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HomeMy WebLinkAboutII (B) Audit and Comprehensive Annual Financial Report for Fiscal Year 2002 • Agenda 3-18-2003 Center of Good Lr Item II B 51:rvor. •j`�e (LO Commi sioncr¢ , Scott A indetsfrift ppram rid ou Danny Ilinvon. D llxl I Scott lnde ;on. Di-t rid 1 2 City Man titr ©C°E�'1 L...o FtuAt Johnson, Di tact lun (,lc t,on E'�'�S \ants I Parker, District I MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Wanda B. Horton, Finance Director & DATE: March 12, 2003 C///f/ RE: September 30, 2002 Comprehensive Annual Financial Report (CAFR) The Finance Department has completed the City's annual financial report for year ended September 30, 2002. Our auditor Elden McDirmit will give a brief presentation on his firm's findings during the annual audit process. Should you have any questions or want additional information, please give Donald Caner or me a call. City of Ocoee• 150 N Lakeshore Drive• Ocoee, Florida 34761 phone: (407)905-3100• fax: (407)656-8504 •www.ci.ocoee.tl.us 1 ceater of Good Li. ,s•Nc\e' - fri7),G, ili C° ER I .-4 City of Ocoee •, . . - '.-.i ; re' '" 1! ! 1I,, .1 t, t ..4 *• *4 . . . , A 4. . ". , . . . .. . . N . 4.. .. . ),. • 4 - ; / • . * • * i _ . r IF ...ay.-J. -.,....-.. , f . .. , • . ti pr .. . ,. . ,... /4 . • ! ,,,.t t. .,...... 4 -.: - 4/is . . • • 1 - _ ._ -I* ,• . • . 1 .--i...... . 4 ,_.. .... : .., . . , . .., . .. _ . I ' . •.-r_ efre . .., I promo'' t II ....,,, ' 1 ' COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2002 r L r r Nis City of Ocoee, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2002 S r . Prepared by: Finance Department i se This page intentionally left blank. e Genet of Good Lip :1 _ .-u 1roz r r CITY OF OCOEE, FLORIDA S COMMISSION-MANAGER FORM OF GOVERNMENT r CITY COMMISSION HONORABLE S. SCOTT VANDERGRIFT, Mayor DANNY HOW ELL, Commissioner RUSTY JOHNSON, Commissioner SCOTT ANDERSON, Commissioner NANCY PARKER, Commissioner r CITY MANAGER ` CITY ATTORNEY James Gleason Paul Rosenthal r it CITY CLERK CITY AUDITOR ;► Jean Grafton McDirmit, Davis, Puckett & Company, LLC r his FINANCE DIRECTOR Wanda Horton SY L r V f This page intentionally left blank. S�'e Centex of Good G1p/n i f leat 10 1°' INTRODUCTORY SECTION This section contains the following subsections: r . Table of Contents . Letter of Transmittal . City of Ocoee Organizational Chart r . Certificate of Achievement r to r This page intentionally left blank. re Center of GoodGi� CITY OF OCOEE TABLE OF CONTENTS Year Ended September 30, 2002 w Page Introductory Section: Table of Contents -ii 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 "'f 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: r 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, 2002 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 General Fixed Assets- By Function and Activity 67 Schedule of Changes in Fixed Assets - By Function and Activity 68 III. Statistical Section: General Governmental Expenditures and Other Financing Uses 69-70 _ General Governmental Revenues and Other Financing Sources 71-72 Tax Revenues by Source 73 Property Tax Levies and Collections 74 Assessed and Estimated Value of Taxable Property Net of Exemptions 75-76 Property Tax Rates and Tax Levies Direct and Overlapping Governments 77 Special Assessment Collections 78 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 79 Legal Debt Margin 80 Computation of Direct and Overlapping General Obligation Debt 81 _ Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures and Other Uses 82 Revenue Bond Coverage 83 Demographic Statistics 84 Properly Value, Construction and Bank Deposits 85 Schedule of Ten Largest Taxpayers 86 Miscellaneous Statistical Data 87-88 Schedule of Insurance in Force 89 IV. Internal Control and Compliance Section: -� Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 90-91 Federal Awards- Report on Compliance With Requirements Applicable to the Major Program and Internal Control Over Compliance in Accordance with OMB 92-93 Circular A-133 Schedule of Expenditures of Federal Awards 94 Notes to Schedule of Expenditures of Federal Awards 95 Schedule of Findings and Questioned Costs 96 e Ce¢tet of Good 1b L flavor Commissioners S. Scott \ urdergrift +1tle a it. Dann} Howell. Distinct 1 � 1` Scutt Anderson, District 2 City Manager 7 Rusts Johnson, Di tnct3 • Jim Gleason 5• SVane J. Parker, Districi. 1 Imo;. ' _ January 17, 2003 r 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, 2002 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 assistance from 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 our 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 v the City (the Mayor and City Commission) has financial accountability. (See Notes to Financial t„ Statements, Reporting Entity for more details.) The Comprehensive Annual Financial Report (CAFR) is the City's official annual financial report .a. 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, 2001. City nI Ocoee •150 N Lakeshore Drive-Ocoee_Florida 34761 �" phone. (107)905-7111f1• fa‘.. (107)656-X514 • wwv.ci.ococe.11.us sio FINANCIAL REPORTING AND CONTENT- Continued II. Financial Section - The Financial Section contains the opinion of the City's independent auditors, McDirmit, Davis, Puckett & Company, LLC, 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 a 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. a 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 27,246 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 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 a 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 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 has been expanded to four lanes in the southern portion of the community to open up further land for development. Another factor that has influenced the growth of Ocoee is the amenities it has to offer, including ro 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, two new elementary schools and a 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 Ileportion 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 accounting principles generally accepted in the United States of America 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 p Service Funds, Capital Project Funds, and Trust 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. r 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 r • 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 r 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 2001 Taxes $8,022,142 40.4% $ 3,262 Licenses& Permits 1,392,977 7.0 383,831 ~ Intergovernmental Revenues 6,595,999 33.1 1,178,346 Charges for Services 299,835 1.5 (73,571) Fines and Forfeitures 226,066 1.1 14,293 r Investment Income 129,605 .6 (164,058) Miscellaneous Revenues 138,584 .7 (101,9301 Subtotal 16,805,208 84.4 1,240,173 Transfers from Other Funds 2,861,926 14.4 304,043 Capital Lease Proceeds 235,846 1.2 (383,851) -+ Total $19.902 980 100 0% S 1.160.365 • vi ✓ ✓ General Governmental Functions- Continued Property taxes are the major source of local tax revenue. In fiscal year 2001, the City's property tax, all of which is for operating purposes, was 4.7387 mills. The tax rate was decreased in fiscal ,,, year 2002 to 4.6564 mils. The related property values subject to taxes showed growth of 10.8 percent, representing $104,642,195 in added taxable property. Revenues from taxes appear virtually unchanged, however, Property tax revenue increased $433,740. Revenues for telephone and cable television franchises are no longer collected at the local level thus a decline in franchise taxes. The state now collects the Telecommunications Revenue (formerly telephone and cable television franchise taxes), which resulted in an increase in intergovernmental revenue of 21.7 percent or$1,178,346. Investment income continues to be affected by the ongoing decline of the financial market. The following summary shows the level of expenditures used in providing governmental services: Increase Percent (Decrease) Expenditures and Other Uses Amount Of Total From 2001 atm General Government $ 3,497,830 18.8% $ (58,296) Public Safety 9,937,715 53.0 516,632 Physical Environment 1,798,985 9.7 (181,881) Culture & Recreation 1,119,031 6.0 87,121 Debt Service 539,373 2.9 (77,187) Subtotal 16,892,934 90.4 286.389 tot Transfers to Other Funds 1.792.395 9.6 3,755 Total $18 685 32.9 100.0% $ 290 144 r The increase in Public Safety expenditures is due primarily to an increase in salaries and benefits. p- Physical Environment expenditures declined due to the transfer of Engineering Costs to the Utility Fund. rr r 4 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 $10,644,957 and the following represents an analysis of sources and uses in the Special Revenue Funds for 2002: Change In Fund Sources Uses Fund Balance Road Impact $ 1,200,131 $ 1,612,629 (412,498) Parks 161,466 200,000 ( 38,534) .. Stormwater 1,160,559 811,846 348,713 Police Training 36,832 55,353 (18,521) Police Trust 20,179 41,242 (21,063) Fire Impact 329,934 279,511 50,423 Police Impact 111,252 60,228 51,024 Ocoee Recreation 76,951 55,561 21,390 Founder's Day 87,203 63,835 23,368 Total $ 3.184.507 $ 3.180.205 $ 4.302 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 are on 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 .r S Debt Administration -Continued alv 5. Non Ad Valorem Revenue Notes, Series 2000 Taxable totaling $1,300,000. The funds were used to purchase land as part of a joint venture with the county school board. The .. land obtained with the taxable portion of the notes will be used for commercial development. The note is secured by a covenant to budget and appropriate. 6. Non Ad Valorem Revenue Notes, Series 2000 Tax-Exempt totaling $2,700,000. The funds are being used to purchase land and construct infrastructure as part of a joint venture with the county school board. The land purchased with this portion of the note will tow be used for a park, police facility and fire training facility. The note is secured by a covenant to budget and appropriate. 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 parity with the lien and pledge granted to the holders of the City's Water and Sewer bMs 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: 2001-2002 2000-2001 Increase Fund Type Amount Amount (Decrease) General $ 129,605 $ 293,663 $ (164,058) Special Revenue 404,694 717,796 (313,102) ops Debt Service 13,683 50,545 (36,862) Capital Projects 119,833 645,872 (526,039) Pension Trust (1,017,539) ( 745,118) (272,421) .r Enterprise 311,604 713.534 (401,9301 Total L(38 120) 1.676 $( 7 41 ) ix • Debt Administration - Continued The primary objectives for the City's cash reserves are first, protection and safety of the City's funds, second, provision for liquidity, and third, maximized return on the portfolio but minimized risk, in that order. The investment portfolio will maintain sufficient liquidity to ensure cash availability for operating cash flow requirements. Cash held in the pooled checking account is invested in an overnight repurchase agreement. Some of the cash is maintained in trust accounts, which are designated for a specific purpose and have been isolated from normal operational cash. For example, the pension trust fund expenditure needs are of a long-range nature and therefore investments are made in long-term .. investments. 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 2002, 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 2001-2002 2000-2001 Increase Description Amount Amount (Decrease) Operating Revenues $ 4,970,914 $ 4,840,792 $ 130,122 Operating Expenses 5,405,448 5,171,590 233,858 Operating Income (Loss) (434,534) (303,798) (130,736) Net Income (Loss) (774,150) (60,196) (713,954) Revenues Available for Debt Service 1,874,819 2,343,684 (468,865) Annual Bond Debt Service 1,342,476 1,343,366 (890) Revenue Bond Coverage 1.38 1.75 .37 Bond covenants require that total revenues be at least 110 percent of annual debt service requirements atter deductions for operating expenses and debt service reserve requirements. ogi Solid Waste Fund 2001-2002 2000-2001 Increase Description Amount Amount {Decrease) r Operating Revenues $1,831,914 $1,728,267 $ 103,647 Operating Expenses 1,262,114 1,308,367 (45,253) Operating Income 569,800 419,900 149,900 Net Income $ 305,748 S 263,263 $ 42,485 f r 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 6. The City maintains two separate single employer defined benefit pension plans that cover virtually all full time employees of the City. In addition to a plan for general employees, the City has a plan r for the police officers and firefighters. ser Further details concerning pension expense, vested benefits and actuarial assumptions are p included in the notes to the financial statements. At September 30, 2002, the pension funds had net assets of$16,551,605. 