HomeMy WebLinkAboutItem #03 RFP for Auditing Services
AGENDA ITEM COVER SHEET
Meeting Date: July 18, 2006
Item # 3
Contact Name:
Contact Number:
Joyce Tolbert
1516
Reviewed By:
Department Director:
City Manager:
JAtf
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~....................................~
Subject: Award of RFPi#06-004 Auditing Services
Background Summary:
In compliance with Florida Statutes, Section 218.391 (Auditor Selection Procedures), and the City of Ocoee Purchasing Code,
proposals were solicited from Certified Public Accounting Firms with Governmental Accounting experience to submit a
response to the City of Ocoee Request for Proposals (RFP) to provide Independent Financial Auditing Services for the fiscal
years ended September 30,2006,2007, and 2008. A renewal option for an additional two years may be negotiated. The firm must
be duly licensed under Florida Statutes, Chapter 473 and qualified to conduct audits in accordance with government auditing
standards as adopted by the Florida Board of Accountancy.
Issue:
A ward of Auditing Services term contract to the top-ranked firm recommended by the Selection Committee.
Recommendations
Staff recommends that the City Commission award the term contract for RFP #06-004 Auditing Services to McDirmit Davis
& Company in the amount of $28,000.00 annually and for additional auditing services, if required by the City; and authorize
the Mayor, City Clerk, and Staff to execute all necessary contract documents.
Attachments:
1. RFP #06-004
2. McDirmit Davis Proposal
3. Moore Stephens Lovelace Proposal
4. Purvis Gray Proposal
5. Averett, Warmus, Durkee Proposal
6. RFP Checklist
7. RFP Evaluation Totals
J(l
Financial Impact:
$28,000 annually
Type of Item: (please mark with an "x")
Public Hearing
Ordinance First Reading
Ordinance Second Reading
Resolution
X Commission Approval
Discussion & Direction
For Clerk's DeDi Use:
_____ Consent Agenda
Public Hearing
_____ Regular Agenda
_ Original Document/Contract Attached for Execution by City Clerk
~ Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
~Art
,
N/A
N/A
N/A
2
City Manag-er
Robert Frank
Commissioners
Garv Hood. District 1
Scott Anderson, District 2
Rustv Johnson. District 3
Joel Keller. District 4
Mavor
S. Scott Vandergrift
STAFF REPORT
TO:
FROM:
The Honorable Mayor and City Commissioners
Joyce Tolbert, Purchasing Agentc;!-
June 26, 2006
DATE:
RE:
A ward of RFP #06-004 Auditing Services
ISSUE
A ward of Auditing Services term contract to the top-ranked firm recommended by the Selection Committee.
BACKGROUND/DISCUSSION
In compliance with Florida Statutes, Section 218.391 (Auditor Selection Procedures), and the City of Ocoee Purchasing
Code, proposals were solicited from Certified Public Accounting Firms with Governmental Accounting experience to submit
a response to the City of Ocoee Request for Proposals (RFP) to provide Independent Financial Auditing Services for the fiscal
years ended September 30,2006,2007, and 2008. A renewal option for an additional two years may be negotiated. The firm must
be duly licensed under Florida Statutes, Chapter 473 and qualified to conduct audits in accordance with government auditing
standards as adopted by the Florida Board of Accountancy.
The Finance Department reviewed the four (4) proposal packages and all were considered responsive. Complete copies of all
proposals are available in the Finance Department for review. The RFP Selection Committee, consisting of four (4) members,
evaluated the proposals: Wanda Horton, Finance Director; Pam Brosonski" Senior Accountant; David Wheeler, City
Engineer; and Brian Ross, Information Systems Director.
