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Home My WebLink AboutII(B) Audit and Comprehensive Annual Financial Report for FY 2003 Agenda 7/6/04 Mayor CentJo�fyGood' , CommsonerBs . tre S. Scott Vandergrift EDanny Howell, District ict 1• Scott Anderson, District 2 Acting City Manager Rusty Johnson, District 3 V. Gene Williford Nancy J. Parker, District 4 STAFF REPORT TO: The Honorable Mayor and City Commissioners • FROM: Wanda Horton, Finance Director DATE: June 23, 2004 RE: Audit Report FY 2003 The Comprehensive Annual Financial Report(CAFR) is attached to this memorandum. The Auditors will be present at the July 6, 2004 commission meeting to review the CAFR and present the audit results. • ph City of Ocoee, Florida COMPRFHFNSIVF ANNUAL FINANCIAL RFPORT For The Year Ended September 30, 2003 . fy Prepared by: Finance Department . a This page intentionally left blank. N':Center of Good LI vj INTRODUCTORY SECTION • This page intentionally left blank. ire Center of Good Lit,/ CITY OF OCOEE COMPRFHFNSIVF ANNUAL FINANCIAL RFPORT TARI F OF CANTFNTR Year Ended September 30, 2003 PAX Introductory Section: Table of Contents Letter of Transmittal iv-viii GFOA Certificate of Achievement ix List of Principal Officials x Organizational Chart xi II. Financial Section: Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-13 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements: Balance Sheet—Governmental Funds 16 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual—General Fund 19-20 Statement of Net Assets— Proprietary Funds 21-22 Statement of Revenues, Expenses and Changes in Fund Net Assets—Proprietary Funds 23 Statement of Cash Flows—Proprietary Funds 24-25 Statement of Fiduciary Net Assets— Fiduciary Funds 26 Statement of Changes in Fiduciary Net Assets— Fiduciary Funds 27 Notes to Financial Statements 28-51 Nonmajor Governmental Funds: Combining Balance Sheet— Nonmajor Governmental Funds 52-55 Combining Statement of Revenues, Expenditures and Changes In Fund Balances—Nonmajor Governmental Funds 56-58 CITY OF OCOEE COMPRFHFNSIVF ANNUAL FINANCIAL RFPORT TARP F OF CONTFNTS - Cnntini c Year Ended September 30, 2003 age II. Financial Section -Continued: Fiduciary Funds: Combining Statement of Fiduciary Net Assets: 59 Combining Statement of Charges in Fiduciary Net Assets 60 Capital Assets Used in the Operation of Governmental Funds: Schedule by Function and Activity 61 Ill. Statistical Section: Government-Wide Information: Government-Wide Expenses Function 62-63 Government-Wide Revenues 64-65 Fund Information: General Governmental Expenditures by Function 66-67 General Governmental Revenues by Source 68-69 Property Tax Levies and Collections 70 Assessed and Estimated Value of Taxable Property, Net of Exemptions 71-72 Property Tax Rates, Direct and Overlapping Governments 73 Tax Revenue By Source 74 Schedule of Ten Largest Taxpayers 75 Special Assessment Billings and Collections 76 Legal Debt Margin 77 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 78 Ratio of Annual Debt Service Expenditures for General Bonded Debt To Total General Governmental Expenditures 79 Computation of Direct and Overlapping General Obligation Debt 80 Revenue Bond Coverage 81 Demographic Statistical Data 82 Property Values and Construction 83 Miscellaneous Statistical Data 84-85 Schedule of Insurance in Force 86 IV. Other Reports: Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 87-88 Federal Awards- Report on Compliance with Requirements Applicable to the Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 89-90 ii CITY OF OCOEE COMPRFHFNSIVF ANNLIAI FINANCIAL RFPORT TARI F OF CONTFNTS - Cnntinuar( Year Ended September 30, 2003 IV. Other Reports (continued): Schedule of Expenditures of Federal Awards 91 Notes to Schedule of Expenditures of Federal Awards 92 Schedule of Findings and Questioned Costs- 93 } Federal Programs State Financial Assistance: Independent Auditor's Report on Compliance and Internal Control over Compliance Applicable to the Major State Project 94-95 Schedule of Expenditures of State Financial Assistance 96 Schedule of Findings and Questioned Costs—State Project 97 This page intentionally left blank. ire Center of Good Lill g I unto of Good LA, Mayor �� """"--- Commissioners S.Ott VandergriftDanny Howe[[. District.1 0 Scott Anderson, District 2 Acting City Mr Rusty Johnson, District 3 V. Eugene lk ilhf+ord - Nancy J. Parker,District 4 May 26, 2004 To the Honorable Mayor and City Commission and Citizens of the City of Ocoee, Florida: The Comprehensive Annual Financial Report (CAFR) of the City of Ocoee, Florida for the year ended September 30, 2003, 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. State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and that they be audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. This year's report has been reformatted to comply with the new financial reporting model developed by the Governmental Accounting Standards Board (GASB) Statement 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments. The new financial reporting model changes the format of the City's financial statements. It is intended to improve financial reporting by incorporating significant additional information not previously available in public sector financial reporting. In addition to the fund-by-fund financial information previously presented in the City's financial statements, the new model has a number of key features as follows: D Government-wide financial reporting - The government-wide statements present a clear picture of the government as a single, unified entity. These new statements complement rather than replace traditional fund-based financial statements. Included in the government- wide statements is a "Statement of Net Assets" that provides the total net equity of the City including capital assets and debt and the "Statement of Activities" that shows the cost of providing government services. D Long-term focus for governmental activities- Traditional "fund"financial statements focus on near-term inflows, outflows and balances of spendable financial resources and are prepared using the "modified" accrual method of accounting. The government-wide statements have been prepared with a long-term focus using the "full" accrual basis of accounting. A reconciliation report is provided as a key to understanding the changes between the two reporting methods. The most significant differences between the two types of reporting methods relate to the recordation of capital assets (including prior expenditures for infrastructure) and debt in the government-wide statements. The use of separate account groups to record general fixed assets and general long-term debt were eliminated. City,f+1Jr+.s e r 1510 takeshorc:L`nwe'+^xcoee, Flenidla 34761 phone: (407i',''S..- ]FO1 fax:,(407)kttr-8 I34 'www,ci.ocoee.fl.us iV D Management's Discussion and Analysis (MD&A) - GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a MD&A. The MD&A provides "financial highlights" and interprets the financial reports by analyzing trends and by explaining changes, fluctuations and variances in the financial data. In addition, the MD&A are intended to disclose any known significant events or decisions that affect the financial condition of the City. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Ocoee's MD&A can be found immediately following the report of the independent auditors. D Major funds - The new reporting model includes an emphasis on the City's major funds as shown in the Governmental Fund Statements. Nonmajor funds are aggregated in the government-wide statements; however detail can be found for the nonmajor funds in the traditional fund statements. D Expanded budgetary focus- Under the new model, budget information is presented for both the original and the final amended budget. The Annual Financial Report was compiled by the staff of the Finance Department. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Ocoee has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Ocoee's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Ocoee's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Ocoee's financial statements have been audited by McDirmit Davis Puckett & Company, LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Ocoee for the fiscal year ended September 30, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Ocoee's financial statements for the fiscal year ended September 30, 2003, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor's report is presented as the first component of the financial section of this report. v Profile of the Government 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 28,100 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 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. 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. There are many factors that have influenced and continue to influence the growth of the City. Ocoee's proximity to Orlando and its location at the juncture of State Road 50, Florida's Turnpike, the East-West Expressway, and the Western Expressway make it convenient for people to live and work in the City. State Road 50 is a major east-west arterial that spans the State; Florida's Turnpike provides a limited-access highway for north-south traffic and has an exit in Ocoee; the East-West Expressway provides a 15-minute travel route from Ocoee to downtown Orlando and continues to the eastern limits of Orange County; and the Western Expressway will provide a similar highway to Walt Disney World and other points south to Osceola County. To meet the increasing demands of travel within Ocoee city limits, the City built Clarke Road, a four-lane divided roadway, which begins at the East-West Expressway terminus and State Road 50 and runs north to the City's current limits. Plans are underway to bring Clarke Road even further north in the future. Clarke Road has spawned the development of many residential neighborhoods as well as neighborhood commercial centers and the West Oaks Mall. Additionally, Maguire Road 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 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. vi 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 funds were used for a family aquatic center, another fire station which will also house fire administration, park land, and expanding the public works facility. The City also refunded a portion of the Series 1990 Transportation refunding and Improvement Revenue Bonds and secured additional funds by issuing the Series 1998 Transportation Refunding and Improvement Revenue Bonds. The additional funds are for the acquisition of right-of-way and the design, construction, paving and improvement of various roadway projects including Maguire Road and Professional Parkway. Local economy. The City of Ocoee is primarily a residential and retail area with a small amount of light industry and commercial business. The City's total assessed valuation for real and personal property increased 8% from the prior year and 171% since 1994. This increase in valuations and millage resulted in an increased tax levy of $305,304 over last year. The City's population has increased 61% from that of ten years ago. Local indicators still point to a continued trend of growth as the City works with builders, developers and residents for both commercial and residential development. This increased growth helps the City maintain a moderate property tax rate, which was at 4.5789 mills during fiscal year 2003(tax year 2002). Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) during fiscal year 2003. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement by year it is intended to be purchased or commenced; the amount to be spent per year; and, the method of financing such improvement. Each year during the annual budget process the CIP is reviewed to ensure incorporation of all necessary capital improvements. It should be noted; however, that the CIP is not a fixed document but a flexible, evolutionary document that may change to reflect changing priorities, opportunities, costs, or different financing approaches. Cash management policies and practices. The City administers a cash management and investment program that seeks to maximize, in order of priority, the preservation of funds, liquidity and interest earnings over its cash and investments. Cash resources of the individual funds are combined to form a pool of cash and investments. The average cash and investment pool balance during the year (not including pension funds) was $16,837,157 and the average investment earnings rate was 3% Investment income includes the change in the fair value of investments. During the year monies were invested in U.S. Agencies and Treasuries, Federal Home Loan bonds, fixed income mutual funds and overnight repurchase agreements in accordance with the City's Investment Policy. Risk Management. During the ordinary course of its operations, the City is exposed to various risks of losses. The City maintains commercial insurance coverage in amounts management feels is adequate to protect and safeguard the assets of the City. In the opinion of the City's management and legal counsel, legal claims and litigation are not anticipated to have a material impact on the financial position of the City. Pension and other postretirement benefits. The City of Ocoee maintains two separate single employer defined benefit pension plans for general employees, and police officers and firefighters. Each year, an independent actuary engaged by the pension plan calculates the amount of the Annual Required Contribution (ARC) that the City of Ocoee must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. In addition to the City's contribution, general employees make a 7.4% contribution of gross salary while police officers and firefighters contribute 7.6% of their gross salary. Total actual contributions made during fiscal year 2003 were $4,373,118. The City has funded 84.5% of its actuarial accrued liability for general fund pension benefits and 88.9% for police and firefighters. vii A three-year trend shows an increase in the City's funding ratio each year. The unfunded actuarial liability as of October 1, 2003 is $1,603,488 for general and $1,340,164 for police and fire. The City of Ocoee does not provide any postretirement health or dental benefits for retirees or their dependents. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Ocoee for its CAFR for the fiscal year ended September 30, 2002. This was the fourteenth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible 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 the preparation of this report. We would also like to thank the Mayor and the City Commission for their interest and support in planning and conducting the financial operations of the City of Ocoee's in a responsible and progressive manner. Respectfully submitted, Eugene Williford, Ill Wanda Horton Acting City Manager Finance Director viii This page intentionally left blank. ��,e Centet of Good Li i .12 / ) � , Certificate of Achievement for Excellence in Financial • Reporting • Presented to City of Ocoee, Florida For its Comprehensive Annual • • Financial Report for the Fiscal Year Ended September 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. ooGE OFA j ti WANA s a CANADA , „„IN ff President taco *Cer • Executive Director 1X • CITY OF OCOEE, FLORIDA LIST OF PRINCIPAL OFFICIALS September 30, 2003 ELECTED OFFICIALS MAYOR S. Scott Vandergrift COMMISSIONER Danny Howell COMMISSIONER Scott Anderson COMMISSIONER Leon "Rusty" Johnson COMMISSIONER Nancy Parker STAFF ACTING CITY MANAGER Eugene Williford, III CITY CLERK Jean Grafton FINANCE DIRECTOR Wanda Horton INFORMATION SERVICES Brian Ross HUMAN RESOURCES Fran Diedrich POLICE CHIEF Steve Goclon FIRE CHIEF Ronald Strosnider PUBLIC WORKS DIRECTOR David Wheeler COMMUNITY DEVELOPMENT DIRECTOR Russ Wagner PARKS AND RECREATION DIRECTOR Johnny Farmer LEGAL COUNSEL Paul Rosenthal, Esq. Foley and Lardner FINANCIAL ADVISOR Mark Galvin First Southwest Company AUDITORS McDirmit Davis Puckett &Company, LLC x 2i 8 w w c y {p c Q 'z C — LL w — . — C .Ge — e a, �6 WM = CO CNS V' co ~ 0 — — 8 _ _ _0 Qi cm 10 W C g Go 8 07 — W — —as a c co 1:14 _ .Y 0 gx W a U G 11Wa CO Ca s W — " - .. O a 0o 6"-.8 M O -2 CI s _ a _ -2 0 co to co Q - o — co M - E a 8 � o a O L V U cu V c co Iii c Ch H — � 1. — al — i - N Nco F�1 E C `L c O J O h U c N H C 033O i � w m` 3 $, v� CLE z 3 .511 Of C C C . — .M. h — m N :C H C C Ea E au U Y V 2 al c — U Q . VU W Xi. This page intentionally left blank. (Ssc e Center of Good Liv e • b 3u COARE' ' _ - FINANCIAL SECTION This page intentionally left blank. Center of Good Lill le 76 ' D 77 d-yJ 71 TT ' INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Commissioners City of Ocoee, Florida Ocoee, Florida , We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ocoee, Florida, as of and for the year ended September 30, 2003, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ocoee, Florida, as of September 30, 2003, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 605 E.ROBINSON STREET,SUITE 635.ORLANDO,FLORIDA 32801 TELEPHONE 407-843-5406^FAX 407-649-9339°EMAIL:INFO@MDPCPA.COM \IFVIBFRS:PRI\'ATF COEIPA\IES PRACTICE SECTIO\=A\IFRICA\INSTITLTE OF CERTIFIED PLBLIC ACCOLINTA\TS•FLORIDA I\STITLTF OF CERTIFIFD PURI.IC.4C000NT\\TS 1 • As described in Note 1, the City has implemented a new financial reporting model as required by the provisions of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis-for State and Local Governments, as of October 1, 2002. In accordance with Government Auditing Standards, we have also issued a report dated April 21, 2004, 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. The Management's Discussion and Analysis starting on page 3 is not a required part of the basic financial statements but is supplemental information required by the Governmental Auditing Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of Ocoee's basic financial statements. The introductory section, combining nonmajor fund financial statements, schedules, statistical section and schedules of expenditures of federal awards and state financial assistance are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements, schedules, and schedules of expenditures of federal awards and state financial assistance have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the • statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. OgeeOW Jaia;) ,/iidedidsffewf,ize McDIRMIT DAVIS PUCKETT & COMPANY, LLC • April 21, 2004 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Management's Discussion and Analysis This narrative overview and analysis of the financial activities of the City of Ocoee for the fiscal year ended September 30, 2003 is designed to assist the reader in a) focusing on significant financial issues, b) providing an overview of the City's financial activity, c) identifying changes in the City's financial position, d) identifying any material deviations from the approved budget, and e) identifying individual fund issues or concerns. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages iii-vii of this report. Financial Highlights • The assets of the City of Ocoee exceeded its liabilities at the close of the most recent fiscal year by $147,913,392 (net assets). Of this amount, $22,195,560 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $49,975, which is less than 1%. • As of the close of the current fiscal year, the City of Ocoee's governmental funds reported combined ending fund balances of $18,459,592. Approximately 99% of this total amount, $18,298,188 is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $5,846,144, or 33% of total general fund expenditures. • The City of Ocoee's total debt decreased by $712,316 (1%) during the current fiscal year. Using thin Annual Rnpnrt The new financial statement's focus (implemented this year) is on both the City as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City's accountability. This discussion and analysis are intended to serve as an introduction to the City of Ocoee's basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Ocoee's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City of Ocoee's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Ocoee is improving or deteriorating. 3 The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Ocoee that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Ocoee include general government, public safety, physical environment, and culture and recreation. The business-type activities of the City of Ocoee include Water and Wastewater, Solid Waste, and a Stormwater. The government-wide financial statements include only the City of Ocoee itself (known as the primary government). The City of Ocoee has no component units. The Water and Wastewater fund, Solid Waste fund, and the Stormwater fund function as departments of the City of Ocoee, and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found on pages 14-15 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Ocoee, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Ocoee can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the governmental-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Ocoee maintains 23 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, and road impact fee fund. Data from the other 21 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. 4 The City of Ocoee adopts an annual appropriated budget for the General Fund. Budgetary comparison statements have been provided for the General Fund to demonstrate compliance with this budget at pages 19-20. The basic governmental fund financial statements can be found on pages 16-20 of this report. Proprietary funds. The City of Ocoee maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Ocoee uses enterprise funds to account for its Water and Wastewater fund, Solid Waste fund, and its Stormwater fund. Proprietary funds provide the same type of information as the government-wide financial statements, only in' more detail. The proprietary fund financial statements provide separate information for the Water and Wastewater fund, Solid Waste fund, and for the Stormwater fund. The basic proprietary fund financial statements can be found on pages 21-25 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Ocoee's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 26-27 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 28-51 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the Notes to Financial Statements. Combining and individual fund statements and schedules can be found on pages 52-58 of this report. Government-wide Financial Analycip Statement of Net Assets As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Ocoee, assets exceeded liabilities by $147,913,392 at the close of the most recent fiscal year. By far the largest portion of the City of Ocoee's net assets (79%) reflect its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Ocoee uses these capital assets to provide 5 services to citizens; consequently, these assets are not available for future spending. Although the City of Ocoee's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City of Ocoee's net assets (6%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($22,195,560) may be used to meet the government's ongoing obligations to citizens and creditors. At September 30, 2003, the City of Ocoee is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The following table reflects the condensed Statement of Net Assets for the current year. Comparison to the prior year is not presented, as 2003 is the implementation year for GASB statement #34. For more detail see the Statement • of Net Assets on page 14. 6 Statement of Net Assets As of September 30, 2003 Governmental Business Activities Activities Total 2003 2003 2003 Current and other assets $22,781,266 $7,053,567 $29,834,833 Restricted assets - 7,394,286 7,394,286 Capital assets 102.372,881 64,557.666 166,930.547 Total assets 125.154.147 79.005,519 204.159.666 Current liabilities 5,384,417 2,102,900 7,487,317 Long term liabilities outstanding 32,380,029 15,962,045 48,342,074 Other liabilities - 416.883 416,883 Total liabilities 37.764,446 18,481,828 56,246,274 Net assets: Invested in capital assets, net of related debt 68,913,385 47,399,095 116,312,480 r. Restricted 9,286,466 118,886 9,405,352 Unrestricted 9,189,850 13,005.710 22.195.560 Total net assets $87,389,701 $60,523,691 $147,913,392 Statement of Activities The following table reflects the condensed Statement of Activities for the current year. Comparison to the prior year is not presented, as 2002 is the implementation year for GASB Statement#34. For more detailed information see the Statement of Activities on page 15. Note that total net assets increased by $49,975. Governmental activities increased by $1,406,144 whereas, the business-type activities experienced a decrease in net assets of$1,356,169. Following the Statement of Activities table is a series of bar and pie charts that relay in a pictorial form the revenues and expenses for each the governmental and business-type activities as well as the revenue"source"for each. 7 Changes in Net Assets For The Year Ended September 30, 2003 Governmental Business Activities Activities Total 2003 2003 2003 Revenues: Program revenues Charges for services $3,915,024 $8,329,083 $12,244,107 Operating grants and contributions 1,217,752 10,228 1,227,980 Capital grants and contributions 906,681 639,146 1,545,827 General revenues Property taxes 5,047,518 - 5,047,518 Franchise fees and utility taxes 3,351,445 - 3,351,445 Intergovernmental 5,644,397 - 5,644,397 Other 185.862 154.750 340.612 Total revenues 20.268.679 9.133,207 29.401.886 Expenses: General government 3,363,718 - 3,363,718 Public safety 10,650,950 - 10,650,950 Physical environment 2,917,657 - 2,917,657 Culture and recreation 2,187,257 - 2,187,257 Interest on long-term debt 1,425,802 - 1,425,802 Water and Wastewater - 5,540,876 5,540,876 Solid Waste - 1,374,390 1,374,390 Stormwater - 1.891.261 1,891.261 Total expenses 20,545,384 8.806.527 29,351,911 Increase (decrease) in net assets before transfers (276.705) 326.680 49,975 Transfers 1,682,849 (1,681849) - Increase (decrease) in net assets 1,406,144 (1,356.169) 49,975 Net assets - October 1, 2002 (restated) 85.983.557 61,879,860 147,863,417 Net assets - September 30, 2003 $87,389,701 , $60,523,691 , $147,913,392 , 8 - f Financial Analysis of the Government's Funds As noted earlier, the City of Ocoee uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Ocoee's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Ocoee's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2003, the City of Ocoee's governmental funds reported combined ending fund balances of $18,459,592, a decrease of $1,453,662 in comparison with the prior year. Approximately 99% or $18,298,188 of this total amount constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for debt service, inventories and prepaid costs. The general fund is the chief operating fund of the City of Ocoee. At the end of the current fiscal year, unreserved fund balance of the general fund was $5,846,144, while total fund balance reached $5,922,687. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved and total fund balance represents 33 % of total general fund expenditures and total fund balance represents 34% of total general fund expenditures. The fund balance of the City of Ocoee's general fund increased by $1,128,458 during the current fiscal year, primarily because intergovernmental revenues exceeded budget and expenditures in most departments were less than budget. Proprietary funds. The City of Ocoee's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the Water and Wastewater Fund at the end of the year amounted to $9,242,229 and those for the Solid Waste and Stormwater Fund amounted to $1,766,110 and $1,997,371 respectively. Both Water and Wastewater and Stormwater experienced a decrease in their net assets while Solid Waste had an increase. General Fund Budgetary Highlights Differences between the original General Fund expenditure budget and the final amended General Fund expenditure budget consists of $165,000 in appropriations and can be briefly summarized as follows: • $76,200 in miscellaneous increases in general governmental activities; however, general government actual expenditures came in approximately $65,000 over the original budget • $88,800 increase for public safety During the year, however, revenues exceeded budgetary estimates and expenditures were less than budgetary estimates, thus eliminating the need to draw upon existing fund balance. 9 Capital Asset and Debt Administration Capital assets. The City of Ocoee's investment in capital assets for its governmental and business type activities as of September 30, 2003 amounts to $166,930,547 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment, park facilities, roads, highways, and bridges. Major capital asset events during the current fiscal year included Maguire Rod construction, Freedom Park improvements, Fire Station #1 construction and the purchase of property from a church to be concverted into a recreation facility. Additional information on the City of Ocoee's capital assets can be found in note 7 on pages 40-41 of this report. Capital Assets (net of depreciation) As of September 30, 2003 Governmental Business Activities Activities Total 2003 2003 2003 Land $17,344,683 $4,163,808 $21,508,491 Buildings 6,629,057 8,811,644 15,440,701 Improvements 2,379,902 48,156,716 50,536,618 Machinery and equipment 3,733,560 666,825 4,400,385 Infrastructure 56,598,580 - 56,598,580 Construction in Progress 15.687,099 2.758.673 18.445.772 Total $102.372,881 $64,557,666 $166,930,547, Long-term debt. At the end of the current fiscal year, the City of Ocoee had total bonded debt outstanding of$44,560,000. All of this debt is secured solely by specified revenue sources (i.e., revenue bonds). The City of Ocoee also has various notes payable and capital lease obligations. During the current fiscal year, the government refinanced its Transportation Refunding Revenue Bonds Series 1990 to take advantage of favorable interest rates. The City also refinanced its Stormwater Utility Revenue Notes, series 1996 to take advantage of favorable interest rates. There are no limitations placed on the amount of debt the City may issue either by the City's charter, code of ordinances or by the Florida State Statutes. Additional information on the City of Ocoee's long-term debt can be found in notes 8 and 9 on pages 42-46 of this report. 10 a Fcnnnmic Factnrs and Nowt Year's Riidgats and Rata* The City considered many economic factors during the preparation of the fiscal year 2003 budget namely the affect the downturn in the economy would have on intergovernmental revenue sources and public service taxes. { The City underwent a Water, Wastewater Rate Study to establish rates that would promote water conservation, provide funding for capital improvements to the system, and generate sufficient revenues for operations, maintenance and debt service requirements. The City adopted an inclined rate structure effective October 1st of fiscal year 2004. This rate structure is designed to encourage water conservation but is projected to generate a 35% increase in revenues. Ranyasts for Informatinrt This financial report is designed to provide a general overview of the City of Ocoee's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 150 N. Lakeshore Drive, Ocoee, Florida, 34761. 11 MANAGEMENT'S DISCUSSION AND ANALYSIS-CONTINUED Expenses and Program Revenues - Governmental Activities $12,000,000 -- 510,850,950 $10,000,000 $8,000,000 $6,000,000 --z $4,000,000 $3,383,718 $2917,857 $2,591,372 $ 2.431,338 _� �� 52,187,257 IT $1,425,802 $2,000,000 $749,287 1111110 1112; $181.512 $ General Public safety Physical Culture and Interest on long- government environment _recreation term debt r0 Expenses 0 Program revenues 1 Revenues by Source - Governmental Activities Program revenues 29.8% -� - Property taxes 7 24.9% Investment income& miscellaneous — 0.9% Franchise fees and Intergovernmental - utility taxes 27.8% 16.5% 12 MANAGEMENT'S DISCUSSION AND ANALYSIS- CONTINUED Expenses ans Programs Revenues - Business - Type Activites $5,540 876 Z.. 17 17 6,000,000 $5,981,765 5,000,000 /, 4,000,000 3,000,000 -' $1,748,307 —� 2,000,000 $1374,390 $1,248,385 1,000,000 Water and wastewater Solid waste Stormwater ❑Expenses 0 Program revenues Revenues by Source - Business-Type Activities Operating Grants and - Contributions 0.1% Charges for Services 91.2% Capital Grants and Contributions 7.0% Investment income& -- miscellaneous 1.7% 13 GOVERNMENT WIDE FINANCIAL STATEMENTS This page intentionally left blank. be Center of Good Lit, c _ ` 4 CITY OF OCOEE, FLORIDA STATEMENT OF NET ASSETS September 30, 2003 Primary Government Governmental Business-type Activities Activites Total Assets: Cash and cash equivalents $ 10,142,676 $ 4,147,113 $ 14,289,789 Investments 10,629,100 1,428,284 12,057,384 Receivables, net 1,760,167 801,479 2,561,646 Internal balances (145,429) 145,429 - Inventories- at cost 22,955 22,152 45,107 Due from other governments 289,273 - 289,273 Prepaid costs 53,738 172 53,910 Restricted assets: Cash and cash equivalents - 2,756,150 2,756,150 Investments - 4,638,136 4,638,136 Assessments receivables - 44,785 44,785 Bond issuance costs 28,786 464,153 492,939 Capital assets (not being depreciated) 33,031,782 6,922,481 39,954,263 Capital assets (being depreciated net of) accumulated depreciation) 69,341,099 57,635,185 126,976,284 Total Assets 125,154,147 79,005,519 204,159,666 Liabilities: Accounts payable and other current liabilities 1,331,816 171,691 1,503,507 Matured bonds and interest payable 1,294,976 1,081,922 2,376,898 Unearned revenue 1,666,096 - 1,666,096 Liabilities payable from restricted assets - 416,883 416,883 Noncurrent liabilities: Due within one year 1,091,529 840,553 1,932,082 Due in more than one year 32,380,029 15,970,779 48,350,808 Total Liabilities 37,764,446 18,481,828 56,246,274 Net Assets: Invested in capital assets, net of related debt 68,913,385 47,399,095 116,312,480 Restricted- Debt service 84,861 118,886 203,747 Highways and streets 5,689,559 - 5,689,559 Public safety 2,661,982 - 2,661,982 Culture and recreation 850,064 - 850,064 Unrestricted 9,189,850 13,005,710 22,195,560 Total Net Assets $ 87,389,701 $ 60,523,691 $ 147,913,392 The accompanying Notes to Financial Statements are an integral part of these statements. 14 O d' t00Nh 0) I,- CO.. !1 CO 10 N- N ' Ntot� N e- MI. 0N Co - N- p) co N N- i-. - O NCOC7O) Go0) OoO) Co toNrMto0 0) O) v_M CV 0)ON� tpto OM Nn I: � co-N: M0)MCr) jg O �- NMNO f� ee�� Co Oco co ...:t co 0 N M V.Nr-to M t0 Co Co Co GO O ,O I- ei c e 1-....T tO M to v N N C .. 1- e- 0 0 C fA 09 7 W 0 m 12' CQE a. 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O Oac co LL FUND FINANCIAL STATEMENTS This page intentionally left blank. e Center of Good LI vi CITY OF OCOEE, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2003 Other Total Road Governmental Governmental General Impact Funds Funds Assets: Cash and cash equivalents $ 2,509,140 $ 2,837,259 $ 3,501,301 $ 8,847,700 Cash with paying agent - - 1,294,976 1,294,976 Investments 4,342,580 4,034,281 2,252,239 10,629,100 Receivables, net 152,440 18,019 1,589,708 1,760,167 Inventories,at cost 22,955 - - 22,955 Due from other governments 168,804 - 120,469 289,273 Prepaid costs 53,588 - 150 53,738 Total Assets 7,249,507 6,889,559 8,758,843 22,897,909 Liabilities and Fund Balances: Accounts payable 95,280 - 2,153 97,433 Accrued liabilities 926,298 - - 926,298 Retainage payable - - 308,085 308,085 Due to other funds - - 145,429 145,429 t Matured bonds payable - - 630,000 630,000 • Matured interest payable - - 664,976 664,976 Unearned revenue 305,242 - 1,200,000 160,854 1,666,096 Total Liabilities 1,326,820 1,200,000 1,911,497 4,438,317 Fund balances: Reserved: Inventories and prepaid costs 76,543 - - 76,543 Debt service - - 84,861 84,861 , Unreserved,reported in: General fund 5,846,144 - - 5,846,144 Special revenue funds - 5,689,559 3,512,046 9,201,605 Capital projects funds - - 3,250,439 3,250,439 Total fund balances 5,922,687 5,689,559 6,847,346 18,459,592 Total Liabilities and Fund Balances $ 7,249,507 $ 6,889,559 $ 8,758,843 Amounts reported for governmental activivties in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and,therefore 102,372,881 are not reported in the funds Long-term liabilities are not due and payable in the current period and therefore are not (33,442,772) reported in the funds Net assets of governmental activities $ 87,389,701 The accompanying Notes to Financial Statements are an integral part of these statements. 16 CITY OF OCOEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For The Year Ended September 30, 2003 Other Totals Road Governmental Governmental General Impact Funds Funds Revenues: Taxes and impact fees $ 8,398,963 $ 952,670 $ 557,325 $ 9,908,958 Licenses and permits 1,349,246 - - 1,349,246 Intergovernmental revenues 6,846,639 - 12,817 6,859,456 Charges for services 502,398 - 127,213 629,611 Fines and forfeitures 224,453 - 44,460 268,913 Investment income 111,068 123,411 101,444 335,923 Miscellaneous 134,815 45,000 905,833 1,085,648 Total revenues 17,567,582 1,121,081 1,749,092 20,437,755 Expenditures: Current: General government 3,876,607 - - 3,876,607 Public safety 10,112,038 - 312,865 10,424,903 Physical environment 1,393,949 215,032 - 1,608,981 Culture and recreation 1,546,486 - 172,834 1,719,320 Debt service: Principal retirement 380,851 - 719,580 1,100,431 Interest and fiscal charges 68,631 - 1,332,462 1,401,093 Bond issuance costs - - 31,185 31,185 Capital outlay: General government 79,866 - 62,429 142,295 Public safety 19,477 - 729,548 749,025 Physical environment 104,347 - 1,965,883 2,070,230 Culture and recreation 37,645 - 1,281,094 1,318,739 Total expenditures 17,619,897 215,032 6,607,880 24,442,809 Excess(Deficiency)of Revenues Over Expenditures (52,315) 906,049 (4,858,788) (4,005,054) Other Financing Sources(Uses) Transfers in 3,162,425 - 2,735,534 5,897,959 Transfers out (2,222,987) (1,323,517) (668,606) (4,215,110) `:, Capital leases 241,335 - 259,265 500,600 Notes payable - - 357,652 357,652 Refunding bonds issued - - 1,360,000 1,360,000 Payment to refunded bond escrow agent - - (1,349,709) (1,349,709) Net other financing sources(uses) 1,180,773 (1,323,517) 2,694,136 2,551,392 Net Change in Fund Balances 1,128,458 (417,468) (2,164,652) (1,453,662) Fund Balances-Beginning 4,794,229 6,107,027 9,011,998 19,913,254 Fund Balances-Ending $ 5,922,687 $ 5,689,559 $ 6,847,346 $ 18,459,592 The accompanying Notes to Financial Statements are an integral part of these statements. 17 CITY OF OCOEE, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended September 30, 2003 Amounts reported for the governmental activities in the statement of activities(page 16)are different because: Net change in fund balances-total governmental funds(page 18) $ (1,453,662) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 2,829,224 The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, discounts, and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 238,364 The net effect of various transactions involving capital assets (i.e. sales, trade-ins, and transfers) is to decrease net assets (169,076) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (38,706) Change in net assets of governmental activities(page 16) $ 1,406,144 The accompanying Notes to Financial Statements are an integral part of these statements. 18 CITY OF OCOEE, FLORIDA GENERAL FUND STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended September 30, 2003 Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes: Property $ 5,099,405 $ 5,099,405 $ 5,047,518 $ (51,887) Franchise 1,641,700 1,641,700 1,537,248 (104,452) Utility 1,897,565 1,897,565 1,814,197 (83,368) 8,638,670 8,638,670 8,398,963 (239,707) Permits and Licenses Building 826,800 826,800 954,882 128,082 Occupational 395,000 395,000 394,364 (636) 1,221,800 1,221,800 1,349,246 127,446 Intergovernmental revenues: Sales tax 3,265,000 3,265,000 3,317,825 52,825 State revenue sharing 1,988,545 1,988,545 2,146,227 157,682 Other state shared revenue 152,530 152,530 167,529 14,999 Other county shared revenue 1,010,000 1,010,000 1,035,024 25,024 Federal grants 135,675 135,675 180,034 44,359 6,551,750 6,551,750 6,846,639 294,889 Charges for services: Fire Contract 131,585 131,585 131,586 1 Program activity fees 233,700 233,700 225,217 (8,483) Develop. Review 53,000 53,000 76,020 23,020 Misc 15,700 15,700 69,575 53,875 433,985 433,985 502,398 68,413 Fines and forfeitures: Fines and forfeitures 221,200 221,200 224,453 3,253 Investment income 115,000 115,000 111,068 (3,932) Miscellaneous 132,100 132,100 134,815 2,715 Total revenues $ 17,314,505 $ 17,314,505 $ 17,567,582 $ 253,077 The accompanying Notes to Financial Statements are an integral part of these statements. 