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, 2002, the general fixed assets of the City of Ocoee totaled $28,812,671 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 i,. 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, LLC., 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, 2001. 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 thirteenth consecutive years. We believe that our current report continues to conform to the Certificate of Achievement Program requirements, and we are r 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. • •espectfully -.u. itt” i — ames Gleason, 17 anager clir T Wanda Horton, Finance Director • xii r r CITY OF OCOEE ORGANIZATIONAL CHART 9/30/02 LOcoee 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 Par Utility Billing CID Suppression Cemetery Maintenance Solid Waste/ Ua'elopmcut Employee Zoning Water Mapping Recycling Broglie Projects Patrol Investigation Elections Traffic amcurrence Risk Management Inspections Wastewater Operations Management %. Payroll DARE EMS Achim Facilities Projects Labor Nears cations Permits St ormwwer CEOs -. Maintenance Engineering Purchasing Fleet Code Utility Maintenance Safety Enforcement Inspections Street Accounts Maintenance Occupational Payable Licensing S tormwater Drainage Animal Control Accounts Receivable Financial Rcponing * Present Structure This page intentionally left blank. Cencei of Good Li�1 IMP Certificate of Achievement for Excellence in Financial Reporting Presented to City of Ocoee, Florida For its Comprehensive Annual Financial Report IMO for the Fiscal Year Ended September 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to f' government units and public employee retirement ✓ systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting fie and financial reporting. ✓ et oFEa,01110r 4lf2^^^i O mx`iouiw c President SEAL a` Executive Director r xiv This page intentionally left blank. ®. -Center of Good\‘: BLIB i r t w FINANCIAL SECTION This section contains the following subsections: f • Independent Auditor's Report i • General Purpose Financial Statements ` • Combining Statements •• v t O t f V This page intentionally left blank. .. 'Sre center of Good Li_ -.to CO ► • MCDIRMIT DAMS PUCKETT ► • INDEPENDENT AUDITOR'S REPORT ► Honorable Mayor and City Commissioners City of Ocoee, Florida e We have audited the accompanying general purpose financial statements of the City of Ocoee, ► Florida, as of and for the year ended September 30, 2002 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 i. 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, 2002, 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 accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated its November 11, 2002, 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. its ► MCDIRMIT DAVIS PUCKETT & COMPANY, LLC CERTIFIED PUFL, AND ADVISORS 605 R.ROBINSON STRESS,SUITE 635•ORLAmO.FLORIDA 32801 T eumHONE 407-643-5406•FAX 407-649-9339•EMAIL:INFO{thMDFCRA COM ti mo.m.sF.pRNATF C.la ,vs Pp,s' Sh m AM,NC.P v] � .O.Cr,(-1, P , Aum,T FLORID.lommum oF common YNSAuorvuvs 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. fitediMil glailed 7 army, McDIRMIT DAVIS PUCKETT& COMPANY, LLC November 11, 2002 2 r • *ID f los 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 fi r • r to CITY OF OCOEE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 2002 Governmental Fund Types Special Debt General Revenue Service Assets: Cash and cash equivalents $ 3,527,198 $ 4,245,094 $ 337,185 Investments 1,988,351 7,817,152 Receivables(net of allowances for uncollectible! 211,404 139,854 - Inventories -at cost 14,101 - - Due from other funds - - - Due from other governments 237,837 - - Prepaid costs 57,313 16,995 - Restricted assets: .. Cash and cash equivalents - - Investments - - 11,843 Cash with paying agent - - 1,461,886 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 $ 6,036,204 $12,219,095 $ 1,810,914 The accompanying notes are an integral part of the financial statements. 3 r r f . r is Governmental Proprietary Fiduciary Fund Types Fund Type Fund Type Account Groups r General General Totals so Capital Fixed Long-Term (Memorandum Projects Enterprise Trust Assets Debt Only) r I. $ 2,287,312 $ 1,450,368 $ 88,384 $ - $ - $ 11,935,541 2,631,542 1,742,911 16,463,221 - - 30,643,177 1,067,709 671,565 - - 2,090532 y, 22,152 - - - 36,253 398,689 207,064 - - - - 398,689 - - - - 71 - - 444,921 74,379 . - 2,883,813 - - - 2,883,813 r - 4,182,649 - - - 4,194,492 - 901,238 - - - 2,363,124 . - 51,852,961 - 27,854,372 - 79,707,333 - (18,279,166) - - (18,279,166) r.. - 2,252,021 - 958,299 - 3,210,320 463,989 - - - 463,989 le - - - - 349,029 349,029 r - - - - 34,913,914 34,913,914 so $ 6,592,336 $ 48,144,572 $16,551,605 $28,812,671 $35,262,943 $ 155,430,340 r raw I. e (Continued) r r 4 iiio CITY OF OCOEE, FLORIDA — COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 2002 Governmental Fund Types Special Debt General Revenue Service Liabilities and Fund Equity: „r Liabilities Accounts payable $ 23,187 $ - $ - Retainage payable _ - - Accrued liabilities 877,158 27,822 - - Due to other funds - 342,320 - Deferred revenues 341,630 1,203,996 - Current liabilities(payable from restricted assets): Customer deposits - - - — Matured bonds payable - - 740,000 Matured interest payable - - 721,885 Accrued annual leave - - - Bonds payable - - _ — Obligations under capital leases - - - Notes payable - _ - Total liabilities 1,241,975 1,574,138 1,461,885 Fund equity: "' Contributed capital - _ _ Investment in general fixed assets - - - Retained earnings: _ Reserved for renewal and replacement - - - Unreserved - _ _ Total retained earnings - - Fund balances: — Reserved: Inventories 14,101 - - Prepaid costs 57,313 - - Renewal and replacement - 296,584 - - Debt service - - 349,029 Capital Projects - Employee's pension benefits - - Unreserved: — Designated for capital projects - - - Designatedforsubsequentyear's budget - 10,348,373 - Undesignated 4,722,815 - - Total fund balances 4,794,229 10,644,957 349,029 Total Equity and Other Credits 4,794,229 10,644,957 349,029 Total Liabilities, Fund Equity and Other Credits $ 6,036,204 $12,219,095 $ 1,810,914 The accompanying notes are an integral part of the financial statements. a F kis L r V t S Governmental Fund Proprietary Fiduciary r Types Fund Type Fund Type Account Groups is Capital General General Totals P Fixed Long-Term (Memorandum Projects Enterprise Trust Assets Debt Only) F r $ 352,316 $ 68,563 $ - $ - $ - $ 444,066 f 426,182 66,868 - - - 493,050 �` - 284,773 - - 1,189,753 56,369 - - - 398,689 r. 23,695 10,000 - - - 1,579,321 - 419,718 - - - 460,000 - - - 419,718 F - 441,238 - 1,200,000 - 1,163,123 - - - 605,755 605,755 - 15,371,723 - - 30,090,000 45,461,723 135,652 - - 757,954 893,606 n - - - - 3,809,234 3,809,234 858,562 17,258,535 - - 35,262,943 57,658,038 - 26,209,322 - - - 26,209,322 e - - - 28,812,671 - 28,812,671 is - 3,138,234 - - - 3,138,234 1,538,481 - - - 1,538,481 r - 4,676,715 - - - 4,676,715 so r - - - - 14,101 - - - - 57,313 s - - - - - 296,584 312,320 - - - 349,029 t - - - - 312,320 - 16,551,605 - - 16,551,605 r 5,421,454 - - - - 5,421,454 t - - - - - 10,348,373 - - - - - 4,722,815 is 5,733,774 - 16,551,605 - - 38,073,594 5,733,774 30,886,037 16,551,605 28,812,671 - 97,772,302 r $ 6,592,336 $48,144,572 $16,551,605 $28,812,671 $35,262,943 $ 155,430,340 r t se r 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, 2002 Governmental Fund Types Special Debt General Revenue Service Revenues; Taxes $ 8,022,142 $ - $ - Licenses and permits 1,392,977 - - Intergovernmental revenues 6,595,999 23,073 - Charges for services 299,835 134,081 - 'r Fines and forfeitures 226,066 29,694 - Impact fees/special assessments - 2,429,397 - Investment Income 129,605 404,694 13,683 Miscellaneous revenues 138,584 163,568 - Total revenues 16,805,208 3,184,507 13,683 Expenditures: —• Current: General government 3,497,830 - - Public safety 9,937,715 43,430 - Physical environment 1,798,985 617,167 - r Culture and recreation 1,119,031 119,396 - Capital outlay - - - Debt service: ., Principal retirement 452,804 77,681 740,000 Interest and fiscal charges 86,569 7,355 1,485,765 Total expenditures 16,892,934 865,029 2,225,765 Excess(Deficiency)of Revenues Over Expenditures (87,726) 2,319,478 (2,212,082) ni Other Financing Sources(Uses) Operating transfers in 2,861,926 - 2,186,895 Operating transfers out (1,792,395) (2,315,176) Capital lease proceeds 235,846 - - 'as Net other financing sources(uses) 1,305,377 (2,315,176) 2,186,895 Excess(Deficiency)of Revenues — and Other Sources Over Expenditures and Other Uses 1,217,651 4,302 (25,187) Fund Balances•Beginning of Year 3,576,578 10,640,655 374,216 Fund Balances-End of Year $ 4,794,229 $ 10,644,957 $ 349,029 The accompanying notes are an integral part of the financial statements. 7 r S r Governmental Fund Types Totals Capital (Memorandum P. Projects Only) $ - $ 8,022,142 1,392,977 300,000 6,919,072 ► 433,916 - 255,760 F - 2,429,397 - 119,833 667,815 1,653,653 1,955,805 2,073,486 22,076,884 r r - 3,497,830 - 9,981,145 - 2,416,152 1,238,427 4,741,099 4,741,099 - 1,270,485 p - 1,579,689 4,741,099 24,724,827 - (2.667,613) (2,647,943) 200,000 5,248,821 (59,561) (4,167,132) - 235,846 140,439 1,317,535 r Ya (2,527,174) (1,330,408) - 8,260,948 22,852,397 f $ 5,733,774 $ 21,521,989 - 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, 2002 General Fund Variance _ Favorable Budget Actual (Unfavorable) , Revenues: Taxes $ 8,009,930 $ 8,022,142 $ 12,212 Licenses and permits 1,163,500 1,392,977 229,477 Intergovernmental revenues 6,501,265 6,595,999 94,734 Charges for services 288,385 299,835 11,450 — Fines and forfeitures 208,000 226,066 18,066 Impact fees/special assessments - - - Investment Income 250,000 129,605 (120,395) — Miscellaneous 158,200 138,584 (19,616) Total revenue 16,579,280 16,805,208 225,928 • Expenditures: — Current: General government 3,917,327 3,497,830 419,497 • Public safety 10,395,068 9,716,008 679,060 Physical environment 1,964,879 1,798,985 165,894 Culture and recreation 1,235,610 1,104,892 130,718 Debt service 656,966 539,373 117,593 Total expenditures 18,169,850 16,657,088 1,512,762 — Excess (Deficiency)of Revenues Over Expenditures (1,590,570) 148,120 1,738,690 — Other Financing Sources(Uses) Operating transfers in 2,896,450 2,861,926 (34,524) Operating transfers out (2,272,383) (1,792,395) 479,988 — Net other financing sources (uses) 624,067 1,069,531 445,464 Excess (Deficiency) of Revenues — and Other Sources Over Expenditures and Other Uses (966,503) 1,217,651 2,184,154 Fund Balances-Beginning of Year 966,503 3,576,578 2,610,075 Fund Balances- End of Year $ - $ 4,794,229 $ 4,794,229 The accompanying notes are an integral part of the financial statements. 