. Dillards Department Store, Inc. Retail Sales 9,806,877 1.1 7. West Orange Healthcare District Health Care 9,586,523 1.1 8. Sears Roebuck& Company Retail Sales 7,185,498 0.8 9. Wal-Mart Stores East , Inc. Retail Sales 6,858,150 0.8 10. TSSC, LLC Shopping Center 6,601,995 0.7 Total taxable assessed value of 10 largest taxpayers 151,991,922 17.2 Total taxable assessed value of other Taxpayers 732,802,658 82.8 Total taxable assessed value of all Taxpayers $ 884,794,580 100.0% Note: (1) The tax levy for the fiscal year ended September 30, 2000 is based on the 1999 taxable value. -85- CITY OF OCOEE MISCELLANEOUS STATISTICAL DATA September 30, 2000 Date of Incorporation May 13, 1925 City Charter Adopted November 8, 1988 Commission Composed of: 1 Mayor,4 Commissioners Terms of Office: Mayor 3 Years Commissioners 3 Years City Administrator Appointed Areas of City 16.8 Square Miles Municipal Employees (Including Part-Time) 302 Elections: Registered voters 10,953 Votes cast in last municipal elections(March 2000) 809 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 95 Vehicular Patrol Units: Patrol cars 36 Other vehicles 15 Recreation: Multi-purpose recreation center 1 Community Center 1 Athletic fields 9 Tennis courts 7 Racquetball courts 2 Shuffleboard courts 2 Passive parks 2 Parks and recreation developed ares(including city playgrounds) 12 Water System: Miles of water mains 104.96 Daily Average Consumption(gallons) 5,500,000(GPD) Plant capacity(Gallons) 20,160,000(GPD) Service connections 8,369 Deep wells 7 Fire hydrants 769 -86- CITY OF OCOEE MISCELLANEOUS STATISTICAL DATA -CONTINUED September 30, 2000 Sewer System: Miles of sanitary sewers 49.86 Lift stations 39 Daily average treatment 1,293,000(GDP) Plants(s)capacity(MGD) 3 Disposal plants 1 -87- CITY OF OCOEE, FLORIDA SCHEDULE OF INSURANCE IN FORCE September 30, 2000 Buildings and Personal Property: Multi-period, "all risk" 100% of replacement value Stated values Blanket building coverage $22,269,351 Blanket contents coverage Incl. in bldg. limit Boiler & machinery 5,000,000 Inland marine— computer 645,671 Inland marine— equipment 845,896 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 -88- REPORTS ON INTERNAL CONTROL AND COMPLIANCE This page intentionally left blank. Ocoee ,n, • o v O cry rEQ OF G000 MCDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 605 E.Robinson Street,Suite 635 Telephone:(407)843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail:info@mdpcpa.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, 2000, and have issued our report thereon dated November 17, 2000. 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 17, 2000. 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 17, 2000. CPAMembers:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants 89 This report is intended solely for the information and use of management, the City Commission, and the Auditor General of the State of Florida and is not intended to be, and should not be used by anyone other than these specified parties. McDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. November 17, 2000 90 MCDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS . 605 E.Robinson Street,Suite 635 Telephone:(407)843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail: info@mdpcpa.com 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 City 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, 2000. The City of Ocoee, Florida's major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. 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, 2000. internal Control Over Financial Reporting - 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. CPA Members:Private Companies Practice Section•American Institute of Certified Public Accountants.Florida Institute of-Certified Public Accountants 91 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 solely for the information and use of management, the City Commission and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. • McDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. November 17, 2000 92 THE CITY OF OCOEE , FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30, 2000 SECTION I — SUMMARY OF AUDITOR'S RESULTS FINANCIAL STATEMENTS Type of Auditor's Report Issued: Unqualified 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? No Identification of Major Programs: S,FDA 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 Auditee Qualified as Low-Risk Auditee? No SECTION II — FINANCIAL STATEMENT FINDINGS No matters were reportable. SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reportable. 93 CITY OF OCOEE, FLORIDA ,SCHFflhIl F OF FXPFNDITURFS OF FFDERAI AWARDS Year Ended September 30, 2000 Agency Or Federal Pass-Through Federal Grantor/Pass-Through CFDA Entity Grant Federal Grantor/Program Title Number Numher Expenditures U.S. Department of.Iiistioc Office of Community Oriented Policing Services —COPS Universal Hiring Program 16.710 95-CF-WX-4000 $452,503 Local Law Enforcement Block Grant 16.592 1999-LB-VX-8770 23,063 Total U.S. Department of Justice 475,566 U.S. Federal Emergency Management Agency Pass-through program from: State of Florida Department of Community Affairs - Florida Emergency Management Division 83.544 FEMA-1300-DR-FL 30,737 Fxeoi stive__Office of the President Office of the National Drug Control Policy- HIDTA Award - I9PCFP507 12,460 Total Expenditures of Federal Awards $518,763 94 CITY OF OCOEE, FLORIDA NOTFS TO SCHFDUI F OF FXPFNDITURFS OF FFIIERAI AWARD, Year Ended September 30, 2000 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 at September 30, 2000 is $450,000 under the original grant and $1,125,000 under the supplemental award. 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 award period. Note 3 — FEMA Award: Total expenditures claimed for Hurricane Floyd damages were $30,737. The City of Ocoee received $18,683 reimbursement for the Federal share and $3,114 for the State of Florida share. 95 This page intentionally left blank. Ocoee till ta a o 0f G0V MCDIRMIT, DAVIS, PUCKETT & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 605 E.Robinson Street,Suite 635 Telephone:(407)843-5406 Post Office Box 1185 Fax:(407)649-9339 Orlando,Florida 32802-1185 E-Mail:info@mdpcpa.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, 2000, 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. ROifriialL ' h.