The public RFP Selection Committee meeting was held on June 15, 2006 evaluate the four (4) responses. The Selection
Committee evaluated and ranked the firms from 0-400 points on specific evaluation criteria. The Selection Committee
recommends contracting with the top-ranked firm. The Respondents and their rankings are as follows:
1. McDirmit Davis & Company
2. Moore Stephens Lovelace, P.A.
3. Purvis, Gray and Company, LLP
4. Averett, Warmus, Durkee, Bauder &
Thompson, CPA's
379 Points
359 Points
352 Points
322 Points
1
RFP #06-004
AUDITING SERVICES
CHECKLIST
5/25/06 2:00 pm
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submlssiO!1. ".,.' .'......'. ,', .' L.lc~nse Annual Price ",. ' Annual Price
:\:' ': ,:.-,:, - ' . 0,:',,":';';':,'/ Check
No. PROPOSER RequirementS AddEmdum #1 '.,. Proposal Proposal - CAFR
Averett, Warmus, Durkee,
Bauder, & Thompson,
1 CPA's yes yes Active $35,000 $2,500
$28,000, +$4,500 if
subject to single
2 McDirmit Davis & Company yes yes Active audit $6,500
$39,500 - 2006 $5,000 - 2006
Moore Stephens Lovelace, $42,000 - 2007 $5,500 - 2007
3 PA yes yes Active $44,500 - 2008 $6,000 - 2008
yes, by $40,800 - 2006
Purvis, Gray and Company, proposal $42,800 - 2007
4 LLP yes submission Active $44,900 - 2008 $5,500
5
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MCDIRMIT III DAVIS
CERTIFIED PUBLIC ACCOUNT ANTS AND ADVISORS
May 25,2006
Audit Selection Committee
City of Ocoee
Ocoee, Florida
Thank you for the opportunity to submit our qualifications and experience to serve as
independent auditors of the City of Ocoee, Florida. The accompanying proposal will provide
you detailed information regarding the scope of services to be provided, as well as a profile of
the firm, the individuals who will serve you, our qualifications and experience, and
representative clients, including specific references.
It is our understanding that we will provide the following services:
1. Financial audit as defined in Sec. 11.45(I)(b), Florida Statutes, of the basic financial
statements of the City of Ocoee, Florida for the fiscal years ending September 30,
2006,2007 and 2008. A renewal option for an additional two years may be negotiated,
2. The audit will be performed in accordance with generally accepted auditing standards,
Governmental Auditing Standards, the Rules of the Auditor General of the State of
Florida, and the Single Audit Amendments of 1996 and OMS Circular A-133, if
applicable.
We believe we are the best-qualified firm to perform the engagement for the following reasons:
o
We presently audit ten municipalities and have an excellent working knowledge of local
laws and requirements, We assist in the preparation of the CAFR for most of these
municipalities and are committed to completing audit work by deadlines stated in the
RFP,
o
We have assisted eight municipalities in receiving the GFOA "Certificate of
Achievement for Excellence in Financial Reporting". Elden McDirmit is active as a
national review team member of the GFOA's "Certificate of Achievement for Excellence
in Financial Reporting" program. As a review team member, Mr. McDirmit reviews and
evaluates financial reports submitted by cities and counties to determine whether the
financial reports meet the stringent requirements to receive the GFOA'S prestigious
award, Participating as a review team member, Mr. McDirmit has demonstrated his
expertise in governmental accounting and auditing.
MCDIRMIT DAVIS & COMPANY, LLC
605 E. ROHI'SO~ STREET. SL.ITE 635 . ORLA'<DO, FLORIDA 3280 I
TELEPHO"iL 407-843-5406. FAX 407-649-9339 . EMAIL: 11\1.O@\1CDIRMITDAVIS.COM
1\:lE\11-3l:-J{S: PI{ 1\-.\ 1 L CU\1P,\'\IFS PRACTICE SECTION _. A\1-FRIc"\N I\STITLTl Or CERTIFIED PLBLlC ACCOL'\T..l,!\TS . fLORIDA hsnn TE Or CERTIFIED PUBLIC ACCOU!'<TANTS
o
We have recent and continuous experience, and have devoted a great deal of our
continuing education to the governmental auditing and accounting field. Our firm meets
the independence and education requirements of the Government Auditing Standards
issued by the Comptroller General of the United States. Our firm is independent of the
City of Ocoee as defined by Government Auditing Standards.
o
We have significant experience in municipalities issuing debt securities and the required
disclosures and comfort letters issued to underwriters.
o
We have considerable experience in performing utility tax and franchise fee audits, as well
as water and wastewater rate studies.