9 r Special Revenue Funds Variance 40, Favorable Budget Actual (Unfavorable) emr $ - $ - $ r 1,105,000 1,143,956 38,956 11,370 16,603 5,233 1,116,370 1,160,559 44,189 r r - 604,225 366,388 237,837 62,085 62,080 5 666,310 428,468 237,842 F 450,060 732,091 282,031 L. (500,060) (383,378) 116,682 (500,060) (383,378) 116,682 (50,000) 348,713 398,713 ion 50,000 806,800 756,800 $ - $ 1,155,513 $ 1,155,513 v 10 This page intentionally left blank. Centel. of Goon{ She C1p? • r CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES For the Year Ended September 30, 2002 Proprietary Fund Types Enterprise t. Operating Revenues: User charges $ 6,802,828 i Operating Expenses: Personal services 2,413,753 Materials and supplies 862,166 Heat, light and power 459,894 Depreciation and amorization 2,094,969 Other expenses 836,780 Recycling expenses - Total operating expenses 6,667,562 Operating income(loss) 135,266 Nonoperating Revenue(Expenses): f Grant revenue 476 Investment Income 311,604 Contributions-Tap Fees 412,417 Contributions-Developers 363,756 F Gain on sale of fixed assets (627) ` Interest expense (609,605) Total nonoperating revenue (expense) 478,021 Income(loss)before operating transfers 613,287 Operating Transfers: Operating transfers in 156,504 Operating transfers out (1,238,193) Net operating transfers (1,081,689) ti Net income(loss) $ (468,402) Disposition of Net Income(Loss): w Net income(loss) $ (468,402) Depreciation on fixed assets acquired from contributions 466,266 Net increase (decrease) in retained earnings (2,136) ✓ Retained Earnings- Beginning of Year 4,678,851 Retained Earnings-End of Year $ 4,676,715 r The accompanying notes are an integral part of the financial statements. 11 This page intentionally left blank. ececiCer oI Good L .� hecobt- ( ,( yDar _ e '► CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF CHANGES IN PENSION FUND • NET ASSETS For the Year Ended September 30, 2002 r Additions: Contributions: tar Employer $ 175,064 1,037,618 State Plan members (a. Total contributions 1,075,064 2,302,750 Investment income: Net appreciation (decline) in fair value of investments (1,003,793) •' Interest 44,324 (959,469) Less investment expense (58,070) • Net investment income (loss) (1,017,539) Total additions 1,285,211 owDeductions: Benefits 559,705 Administrative expenses 117,119 Total deductions 676,824 • Net Increase 608,387 Net Assets Held in Trust for Pension Benefits: or Beginning of Year 15,943,218 End of Year $ 16,551,605 • a r • The accompanying notes are an integral part of the financial statements. a. 12 CITY OF OCOEE, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the Year Ended September 30, 2002 Proprietary Fund Types Enterprise Cash Flows from Operating Activities: Receipts from customers $ 6,792,522 Payments to suppliers (2,140,084) Payments to employees (2,417,566) Net cash provided by operating activities 2,234,872 Cash Flows from Non-Capital Financing Activities: Operating transfers in 156,504 Operating transfers out (1,238,193) Receipts Irom grants 476 - Net cash provided (used) by non-capital financing activities (1,081,213) Cash Flows from Capital and Related Financing Activities r Proceeds from sale of fixed assets 3,576 Acquisition of fixed assets (144,998) Additions to construction in progress (874,474) Principal paid on bonds and leases (568,391) Interest paid on bonds and leases (908,226) Capital contributions received 412,417 Cash received on assessments receivable 54,963 Net cash provided (used) by capital and related financing activities (2,025,133) Cash Flows from Investing Activities Purchase of investments (1,375,881) Investment income 189,611 Net cash provided (used) by investing activities (1,186,270) Net Increase(Decrease) in Cash and Cash Equivalents (2,057,744) Cash and Cash Equivalents at Beginning of Year 7,293,161 Cash and Cash Equivalents at End of Year $ 5,235,417 Classified As: Current assets $ 1,450,368 Restricted assets 3,785,051 Total $ 5,235,419 The accompanying notes are an integral pan of the financial statements. 13 r ■. Proprietary Fund Types Enterprise Reconciliation of Operating Income to Net Cash Provided by Operating Activities: r„ Operating income $135,266 Adjustments Not Affecting Cash: Depreciation 2,069,945 Amortization 25,024 Change in Assets and Liabilities: Decrease in accounts receivable (41,031) Increase due from other govt's 44,561 Increase in prepaid costs - 9,441 Decrease in accounts payable 38,403 Increase in accrued expenses (3,813) Increase in retainage payable (29,088) Decrease in deterred revenue 10,000 Increase in customer deposits (23,836) Total adjustments 2,099,606 r •. Net Cash Provided by Operating Activities $ 2,234,872 Noncash Investing, Capital and Financing Activities: Contributed property, plant and equipment $ 363,756 Decrease in the fair value of investments 121,993 t r r F laNn f 14 - ..r ti This page intentionally left blank. ti Abe Center of Good Liw t t r r fi NOTES TO FINANCIAL STATEMENTS top a r • This page intentionally left blank. Y e center of Good zi, S ?e )co CITY OF OCOEE, FLORIDA °` NOTES TO FINANCIAL STATEMENTS September 30, 2002 t .. Note 1 - Summary of Significant Accounting Policies: The accounting policies of the City of Ocoee, Florida, conform to accounting principles generally accepting in the United States of America as applicable to governments. The following is a summary of the more significant policies: Reporting Entity—The City of Ocoee, Florida was established by the Laws of Florida 10951 (1925). The City operates under a commission-manager government whereby the registered t.. voters of the City of Ocoee elect the Mayor and Commission. The Commission appoints the 4 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, e including general government, public safety, public improvements, planning and zoning, water and wastewater service, refuse collection, and related general administrative services. The financial statements of the City of Ocoee, Florida include all those separately administered departments and funds for which the City has financial accountability. Financial accountability is present if the Commission appoints a voting majority of a component unit's governing body and has the ability to impose its will on that organization or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. Based upon the application of the above-mentioned criteria as set forth in Government Accounting Standards Board Statement Number 14, The Financial Reporting Entity, there were no potential component units or related organizations of the City. Fund Accounting- The accounts of the City are organized on the basis of funds or account ` groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts. The various funds are grouped by type in the financial statements. The City uses the following fund types and account groups. .40 15 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued to, September 30, 2002 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 r 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 .r 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 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 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 that 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, r 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. r 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. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, •^ administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 17 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 • 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. 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. Inventories - Inventories are stated at cost, using the FIFO method. The costs of governmental fund-type inventories are accounted for by the consumption method, under which such inventory is recorded as 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 2002 fiscal year. Amortization of bond discount, r included in interest expense, amounted to $9,261 for the 2002 fiscal year. r 18 F CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 4. t .. Note 1 - Summary of Significant Accounting Policies (Continued): 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. tit 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 4 are recorded as non-operating revenue. 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. Postretlrement Benefits - The City does not fund any postretirement health care and life ye. insurance benefits for employees. Capitalization of Interest - Net interest cost relating to construction is capitalized. Capitalized Interest totaled $355,699 during fiscal year ended September 30, 2002. • 19 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 Note 1 - Summary of Significant Accounting Policies(Continued): 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, and federal and state (capital) grants through September 30, 2000. There are no additions to contributed capital for years ended subsequent to September 30, 2000 because the City was required to implement GASB Statement No. 33. This statement requires governmental entities that use proprietary fund accounting to recognize capital contributions and impact fees received as revenues, not contributed capital. However, governments are not allowed to restate contributed capital arising from periods prior to implementation of Statement No. 33 until implementation of GASB Statement No. 34. 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 that are either not subsequently appropriated for expenditures or legally �. segregated for a specific use. • 20 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 .. Note 1 - Summary of Significant Accounting Policies (Continued): Interfund Transactions - Transactions that 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 boo 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 accounting principles generally accepted in the �.. United States of America. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. r S Note 2- Stewardship, Compliance and Accountability: f Budgetary Information - The City follows these procedures in establishing the budgetary data reflected in the financial statements: f 1. Prior to August 1st, the City Manager submits to the City Commission a proposed lo` 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. r 5. Formal budgetary integration is employed as a management control device during ear the year for the General and Enterprise Funds. 21 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 • 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 r' 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. Depredation 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. Deficit Fund Equity- At September 30, 2002, the Coca Cola Property Improvements Capital Projects Fund had a deficit fund balance of$(56,368). • 22 r t CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 r ♦. Note 3- Budget Basis of Accounting: The General Fund and StormWater Fund budgets are prepared on a budgetary basis, r, 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 budgeted tit 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 2002 fiscal year, the following adjustments were necessary to convert General Fund expenditures on the GAAP basis to the budgetary basis: tit • Other Financing Expenditures Sources(Uses) GAAP basis $ 16,892,934 $ 1,305,377 Nonbudgeted capital lease transactions (235,846) (235,846) Budgetary basis $ 16 657 088 $ 1,069 531 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 Eon Special Revenue Funds, only includes the StormWater Fund. However, the Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental t 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) Oar GAAP basis $ 2,319,478 $ (2,315,176) Non-budgeted funds (1,587,387) 1,931,798 ` Budgetary basis $ 732,091 $_1383 378) 23 CITY OF OCOEE, FLORIDA • NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 Note 4- Cash and Investments: Following are the components of the City's cash and investments at September 30, 2002: Unrestricted Restricted Total 1I Cash and cash equivalents $ 11,935,541 $ 2,883,813 $ 14,819,354 Cash with paying agent - 2,363,124 2,363,124 Investments 30,643,177 4,194,492 34,837,669 $42.578.718 USIM52 020 147 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 that are insured or collateralized pursuant to the Public Depository Security Act of the State of Florida. Category 3 deposits are un-collateralized, 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, 2002 Bank balances: Category 1 $ 177,216 � Category 3 2,363,124 Total bank balances . 