19 Variance With Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: Current: General government: Legislative $ 167,860 $ 186,625 $ 176,937 $ 9,688 Executive 837,225 838,425 791,752 46,673 Finance 1,659,800 1,659,800 1,553,768 106,032 Legal 329,500 337,525 280,505 57,020 Comm Dev 556,315 556,315 513,335 42,980 General services 734,140 740,350 352,697 387,653 Bldg Maint 328,795 370,795 344,139 26,656 4,613,635 4,689,835 4,013,133 676,702 Public safety: Police 6,280,210 6,303,560 5,833,936 469,624 Fire 3,709,590 3,720,040 3,602,912 117,128 Inspections 896,475 951,475 876,466 75,009 10,886,275 10,975,075 10,313,314 661,761 Physical environment: Public Works 1,693,830 1,693,830 1,460,984 232,846 Culture and recreation: Parks and recreation 1,796,035 1,796,035 1,591,133 204,902 Total expenditures 18,989,775 19,154,775 17,378,564 1,776,211 Excess(Deficiency)of Revenues Over Expenditures (1,675,270) (1,840,270) 189,018 2,029,288 Other Financing Sources(Uses) Transfers in 3,439,525 3,439,525 3,162,425 (277,100) Tansfers out (2,264,255) (2,099,255) (2,222,985) 41,270 Net other financing sources(uses) 1,175,270 1,340,270 939,440 (235,830) Net Change in Fund Balance (500,000) (500,000) 1,128,458 1,793,458 Fund Balances-Beginning 4,794,229 4,794,229 4,794,229 - Fund Balances-Ending $ 4,294,229 $ 4,294,229 $ 5,922,687 $ 1,793,458 The accompanying Notes to Financial Statements are an integral part of these statements. 20 CITY OF OCOEE, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS September 30, 2003 Business-type Activities-Enterprise Funds Water and Solid Wastewater Waste Stormwater Fund Fund Fund Total Assets Current assets: Cash and cash equivalents $ 634,564 $ 1,494,272 $ 936,355 $ 3,065,191 Cash with fiscal agent 915,078 - 166,844 1,081,922 Investments 1,011,316 314,303 102,665 1,428,284 Receivables, net 554,780 137,734 108,965 801,479 Due from other funds 145,429 - - 145,429 Inventories 22,152 - - 22,152 Prepaid Items 172 - - 172 Restricted cash and cash equivalents 416,883 - - 416,883 , Total current assets 3,700,374 1,946,309 1,314,829 6,961,512 Noncurrent assets: Restricted cash and cash equivalents 1,642,692 - 696,575 2,339,267 Restricted investments 4,619,497 - 18,639 4,638,136 Total restricted assets 6,262,189 - 715,214 6,977,403 Assessments receivable 44,785 - - 44,785 Bond issuance costs 438,965 - 25,188 464,153 Capital assets: Land, buildings and equipment 50,717,314 1,587,873 41,550,870 93,856,057 Construction in progress 2,561,007 - 197,666 2,758,673 Less accumulated depreciation (18,537,511) (1,529,675) (11,989,878) (32,057,064) Total capital assets(net of depreciation ) 34,740,810 58,198 29,758,658 64,557,666 Total noncurrent assets 41,486,749 58,198 30,499,060 72,044,007 Total assets $ 45,187,123 $ 2,004,507 $ 31,813,889 $ 79,005,519 The accompanying Notes to Financial Statements are an integral part of these statements. 21 Business-type Activities-Enterprise Funds Water and Solid Stormwater Sewer Utility Waste Utility Fund Fund Fund Total Liabilities Current liabilities: Accounts payable $ 15,102 $ 33,058 $ 1,894 $ 50,054 Accrued liabilities 182,302 69,143 44,023 295,468 Retainage Payable 40,833 - 100 40,933 Matured bonds payable 485,000 - 155,000 640,000 Matured interest payable 430,078 - 11,844 441,922 Capital lease-current 48,284 41,280 69,989 159,553 Total current liabilities 1,201,599 143,481 282,850 1,627,930 Current liabilities payable from restricted assets: Customer deposits payable 416,883 - - 416,883 Total current liabilities payable from restricted assets 416,883 - - 416,883 Noncurrent liabilities: Revenue bonds payable(net of discount) 14,895,984 - 1,340,000 16,235,984 Capital lease 40,452 94,916 65,663 201,031 Total noncurrent liabilities 14,936,436 94,916 1,405,663 16,437,015 Total liabilities 16,554,918 238,397 1,688,513 18,481,828 Net Assets Invested in capital assets, net of related debt 19,271,090 - 28,128,005 47,399,095 Restricted 118,886 - - 118,886 Unrestricted 9,242,229 1,766,110 1,997,371 13,005,710 Total net assets $ 28,632,205 $ 1,766,110 $ 30,125,376 $ 60,523,691 The accompanying Notes to Financial Statements are an integral part of these statements. 22 CITY OF OCOEE, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS-PROPRIETARY FUNDS For The Year Ended September 30, 2003 Business-type Activities-Enterprise Funds Water and Wastewater Solid Waste Stormwater Fund Fund Fund Total Operating Revenues: User charges $ 5,332,619 $ 1,748,079 $ 1,248,385 $ 8,329,083 Operating Expenses: Salaries and benefits 1,391,352 608,970 271,035 2,271,357 Materials and supplies 590,774 410,573 37,609 1,038,956 Depreciation and amortization 1,909,290 54,477 1,405,911 3,369,678 Other operating expenses 879,214 298,629 120,803 1,298,646 Total operating expenses 4,770,630 1,372,649 1,835,358 7,978,637 Operating income(loss) 561,989 375,430 (586,973) 350,446 Nonoperating Revenue(Expenses): Investment income 143,642 14,808 14,161 172,611 Interest expense (770,246) (1,741) (55,903) (827,890) Grant revenue 10,000 228 - 10,228 Gain(loss)on disposal of capital assets (17,861) - - (17,861) Total nonoperating revenue(expense) (634,465) 13,295 (41,742) (662,912) Income(loss)before contributions and transfers (72,476) 388,725 (628,715) (312,466) Connection fees 76,709 - - 76,709 Contribution of capital assets 562,437 - - 562,437 Transfers in 61,500 - - 61,500 Transfers out (1,221,513) (283,104) (239,732) (1,744,349) Change in net assets (593,343) 105,621 (868,447) (1,356,169) Total Net Assets-Beginning 29,225,548 1,660,489 30,993,823 61,879,860 Total Net Assets-End $ 28,632,205 $ 1,766,110 $ 30,125,376 $ 60,523,691 • • The accompanying Notes to Financial Statements are an integral part of these statements. 23 CITY OF OCOEE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended September 30, 2003 Business-type Activities-Enterprise Funds Water and Wastewater Solid Waste Stormwater ' Fund Fund Fund Total Cash Flows from Operating Activities: Receipts from customers $ 5,254,290 $ 1,756,291 $ 1,241,804 $ 8,252,385 Payments to suppliers (1,532,145) (693,584) (168,058) (2,393,787) Payments to employees (1,439,397) (594,253) (241,773) (2,275,423) Net cash provided by operating activities 2,282,748 468,454 831,973 3,583,175 Cash Flows from Non-Capital Financing Activities: Net operating transfers in 61,500 - - 61,500 Net operating transfers out (1,221,513) (283,104) (239,732) (1,744,349) Increase in due from other funds (145,529) - - (145,529) Decrease in due to other funds - 228 - 228 Net cash provided(used)by non-capital financing activities (1,305,542) (282,876) (239,732) (1,828,150) Cash Flows from Capital and Related Financing Activities: Proceeds from sale of capital assets 29,521 - - 29,521 Acquisition of capital assets (412,116) (3,638) (131,750) (547,504) Capital tease proceeds 47,074 147,754 83,650 278,478 Proceeds from issuance of bods&notes - - 1,495,000 1,495,000 Principal paid on bonds,notes&leases (508,172) (38,400) (1,717,487) (2,264,059) Interest paid on bonds,notes&leases (772,145) (1,741) (65,189) (839,075) Additions to bond issue costs - - (28,337) (28,337) Connection fees 76,709 - - 76,709 Cash received assessments receivable 1,548 - - 1,548 Net cash provided(used)by capital and related financing activities (1,537,581) 103,975 (364,113) (1,797,719) Cash Flows from Investing Activities: Sale of investments - 297,341 155,941 453,282 Purchase of investments (316,897) - - (316,897) Investment income 143,642 14,808 12,579 171,029 Net cash provided(used)by investing activities (173,255) 312,149 168,520 307,414 Net Increase(Decrease)in Cash and Cash Equivalents (733,630) 601,702 396,648 264,720 Cash and Cash Equivalents-Beginning 4,342,847 892,570 1,403,126 6,638,543 Cash and Cash Equivalents-End $ 3,609,217 $ 1,494,272 $ 1,799,774 $ 6,903,263 Classified As: Current assets $ 1,966,525 $ 1,494,272 $ 1,103,199 $ 4,563,996 Restricted assets 1,642,692 - 696,575 2,339,267 Total $ 3,609,217 $ 1,494,272 $ 1,799,774 $ 6,903,263 (continued) The accompanying Notes to Financial Statements are an integral part of these statements. 24 • Business-type Activities-Enterprise Funds Water and Wastewater Solid Waste Stormwater Fund Fund Fund Total Reconciliation of Operating Income (Loss)to Net Cash Provided By Operating Activities Operating income(loss) $ 561,989 $ 375,430 $ (586,973) $ 350,446 Adjustments Not Affecting Cash: Depreciation 1,884,266 54,477 1,402,762 3,341,505 Amortization 25,024 - 3,149 28,173 Change in Assets and Liabilities: (Increase)decrease in accounts receivable (75,494) 8,212 (6,581) (73,863) (Increase)decrease in prepaid items (101) - - (101) Increase(decrease) in accounts payable (62,056) 15,618 (9,646) (56,084) Increase(decrease)in accrued liabilities (48,045) 14,717 29,262 (4,066) (Decrease)in customer deposits (2,835) - - (2,835) Total adjustments 1,720,759 93,024 1,418,946 3,232,729 Net Cash Provided by Operating Activities $ 2,282,748 $ 468,454 $ 831,973 $ 3,583,175 -ass Noncash Investing,Capital and Financing Activities: Contibuted capital assets $ 562,437 $ - $ 357,148 $ 919,585 Increase infair value of investments - - 1,582 1,582 25 CITY OF OCOEE, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND September 30, 2003 Total Employee Pension Funds Assets: Cash and cash equivalents $ 741,931 Receivables: Plan members contributions - Investments, at fair value: Common funds-equity 12,049,475 Common funds-bonds 7,322,547 Total investments 19,372,022 Total assets 19,372,022 Liabilities - Net Assets: Held in trust for pension benefits $ 20,113,953 26 CITY OF OCOEE, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2003 Total Employee Pension Funds Additions: Contributions: Employer $ 1,369,442 Plan members 815,868 State 235,958 Gain on Investments 1,951,850 Total contributions 4,373,118 Investment income: Net depreciation in fair value of investments Interest 12,413 Net investment income 12,413 Total additions 4,385,531 Deductions: Benefits 649,811 Administrative expenses 173,372 Total deductions 823,183 Change in Net Assets 3,562,348 Net Assets -Beginning 16,551,605 Net Assets -End $ 20,113,953 The accompanying Notes to Financial Statements are an integral part of these statements. 27 NOTES TO FINANCIAL STATEMENTS This page intentionally left blank. e Center of Good Lt � g , CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNT$ September 30, 2003 Note 1 -Summary of Significant Accounting Policies: A. Reporting Entity The City of Ocoee, Florida ("the City")is a political subdivision of the state of Florida located in Orange County, and was established by the Laws of Florida 10951 (1925). The legislative branch of the City is comprised of a five-member elected Commission, which is governed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of policy; the execution of such policy is the responsibility of the City Manager appointed by the Commission. In evaluating how to define the government, for financial reporting purposes, the City has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organizations' resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. In applying the above criteria, management has determined that there are no components units to be included within the reporting entity. 28 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntinuart September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): B. Government-Wide and Fund Financial Statements The City is implementing Governmental Standards Board Statement Number 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments (GASB 34) that requires a change in the reporting format. The government- wide and fund financial statements along with the notes to financial statements comprise the basic financial statements. As a part of a phased implementation of this Statement, there is a new reporting requirement regarding the government's infrastructure (roads, bridges, traffic signals, etc.). This requirement permits an optional four-year further delay for implementation. The City is electing to implement both the basic model and the infrastructure-related portion at September 30, 2003. The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus,Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. • 29 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Centinusti September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. The government reports the following funds: Maier Gnvsrnmsntal Plinth{ The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Road Impact Fee Revenue Fund accounts for fees on new development to defray the cost of future road construction as a result of growth. Nen-Maier Governmental Funds Special Revenue Funds account for specific revenue sources that are restricted by law or administrative action to expenditures for specific purposes. Debt Service Funds account for the accumulation of resources for, and the payment of principal and interest on certain long-term debt. Capital Projects Funds account for financial resources segregated for the acquisition or construction of major capital facilities. 30 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Centinuad September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Major Prnprietary Funds The Water and Wastewater Utility Fund is used to account for the operations of the City's water and wastewater systems, which are financed in a manner similar to private business enterprises, where the costs, including depreciation, of providing services to the general public on an ongoing basis are financed primarily through user charges. The Stormwater Utility Fund accounts for the operation and maintenance of the City's stormwater system and payment of related debt. The Solid Waste Utility Fund accounts for the operation and maintenance of the City's solid waste collection and disposal system. Fiduciary Funds The Pension Trust Funds account for activities of police officers, firefighters and general employees retirement plans which accumulate resources for pension benefit payments to qualified employee. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are other charges between the City's water and Wastewater function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 31 CITY OF OCOEE, FLORIDA MOWS TO FINANCIAL STATFMFNTS - Cnntinuer( September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's water, Wastewater and stormwater utility funds are charges to customers for sales and services. 