�'e/.iefh fie ; An McDIRMIT, DAVIS, PUCKETT& COMPANY, P.A. November 17, 2000 C PA Members:Private Companies Practice Section•American Institute of Certified Public Accountants•Florida Institute of Certified Public Accountants Management Comments November 17, 2000 City of Ocoee, Florida Page Two A. Status of Prior Year Comments 1. TRIM Certification Pursuant to Section 200.068 of Florida Statutes, the TRIM compliance package must be received by the Department of Revenue not more than 30 days following adoption of the ordinance or resolution that established the property tax levy. Resolution Number 98-21 which established the property tax levy was adopted on September 23,1998, however the Department of Revenue did not receive the TRIM compliance package until November 13, 1998, 21 days late. The Department of Revenue accepted the City's certification because the violation did not materially impact on the disclosure requirements of the Truth in Millage Laws. Recommendation We recommend that the City comply with TRIM Laws since repeated violations could be regarded as non-compliance with Section 200.065, Florida Statutes. The consequences of such non-compliance could include the loss of state revenue sharing funds and loss of ad valorem revenue in excess of the rolled-back rate. Corrective Action The millage certification documents submitted by the City for the fiscal year ended September 30, 2000 met the certification requirements of the applicable sections of Florida Statutes. 2. Blanket Purchase Orders During our testing of expenditures, we noted a problem in the use of blanket purchase orders. There were some situations where total on invoice received from a vendor exceeded the blanket purchase order total authorized for that vendor. Recommendation We recommend that notification be added to purchase orders that the vendor is responsible for keeping track of blanket purchase order balances. In addition, department heads need to monitor blanket purchase orders to insure they do not go over budget. Blanket purchase orders should be used only for recurring monthly supplies, not unusual high dollar items. CnrrPc:tive Action During our testing of expenditures for the year ended September 30, 2000, we noted no problems in the use of blanket purchase orders. s Management Comments November 17, 2000 City of Ocoee, Florida Page Three B. Current Year Comments 1. Check Numbers The accounting software requires that when checks are printed, the first check number to be used has to be input and the software does not warn the operator if this number input does not follow the last number used. During our testing of cash disbursements in the current year, there were three separate instances where the operator input the vendor number as the check number or input a six digit number rather than the five digit check number. Recommendation We believe this is a weakness in the software, which needs to be corrected. We recommend the City contact their software vendor to discuss what can be done to fix the problem. 2. Fixed Assets Fixed asset additions for the current year were not tagged with an identification number. Also, the annual physical inventory was not taken in all departments. Recommendation Even though the Rules of the Auditor General Chapter 10.400, do not apply to municipalities unless they have adopted the Rules, we recommend that the City use these rules as a guideline. It is much easier to take an annual physical inventory and compare to detail records if all assets are tagged with an identification number. We recommend that the City perform an annual physical inventory to make sure that all transfers between departments and other additions and deletions are recorded. 3. Investment Policy Florida Statutes Section 218.415 revisions are effective October 1, 2000 and require that certified public accountants conducting audits shall report, as part of the audit, whether or not the unit of local government has complied with the statute. The revisions in Section 218.415 also require that the local government official responsible for making investment decisions must complete 8 hours of continuing education courses of study related to investments. Recommendation We recommend that the City review its existing investment policy and revise it so that it includes everything required by Florida Statutes Section 218.415. Management Comments November 17, 2000 City of Ocoee, Florida Page Four C. Comments Required by the Rules of the Auditor General 1. The financial report filed with the Department of Banking and Finance pursuant to Section 218.32(1)(b), Florida Statutes, is in agreement in all material respects with the annual financial audit report for the same period. 2. The City is not, or during the fiscal year was not, in a state of financial 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. COcoee "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER -S.SCOTT VANDERGRIFT CITY OF OCOEECOMMISSIONERS 150 N.LAKESHORE DRIVEDANNY HOWELL SCOTT HOWE LOCOEE,FLORIDA 34761-2258RUSTY JOHNSON (407)905-3100 NANCY J.PARKER ACTING CITY MANAGER JIM GLEASON February 27, 2001 Mr. Elden McDirmit McDirmit, Davis,Puckett& Company, P.A. - 605 E. Robinson Street, Suite 635 - P.O. Box 1185 - Orlando,Florida-32802-1185 -- Dear Elden, _ The_following details corrective action taken on the Management Comments resulting from the audit for fiscal year 2000. _ 1) Check Numbers Staff has requested a program modification from our software-vendor to automatically display _ the next check number to be used. Additionally, staff has been instructed to be more cautious - = when entering check numbers.until this modification can be implemented. 2) Fixed Assets Fixed assets were added to the City's fixed asset list. The assets were assigned an identification number and -serial numbers , model, and make of the items were "recorded in-the fixed asset system. The tags were not physically placed on the items. The-present bar coding system generates paper tags to be applied to the asset. These tags are not durable enough to withstand weather conditions. Staff is researching more durable tags and scheduling a complete inventory for fiscal year 2001. _ 3) Investment Policy _ Staff is currently working on the revisions needed for the investment policy. The revisions will be presented to the City Commission for approval to ensure compliance with the revision of the Statutes. Sin erely/ 091)/01- 010 Wanda B. Horton Finance Director .ift _ POW Protect cae3'z::'ats.l fear ces ;