40 40 Carrying amount t 1 519 080 _ 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 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 rim 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; rowor 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 r City at September 30, 2002: 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 counter party's trust department or agent in the City's name. S Category 3 includes uninsured and unregistered investments for which the securities are held by a counter party, 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, 2002: vs, Category Carrying +t. 1 2 3 Amount Repurchase agreements $ - $ - $ 15,687,337 $15,687,337 U.S. Government obligations 11,293,959 - - 11,293,959 to' $ 11 293 959 $ - $ 15,667337 Mutual funds investing In U.S.Government Securities 4,669,083 ` Pension funds investing in commingled bond and stock funds 16,463,221 Money Market Funds 2,387,467 $50 501 067 25 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued r September 30, 2002 Note 5-Accounts Receivable: The following is an analysis of accounts receivable: r Proprietary Governmental Fund Fund Types Types ,,, Special Capital General Revenue Projects Enterprise Properly taxes $ 1,341 $ - $ - $ - r Accounts receivable - 105,513 638,090 Assessments Non-current - - 46,333 r Maintenance fee (formerly Guaranteed revenue) - - 22,536 Other receivables 226063 39350 1,067,709 23.886 Total 227,404 144,864 1,067,709 730,845 Less: allowance for Uncollectible accounts (16,000) (5,009) - (59,2801 $211 404 $139 854 067 7 $ 6 Note 6- Property Taxes: All property is reassessed according to its fair value on the lien date, or January 1 of each year. Taxes are levied on October 1 of each year. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. The taxes paid in March are without discount. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. On or around May 31 following the tax year, certificates are sold for all delinquent taxes on real property. • The County bills and collects property taxes and remits them to the City. City property tax revenues are recognized when levied to the extent that they result in current receivables. The City is permitted by the Municipal Finance Law of the State to levy taxes up to $10.00 per $1,000 of assessed valuation. The combined tax rate to finance general governmental services for the year ended September 30, 2001, was $4.6564 per 1,000 which means that the City has a tax margin of 5.3436 per 1,000 and could raise up to $5,699524 additional r property tax revenue a year from the present assessed valuation of$1,066,607,573 before the limit is reached. war 26 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 t Note 7- Property, Plant and Equipment: During the fiscal year ended September 30, 2002, the following changes in general fixed assets occurred: Balance Balance 10-01-02 Additions Deletions 9-30-02 Land $ 8,171,348 $ 387,491 $ - $ 8,558,839 Buildings 7,408,976 247,531 - 7,656,507 Improvements 2,068,502 1,173,634 32,187 3,209,949 r Equipment 8,181,150 522,847 274920 8.429,077 25,829,976 2,331,503 307,107 27,854,372 Construction in progress ,982,595 946270 -1,970,566 958,299 Total $27,812 571 77 $2,277,673 $28 812 671 Construction in progress for general fixed assets as of September 30, 2002 consisted 1 primarily of construction of a fire station and Coca Cola Property project. The sources of investment in general fixed assets are as follows: General fund $ 7,310,025 Special revenue funds: Federal revenue sharing 750,610 Road impact 145,548 Police trust 329,136 Police training 17,680 Parks 417,116 t Storrnwater utility 658,325 Fire impact 1,347,558 f Police impact 683,568 Contributions—other 546,511 State grant 545,715 Capital projects fund 16,060,879 $28812.671 kmot tam 27 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 Note 7- Property, Plant and Equipment(Continued): � The components of property, plant and equipment for the Proprietary Fund Types at September 30, 2002, are as follows: Proprietary Fund Types Enterprise Land and land improvements $ 4,694,244 Buildings 1,100,716 Improvements 42,174,929 Equipment 3,883,072 51,852,961 Less: accumulated depreciation 18,279,166 $33 573 795 Proprietary Fund construction in progress at September 30, 2002, 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 two board of trustees, two trustees are elected by the employees and a fifth member is selected by the four trustees to administer the pension trust funds. This board of trustees may not amend any provisions of the pension plan without the approval of the City Commission. SunTrust Bank manages the investments of the pension trust funds, and there are no undue investment concentrations. Neither plan issues a stand-alone financial report. The amounts legally required as of September 30, 2002 to be reserved for general employees and police and firefighter pension funds are $7,401,322 and $9,150,283, respectively. 28 .s f CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 Note 8- Retirement Plans (Continued): Summary of Significant Accounting Policies: V 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. f Plan Descriptions - The following schedule is derived from the respective actuarial reports and City information for the two pension plans as of October 1, 2001: r General Police and Membership and Plan Provisions Employees Firefighters Members: Retirees and beneficiaries receiving benefits 11 5 Members In Drop Plan 2 2 Terminated plan members entitled to but not receiving benefits 10 10 Active plan members: Vested 91 39 Non-vested 76 68 190 124 ter S S 29 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 Note 8 - Retirement Plans (Continued): *or General Police and Membership and Plan Provisions Employees Firefighters �+ Normal Retirement Benefits: • Eligibility Full-Time Full-Time r 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. AgeNear 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% .0+ Average Monthly Earnings. Non-Service Incurred None Accrued Benefit, but not Less than 25%of Average Monthly Earnings if 10 Years credited service. Pre-retirement Death Benefits: - Vested Accrued Benefit payable Accrued Benefit To beneficiary for 10 payable Years. To beneficiary for 10 Years. .. Non-vested Refund Accumulated Refund Accumulated Contributions without Contributions without Interest. Interest. vas 30 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 Note 8- Retirement Plans (Continued): o- Funding Policy - All plans are contributory. The employees participating in the General r 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 10.1% 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 15.4%, 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, r" 2002. P .10 tat 31 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 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 Un-funded a %of Actuarial Value of (AAL) AAL Funded Covered Covered Valuation Assets Frozen (UAAL) Ratio Payroll Payroll Date I0_) Entry Age lb-al fa/b) lR) J(b-a)/c) -� u General Employees 10/01/01 $7,940,937 $9,387,703 $1,446,766 84.59% $5,790,386 24.99% 10/01/00 6,899,652 8,371,871 1,472,219 82.41% 4,865.277 30.26% 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% — Police Officers and Firefighters 10/01/01 $9,572,153 $10,783,988 $1,211,835 88.76% $4,601,165 26.34% 10/01/00 8,282,809 9,537,499 1,254,690 86.84% 4,101,522 30.59% 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% r 32 f CITY OF OCOEE, FLORIDA 60 NOTES TO FINANCIAL STATEMENTS - Continued r September 30, 2002 r. r ,. Note 8- Retirement Plans (Continued): f SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING r, ENTITIES General Employees Police Officers & Firefighters f Annual Annual ,,, Year Ended Required Percentage Required Percentage September 30 Contribution Contributed Contribution Contributed 2002 $447,994 100% $779,692 100% _ 2001 459,130 100% 673,570 100% 2000 460,161 100% 634,575 100% 1999 424,629 100% 633,443 100% 1998 387,820 100 4 562,447 100% rim 1997 305,213 100% 470,396 100% r is 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. t Additional information as of the latest (October 1, 2001) actuarial valuation follows: tor General Police and Employees Firefighters 4 Assumptions: r Investment Earnings 8% 8% Salary Increases - to Inflation 3% 3% Merit, Longevity, etc. 6% 6% Postretirement Benefit Increases 0% 0% is, Mortality Table 1983 Group Annuity 1983 Group Annuity r Mortality Table Mortality Table Retirement Age When First Eligible When First Eligible ries Actuarial Valuation: r Frequency Annual Annual i. Cost Method Frozen Entry Age Frozen Entry Age Amortization Method Level Percent Level Percent f Amortization Period 30 Years Closed 30 Years Closed Asset Valuation Method 4 Year Smoothed 4 Year Smoothed Market Market 1 tar ` 33 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 Note B- 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 257 residents of the City participated in this program during the fiscal year ended September 30, 2002. All expenditures under this program are shown as expenditures of the general fund. • Water Excise Tax $ 3,436 ti Water Fees 34,394 Solid Waste Fees 51253 Total Over 65 Cost Qg 34 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued f September 30, 2002 rim Note 10- Bonds and Notes Payable: %B. Summarized below are the City's bonds and notes payable outstanding at September 30, 2002: r 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%. $ 6,675,000 Less: Current Maturities (270,000) Unamortized Discounts (73,305) r 6,331,695 Water and Sewer System Improvement Revenue Bonds, row Series 1997 - payable in annual installments of $120,000 to $600,000 through 2026, plus semi-annual interest at 3.60% to 5.62%. $ 9,335,000 k. Less: Current Maturities (190,000) Un-amortized Discounts (104,972) 9,040,028 tor $15 371 723 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%. $ 1,325,000 raw 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 t. at 3.35%to 4.5%. 18,160,000 Capital Improvement Refunding Revenue Bonds, Series 1999 tor - payable in annual installments of $150,000 to $680,000 through 2028 with semi-annual interest payments at 3.00% to 4.75%. 10,605,000 S30 090 000 rer 35 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 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. $ 1,530,000 0. Coca Cola Property Improvements- Interest only payable quarterly through 12/01/03 at 90 day LIBOR plus 78 pts up to a maximum of 5% for taxable portion and 74.5%of 90 day LIBOR up to a maximum of 7.49% for non-taxable portion. Principle payments start 12/01/04 through 12/1/10. 2,279,234 $ 3,809 234 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 t CITY OF OCOEE, FLORIDA i" NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 ♦ 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 r 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. V 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. to. These bonds were partially refunded by the Transportation Refunding and Improvement Revenue Bonds, Series 1998. w be 37 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 Note 10- Bonds and Notes Payable (Continued): -y 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 r 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. r 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, 2002 tot 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. S 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. Coca Cola Property Improvements, Series 2000 - November 2000, the City secured a line of credit up to $4,000,000 to finance the acquisition of land and improvements thereon including construction of municipal buildings and parks. The note is secured by a covenant to budget and appropriate non ad valorem revenues. There is a variable interest rate for a ten-year period and interest only payments for the first three years. At the end of the three year interest only period and if the City continues with a variable interest rate, then level annual principal payments and semi-annual interest payments will be due throughout the remaining term of the loan. S The major provisions of the ordinance authorizing the note are as follows: 1) Non-Ad Valorem Revenues must cover projected maximum annual debt service on debt secured by and/or payable solely from such Non-Ad Valorem Revenues by at least 1.25x. t` 2) Projected maximum annual debt service requirements for all debt secured by and/or payable solely from such Non Ad Valorem Revenues will not exceed 20% of Governmental Fund Revenues. V V 39 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued ' September 30, 2002 Note 10- Bonds and Notes Payable (Continued): 