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 nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity 1. Deposits and Investments The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Investments of the City are reported at fair value. The City's investments consist of investments authorized per their investment policy adopted in accordance with Section 218.415, Florida Statutes. 2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 32 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Cnn in i _d September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity—(Continued) All receivables are shown net of an allowance for uncollectibles. 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. 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. 3. Inventories and Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Restricted assets Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. Assets so designated are identified as restricted assets on the balance sheet. 5. Capital assets • Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of$1500 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 33 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntinuer( September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity— (Continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Total interest expense incurred by business-type activities during the current year was $873,939. Of this amount, $103,693 was included as part of cost of capital assets under construction in connection with water and wastewater projects. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 10-30 Improvements 20-40 Infrastructure 30-50 Equipment 5-10 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Since the City's policy is to pay both vacation and sick pay when employees separate from service, all vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental activities, compensated absences are generally liquidated by the General Fund. 7. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 34 CITY OF OCOEE, FLORIDA • • . _ . _ _ ,i . - • • • " September 30, 2003 Note 1 -Summary of Significant Accounting Policies (Continued): D. Assets, Liabilities, and Net Assets or Equity—(Continued) 7. Long-term obligations (continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Note 2—Reconciliation of Government-Wide and Fund Financial Statements: A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government—Wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net assets- governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that "long-term liabilities are not due and payable in the current period and therefore are not reported in the funds? The details of this$33,442,772 difference are as follows: Bonds payable $29,495,000 Less: Deferred charge for issuance costs (to be amortized over life of debt) (28,786) Notes payable 2,636,886 Capital leases payable 697,610 Compensated absences 2 Net adjustment to reduce fund balance- total governmental funds to arrive at net assets- governmental activities S'43,449 779 35 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATFMFNTS - Cnntinuart September 30, 2003 Note 2 — Reconciliation of Government-Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $2,829,224 difference are as follows: Capital outlay $5,083,027 Depreciation expense (2 253.803) Net adjustment to increase net changes in fund balances- total governmental funds to arrive at changes in net assets of governmental activities 12.452222g Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this$238,364 difference are as follows: Debt issued or incurred: Issuance of bonds and notes $ 1,717,652 Less bond issuance costs (31,185) tpital leases 500,600 Principal repayment (2,425.431) Net adjustment to increase net changes in fund balances—total governmental funds to arrive at changes in net assets of governmental activities $ 23 36 • CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntirmart September 30, 2003 Note 2 — Reconciliation of Government-Wide and Fund Financial Statements (Continued): B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities(continued) Another element of that reconciliation states "Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds." The details of this $(38,706) difference are as follows: Compensated absences $(36,307) Amortization of issuance costs 9,399) Net adjustment to decrease net changes in fund balances— total governmental funds to arrive at changes in net assets of governmental activities $( ) Note 3—Stewardship, Compliance, and Accountability: A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end. The City follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. 1. Prior to August 1st, the City Manager submits to the City Commission a proposed operating budget for the fiscal year commencing the following October 1st. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayers comments.. 3. On or before September 30th of each year, the public hearings are completed and the Commission adopts the final budget and establishes the ad valorem tax millage. 4. The City cannot legally exceed the budget; however, the City Manager is authorized to transfer budgeted amounts within departments within any fund. The City Commission must approve revisions that alter the total expenditures of any department. The legal level of budgetary control is the department level. 5. Budgets are adopted for the General Fund and Enterprise Funds. 37 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - CnntinuArL September 30, 2003 Note 4- Budget Basis of Accounting The General Fund budget is prepared on a budgetary basis, whereby encumbrances are treated as budgeted expenditures in the year of incurrence of the commitment to purchase. In addition, the City includes a portion of the prior year's fund balance represented by unappropriated liquid assets remaining in the fund as budgeted revenue in the succeeding year. The results of operations on a GAAP basis do not recognize the fund balance allocation as revenue as it represents prior periods' excess of revenues over expenditures. Also, the City does not budget for capital outlay expenditures and other financing sources related to the acquisition of assets through capital leases. For the 2003 fiscal year, the following adjustments were necessary to convert General Fund expenditures on the GAAP basis to the budgetary basis: Other Financing Expenditures Sources(Uses) General Fund: GAAP Basis 17,619,897 1,180,773 Nonbudgeted capital lease transactions (241,335) (241.335) Budgetary Basis 17,378,562 939,438 Note 5-Deposits and Investments: Deposits At year-end, the carrying amount of the City's deposits was $1,840,998 and the bank balance was $3,448,988. All bank deposits were covered by Federal Depository Insurance or held in banks that are members of the State of Florida's Collateral Pool as specified under Florida law. This limits local government deposits to "qualified public depositories." The State of Florida Collateral Pool is a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. For this reason,the City considers its deposits insured or collateralized. )nvpatmpntsk The City's investment policy applies to all cash and investments held or controlled by the City, and does not include the City's Pension Funds and funds related to the issuance of debt where there are other existing policies or indentures in effect. The following levels of credit risk apply to the investments of the City: Category 1 Insured or registered, held by the City or its agent in the City's name. 38 CITY OF OCOEE, FLORIDA JNOTFS TO FINANCIAL STATFMFNTS - Centinupd September 30, 2003 Note 5—Deposits and Investments (Continued): Jnvestmants (Continued} Category 9 Includes uninsured or unregistered, held by a counterparty's trust department or agent in the City's name. Category 3 Includes uninsured and unregistered, held by a counterparty or 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. Investments are carried at fair value. The following schedule shows the City's investments at September 30, 2003 classified where appropriate as to their respective level of credit risk. Carrying Category 1 Category 2 Category 3 Amount Repurchase Agreements $ - $ - $15,946,870 $15,946,870 U.S.Government Obligations ___111462.4.22 - - 10.E : 116f12.422 $ $15.946.87Q $26,609,362 Mutual Funds investing in U.S. Gov't Securities 6,021,121 Pension Funds investing in commingled bond and stock funds 19,372,022 Money Market Funds 11.909 • $52 014 494 Note 6—Receivables: Receivables as of year end for the City's individual major funds and nonmajor and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Road Water and Solid Nonmajor General Impact Wastewate Waste Stormwater And Other Eund Eund r Utility Fund Fund Fundi Intal Eund Receivables: Accounts $167,440 $18,019. $594,666 $157,182 $113,974 $1,589,708 $2,260,989 Less allowance for uncollectible (15.000) - (39,880) (19.448) j5 0091 - (79.343) accounts $152.440 $18.019 $554780 1121,34 734 $1nR 965 S1 589 Ana R� 1 R4R 39 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntinuari September 30, 2003 Note 7—Capital Assets: Capital asset activity for the year ended September 30, 2003 was as follows: Beginning Balance Ending (Restated) increases Decreases }3alanrrt Governmental activities: Capital assets, not being depreciated: Land $16,664,961 $679,722 $ - $17,344,683 Construction in progress 12,553,829 3.133270 - 15 687,099 Total capital assets, not being depreciated 29718,790 3,$ 2992 - 33,031782 Capital assets, being depreciated: Buildings 7,807,974 15,854 - 7,823,828 Improvements 3,066,664 21,000 - 3,087,664 Machinery and equipment 9,283,011 548,905 (189,504) 9,642,412 Infrastructure 69}323,094 684,276 - 70,007 370 Total capital assets, being depreciated 89,480,743 1,270,035 (189504) 9Q561274 Less accumulated depreciation for: Buildings (1,035,834) (158,937) - (1,194,771) Improvements (641,007) (66,755) - (707,762) Machinery and equipment (5,411,894) (517,386) 20,428 (5,908,852) Infrastructure (11898,065) (1510.725) - (13408.790) Total accumulated depreciation (18,986 800) (2953,803) 20,428 (21,220,175 Total capital assets, being depreciated, net 70,493,943 (983,768) (169,076) $69,3414)99 Governmental activities capital assets, net 199_712233 $2 829 224 =Up=07R1 11(17 372 RR1 40 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntiniiuri September 30, 2003 Note 7—Capital Assets (Continued): Beginning Balance Ending (Restated) Increase Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $ 4,163,808 $ - $ - $ 4,163,808 Construction in progress 2,403.178 355A95 - 2.751{673 Total capital assets, not being depreciated 6,566,986 355.495 - 6922,481 Capital assets, being depreciated: Buildings 13,589,199 - - 13,589,199 Improvements 70,959,887 914,487 - 71,874,374 Machinery and equipment 4,248549 197.109 (216.9821 4928 676 Total capital assets, being depreciated 88 797$35 1.1111596 (216,982) 89,692,249 Less accumulated depreciation for: Buildings (4,265,109) (512,446) - (4,777,555) Improvements (21,143,451) (2,574,207) - (23,717,658) Machinery and equipment (3 457,723) (254.852) 150.724 (3,561,851) Total accumulated depreciation (28,866,283) (3,341,5051 150.724 02,057,064) Total capital assets, being depreciated, net 59,931;352 (2,229,9091 (66.258) 57,635,185 Business-type activities capital assets, netRR 4---4QR, R $(1.874.414) x486258) $64 557 666 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 132,675 Public safety 320,944 Physical environment 1,692,006 Culture and recreation 108,178 Total depreciation expense - governmental activities $2253_803 Business-type activities: Water and Wastewater $1,884,266 Solid Waste 54,477 Stormwater 1,402,762 Total depreciation expense— business-type activities $3.341505 41 CITY OF OCOEE, FLORIDA NOTES Tfl EINANCIAI STATEMENTS - .nntinusd September 30, 2003 Note 8—Leases: Capital Leases - The City has entered into lease agreements as lessee for financing the 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 their future minimum lease payments as of the inception date. The assets acquired through capital leases are as follows: Governmental Business-type Activities Activities Assets- Machinery&equipment $ 1,270,254 $449,139 Less: accumulated depreciation (211,867) (138 103) Total $ 1 f 15R 1R7 Amortization of equipment leased and capital leases is included in depreciation expense. The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2003 were as follows: Governmental Business-type Activities Activities Year Ending Septemher 30 2004 $365,404 $ 168,287 2005 197,239 98,087 2006 131,246 73,000 2007 31, 31 36,500 Total minimum lease payments 725,520 375,874 Less: Amount representing interest (27,910) (15,290) W27.1111 S360-58.4 tti 42 CITY OF OCOEE, FLORIDA September 30, 2003 Note 9-Long Term Debt: Revenue Benda The City issues bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds have been issued for both governmental and business-type activities. The original amount of revenue bonds issued in prior years is described below. During the year ended September 30, 2003, $1,360,000 of refunding revenue bonds were issued to currently refund $1,325,000 of the City's outstanding Transportation Revenue Bonds, Series 1990. Revenue bonds outstanding at year end are as follows: Interest Balance Rates and Original September Dan JIAattirity Amount in, 2nn$ GovemmPntal Ac.tivitips Transportation Refunding 3.35-4.5% 10/1/99- Revenue Bonds—Series 1990 (4/1 & 10/1) 10/1/28 S.1.925.511011 Ann $ 17,825,000 Capital Improvement Refunding 3.0—4.75% 10/1/99- Revenue Bonds—Series 1999 (4/1 & 10/1) 10/1/28 VIAL= $10,375,000 Transportation Refunding 3.69% 10/1/03- Revenue Bonds—Series 2002 (10/1) 10/1/15 $= 1295,000 Total S21.42101:14 5 nnn Business-Tyne Activities Water and Wastewater Refunding and Improvement Revenue Bonds— 2.6-5.75% 