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 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 715,000 1,294,588 560,000 782,796 3,352,384 2007 745,000 1,264,450 590,000 753,376 3,352,826 2008-2012 4,245,000 5,802,355 3,485,000 3,242,520 16,774,875 + 2013-2017 5,345,000 4,695,943 4,570,000 2,155,075 16,766,018 2018-2022 6,725,000 3,324,213 2,380,000 1,101,094 13,530,306 2023-2027 8,415,000 1,633,650 2,435,000 351,844 12,835,494 2028-2030 3,920,000 88,100 - - 2.008,100 $22 156$90 $15 550 000 $10 893 264 $78 689 954 Following is a maturity schedule of principal payments on the StormWater and Cocoa Cola Improvements note payable: Year Ended September 30: 2003 $ 135,000 2004 140,000 2005 145,000 2006 160,000 2007 175,000 Thereafter 3,054,234 $--3.009.234 During the year ended September 30, 2002, the following changes in general long-term debt occurred: Accrued Capital Bonds and Annual Lease Notes Leave Obligations Payable Total Balance at October 1, 2001 $680,429 $1,052,592 $34,639,234 $36,372,255 Additions - 235,846 235,846 Principal payments/Reductions (74,674) (530,484) f740,000) (1,345,158) Balance at September 30, 2002 $605 755 $757 954 $33.899.234 6 4 40 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 Note 11 - Lease Obligations: Capital Leases- The City has entered into lease agreements as lessee for financing acquisition of vehicles, trucks, data processing, communications and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception in either the General Fixed Asset Account Group or the proprietary fund types. Equipment under capital leases recorded in the General Fixed Asset Account Group at September 30, 2002 consists of the following: Fire Truck Ism Vehicles 180,535 Vehicles and Trucks 1,436,293 Equipment 487,038 $2.103.866 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. r 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: ` 2003 $ 242,730 r. 2004 278,235 2005 75.177 Total Minimum Lease Payments 796,142 Less, Amount Representing Interest 38,188 Present Value of Net Minimum Lease Payments $ 7 The total of assets capitalized under lease-financing arrangements in proprietary fund types is thr as follows: Water and i,,, Wastewater Solid Waste Fund Fund Totals Vehicles and Equipment $ 204,388 $ 240,344 $ 444,732 ` Less: Accumulated Amortization (60,061) (139,469) (199,530) $ 144,327 $ 100 875 $ 245 202 Amortization of equipment leased under capital leases is included in depreciation expense. k• 41 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 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 2003 $ 54,181 $ 20,548 $ 74,729 2004 45,504 5,707 51,211 2005 14,475 1,426 15,901 Total Minimum Lease Payments 114,160 27,681 141,841 Less: Amount Representing Interest (5,350) (839) (6,189) Present Value of Net Minimum Lease Payments $ 108.8W $ 26 842 $ The current and non-current obligation under these capital leases is $70,412 and $65,240, respectively. Operating Leases - The City leases office and computer equipment under non-cancelable operating leases. Rental expenditures for the year ended September 30, 2002 amount to .� $21,687. The following is a schedule by years of future minimum rentals on these non- cancelable leases as of September 30, 2002: Year Ending -' September 30: 2003 $ 21,036 2004 19,088 2005 19,088 2006 6 204 $ 65 416 42 r CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued r September 30, 2002 L f Note 12- Interfund Receivables and Payables: The following schedule as of September 30, 2002, represents interfund receivables and payables; Interfund Interfund Fund Tyne Receivables Payables 98 Transportation Revenue Bonds Capital Projects Fund $ 342,320 $ - 1 Road Construction Capital Projects Fund 56,369 Road Impact Fees Special Revenue Fund 342,320 Capital Projects-Coca Cola Property 56,369 ire $ 398 689• $fig 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. Risk 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 was a settlement of$116,004 in the Wastewater fund in excess of insurance coverage. r r 1r v for 43 CITY OF OCOEE, FLORIDA • NOTES TO FINANCIAL STATEMENTS -Continued September 30, 2002 Note 14-Segment Information for Enterprise Funds: The City maintains two enterprise funds that provide water, wastewater, and solid waste services. Segment information for the year ended September 30, 2002, is as follows: Water and Wastewater Solid Waste Total .. Operating Revenues $ 4.970 914 1 831 91 $6.802.828 Depreciation and Amortization $_ticl9B.99,1 $ 97.976 $241,20 Operating Income (Loss) $ (434 534) $ 569 800 $ 135.266 Operating Grants $ - $ 476 $ 476 Operating Transfers: .. In $ 156,5Q4 $. _ - $ 156504 Out $�8522$ &1285,295) $1123_81$3) Net Income (Loss) $ (774 150) $$ $ I468 442) Current Capital Contributions $_363.756 $ - $363 756 • Property Additions $ 1.682 946 $ - $ 1 682,946 Property Deletions S 47 27 751 Net Working Capital $ 1.781.741 $ 1.558.378 $ 3.340.119 Total Assets $46 385 375 $ 1 759 197 $48.144.572 Long-Term Debt $15 430 040 $ 6 924 $15.436.964 .. Total Equity $29 225 548 $ 1.660.489 $30 886 037 44 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continued September 30, 2002 it 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, 2002. Contributed Capital - Beginning of Year $26,778,095 Depreciation on Contributed Assets Other Adjustments (466,266) (102,507) Contributed Capital - End of Year $26.209.322 There are no additions to contributed capital for the year ended September 30, 2002 because of the implementation of GASB Statement No. 33. This statement requires governmental entities that use proprietary fund accounting to recognize capital contributions and impact fees received as revenues, not contributed capital. However, governments are not allowed to r restate contributed capital arising from periods prior to implementation of Statement No. 33 until implementation of GASB Statement No. 34. 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 expenditure were 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: r At September 30, 2002, the City had entered into contracts for construction in the amount of $10,153,216. In addition, the City had a commitment to purchase a fire truck for$259,265. 45 This page intentionally lett blank. ,She Center of Good Li„i? r r 41. War iss COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS S 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. w. los r This page intentionally left blank. a Cen the teY Good Lien R r f ► f ► ► r GENERAL FUND r The General Fund is the principal fund of the City and is used to account for all activities not included in other funds. lop ► ► ► ► ► This page intentionally left blank. Center of Good LI, O .r f i r CITY OF OCOEE, FLORIDA s GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE tee BUDGET AND ACTUAL f For the Year Ended September 30, 2002 r ' Variance a. Favorable Budget Actual (Unfavorable) Revenues: Taxes: ` Property taxes $ 4,795,130 $ 4,802,198 $ 7,068 Franchise taxes 1,360,580 1,451,170 90,590 r Utility taxes 1,854,220 1,768,774 (85,446) ` 8,009,930 8,022,142 12,212 Licenses and permits: Building permits 808,500 991,589 183,089 F. Occupational license 355,000 401,388 46,388 .,, 1,163,500 1,392,977 229,477 Intergovernmental revenues: State revenue sharing 1,445,000 1,958,525 513,525 } Sales tax 3,475,000 3,115,038 (359,962) to Other state shared revenue 220,280 176,779 (43,501) County 6 cent gax tax 970,000 970,803 803 r Other county shared revenue 40,000 39,395 (605) ` Federal grants 350,985 335,459 (15,526) 6,501,265 6,595,999 94,734 Charges for services: r Fire contract 131,585 131,586 1 r Program activity fees 142,500 151,607 9,107 City staff charges 14,300 16,642 2,342 a 288,385 299,835 11,450 Fines and forfeitures: is. Fines and forfeitures 208,000 226,066 18,066 Investment income: Investment income 250,000 129,605 (120,395) .,, Miscellaneous revenues: Zoning and election tees 39,000 40,925 1,925 r Other 119,200 97,659 (21,541) 158,200 138,584 (19,616) tr Total Revenues $16,579,280 $16,805,208 $ 225,928 w is (Continued) A. 46 This page intentionally left blank. (s:\ ceoter of Good 41. ��!c© t f CITY OF OCOEE, FLORIDA r GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL r For the Year Ended September 30, 2002 Variance . Favorable �, Budget Actual (Unfavorable) Expenditures: General government: Legislative $ 222,462 $ 216,102 $ 6,360 Executive 883,947 844,892 39,055 Finance and Administrative 1,249,700 1,182,186 67,514 s. Legal 381,059 264,652 116,407 Planning and zoning 556,770 501,693 55,077 b General government 306,164 194,646 111,518 Building maintenance 317,225 293,659 23,566 f 3,917,327 3,497,830 419,497 y. Public safety: Law enforcement 5,901,422 5,485,312 416,110 r Fire control 3,573,424 3,375,563 197,861 Protective inspections 920,222 855,133 65,089 10,395,068 9,716,008 679,060 Physical environment: t Roads and streets 1,964,879 1,798,985 165,894 Culture and recreation: Parks and recreation 1,235,610 1,104,892 130,718 Debt service: Principal retirement P 452,850 452,804 46 ... Interest and fiscal charges 204,116 86,569 117,547 656,966 539,373 117,593 Total expenditures 18,169,850 16,657,088 1,512,762 ` Excess (Deficiency)of Revenues e Over Expenditures (1,590,570) 148,120 1,738,690 44. Other Financing Sources (Uses): Operating transfers in 2,896,450 2,861,926 (34,524) t. Operating transfers out (2,272,383) (1,792,395) 479,988 Net other financing sources (uses) 624,067 1,069,531 445,464 w. Excess(Deficiency)of Revenues and Other Sources over Expenditures and Other Uses (966,503) 1,217,651 2,184,154 F Fund Balance- Beginning of Year 966,503 3,576,578 2,610,075 Fund Balance- End of Year $ - $ 4,794,229 $ 4,794,229 e 47 ..Y - This page intentionally left blank. Center of Good 4 1 L1Q oCOE - - - 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 w designed to finance particular functions or activities of government and which, therefore, cannot be diverted to other uses. IgoDescription 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 r.. subdivided within the City. Funds must be used for the improvement or expansion of City parks. w Stormwater - Accounts for the Stormwater Utility Fee revenues and the related expenditures for drainage, stormwater, and the other related projects. w 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 w 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 its for the purpose of acquisition of facilities and equipment determined to be needed to provide fire protection for new development within the City. w 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. w Ocoee Recreation - Accounts for fees collected for various athletic leagues. Founders Day - Accounts for revenues and disbursements related to the celebration of Sothe City's Founder's Day. CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS September 30, 2002 Road Police r Impact Recreation Stormwater Training • Assets: Cash and cash equivalents $2,375,726 $ 187,532 $ 805,670 $ 67,873 Investments 5,250,820 466,972 262,220 - Receivables - net 35,862 42 102,384 - Prepaid Costs Total assets $7,662,408 $ 654,546 $1,170,274 $ 67,873 Liabilities and Fund Balances: Liabilities: Accrued liabilities $ 13,061 $ - $ 14,761 $ - r Due to Other funds 342,320 Deferred revenue 1,200,000 3,996 -Total liabilities 1,555,381 3,996 14,761 - Fund Balances: Reserved: Renewal and replacement - - 296,584 - Unreserved: Designated for subsequent year's budget 6,107,027 650,550 858,929 67,873 .. Total fund balances 6,107,027 650,550 1,155,513 67,873 Total liabilities and fund balances $7,662,408 $ 654,546 $1,170,274 $ 67,873 .ry • 48 a Y- oar 1 Total Special Police Are Police Ocoee Founders Revenue Trust Impact Impact Recreation Day Funds $ 69,224 $ 501,955 $ 162,926 $ 42,369 $ 31,819 $ 4,245,094 r.. - 1,594,508 242,632 - - 7,817,152 - 1,554 12 - - 139,854 16,995 - - - 16,995 $ 69,224 $2,115,012 $ 405,570 $ 42,369 $ 31,819 $12,219,095 INS $ $ $ - $ - $ - $ 27,822 a - - 342,320 - 1,203,996 - - - - 1,574,138 inw 296,584 vow69,224 2,115,012 405,570 42,369 31,819 10,348,373 r 69,224 2,115,012 405,570 42,369 31,819 10,644,957 '► $ 69,224 $2,115,012 $ 405,570 $ 42,369 $ 31,819 $12,219,095 r 49 CITY OF OCOEE, FLORIDA wt. COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS For the Year Ended September 30,2002 Road Police Impact Recreation Stormwater Training Revenues: Intergovernmental revenues $ - $ - $ - $ 23,073 Charges for services _ - - vs - Fines and forfeitures - 10,738 Impact tees/special assessments 819,375 136,430 1,143,956 - Investment income 264,084 25,036 16,603 1,732 Miscellaneous revenues 116,672 1,289 we Total revenues 1200,131 161,466 1,160,559 36,832 Expenditures: Current: Public safety - - - 11,501 Physical environment 250,779 - 366,388 - Culture and recreation - - - we Debt Service: Principal retirement - - 56,454 - Interest and fiscal charges - - 5,626 Total expenditures 250,779 - 428,468 11,501 wit Excess(Deficiency)of Revenues over Expenditures 949,352 161,466 732.091 25,331 r Other Financing Sources(Uses): Operating transfers in - - - - Operating transfers out (1,361,850) (200,000) (383,378) (43,852) Capital lease proceeds _ _ - - i0 Net other financing sources (uses) (1,361,850) (200,000) (383,378) (43,852) Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (412,498) (38,534) 348,713 (18,521) Fund Balance-Beginning of Year 6,519,525 689,084 806,800 86,394 -re Fund Balance. End of Year $ 6,107,027 $ 650,550 $ 1,155513 $ 67,873 • war rim 50 r • 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 r 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. voi 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. olior tar two gem ti f tut ow t ow ' Total Special t Police Fire Police Ocoee Founders Revenue Trust Impact Impact Recreation Day Funds V $ $ - $ - $ - $ - $ 23,073 16,264 - 66,319 51,498 134,081 •" 18,956 - - - - 29,694 228,256 101,380 - - 2,429,397 t 1,223 85,414 9,872 520 210 404,694 10,112 35,495 163,568 r" 20,179 329,934 111,252 76,951 87,203 3,184,507 f tom 25,420 5,377 1,132 - - - 43,430 f - - - - 617,167 - - - 55,561 63,835 119,396 • 14,378 6,849 - - - 77,681 t 1,444 285 - - - 7,355 41,242 12,511 1,132 55,561 63,835 865,029 V (21,063) 317,423 110,120 21,390 23,368 2,319,478 r. f - ` - (267,000) (59,096) - - (2,315,176) - (267,000) (59,096) - (2,315,176) t ow (21,063) 50,423 51,024 21,390 23,368 4,302 t 90,287 2,064,589 354,546 20,979 8,451 10,640,655 r $ 69,224 $ 2,115,012 $ 405,570 $ 42,369 $ 31,819 $ 10,644,957 ore t vet 51 CITY OF OCOEE, FLORIDA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS September 30, 2002 Transportation Transportation Stormwater Refunding and Refunding And Revenue Improvement Improvement Promissory Revenue Bonds Revenue Bonds Note Series 1998 Assets: Cash and cash equivalents $ 7,662 $ 251,763 $ 40,250 Restricted assets: Investments - 11843 - Cash with paying agent 111,608 151,130 729,393 Total assets $ 119,270 $ 414,736 $ 769,643 Liabilities and Fund Balances: .. Liabilities: Matured bonds payable 60,000 130,000 325,000 Matured interest payable 51,608 21,130 404,392 Total liabilities 111,608 151,130 729,392 Fund Balances: Reserved for debt service 7,662 263,606 40,251 .+ Total liabilities and fund balances $ 119,270 $ 414,736 $ 769,643 was 52 toi ler " Capital Improvement Total r Refunding Debt Revenue Bonds Service Series 1999 Funds ea. $ 37,510 $ 337,185 11,843 469,755 1,461,886 • $ 507,265 $ 1,810,914 225,000 740,000 244,755 721,885 e si 469,755 1,461,885 37,510 349,029 $ 507,265 $ 1,810,914 RIP F 53 CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES r ALL DEBT SERVICE FUNDS For the Year Ended September 30, 2002 Transportation Transportation Stormwater Refunding and Refunding And Revenue Improvement r, Improvement Promissory Revenue Bonds Revenue Bonds Note Series 1998 Revenues: r Investment income $ 746 $ 2,382 $ 4,697 Total revenues 746 2,382 4,697 Expenditures Debt Service: Principal retirement 60,000 130,000 325,000 Interest and fiscal charges 103,690 83,780 808,785 Total expenditures 163,690 213,780 1,133,785 Excess (Deficiency) of Revenues over Expenditures (162,944) (211,398) (1,129,088) Other Financing Sources(Uses) Operating transfers in 163,215 196,011 1,133,785 Net other financing sources (uses) 163,215 196,011 1,133,785 Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures and Other Financing Uses 271 (15,387) 4,697 Fund Balance - Beginning of Year 7,391 278,993 35,554 Fund Balance- End of Year $ 7,662 $ 263,606 $ 40,251 r •r 54 tot Capital } Improvement Total Refunding Debt to. Revenue Bonds Service Series 1999 Funds $ 5,858 $ 13,683 5,858 13,683 ► ► 225,000 740,000 489,510 1,485,765 714,510 2,225,765 (708,652) (2,212,082) 693,884 2,186,895 693,884 2,186,895 ems ► (14,768) (25,187) 52,278 374,216 ► $ 37,510 $ 349,029 • ► ► 55 This page intentionally left blank. 0 the c.ente' of Good yir, he r0C0E a km This page Intentionally left blank. Abe Center of Goodlidiorposit Ir�� S r . C v 'OE f CAPITAL PROJECTS FUNDS r ism 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. r Description of Funds Road Construction - Accounts for the portion of building permits designated to f fund the design, construction, paving and improvement of White Road in connection with the West Oaks Mall construction project. r Stormwater Improvement - Accounts for the proceeds of the 1996 Stormwater Revenue Promissory Note issued to acquire, construct, and improve certain Stormwater utility capital improvements. a. 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 atcertain capital projects including two fire stations, a gymnasium and recreational facility, and a public works f facility. Capital Projects Reserve - Accounts for transfers from the General Fund for certain capital projects including City HalVPolice 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. Coca Cola Property Accounts for the proceeds of the Line of Credit issued to titImprovements finance the acquisition of land and certain improvements including municipal buildings and parks. CITY OF OCOEE, FLORIDA r COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS r September 30, 2002 Road Stormwater Computer Capital r Construction Improvement Acquisition Improvement Assets: Cash and cash equivalents $ 71,090 $ 194,563 $ 46,002 $ 471,268 r Investments 100,487 6,693 - 100,062 Accounts Receivable - - - 703 Due from Other Funds 56,369 - - - Due from Other Governments Total assets $ 227,946 $ 201,256 $ 46,002 $ 572,033 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Retainage payable 11,640 - - Due to other funds - - - Deferred RevenueTotal liabilities - 11,640 - - Fund Balances: Reserved - - - - Unreserved: r Designated for capital projects 227,946 189,616 46,002 572,033 Total Fund Balance 227,946 189,616 46,002 572,033 Total liabilities and fund balances $ 227,946 $ 201,256 $ 46,002 $ 572,033 rr 56 w t t Total t Capital Transportation Capital Coca Cola Capital Projects Improvements Improvements Property Projects s Reserve 1998 Bond Issue 1999 Bond Issue Improvements Funds r ` $ 748,168 $ 264,608 $ 491,613 $ - $ 2,287,312 100,487 997,434 1,326,379 - 2,631,542 - 1,065,541 1,465 - 1,067,709 - 342,320 - - 398,689 h. 207,084 - 207,084 $ 1,055,739 $ 2,669,903 $ 1,819,457 $ - $ 6,592,336 I. ` $ - $ 352,316 $ - $ - $ 352,316 "" - 414,542 - - 426,182 - - - 56,369 56,369 t 23,695 - - - 23,695 r, 23,695 766,858 - 56,369 858,562 v 312,320 - - 312,320 r 1,032,044 1,590,725 1,819,457 (56,369) 5,421,454 p 1,032,044 1,903,045 1,819,457 (56,369) 5,733,774 b' $ 1,055,739 $ 2,669,903 $ 1,819,457 $ - $ 6,592,336 r to t t we els h. t 6. 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, 2002 Road Stormwater Computer Capital _ Construction Improvement Acquisition Improvements Revenues: Intergovernmental Revenues $ - $ - $ - $ - ... Investment income 3,661 4,910 729 9,413 Miscellaneous revenues - - - - Total revenues 3,661 4,910 729 9,413 Expenditures Capital outlay: General government - - - - Public Safety - - - - Physical environment - 183,973 - - Culture and recreation - - - - Debt Service: Issuance Costs - - - - Total expenditures - 183,973 - - Excess (Deficiency) of Revenues over Expenditures 3,661 (179,063) 729 9,413 Other Financing Sources(Uses) Operating transfers in - - - - Operating transfers out - - - - "' Net other financing sources (uses) - - - - Excess(Deficiency)of Revenues and Other Financing Sources over Expenditures and Other Financing Uses 3,661 (179,063) 729 9,413 Fund Balances-Beginning of Year 224,285 368,679 45,273 562,620 Fund Balances- End of Year $ 227,946 $ 189,616 $ 46,002 $ 572,033 r r 58 r r t Total r. Capital Transportation Capital Coca Cola Capital Projects Improvements Improvements Property Project •' Reserve 1998 Bond Issue 1999 Bond Issue Improvements Funds t. r $ - $ - $ 300,000 $ - $ 300,000 10,655 52,076 38,279 110 119,833 t 177,901 1,473,427 2,325 1,653,653 188,556 1,525,503 340,604 110 2,073,486 r t a t. 81,518 - 757,380 - 838,898 - 3,412,871 116,562 102,681 3,816,087 - - 86,114 - 86,114 81,518 3,412,871 960,056 102,681 4,741,099 r r 107,038 (1,887,368) (619,452) (102,571) (2,667,613) w. f' 200,000 - - - 200,000 is. (59,561) - - (59,561) 200,000 (59,561) - - 140,439 r r r 307,038 (1,946,929) (619,452) (102,571) (2,527,174) 725,006 3,849,974 2,438,909 46,202 8,260,948 r $ 1,032,044 $ 1,903,045 $ 1,819,457 $ (56,369) $ 5,733,774 Y r 59 This page intentionally left blank. .cW Centei ofWLiz r 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. t. 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. S. r S v S a. S toe CITY OF OCOEE, FLORIDA -+ COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS September 30, 2002 , Water Total And Enterprise Wastewater Solid Waste Funds .. Assets: Current assets: .. Cash and cash equivalents $ 557,796 $ 892,572 $ 1,450,368 Investments 1,131,267 611,644 1,742,911 Receivables (net of allowance for uncollectibles) 479,286 145,946 625,232 Inventory- materials 22,152 - 22,152 Due from other governments - - - Prepaid costs 71 - 71 Total current assets 2,190,572 1,650,162 3,840,734 .. Restricted assets: Cash and cash equivalents 2,883,813 - 2,883,813 Investments 4,182,649 - 4,182,649 Cash with paying agent 901,238 - 901,238 Total restricted assets 7,967,700 - 7,967,700 Fixed assets: Property, plant and equipment 50,268,728 1,584,233 51,852,961 „o Less: accumulated depreciation (16,803,968) (1,475,198) (18,279,166) Construction in progress 2,252,021 - 2,252,021 Total fixed assets - net 35,716,781 109,035 35,825,816 Other assets: Assessments receivable 46,333 - 46,333 Unamodized bond issuance costs 463,989 - 463,989 Total other assets 510,322 - 510,322 Total assets $46,385,375 $ 1,759,197 $48,144,572 ./ w 60 r ► F ► r is. Water Total And Enterprise f Wastewater Solid Waste Funds ► Liabilities and Fund Equity: Current liabilities (payable from current assets): " Accounts payable $ 51,123 $ 17,440 $ 68,563 kwRetainage payable 66,868 - 66,868 Accrued expenses 230,347 54,426 284,773 P Deferred Revenue 10,000 - 10,000 Obligations under capital leases 50,493 19,918 70,411 S. Total current liabilities (payable from current assets) 408,831 91,784 500,615 t Current liabilities (payable from restricted assets): Customer deposits 419,718 - 419,718 Revenue bonds payable 460,000 - 460,000 Accrued interest payable 441,238 - 441,238 F. Total current liabilities (payable from w restricted assets) 1,320,956 - 1,320,956 Long-term liabilities: t Revenue bonds payable 15,371,723 - 15,371,723 Obligations under capital leases 58,317 6,924 65,241 Total long-term liabilities 15,430,040 6,924 15,436,964 Total liabilities 17,159,827 98,708 17,258,535 r Fund Equity: ► Contributed capital 26,209,322 - 26,209,322 Retained earnings: r Reserved for renewal and replacement 2,726,025 412,209 3,138,234 Unreserved 290,201 1,248,280 1,538,481 -' Total retained earnings 3,016,226 1,660,489 4,676,715 Total fund equity 29,225,548 1,660,489 30,886,037 r y. Total liabilities &fund equity $46,385,375 $ 1,759,197 $48,144,572 f 0110 We Jam 61 ti This page intentionally left blank. Specencei of Good Li g OCOR r t. CITY OF OCOEE, FLORIDA a COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS o' ALL ENTERPRISE FUNDS F For the Year Ended September 30, 2002 r Water Total usAnd Enterprise Wastewater Solid Waste Funds No Operating Revenues: User charges $4,970,914 $1,831,914 $6,802,828 p Operating Expenses: e. Personal services 1,905,843 507,910 2,413,753 Materials and supplies 493,523 368,643 862,166 Heal, light and power 459,894 - 459,894 Depreciation and amorization 1,996,993 97,976 2,094,969 