10/1/93- Series 1993 (4/1 & 10/1) 10/1/17 =al= $ 6,120,000 Water and Wastewater 3.6-5.62% Improvement (4/1 & 10/1) 10/1/97 - Revenue Bonds—Series 1997 10/1x/26 :alum= 8945,000 Total 115_0651M 43 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Continuer( September 30, 2003 Note 9—Long-Term Debt(Continued): Revenue Randa (Continued) Annual debt service requirements to maturity for revenue bonds are as follows: Year Ending Govemmental Activiti _s B usin _ss-Type Activities September 30. Principe( Interest Principe( Interest 2004 $ 680,000 $1,306,378 $ 510,000 $ 836,136 2005 705,000 1,278,427 535,000 810,266 ' 2006 730,000 1,252,226 560,000 782,796 2007 760,000 1,224,463 590,000 753,376 2008 785,000 1,195,428 625,000 721,251 2009-2013 4,435,000 5,476,792 3,675,000 3,049,056 2014-2018 5,565,000 4,420,929 4,180,000 1,898,131 2019-2023 7,035,000 3,015,713 2,515,000 967,219 2024-2028 8800,000 1,247 562 1,875_000 214,875 $714Q.5,n02 $20_417-9111 S15 n65 nnn S10...033.106 Notes Peyehi The City has notes payable for both governmental and business-type activities. During the year ended September 30, 2003, the City restructured its Stormwater Utility Revenue Notes, Series 1996. Notes payable outstanding at year end are as follows: Govemmental Activities Coca Cola Property Improvements- Interest only payable quarterly through 12/01/04 at 90 day LIBOR plus 78 points 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. Principal payments start 12/01/04 through 12/01/10 , 9 KA.Mg Business—Tyne Activities Restructured Stormwater Utility Revenue Promissory Note, Series 1996- payable in annual principal installments of$155,000 to $185,000 through 2011 with a variable rate of interest. City entered into an interest rate swap agreement for purpose of converting variable rate interest into fixed rate payment at 3.1% $.1.34a.000 nnn 44 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATEMENTS - Continuer( September 30, 2003 Note 9—Long-Term Debt(Continued): Notes Payable(cnntinued) Annual debt service requirements to maturity for notes payable are as follows: Year Ending Governmental Activities Business-Type Activities September 30 Principal Irterest Principal Irterest 2004 $ - $64,065 $150,000 $41,540 2005 64,065 155,000 36,890 2006 376,698 64,065 160,000 32,085 2007 376,698 64,065 165,000 27,125 2008 376,698 64,065 170,000 22,010 2009-2013 1,506.794 2561 6033'790 54D.Q!?Il QM= $fi7R 5R $1 '3an 000 $193,440 Currant Refunding The City issued $1,360,000 of Transportation Refunding Revenue Bonds, Series 2002 for a current refunding of $1,325,000 Transportation Refunding and Improvement Revenue Bonds, Series 1990. The refunding was undertaken to reduce total future debt service payments. The transaction resulted in an economic gain of$274,804 and a reduction of $355,306 in future debt service payments. The City also currently refunded the outstanding principal amount of $1,530,000 of the Stormwater Utility Revenue Notes, Series 1996. The refunding was undertaken in order to realize a significant net interest cost savings. Contemporaneously with the issuance of the Restructured Stormwater Utility Revenue Promissory Note, the City entered into an interest rate swap agreement for the purpose of converting the variable interest payments into fixed rate payments for the entire term of the note. The transaction resulted in an economic gain of$138,385 and a reduction of$240,878 in future debt service payments. 45 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMENTS . Cnntinnevi September 30, 2003 Note 9—Long-Term Debt(Continued): Changes in 1 nng-Tenn I iahilitiesk Long-term liability activity for the year ended September 30, 2003 was as follows: Due Within Beginning Ending One Year Balance AdditinnR Red,ic tionR Balance Governmental activities: Bonds payable- Revenue bonds *$30,090,000 $ 1,360,000 $ (1,955,000) $29,495,000 $680,000 Notes payable- Capital improvement notes 2,279,234 357,652 - 2,636,886 Capital lease 667,441 500,600 (470,431) 697,610 347,529 Compensated absences 605 755 3ti307 - 641 062 64 000 Governmental activity long-term liabilities L33�? $ 2 254 55a $. (2.425.431) IM471 MR $1.091.529. Business-type activities: Bonds payable- Revenue bonds $15,550,000 - $(485,000) $15,065,000 $510,000 Less deferred amounts: For issuance discount (178277) - 9;261 (169,016) - Total bonds payable 15,371,723 - (475,739) 14,895,984 510,000 Note Payable- Stormwater Fund 1,530,000 1,495,000 (1,685,000) 1,340,000 150,000 Capital lease 226,166 278,478 (144,060) 360,584 159,553 Compensated absences 224_887 - (1Q123) 214 764 21,1)00 Business-type activity long-term liabilities 117 352 77R 1.1.27.3.428 4 A ) =M=2 8 332 5840 553 Note 10—Interfund Receivables, Payables and Transfers: The composition of due to/from at September 30, 2003 is as follows: Receivable F and Payable Ft mart Amount Water/Wastewater Bond Transportation Capital Projects $145,429 46 CITY OF OCOEE, FLORIDA NOTES TO FINANCIAL STATFMFNTS - Continuer( September 30, 2003 Note 10—Interfund Receivables, Payables and Transfers: Interfund transfers for the year ended September 30, 2003 consisted of the following: Water and General Nonmajor Wastewater Fund Governmental Fund T,`tal Transfer Out: General Fund $ - $2,161,487 $61,500 $2,222,987 • Road Impact Special Revenue Fund 1,323,517 - - 1,323,517 Nonmajor _ Governmental 94,559 574,047 668,606 Water and Wastewater 1,221,513 - - 1,221,513 Solid Waste Fund 283,104 - - 283,104 Stormwater Fund ?39732 - - _239232 Total 1.1E242.5 73F03/1 AlSnn 5 A Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) move receipts restricted to debt service from the funds as debt service payments become due. Note 11 —Retirement Plans: Defined R nefi 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 employees who 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 at September 30, 2003 to be reserved for general employees and police and fire pension funds are $8,883,712 and $11,230,241, respectively. 47 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntinuad September 30, 2003 Note 11 —Defined Benefit Pension Plan and Trust(Continued): Summary of Significant Accounting Principle The Plan's 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 formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. All Plan investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments without an established market are reported at estimated fair value. Funding Policy Both plans are contributory. The employees participating in the General Employees Pension Plan are required to contribute 7.4% of their salary. The City is required to contribute at an actuarially determined rate, currently at 11.3% of annual covered payroll. The Police and Fire Pension Plan funding and determination of benefits payable are provided in the various acts of the Florida Legislature. 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, currently at 17.1%, including expected State contribution, of annual covered payroll. Costs to administer the plans are deducted from net assets of the respective plans. Membership in both plans consisted of the following at October 1, 2002: General Police and • Members: Employees Fire Retirees and beneficiaries receiving benefits 19 8 Members In Drop Plan 1 3 Terminated plan members entitled to but not receiving benefits 10 8 Active plan members: 145 94 Vested 2Q 12 Non-vested 125 125 48 CITY OF OCOEE, FLORIDA NOTFS TO FINANCIAL STATFMFNTS - Cnntinupft September 30, 2003 Note 11 —Defined Benefit Pension Plan (Continued): Annual Pension Cost and Net Pension Obligation — The City has contributed the Annual Required Contribution (ARC) since inception of the plan on October 1, 1997, and thus has not had or had need to report, a Net Pension Obligation (NPO). Required supplementary information is as follows: SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES 1 General Fmpinyeas _Pali a Officers A Firefighter` Annual Annual Year Ended Required Percent Required Percent ,Spptamhpr 3ft CentrihutinnR Cnntrihutprt Cnntrihutianc Contrihutp4 2003 $617,788 100% $ 917,305 100% 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% 562,447 100% 1997 305,213 100% 470,396 100% ,$chpdula of Funding Prngrasot Actuarial UAAL as Actuarial Accrued Unfunded a %of Actuarial Value of (AAL) AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date —01:a)-- (a/h) ____(r) (balk General Fund 10/01/02 $8,713,006 $10,316,494 $1,603,488 84.46% $5,797,477 27.66% f 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% 4,895,277 30.26% 10/01/99 5,542,993 7,027,304 1,484,311 78.88% 4,785,675 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% E Police Officers and Firefighters 10/01/02 $10,735,795 $12,075,960 $1,340,164 88.90% $4,681,010 28.63% 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 5160,384 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% f 10/01/96 2,661,713 3,492,197 830,484 76.22% 2,428,615 34.20% 49 CITY OF OCOEE, FLORIDA NOTES TO FINAN .IAI STATEMENTS - nn}inupd September 30, 2003 Note 11 — Defined Benefit Pension Plan (Continued): Notes to Required Supplementary Information- The information presented in the required supplementary schedules was determined as part of the actuarial valuation at the date indicated. Additional information as of the latest (October 1, 2002) actuarial valuation follows: Assumptions: Investment Earnings 8% Salary Increases - Inflation 3% Postretirement Benefit Increases 0% Mortality Table 1983 Group Annuity Mortality Table Actuarial Valuation: Frequency Annual Cost Method Frozen Entry Age Amortization Method Level Percentage of Projected Payroll Amortization Period 30 Years Smoothed Asset Valuation Method Market Value Note 12—Deferred Compensation Plan: The City offers its employees three deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are administered by Public Employees Benefits Service Corporation (PEBSCO), ICMA Retirement Corporation, and Hartford. The plans permit participants 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. Because the Plan Assets are held in trust for the exclusive benefit of plan participants and their beneficiaries, the Plan is not accounted for in the City's fund financials. 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 above is transferred by the City to various commercial insurers through the purchase of insurance. There has been no significant reduction in insurance coverage from the previous year. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. 50 CITY OF OCOEE, FLORIDA hIOTFS TO FINANCIAL STATFMFNTS - Cnntinuert September 30, 2003 Note 14—Contingent Liabilities: Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of Florida. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. However, there is one lawsuit regarding interim service fees collected by the City in prior years which is not covered by the City's insurance carrier. The City may have to refund interim services fees collected in the amount of $160,000. A liability for this potential refund was not recorded since it is not known if the City will be required by the courts to refund amounts collected. The City is also defendant in a lawsuit with a contractor on the Maguire Road project. The contractor has filed suit for additional compensation in excess of $2,000,000. The City has certain rights of indemnification against another contractor on this project and has filed suit against the contractor. The City's counsel is unable to predict either the likelihood that the City will prevail in the case or the potential liability that the City will face if the plaintiff prevails. If the City is required to pay amounts as a result of this lawsuit, they will be paid from road impact fee, not from the general fund. Note 15—Commitments: At September 30, 2003, the City had entered into contracts for construction in the amount of $2,422,400. 51 Non Major Governmental Funds Special Revenue Funds Fire Impact - Accounts for Fire Impact fees collected and for disbursements made for the purpose of acquisition of facilities and equipment determined to be needed to provide fire protection for new development within the City. Police Impact - Accounts for Police Impact fees collected and for disbursements made for the purpose of acquisition of facilities and equipment determined to be needed to provide police protection for new development within the City. Ocoee Recreation - Accounts for fees collected for various athletic leagues. Recreation - Accounts for the land and/or money received from owners or developers as a recreational facilities assessment when lands are subdivided within the City. Funds must be used for the improvement or expansion of City parks. 