Other expenses 549,195 287,585 836,780 Recycling expenses _ - r Total operating expenses 5,405,448 1,262,114 6,667,562 s Operating income(loss) (434,534) 569,800 135,266 p Nonoperating Revenue(Expenses): Grant revenue - 476 476 t" Investment Income 285,987 25,617 311,604 e Contributions -Tap Fees 412,417 - 412,417 Contributions-Developers 363,756 - 363,756 t. Loss on Sale of Fixed Assets (627) - (627) Interest expense (605,365) (4,240) (609,605) t Total nonoperating revenue (expense) 456,168 21,853 478,021 Income(loss) before operating transfers 21,634 591,653 613,287 so Operating Transfers: e Operating transfers in 156,504 - 156,504 ` Operating transfers out (952,288) (285,905) (1,238,193) Net operating transfers (795,784) (285,905) (1,081,689) , Net income(loss) $ (774,150) $ 305,748 $ (468,402) I. Disposition of Net Income(Loss): Net income(loss) $ (774,150) $ 305,748 $ (468,402) Depreciation on fixed assets acquired from contributions 466,266 - 466,266 Net increase (decrease) in retained earnings (307,884) 305,748 (2,136) Retained Earnings-Beginning of Year 3,324,110 1,354,741 4,678,851 km Retained Earnings- End of Year $3,016,226 $1,660,489 $4,676,715 62 CITY OF OCOEE, FLORIDA m' COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS For the Year Ended September 30, 2002 Water Total ws. And Enterprise Wastewater Solid Waste Funds Cash Flows from Operating Activities: Receipts from customers $4,976,958 $1,815,564 $ 6,792,522 Payments to suppliers (1,501,633) Payments to employees ) (638,451) (2,4 (1,905,607) (511,959) 7,566)(2,417,566) Net cash provided by operating activities 1,569,718 665,1 54 2,234,872 Cash Flows from Non-Capital Financing Activities: Operating transfers in 156,504 - 156,504 Operating transfers out Receiptsfromgrants (952,288) (285,905) (1,238,476) 476 476 Net cash provided(used)by non-capital financing activities (795,784) (285,429) (1,081,213) r Cash Flows from Capital and Related Financing Activities • Proceeds from sale of fixed assets 3,576 - 3,576 Acquisition of fixed assets (144,998) - (144,998) Additions to construction in progress (874,474) (874,474) Principal paid on bonds and leases (473,905) (94,486) (568,391) Interest paid on bonds and leases (903,986) (4,240) (908,226) Capital contributions received 412,417 - 412,417 '. Cash received on assessments receivable 54,963 - 54,963 Net cash provided (used) by capital and related financing activities (1,926,407) (98,726) (2,025,133) w, Cash Flows from Investing Activities Sales of investments (925,664) (450,217) (1,375,881) Investment income 167,998 21,613 189,611 + Net cash provided(used)by investing activities (757,666) (428,604) (1,186,270) Net Increase(Decrease) in Cash and Cash Equivalents (1,910,139) (147,605) (2,057,744) r Cash and Cash Equivalents at Beginning of Year 6,252,986 1,040,175 7,293,161 Cash and Cash Equivalents at End of Year $ 4,342,847 $ 892,570 $ 5,235,417 wiii Classified As: Current assets 557,796 892,572 1,450,368 Restricted assets 3,785,051 - 3,785,051 ww Total $ 4,342,847 $ 892,572 $ 5,235,419 w. 63 ` r r Water Total And Enterprise Wastewater Solid Waste Funds ` Reconciliation of Operating Income(Loss)to Net Cash Provided by Operating Activities: Operating income(loss) $ (434,534) $ 569,800 $ 135,266 r r Adjustments Not Affecting Cash: Depreciation $1,971,969 $97,976 2,069,945 Amoritization 25,024 - 25,024 r Change in Assets and Liabilities: Decrease in accounts receivable (24,681) (16,350) (41,031) Increase due from other govt's 44,561 - 44,561 Increase in prepaid costs 9,158 283 9,441 its Decrease in accounts payable 20,909 17,494 38,403 Increase in accrued expenses 236 (4,049) (3,813) Increase in retainage payable (29,088) - (29,088) Decrease in deferred revenue 10,000 - 10,000 Increase in customer deposits (23,836) - (23,836) Total adjustments 7,259 (2,622) 4,637 r Net Cash Provided by Operating Activities $ 1,569,718 $ 665,154 $ 2234,872 +. Noncash Investing, Capital and Financing Activities: Contributed property,plant and equipment $363,756 $0 $ 363,756 Increase in the fair value of investments 117,989 4,004 121,993 r r L 64 This page intentionally left blank. ��eCenter of Good zi�i� � u tC r re 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 r the number of police officers and firefighters and the City and employees contribute the balance as determined by an actuarial study. r r,. tm tim CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF PENSION FUND NET ASSETS September 30, 2002 Pension Trust Funds General Police and Employees Firefighters Totals Assets: .. Cash and short-term investments $ 58,493 $ 29,891 $ 88,384 Investments, at fair value: Commingled bank bond fund 3,485,893 4,246,924 7,732,817 Commingled bank stock fund 3,856,936 4,873,468 8,730,404 Total investments 7,342,829 9,120,392 16,463,221 Total assets 7,401,322 9,150,283 16,551,605 Liabilities: Accounts Payable Net Assets Held in Trust for Pension Benefits (A schedule of funding progress for each • Plan is presented on page 32) $ 7,401,322 $ 9,150,283 $16,551,605 • 65 r r CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CHANGES IN PENSION FUND NET ASSETS For the Year Ended September 30, 2002 ( Pension Trust Funds General Police and Employees Firefighters Totals Additions: Contributions: Employer $ 447,994 $ 589,624 $ 1,037,618 State - 190,068 190,068 Plan Members 453,094 621,970 1,075,064 Total contributions 901,088 1,401,662 2,302,750 t Investment income: Net appreciation (decline) in fair value investments (429,207) (574,586) (1,003,793) Interest 18,013 26,311 44,324 (411,194) (548,275) (959,469) Less investment expense (58,070) (58,070) Net investment income (loss) (469,264) (548,275) (1,017,539) Total additions 431,824 853,387 1,285,211 Deductions: Benefits 259,533 300,172 559,705 �., Administrative expenses 23,010 94,109 117,119 Total deductions 282,543 394,281 676,824 Net Increase 149,281 459,106 608,387 r" Net Assets Held in Trust for Pension Benefits: Beginning of year 7,252,041 8,691,177 15,943,218 End of year $ 7,401,322 $ 9,150,283 $16,551,605 S f 66 This page intentionally left blank. be Center of Good 6ies. pi0 P t f a==t j r L s �. 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. r i. ro fro s CITY OF OCOEE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY September 30, 2002 Culture General Public Physical And Government Safety Environment Recreation Total Land $ 2,469,132 $ 576,112 $ 4,681,219 $ 832,376 $ 8,558,839 Buildings 1,944,220 3,064,798 378,847 2,268,642 7,656,507 Improvements 600,219 63,125 147,928 2,398,678 3,209,950 _ Equipment 1,208,887 4,812,462 1,879,325 528,402 8,429,076 Construction in Progress 442,280 406,348 - 109,671 958,299 Total $6,664,738 $8,922,845 $7,087,319 $6,137,769 $28,812,671 • 67 r 1 CITY OF OCOEE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY 4 `. For the Year Ended September 30, 2002 ° Deletions ,. Balance and Balance 10/1/2001 Additions Transfers 9/30/2002 General Government $ 6,217,478 $ 98,506 $ 93,525 $ 6,222,459 ► Public Safety 7,627,547 999,892 110,943 8,516,496 Physical Environment 7,094,172 39,485 46,338 7,087,319 Culture 8 Recreation 4,890,779 1,193,620 56,301 6,028,098 Construction in Progress 1,982,595 946,270 1,970,566 958,299 Total $27,812,571 $ 3,277,773 $ 2,277,673 $28,812,671 b Nis r w - ANA 68 This page intentionally lett blank. ,the Center of Good L. �� f r r • 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. 0 a r This page intentionally left blank. G of GoodLiv� sit �enter roC0 J fax 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 fi Demographic Statistics Property Value, Construction and Bank Deposits irs 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 r 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 a 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 2040/0 4,689,003 50.1% 1,151.049 wee 1997 11,217,057 100.0% 2,432.702 217% 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 1000% 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 r 2001 18,395,185 100.0% 3.556,126 19.3% 9,421,083 51.2% 1,980.866 2002 18,685,329 100.0% 3,497,830 18.7% 9,937,715 532% 1,798,985 eto (a)This schedule includes expenditures of the General Fund only. me eta met see set 69 w .. law Culture and Debt(b) Transfers to Recreation % Service % Other Funds r 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% be 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% 5)4,581 3.8% 1,736,651 11.4% 11.6% 593,745 3.8% 650,460 42% 1,639,027 10.5% 10.6% 1,031,910 5.6% 618.580 3.4% 1,788,640 9.7% 9.6% 1,119,031 6.0% 539,373 2.9% 1.792,395 9.6% eis trr Y► i 70 r CITY OF OCOEE, FLORIDA GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES Last Ten Fiscal Years Licenses Inter- Charges Fiscal Total(a) And Governmental For Year Revenues % Taxes % Permits % Revenues % Services 1993 7,161,664 100.0% 3,018,139 42.1% 612,036 8.5% 2,216,879 31.0% 83,404 1994 8,416,346 100.0% 3,466,712 41.2% 663,191 7.9% 2,315,056 27.5% 95,109 r 1995 8,992,823 100.0% 3,819,210 42.5% 634,263 7.1% 2.684,446 29.9% 138,481 1996 10,263,930 100.0% 4,269,994 41.6% 850,427 8.3% 3,088,521 30.1% 186,163 as 1997 11,744,062 100.0% 4,966,592 42.3% 879,650 7.5% 3,368,182 28.7% 208,119 1998 13,623,375 100,0% 5,733,592 42.1% 856,448 6.3% 4,160,011 30.5% 351,846 - 1999 15,797.804 100.0% 6,208,882 39.3% 1,067,010 6.8% 4,476,397 28.3% 554,663 2000 16,471,126 100.0% 6,644,332 40.3% 1,095,829 6.7% 5,014,951 30.4% 570,863 ... 2001 18,742,615 100.0% 8,018,880 42.8% 1,009,146 5.4% 5,417,653 28.9% 373,406 2002 19,902,980 100.0% 8,022,142 40.3% 1,392,977 7.0% 6,595,999 33.1% 299,835 ..4 (a)This schedule includes revenues of the General Fund only. (b) Other financing sources for 1995 includes a residual equity transfer of$53,640. v. 71 t tur tirr rsr Other t Fines and Investment Misc. Financing % Forfeitures % Income % Income % Sources % ow 1.2% 83,583 1.2% 28,339 0.4% 64,096 0.9% 1,055,188 14.7% 1 1.1% 102,024 1.2% 29,551 0.4% 84,520 1.0% 1,660,183 19.7% 1.0 1.5% 93,007 1,0% 9,329 0.1% 79,007 0.9% 1,535,080 17.1% N 1.8% 101,895 1.0% 89,666 0.9% 108,379 1.1% 1,568,885 15.3% 1.8% 75,483 0.6% 146,357 1.2% 163,504 1.4% 1,936,175 16.5% r 2.6% 120,259 0.9% 163,241 1.2% 103,355 0.8% 2,134,623 15.7% ► 3.5% 192,015 1.2% 137,330 0.9% 173,758 1.1% 2,987,749 18.9% P 3.5% 182,226 1.1% 230,049 1.4% 141,861 0.9% 2,591,015 15.7% ► 2.0% 211,773 1.1% 293,663 1.6% 240,514 1.3% 3,177,580 17.0% 1.5% 226,066 1.1% 129,605 0.7% 138,584 0.7% 3,097,772 15.6% tifff 6 ► a_ las 72 r CITY OF OCOEE, FLORIDA TAX REVENUE BY SOURCE r Last Ten Fiscal Years Property Franchise Utility Total Fiscal Year Taxes Taxes Taxes Taxes 1993 1,455,968 666,811 895,360 3,018,139 1994 1,647,742 777,783 1,041,187 3,466,712 ,r 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 2001 4,368,458 1,584,141 2,066,281 8,018,880 2002 4,802,198 1,451,170 1,768,774 8,022,142 r 73 .+ 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 ss. Fiscal Year Tax Levy(1) Collections Delinquent To Tax Levy 1993 1,503,231 1,455,968 4,941 96.869/0 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% a 2001 4,549,058 4,368,458 - 96.03% 2002 4,966,552 4,802,198 - 96.69% (1) Gross taxes before discounts. ism • rat • 74 N. CITY OF OCOEE, FLORIDA v' ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY NET OF EXEMPTIONS ,r Last Ten Fiscal Years Real Property Personal Property Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value '� 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 2001 873,581,876 873,581,876 86,398,207 86,398,207 2002 979,473,199 979,473,199 87,134,374 87,134,374 vo WO WI 75 Totals Assessed Estimated r Value Actual Value 375,807,867 375,807,867 be. 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 1. 884,794,580 884,794,580 959,980,083 959,980,083 1,066,607,573 1,066,607,573 tat t r 76 CITY OF OCOEE, FLORIDA "' PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS w, Last Ten Fiscal Years Millage Rates($1 per$1,000 of taxable value) Fiscal City of Orange School Year Ocoee County Board Total(a) `I 1993 4.00 5.2889 8.9300 18.2189 1994 4.00 5.2889 8.9300 18.2189 1995 4.00 5.2889 9.3240 18.6129 1996 4.00 5.2889 9.3750 18.6639 1997 4.00 5.2889 9,1770 18.4659 1998 4.00 5.2889 9.0770 18.3659 1999 4.00 5.2889 9.0420 18.3309 2000 4.00 5.2264 8.6120 17.8384 2001 4.74 5.1639 8.5770 18.4809 2002 4.66 5.1639 8.4320 18.2559 r Tax Levies Fiscal City of Orange School Year Ocoee County Board Total(a) `.ii 1993 1,503,231 170,859,789 280,973,951 453,336.971 1994 1,697,751 174,905763 294,730,923 471,334437 1995 1,877.240 185,923,621 317,282,778 505,083,639 `.) 1996 2,022,628 186,439,938 330,479770 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 2001 4,549,058 265,940,850 442.303,860 712,793,768 2002 4,966,552 290,228,395 473,906,510 769,101,457 (a) Tax Rates and Levies of a traction of one mill assessed in various years by other units against districts covering less than the entire City or County were omitted here. -v tao vet 77 CITY OF OCOEE, FLORIDA SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years ter The City of Ocoee, Florida did not have any material special assessment collections in the last ten fiscal years. w hie r rai r 6 • N 78 CITY OF OCOEE, FLORIDAv. 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 w Fiscal Year Population _ Value Debt Funds Available Debt Value Capita 1993 16,418 375.807,867 - - - ma 1994 17,489 424,437,664 - - - 1995 18,578 469.310,003 - - - - me 1996 19,261 505,656,888 - - - 1997 20,560 582,355,145 - - - me 1998 21,653 751,226,256 - - 1999 22,746 821,365,533 - - - mi.r 2000 23,531 884,794,580 - - _ - 2001 25,993 959,980,083 - - - - m. 2002 27,246 1,066,607,573 - - Note:The City of Ocoee does not have any general obligatton debt which is being repaid through general property taxes. mu ea OS till 79 tr CITY OF OCOEE, FLORIDA • • LEGAL DEBT MARGIN September 30, 2002 Assessed Value . 1 066,607.573 r Debt Limit: 50% of Assessed Value 533,303,786 Amount of Debt Applicable to Debt Limit: Total Bonded Debt 30,090,000 Legal Debt Margin Sr 503 213 78. 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. A r S Vo Uw r 80 CITY OF OCOEE, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30, 2002 Applicable To Bonds City Of Ocoee Government Unit Outstanding — Percent (11 Amount Library District Refunding Bonds - Series 1993 $4,505,000 1.43% $ 64,421 — Total Overlapping Debt 64,421 Total Direct Debt (2) - r Total Direct and Overlapping Debt $ 64.421 int (1) Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Ocoee. r (2) The City of Ocoee does not currently have any general obligation debt which is being repaid through general property taxes. • r r 81 ► 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 t Ratio of Debt Service to - Total Total General Total General Fiscal Year Principal Interest Debt Service Expenditures (1) Expenditures 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% tie1996 240,000 633,198 873,198 9,362,905 9.3% 1997 255,000 618,088 873,088 11,217;057 7.8% Y �. 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 t" 2000 565,000 1,447,930 2,012,930 15,604,975 12.9% 2001 585,000 1,424,091 2,009,091 18,395,185 10.9% ► 2002 610,000 1,401,510 2,011,510 18,685,329 10.8% t '" (1) Includes expenditures for the General Fund only. ► I- ► 82 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 .I. 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 mil Wastewater Fund Net Revenue Debt Service Requirements Fiscal Gross Operating Available For - Year Revenue(1) Expenses(2) Debt Service Coverage Principal Interest Total r 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(3) Net Revenue Debt Service Requirements Fiscal Gross Operating Available For Year Revenue(1) Expenses(2) Debt Service Coverage r 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 2001 5,929,866 3,550,449 2,379,417 440,000 903,366 1,343,366 1.77 r 2002 5,668,691 3,408,455 2,260,236 460,000 882,836 1,342,836 1.68 (1) Total revenues (including interest, gain on sale of property, plant and equipment and ., Contributions- tap fees). (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. wy 83 y F CITY OF OCOEE, FLORIDA a" DEMOGRAPHIC STATISTICS P ► Population I. Year ° City of Ocoee Orange County ► Population % Increase Population %Increase i• 1993 16,418 8.68 727,780 4.1 a 1994 17,489 6.52 740,167 1.7 t 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 r 1998 21,653 5.30 824,095 2.5 t, 1999 22,746 5.05 839,095 1.8 2000 24,391 7.23 896,333 6.8 t 2001 25,993 6.57 930,034 3.76 ► 2002 27,246 4.82 955,500 2.74 F ► Population Projections f Year Orange County State Of Florida ► 2005 1,019,300 17,436,400 ► 2010 1,135,000 19,866,700 ► e Population Distribution by Age Year Orange County State Of Florida 0-17 25.3% 22.8% 18-24 10.9 8.3 25-44 33.8 28.6 45-64 20.0 22.7 65 and over 10.0 17.6 ha Source: University of Florida, Bureau of Economic and Business Research to U.S. Census Bureau la- 84 CITY OF OCOEE, FLORIDA v. PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Additions/ Residential Construction (1) Construction (11 Alterations (1) Number of Units Single Multi Total .0 Year Family Family Value Value Value Value 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 2001 277 0 34,346,386 8,386,497 30,318,598 73,051,481 2002 305 0 55,135,868 11,121,614 688,350 66,945,832 (1) Source: City of Ocoee Building Department r 85 r r CITY OF OCOEE, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS September 30, 2002 ► Taxable Assessed Type of Valuation As of e Taxpayer Business _ 2000 Tax Roll (1) Percentage 1. West Oaks Mall Trust. West Oaks Mall $ 67,642,034 6.3% 2. Manheim Remarketing, LP Developer 17,219,597 1.6 ` 3. Foxfire Apartment Association Apartments 15,011,761 1.4 4. West Orange Healthcare District Health Care 13,484,371 1.3 5. Good homes Plaza (E&A) LLC Developer 12,814,097 1.2 6. Oak Forest Partners, Ltd. Developer 10,654,415 1.0 - 7. Parisian, Inc. Retail Sales 9,836,077 0.9 8. Dillards Department Store, Inc. Retail Sales 9,101,006 0.9 9. Lake Latta Apartment LLC Apartments 8,242,195 0.8 10. Inland Southeast West Oaks LLC Developer 7,935,662 0.7 ! Total taxable assessed value of 10 largest Ir Taxpayers 171,941,215 16.1 ( Total taxable assessed value of other Taxpayers 894,666,358 83.9 Total taxable assessed value of all Taxpayers $ 1 066 607 573 100.0%, Note: ter (I) The tax levy for the fiscal year ended September 30, 2002 is based on the 2001 taxable value. toe 86 eel CITY OF OCOEE ..' MISCELLANEOUS STATISTICAL DATA September 30, 2002 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) 314 Elections: Registered voters 11,390 Votes cast in last municipal elections(March 2000) 3,013 Miles of Streets,Sidewalks and Bike Paths Streets-paved 110 Streets-unpaved 3.2 Miles Streets-brick 1.1 Miles r Sidewalks 151 Bike paths - .5 Miles Fire Protection: Stations Employees 3 r 46 Police Protection: Stations Employees 1 97 Vehicular Patrol Units: Patrol cars 52 Other vehicles 14 Recreation: Multi-purpose recreation center Community Center 2 Athletic fields Tennis courts 12 �+ Racquetball courts 2 Shuffleboard courts 2 Passive parks 6 Parks and recreation developed ares(including city playgrounds) 14 Water System: Miles of water mains 125 Daily Average Consumption(gallons) 4,640,000(GPD) Plant capacity(Gallons) 20,160,000(GPD) Service connections 8,925 Deep wells 7 Fire hydrants 806 r wet 87 CITY OF OCOEE f MISCELLANEOUS STATISTICAL DATA-CONTINUED September 30, 2002 ♦ Sewer System: Miles of sanitary sewers 68 Lift stations 44 ♦ Daily average treatment 1,544,000(GDP) Plants(s)capacity(MGD) 1 plant @ 3MGD Disposal sites 2 loo a. r ♦ f ♦ f ♦ ♦ F ♦ ♦ ♦ I ♦ ♦ 88 CITY OF OCOEE, FLORIDA SCHEDULE OF INSURANCE IN FORCE September 30, 2002 Buildings and Personal Property: .� Multi-period, "all risk" 100% of replacement value Stated values Blanket building coverage $26,715,383 Blanket contents coverage Incl. in bldg. limit Boiler& machinery 5,000,000 —, Inland marine—computer 788,910 Inland marine—equipment 3,771,256 Valuable papers 5,000 Radio equipment 1,282,862 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 $100,000 Law Enforcement Liability: Combined single limit for bodily & property $2,000,000/occurrence $6,000,000/aggregate Blanket Fidelity $50,000 ••' Public Official Errors & Omission Insurance: $2,500 per Loss Deductible Aggregate $2,000,000/$6,000,000 Worker's Compensation $1,000,000/occurrence $1,000,000/aggregate 89 ► V ► ► S r ► f �. REPORTS ON INTERNAL CONTROL AND COMPLIANCE r • ► P ► S This page intentionally left blank. Cenci of Good lip_ ® R COO- „ - WA MCDIRMIT DAVIS PUCKETT REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER - FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE fr WITH GOVERNMENT AUDITING STANDARDS e !. The Honorable Mayor and City Commissioners City of Ocoee, Florida R„ We have audited the general purpose financial statements of the City of Ocoee, Florida as of and for the year ended September 30, 2002, and have issued our report thereon dated November 11, 2002. We conducted our audit in accordance with auditing standards generally accepted in the - United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 11, 2002. - 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 11, 2002. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC lE R PUBLIC ACCOUNTANTS AND n ORS 605 E.ROBINSON STREET,SUIT!,635•ORI ANDO,FLORIDA 32801 TEE[P HONE 407-843-5406•FAx 407-649-9339•EMAIL MPOR.OIDPCPA.COM mRmi,R,.PR! R ccm,AR P1ACTl Si . IRco.cc " O,hv, NA CouET RI AR i,m PLeef A(C,PTavTs 90 • 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, LLC November 11, 2002 _ 91 _ MCDIRMIT DAVIS PUCKETT REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO - THE MAJOR PROGRAM AND INTERNAL CONTOL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 S 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, 2002. 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 auditing standards generally accepted Re in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-133, Audits of States, Local Governments and Other Nonprofit Organizations. k 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, 2002. ` 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. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC ENFNTITIED P BCCUUNTANTS AND VISORS l 605 6.RORINRON STREET.SUITE 635•ORI ANDO,,FLORIDA 32801 TEI FI'HONF:40T-N41-5406-FAX 407-6a¢9339•EMAIL:INF0r61MDPCPA.COM w t nrxc.Pu, Con ,N:Fs v'INK S_ Ov•ixExuA ,T TE 04Wirx P x AtmrzrnNT nin INTn7F ovcRT.TF_ IOB.0 ACCOUNTANTS 92 Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended 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. YnA1 kas;frdeaediaroorg,L1G McDIRMIT DAVIS PUCKETT & COMPANY, LLC November 11, 2002 iss 93 M CITY OF OCOEE, FLORIDA r SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2002 Federal Agency Or Federal Grantor/Pass-Through CFDA Pass-Through Federal Grantor/Program Title Number Entity Grant Number Expenditures U.S. Department of Justice Office of Community Oriented Policing Services—COPS Universal Hiring Program 16.710 1995CFWX4000 $796,292 r Office of Justice Programs r COPS MORE 16.710 2000CMWX0067 57,515 ` Local Law Enforcement Block Grant 16.592 2001-LB-BX-0947 8.063 Total U.S. Department of Justice 861,870 Executive Office of the President Office of the National Drug Control Policy- '' HIDTA Award - I2PCFP507 10,531 Total Expenditures of Federal Awards $872 401 r F ti 94 CITY OF OCOEE, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2002 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, 2002 under the COPS Universal Hiring Program 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 r matching amounts totaling 25% during the award period. 95 ,,, THE CITY OF OCOEE , FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL PROGRAM • Year Ended September 30, 2002 SECTION I -SUMMARY OF AUDITOR'S RESULTS r FINANCIAL STATEMENTS i. 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 r Any Audit Findings Disclosed that are Required to be Reported in Accordance with Section 510(a) of Circular A-133? No S Identification of Major Programs: CFDA Number Name of Federal Program �. 16.710 Department of Justice Public Safety Partnership and Community Policing Grants Dollar Threshold Used to Distinguish Between Type A and J. Type B Programs: $300,000 Auditee Qualified as Low-Risk Auditee? No SECTION II - FINANCIAL STATEMENT FINDINGS Y No matters were reportable. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS •- No matters were reportable. 96 mei This page intentionally left blank. ,Sre Center of Good 1 r``n