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. Police Training - Accounts for the revenues received pursuant to F.S. 943.25(8) which imposes a $2.00 court cost against every person convicted for violation of state penal or criminal statute or convicted of a municipal or county ordinance violation where said offense occurred within the City of Ocoee. Funds must be used to educate and train law enforcement personnel. Founders Day - Accounts for revenues and disbursements related to the celebration of the City's Founder's Day. Debt Service Funds Transportation Refunding - Accounts for Principal and interest payments on the 1998 and Improvement Transportation Refunding and Improvement Revenue Revenue Bonds, Series Bonds issued to refund a portion of the 1990 1998 Transportation Refunding and Improvement Revenue Bonds and to finance the design, construction, paving and improvement of certain roads and drainage improvements within the city. Capital Improvement - Accounts for principal and interest payments on the 1999 Refunding Revenue Capital Improvement Refunding Revenue Bonds, issued Bonds, Series 1999 to (1) refund the 1991 Capital Improvement Revenue Bonds, (2) pay off 1996 Capital Improvement Revenue Promissory Note and (3) finance certain capital improvements, including acquisition of land. Transportation Refunding - Accounts for the principal and interest payments on the and Improvement Revenue 2002 Transportation Refunding and Improvement Bonds, Series 2002 Revenue Bonds which funded the design, construction, paving and improvement of roads and related drainage improvements within the City. • CAPITAL PROJECTS FUNDS Road Construction - Accounts for the portion of building permits designated to fund the design, construction, paving and improvement of White Road in connection with the West Oaks Mall construction project. Computer Acquisition - Accounts for funds budgeted for the acquisition and installation of a new computer system. Capital Improvement - Accounts for the proceeds of the 1996 Capital Improvement Revenue Promissory Note issued to finance certain capital projects including two fire stations, a gymnasium and recreational facility, and a public works facility. Capital Projects Reserve - Accounts for transfers from the General Fund for certain capital projects including City Hall/Police siding and trim project, sidewalks, and public restrooms at Starke Lake. Transportation - Accounts for proceeds of the 1998 Transportation Improvements, 1998 Bond Refunding and Improvement Revenue Bonds issued to Issue finance the design, construction, paving and improvement of certain roads and drainage improvements within the City. Capital Improvements, Accounts for proceeds of the 1999 Capital Improvement 1999 Bond Issue Refunding Revenues Bonds Issued to finance certain capital improvements, including acquisition of land. Coca Cola Property Accounts for the proceeds of the Line of Credit issued to • Improvements finance the acquisition of land and certain improvements including municipal buildings and parks. Co . . . co . 01 13) CO- 03S k k k 2 2 G U 2 B � 2L e # _ en 147 c k k k ' 2 S Co Co 8 S m _ c R . 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CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2003 Special Revenue Fire Poke Recreation Recreation Police Poke Founders Impact Impact Programs impact Trust Training Day Fund Fund Fund Fund Fund Fund Fund Revenues: Taxes and impact fees $ 273,085 $ 116,462 $ - $ 167,778 $ - $ - $ Licenses and permits - - - - - Intergovernmental revenues - - - - - 12,817 Charges for services - - 52,751 - - - 74,462 Fines and forfeitures - - - - 35,353 9,107 Investment income 38,563 6,936 388 12,886 745 588 116 Miscellaneous - - - 8,000 1,680 31,779 Total revenues 311,648 123,398 53,139 188,664 36,098 24,192 106,357 Expenditures: Current General government - - Public safety 263,131 1,579 - - 21,068 26,587 - Physical environment - - Culture and recreation - - 56,961 3,700 - - 112,173 Debt Service: Principal retirement 67,801 - - - 21,779 Interest and fiscal charges 4,518 - - 1,590 _ _- Bond issuance costs - - Capital outlay: - - - . General government - - - - Public safety - - - - - - - - Physical environment - - _- - Culture and recreation - - Total expenditures 335,450 1,579 56,961 3,700 44,437 26,587 112,173 Excess(Deficiency)of Revenues over Expenditures (23,802) 121,819 (3,822) 184,964 (8,339) (2,395) (5,816) Other Financing Sources(Uses): Transfers in - Transfers out (267,000) (64,468) - (50,000) - (12,976) Capital leases 259,265 - - - - _ _- Notes payable - - - - Refunding bonds issued - - - - - - - Payment to refunded bond escrow agent - - - - - Net other financing sources(uses) (7,735) (64,488) - (50(50,000) - - (12,976) - Net Change in Fund Balances (31,537) 57,351 (3,822) 134,964 (8,339) (15,371) (5,816) Fund Balances-Beginning: 2,115,012 405,570 42,369 650,550 69,224 67,873 31,819 Fund Balances-Ending $ 2,083,475 $ 462,921 $ 38,547 $ 785,514 $ 60,885 $ 52,502 $ 26,003 (Confirmed) 56 CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2003 Debt Service Police Total Clarke Road 98 Trans 99 CIP 2002 Trans Total Fundraiser Special Revenue Debt Service Debt Service Debt Service Debt Service Debt Service Fund Funds Fund Fund Fund Fund Funds Revenues: Taxes and impact fees $ - $ 557,325 $ - $ - $ - $ $ Ucenses and permits - - - - - Intergovernmental revenues - 12,817 - - - ; Charges for services - 127,213 - - - - - Fines and forfeitures - 44460 - - - - Investment income 6 60,228 - 2,130 2,612 294 5,036 Miscellaneous 2,693 44,152 - - Total revenues 2,699 846,195 - 2,130 2,612 294 5,036 Expenditures: Current: General government - - Public safety 500 312,865 - - - Physical environment - _ - - Culture and recreation - 172,834 - - - - - Debt Service: - Principal retirement - 89,580 - 335,000 230,000 65,000 630,000 Interest and fiscal charges - 6,108 - 801,200 481,522 43,632 1,326,354 Bond issuance costs - - - - - 31,185 31,185 Capital outlay: General government - - - - - Public safety - - - - - - Physical environment - - - - - Culture and recreation - - - - - Total expenditures 500 581,387 - 1,136,200 711,522 139,817 1,987,539 Excess(Deficiency)of " Revenues Over Expenditures 2,199 264,808 - (1,134,070) (708,910) (139,523) (1,982,503) Other Financing Sources(Uses): Transfers in - 19,644 1,132,410 711,522 135,380 1,998,956 Transfersapital out - (394,444) (27,306) - - - (27,306) 259,265 - Notes payable - _ - - - - Refunding bonds issued - - - - - 1,360,000 1,360,000 Payment to refunded bond escrow agent - - - (1,349,709) (1,349,709) Net other financing sources(uses) - (135,179) (7,662) 1,132,410 711,522 145,671 1,981,941 Net Change in Fund Balances 2,199 129,629 (7,662) (1,660) 2,612 6,148 (562) Fund Balances-Beginning: - 3,382,417 7,662 40,251 37,510 - 85423 , Fund Balances-Ending $ 2,199 $ 3,512,046 - $ 38,591 $ 40,122 $ 6,148 57 CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended September 30, 2003 Capital Projects Total Capital 1998 Road Computer Capital Projects Transportation 1999 Capital Coca Cola Total Non Major Construction Acquisition Improvement Reserve Improvements Improvements Property improv Capital Governmental Fund Fund Fund Fund Fund Fund Fund Projects Funds Revenues: Taxes and impact fees $ - $ - $ - $ - $ - $ - $ - $ - $ 557,325 Ucenses and permits - - - - - - Intergovernmental revenues - - - - - - 17,813 Charges for services - - - - - - - - 127,213 Fines and forfeitures - - - - 44,460 Investment income 1,796 439 5,411 9,119 3,797 14,126 1,492 36,180 101,444 Miscelaneous - - - 59,754 604,627 197,300 - 861,681 905,833 Total revenues 1,796 439 5,411 68,873 608,424 211,426 1,492 897,861 1,749,092 Expenditures: Current General government - - - - - - - - - Public safety - - - - - - - - 312,865 Physical environment - - - - - - - - - Culture and recreation - - - - - - - - 172,834 Debt Service: Principal retirement - - - - - - - - 719,580 Interest and fiscal charges - - - - - - - - 1,332,462 Bond issuance costs - - - - - - - - 31,185 Capital outlay: General government - - - 62,109 - 320 - 62,429 62,429 Pubic safety - - - 37,958 - 691,590 - 729,548 729,548 Physical environment - - - 77,816 1,605,524 820 281,723 1,965,883 1,965,883 Culture and recreation - - - 435,795 - 845,299 - 1,281,094 1,281,094 Total expenditures - - - 613,678 1,605,524 1,538,029 281,723 4,038,954 6,607,880 Excess(Deficiency)of Revenues over Expenditures 1,796 439 5,411 (544,805) (997,100) (1,326,603) (280231) (3,141,093) (4,858,788) Other Financing Sources(Uses): Transfers in - - - 506,835 229,743 - - 736,578 2,735,534 Transfers out (229,742) - - - (17,114) - - (246,856) (668,606) Capital leases - - - - _ - 259,265 Notes payable - - - - - - 357,652 357,652 357,652 Refunding bonds issued - - - - - - - - 1,360,000 Payment to refunded bond escrow agent - - - - - - - (1,349,709) , Net other financing sources(uses) (229,742) - - 506,835 212,629 - 357,652 847,374 2,694,136 Net Change in Fund Balances (227,946) 439 5,411 (37,970) (784,471) (1,326,603) 77,421 (2,293,719) (2,164,652) Fund Balances-Beginning: 227,946 46,002 572,033 1,032,044 1,903,045 1,819,457 (56,369) 5,544,158 9,011,998 Fund Balances-Ending $ - $ 46,441 $577,444 $994,074 $ 1,118,574 $ 492,854 $ 21,052 $3,250,439 $6,847,346 58 This page intentionally left blank. re Center of Good Lii,:h �g FIDUCIARY FUND TYPES Pension Trust Funds: General Employees - Accounts for the accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future for employees of the City, except police officers and firefighters. Police and Firefighters - Accounts for the accumulation of resources to be used for retirement annuities of all police officers and firefighters. The State contributes funds based upon the number of police officers and firefighters and the City and employees contribute the balance as determined by an actuarial study. This page intentionally left blank. Center of Good L . ,S ,e _ g v� CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS September 30, 2003 General Police and Employee Employees Fire Pension Pension Pension Fund Trust Fund Trust Fund Totals Assets: Cash and cash equivalents $ 331,557 $ 410,374 $ 741,931 Receivables: Plan members contributions - - - Investments, at fair value: Common funds-equity 5,243,085 6,806,390 12,049,475 Common funds-bonds 3,309,070 4,013,477 7,322,547 Total investments 8,552,155 10,819,867 19,372,022 Total assets 8,883,712 11,230,241 20,113,953 Liabilities - - - Net Assets: Held in trust for pension benefits $ 8,883,712 $ 11,230,241 $ 20,113,953 59 CITY OF OCOEE, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS For The Year Ended September 30, 2003 General Police and Employee Employees Firefighters Pension Pension Pension Funds Trust Fund Trust Fund Total Additions: Contributions: Employer $ 617,787 $ 751,655 $ 1,369,442 Plan members 450,164 365,704 815,868 State - 235,958 235,958 Gain on Investments 846,796 1,105,054 1,951,850 Total contributions 1,914,747 2,458,371 4,373,118 Investment income: Net depreciation in fair value of investments - - - Interest 6,636 5,777 12,413 Net investment income 6,636 5,777 12,413 Total additions 1,921,383 2,464,148 4,385,531 Deductions: Benefits 360,636 289,175 649,811 Administrative expenses 78,357 95,015 173,372 Total deductions 438,993 384,190 823,183 Change in Net Assets 1,482,390 2,079,958 3,562,348 Net Assets-Beginning 7,401,322 9,150,283 16,551,605 Net Assets-End $ 8,883,712 $ 11,230,241 $ 20,113,953 • 60 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS This page intentionally left blank. Center of Good L• ( be rutio.fig } { { CITY OF OCOEE, FLORIDA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY For The Year Ended September 30, 2003 Culture General Public Physical And Government Safety Environment Recreation Total Land $ 2,819,926 $ 535,319 $ 13,152,152 $ 837,286 $ 17,344,683 Buildings 2,100,157 3,068,294 394,439 2,260,938 7,823,828 Improvements 374,752 4,756 146,938 2,561,218 3,087,664 Machinery&equipment 1,404,868 4,970,955 2,809,263 457,325 9,642,411 Infrastructure - - 70,007,371 - 70,007,371 Construction in progress 722,976 1,098,608 12,910,545 954,970 15,687,099 Total $ 7,422,679 $ 9,677,932 $ 99,420,708 $ 7,071,737 $123,593,056 Balance Deletions 10-01-01 and Balance Restated Additions Transfers 09-30-02 General Govemment $ 6,222,459 $ 507,163 $ 29,919 $ 6,699,703 Public Safety 8,516,496 187,969 125,141 8,579,324 Physical Environment 85,378,651 1,140,944 9,432 86,510,163 Culture&Recreation 6,028,098 113,681 25,012 6,116,767 Construction in progress 958,299 14,728,800 - 15,687,099 Total $ 107,104,003 $16,678,557 $ 189,504 $ 123,593,056 61 1 This page intentionally left blank. 4X Center of Good �Y,e - Llvf� yi 11, } 4 k 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. CITY OF OCOEE, FLORIDA GOVERNMENT-WIDE EXPENSES BY FUNCTION Last Ten Fiscal Years Fiscal General Public Physical Culture and Year Government Safety Environment Recreation 1994 * * 1995 * * * * 1996 * * * 1997 * * * 1998 * * * 1999 * * * * 2000 * * * * 2001 * * * * 2002 * * * 2003 3,363,718 10,650,950 2,917,657 2,187,257 *Data not available prior to the implementation of GASB 34. 62 Interest on Long-term Water and Solid Debt Wastewater Waste Stormwater Total * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 1,425,802 5,540,876 1,374,390 1,891,261 29,351,911 63 CITY OF OCOEE, FLORIDA GOVERNMENT - WIDE REVENUES Last Ten Fiscal Years Charges Operating Capital Fiscal For Grants and Grants and Intergov- Year Services Contributions Contributions Taxes ernmental 1994 * * * * * 1995 * * * * * 1996 * * * * * 1997 * * * * * 1998 * * * * * } } 1999 * * * * * 2000 * * * * * 2001 * * * * * 2002 * * * * * . 2003 12,244,107 1,277,980 1,545,827 8,398,963 5,644,397 *Data not available prior to the implementation of GASB 34. j!4 pf } , 64 Investment Income & Miscellaneous Total * * * * * * * * * * * * * * * * 185,862 29,297,136 65 CITY OF OCOEE, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal Total(a) General Public Physical Year Expenditures % Government % Safety % Environment 1994 8,629,065 100.0% 1,705,399 19.8% 4,253,374 49.3% 1,103,372 1995 8,808,659 100.0% 1,912,088 21.7% 4,373,302 49.6% 1,125,206 1996 9,362,905 100.0% 1,907,097 20.4% 4,689,003 50.1% 1,151,049 1997 11,217,057 100.0% 2,432,702 21.7% 5,826,668 51.9% 1,162,242 1998 13,967,349 100.0% 2,826,467 20.2% 6,890,597 49.3% 1,522,812 1999 15,239,562 100.0% 2,945,543 19.3% 7,532,736 49.4% 1,857,066 2000 15,604,975 100.0% 2,966,837 19.0% 7,944,122 50.9% 1,810,784 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 53.2% 1,798,985 2003 19,842,884 100.0% 3,956,473 19.9% 10,131,515 51.1% 1,498,296 (a)This schedule includes expenditures of the General Fund only. {f5 } 66 Culture and Debt(b) Transfers to % Recreation % Service % Other Funds % 12.8% 325,331 3.8% 156,509 1.8% 1,085,080 12.6% 12.8% 319,341 3.6% 159,526 1.8% 919,196 10.4% 12.3% 417,495 4.5% 133,416 1.4% 1,064,845 11.4% 10.4% 466,593 4.2% 339,375 3.0% 989,477 8.8% 10.9% 628,211 4.5% 403,034 2.9% 1,696,228 12.2% 12.2% 592,985 3.9% 574,581 3.8% 1,736,651 11.4% 11.6% 593,745 3.8% 650,460 4.2% 1,639,027 10.5% 10.8% 1,031,910 5.6% 616,560 3.4% 1,788,640 9.7% 9.6% 1,119,031 6.0% 539,373 2.9% 1,792,395 9.6% 7.6% 1,584,131 8.0% 449,482 2.3% 2,222,987 11.2% , 67 CITY OF OCOEE, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE • Last Ten Fiscal Years Licenses Inter- Fiscal Total(a) And Governmental Year Revenues % Taxes , % Permits % Revenues % 1994 8,416,346 100.0% 3,466,712 41.2% 663,191 7.9% 2,315,058 27.5% 1995 8,992,823 100.0% 3,819,210 42.5% 634,263 7.1% 2,684,446 29.9% 1996 10,263,930 100.0% 4,269,994 41.6% 850,427 8.3% 3,088,521 30.1% 1997 11,744,062 100.0% 4,966,592 42.3% 879,650 7.5% 3,368,182 28.7% 1998 13,623,375 100.0% 5,733,592 42.1% 856,448 6.3% 4,160,011 30.5% 1999 15,797,804 100.0% 6,208,882 39.3% 1,067,010 8.8% 4,476,397 28.3% 2000 16,471,126 100.0% 6,644,332 40.3% 1,095,829 6.7% 5,014,951 30.4% 2001 18,742,615 100.0% 8,018,880 42.8% 1,009,146 5.4% 5,417,653 28.9% 2002 19,902,980 100.0% 8,022,142 40.3% 1,392,977 7.0% 6,595,999 33.1% 2003 20,971,342 100.0% 8,398,963 40.0% 1,349,246 6.4% 8,846,639 32.6% (a)This schedule includes revenues of the General Fund only. (b) Other financing sources for 1995 includes a residual equity transfer of$53,640. i 68 Charges Other For Fines and Investment Misc. Financing Services % Forfeitures % Income % Income % Sources % 95,109 1.1% 102,024 1.2% 29,551 0.4% 84,520 1.0% 1,660,183 19.7% 138,481 1.5% 93,007 1.0% 9,329 0.1% 79,007 0.9% 1,535,080 17.1% 186,163 1.8% 101,895 1.0% 89,666 0.9% 108,379 1.1% 1,568,885 15.3% 208,119 1.8% 75,483 0.6% 146,357 1.2% 163,504 1.4% 1,936,175 16.5% 351,846 2.6% 120,259 0.9% 163,241 1.2% 103,355 0.8% 2,134,623 15.7% 554,663 3.5% 192,015 1.2% 137,330 0.9% 173,758 1.1% 2,987,749 18.9% 570,863 3.5% 182,226 1.1% 230,049 1.4% 141,861 0.9% 2,591,015 15.7% 373,406 2.0% 211,773 1.1% 293,663 1.6% 240,514 1.3% 3,177,580 17.0% 299,835 1.5% 226,066 1.1% 129,605 0.7% 138,584 0.7% 3,097,772 15.6% 502,398 2.4% 224,453 1.1% 111,068 0.5% 134,815 0.6% 3,403,760 16.2% 69 s i This page intentionally left blank. i �e Center of Good Live f , rg #,, fy,; ... #1.1 imik E........„„N., ,,,-,,,,,,,, L.%) •.;-„,:‘,. 0 F ii` 3 t E 4 CITY OF OCOEE, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY Last Ten Fiscal Years Percentage of Total Total Tax Total Collections Fiscal Year Tax Levy (1) Collections Delinquent To Tax Levy 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% 2001 4,549,058 4,368,458 - 96.03% 2002 4,966,552 4,802,198 - 96.69% 2003 5,271,856 5,047,518 - 95.74% (1) Gross taxes before discounts. 70 CITY OF OCOEE, FLORIDA ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY NET OF EXEMPTIONS Last Ten Fiscal Years Real Property Personal Property Assessed Estimated Assessed Estimated , Fiscal Year Value Actual Value Value Actual Value 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 2003 1,057,272,583 1,057,272,583 94,064,216 94,064,216 { } { { { pi 71 Totals Assessed Estimated Value Actual Value 424,437,664 424,437,664 469,310,003 469,310,003 505,656,888 505,656,888 582,355,145 582,355,145 751,226,256 751,226,256 821,365,533 821,365,533 884,794,580 884,794,580 959,980,083 959,980,083 1,066,607,573 1,066,607,573 1,151,336,799 1,151,336,799 72 CITY OF OCOEE, FLORIDA PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years Millage Rates($1 per$1,000 of taxable value) Fiscal City of Orange School Year Ocoee County Board Total(a) 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 2003 4.58 5.1639 7.8880 17.6319 Tax Levies Fiscal City of Orange School Year Ocoee County Board Total (a) 1994 1,697,.751 174,905,763 294,730,923 471,334,437 1995 1,877,240 185,923,621 317,282,778 505,083,639 1996 2,022;628 186,439,938 330,479,770 518,942,336 1997 2,329;421 196,778,976 341,439,747 540,548,144 1998 3,004;905 198,742,271 366,170,753 567,917,929 1999 3,285;462 284,615,135 393,750,228 681,650,825 2000 3,539,178 245,058,507 396,163,232 644,760,917 2001 4,546,)58 265,940,850 403,632,264 674,122,172 2002 4,966,-552 290,228,395 442,304,630 737,499,577 2003 5,27x;856 278,169,779 473,682,204 757,123,839 • (a) Tax Rates and Levies of a fracfion of one mill assessed in various years by other units • against districts covering less.than the entire City or County were omitted here. is 73 CITY OF OCOEE, FLORIDA TAX REVENUE BY SOURCE Last Ten Fiscal Years Property Franchise Utility Total Fiscal Year Taxes Taxes Taxes Taxes 1994 1,647,742 777,783 1,041,187 3,466,712 1995 1,803,405 856,678 1,159,127 3,819,210 1996 1,953,410 969,107 1,347,477 4,269,994 1997 2,243,488 1,145,834 1,577,270 4,966,592 1998 2,872,599 1,132,896 1,728,097 5,733,592 1999 3,162,838 1,201,185 1,844,859 6,208,882 2000 3,394,071 1,323,333 1,926,928 6,644,332 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 2003 5,047,518 1,537,248 1,814,197 8,398,963 • 74 CITY OF OCOEE, FLORIDA SCHEDULE OF TEN LARGEST TAXPAYERS September 30, 2003 Taxable Assessed Type of Valuation As of Taxpayer Business 2000 Tax Roll (1) Percentage 1. West Oaks Mall Trust. West Oaks Mall $ 73,361,422 6.4% 2. Manheim Remarketing, LP Developer 18,066,183 1.6 3. Inland Southeast West Oaks LLC Developer 14,307,976 1.2 4. Foxfire Apartment Association Apartments 13,835,233 1.2 5. Wal-Mart Stores East, Inc. Retail Sales 12,896,298 1.1 6. Good homes Plaza (E&A) LLC Developer 12,882,503 1.1 7. West Orange Healthcare District Health Care 11,623,994 1.0 8. Oak Forest Partners, Ltd. Developer 9,952,488 0.9 9. Parisian, Inc. Retail Sales 9,128,968 0.8 10. Dillards Department Store, Inc. Retail Sales 8.798.697 0.8 Total taxable assessed value of 10 largest Taxpayers 184,853,762 16.1 Total taxable assessed value of other Taxpayers 894,666,358 83.9 Total taxable assessed value of all Taxpayers $ 1,151,336,799 100.0% Note: (1) The tax levy for the fiscal year ended September 30, 2003 is based on the 2002 taxable value. 75 CITY OF OCOEE, FLORIDA SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years The City of Ocoee, Florida did not have any material special assessment collections in the last ten fiscal years. 76 CITY OF OCOEE, FLORIDA LEGAL DEBT MARGIN September 30, 2003 Assessed Value $1,951,336,799, Debt Limit: 50% of Assessed Value 575,668,399 Amount of Debt Applicable to Debt Limit: Total Bonded Debt 28.200.000 Legal Debt Margin $ 547,46$,399 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. 77 CITY OF OCOEE, FLORIDA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Bonded Debt Net Bonded Assessed Gross Bonded Debt Service Net Bonded to Assessed Debt Per Fiscal Year Population Value Debt Funds Available Debt Value Capita 1994 17,489 424,437,664 1995 18,578 469,310,003 1996 19,261 505,656,888 1997 20,560 582,355,145 - - - - 1998 21,653 751,226,256 - - - - - 1999 22,748 821,365,533 - - - - - 2000 23,531 884,794,580 - - - - - 2001 25,993 959,980,083 2002 27,246 1,066,607,573 - - - - - 2003 28,093 1,151,336,799 - - - - - Note:The City of Ocoee does not have any general obligation debt which is being repaid through general property taxes. • • 78 CITY OF OCOEE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES Last Ten Fiscal Years Ratio of Debt Service to Total Total General Total General Fiscal Year Principal Interest Debt Service Expenditures(1) Expenditures 1994 210,000 660,568 870,568 8,629,065 10.1% 1995 225,000 647,503 872,503 8,808,659 9.9% 1996 240,000 633,198 873,198 9,362,905 9.3% 1997 255,000 618,088 873,088 11,217,057 7.8% 1998 270,000 600,798 870,798 13,967,349 6.2% 1999 485,000 1,245,936 1,730,936 15,239,561 11.4% 2000 565,000 1,447,930 2,012,930 15,604,975 12.9% 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% 2003 565,000 1,278,932 1,843,932 19,842,884 9.3% (1) Includes expenditures for the General Fund only. 79 CITY OF OCOEE, FLORIDA COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT September 30, 2003 Applicable To Bonds City Of Ocoee Government Unit Outstanding Percent(1) Amount Library District Refunding Bonds-Series 1993 $4,505,000 1.43% $ 64,421 Total Overlapping Debt 64,421 Total Direct Debt (2) Total Direct and Overlapping Debt $ 64,421, (1) Ratio of assessed valuation of taxable property in overlapping unit to that within the City of Ocoee. (2) The City of Ocoee does not currently have any general obligation debt which is being repaid through general property taxes. 80 CITY OF OCOEE, FLORIDA 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(11 Expenses(2) Debt Service - Coverage Principal Interest Total 1994 $1,558,606 $ 981,904 $ 576,702 $46,800 $108,839 $155,639 3.71 1995 $2,085,987 $1,035,963 $1,050,024 $48,000 $107,341 $155,341 6.76 Wastewater Fund Net Revenue Debt Service Requirements Fiscal Gross Operating Available For Year Revenue(1) Expenses(2) Debt Service Coverage, Principal Interest Total 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 $ 492,855 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, 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 2002 5,668,691 3,408,455 2,260,236 460,000 882,836 1,342,836 1.68 2003 5,912,649 3,550,828 2,361,821 485,000 860,156 1,345,156 1.76 (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. (4) For year ended September 30, 2003 Utility Tax Revenue is excluded from Gross Revenues. Also, Operating expenses include Administrative Transfers for such services as Accounting, Human Resources, Information Technology and Engineering/Inspection. FY 2003 total is $698,539. 81 CITY OF OCOEE, FLORIDA DEMOGRAPHIC STATISTICS Population Year City of Ocoee Orange County Population % Increase, Population % Increase 1994 17,489 6.52 740,167 1.7 1995 18,578 6.23 758,962 2.5 1996 19,261 3.67 777,556 2.4 1997 20,560 6.74 803,614 3.3 1998 21,653 5.30 824,095 2.5 1999 22,746 5.05 839,095 1.8 2000 24,391 7.23 896,333 6.8 2001 25,993 6.57 930,034 3.76 2002 27,246 4.82 955,500 2.74 2003 28,093 3.11 Population Projections Year Orange County State Of Florida 2005 1,019,300 17,436,400 2010 1,135,000 19,866,700 Population Distribution by Age Year Orange County State Of Florida 0-17 25.3% 22.8% 18-24 10.9 83 25-44 33.8 26.6 45-64 20.0 22.7 65 and over 10.0 17.6 Source: University of Florida, Bureau of Economic and Business Research U.S. Census Bureau * Figure unavailable at printing. 82 CITY OF OCOEE, FLORIDA PROPERTY VALUE,CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Additions/ Residential Construction (1) Construction (1) Alterations(1) Number of Units Single Multi Total Year Family Family Value Value Value Value 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 2003 441 38 102,700,571 7,480,492 5,480,051 115,661,114 (1) Source: City of Ocoee Building Department 83 CITY OF OCOEE MISCELLANEOUS STATISTICAL DATA September 30, 2003 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) 320 Elections: Registered voters 13,402 Votes cast in last municipal elections(March 2004) 4,476 Miles of Streets,Sidewalks and Bike Paths Streets-paved 110 Miles Streets-unpaved 1.8 Miles Streets-brick 3.2 Miles Sidewalks 151.3 Miles Bike paths .5 Miles Fire Protection: Stations 3 Employees 53 Police Protection: Stations 1 Employees 100 Vehicular Patrol Units: Patrol cars 55 Other vehicles 14 Recreation: Multi-purpose recreation center 1 Community Center 3 Athletic fields 14 Tennis courts 6 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 84 3E CITY OF OCOEE MISCELLANEOUS STATISTICAL DATA-CONTINUED September 30, 2002 Sewer System: Miles of sanitary sewers 68.3 Lift stations 44 Daily average treatment 1,544,000(GDP) Plants(s)capacity (MGD) 1 plant 3MGD Disposal sites 2 85 CITY OF OCOEE, FLORIDA SCHEDULE OF INSURANCE IN FORCE September 30, 2003 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 86 - 1 33 ISi } } ri This page intentionally left blank. e Center of Good Lit,. i .Sb I vng yy MCIOI .SIT DAVIS _ UC F,Tr f REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and City Commissioners City of Ocoee, Florida We have audited the basic financial statements of the City of Ocoee, Florida as of and for the , year ended September 30, 2003, and have issued our report thereon dated April 21, 2004. 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 basic 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 April 21, 2004. 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 basic 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 April 21, 2004. MCDIRMIT DAVIS PUCKETT & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 605 E.ROBINSON STREET,SUITE 635^ORLANDO,FLORIDA 32801 TELEPHONE 407-843-5406'FAX 407-649-9339°EMAIL:INFO@MDPCPA.COM ,II 1 t;P> PRP ATF COMP\\IFS PR•.CTICt SECTIO\•4\IFRIC'\IN TITLTF OF CERTIFIED PUBLIC ACCOUNT'\'TS•11 CMT+1\FT-LTF O,CERTIFIED PLP,L!C ADCOIJ\'TA\TS 87 , REPORTS ON INTERNAL CONTROL AND COMPLIANCE 111, 1 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. Atadaid. 4lided#1444,Xy ize McDIRMIT DAVIS PUCKETT& COMPANY, LLC April 21, 2004 • 88 MCDIRKIT DAVIS I IJ C!'_i_ 9A REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE MAJOR PROGRAM AND INTERNAL CONTOL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Mayor and City Commissioners City of Ocoee, Florida Compliance - We have audited the compliance of the City of Ocoee, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget(OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended September 30, 2003. 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 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. 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, 2003. 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 CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 605 E.ROBINSO\STREET,SUITE 635•ORLANDO,FLORIDA 32801 TELEPHONE 407-843-5406•FAX 407-649-9339•EMAIL:INFO@MDPCPA.COM 'sIF..IHFRSPRII,\TE COMP\\IFS PR\CTICI SECTIu\•A\*RIC.\\I'STITLTF OF CERTIFIED PLI3LIC ACCO',"I F CR'D'-I,STI'L?F OF CETiFIED PLR,IC ACC01,.T,`.Ti 89 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. Rai;Mil ‘ddei,-;4-eiedied 4,44,0, e McDIRMIT DAVIS PUCKETT& COMPANY, LLC April 21, 2004 90