o
We believe in continuing client contact throughout the year, not just during the audit. We
encourage on-going client contact by not charging any fee for phone calls.
o
We are members of the American and Florida Institutes of Certified Public Accountants
and an Associate member of the Governmental Finance Officers Association. Our firm is
active in governmental organizations throughout Central Florida and serves on
governmental committees of the Florida Institute of CPA's.
o
We are a local firm with personnel committed to quality and professional performance,
accustomed to providing a high level of client satisfaction. We believe that our firm is part
of a team effort to assist the City in developing the best financial reporting possible.
o
We have a history of continuity of personnel assigned to the engagement. Our single
office firm and low personnel turnover assures uninterrupted services from our
stockholders and staff.
Because of our unique qualifications and a philosophy based on complete dedication to client
service, we feel confident that we can provide you with responsiveness and a range of experience
that will best serve your needs.
Either Mr. Elden G. McDirmit, stockholder, or Ms. Kelly Leary, stockholder, is authorized to
represent the firm and may be contacted at 605 East Robinson Street, Suite 635, Orlando, Florida
32801-2040, or phone (407) 843-5406.
We would consider it a privilege to serve as independent auditors for the City of Ocoee, Florida,
Sincerely,
~/Jtcf1A
Elden McDirmit, C.P,A.
2
PRICE PROPOSAL FORM
RFP #06-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #06-004 FOR FISCAL YEARS ENDING 2006, 2007, 2008:
$
28,000 . 00
annually, if sugject to Single Audit an
additional $4,500.00
dollars & no cents
Twenty eight thousand
(A renewal option for an additional two years may be negotiated).
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
$
6,500
.00
annually
Six thousand five hundred
dollars & no
cents
May 25, 2006
Date
McDirmit Davis & Company, LLC
Company Name
5000-001605
license Number
Elden McDirmit
Authorized Officer (print)
. ~.C)11cLtb
Aumonzed Sigiiatuie
RFP #06-004
16
RFP #06-004 COMPANY INFORMATION/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUAliFICATION OF
YOUR PROPOS.AL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
AlL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICESIPRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION.
MtlDirmit Davis & Company
COMPANY NAME
(407) 843-5406
TELEPHONE (INCLUDE AREA CODE)
(407) 649-9339
FAX (INCLUDE AREA CODE)
Kleary@Mcdirmitdavis.com
E-MAIL ADDRESS
~ G-,)11 cL2t
AUTHORIZED SIGNATURE (manual)
E) (le..~ (;, f11 cD,. f'~+
NAME!TITLE (PLEASE PRINT)
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
605 E. Robinson Street,Ste.635
STREET ADDRESS
Orl ;mao r FT. 32801
CITY STATE ZIP
FEDERALID # 26-0004117
_Individual -1L-Corporation _Partnership _Other (Specify)
., j/:j.1 11/1
Sworn to and subscribed before me this ~.,J.;) day of if I ItA)
,
,20 0;,.
~.._.-- . -'.
Grs~~~~~~_~?~ /~ or
Produced Identification
RFP #06-004
Notary Public - State of /-::1.-
County of 20;- CL "J ("' - ~
'# ~ZLLJ'./f LP~ ()t/fJCCe./{ L---r---
Signature of Notary Public
'J) I-OJ
1"('" /;] t' i!. e.._ a.. u _ /n e P-.((5-
Printed, typed or stamped
Commissi I'
$m'~~"'!t.,~ REBECCA ANN ME:EKS
~. .~ Notary P~~1c - Stale of Florida
~~ J My CommIllSlOn ~ Cd 9,2006
~QFPo.~ Commlulon, DD133673
'1IIti...-- BOnded By National U ta
.,0 ry Assn.
(Type of Identification)
17
MOORE STEPHENS
LOVELACE, l?A.
CEImFJED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS
May 25, 2006
Auditor Selection Committee
City of Ocoee
Ladies and Gentlemen:
Moore Stephens Lovelace, P. A. ("MSL") sincerely appreciates this wonderful privilege and opportunity to
provide you with our credentials and capabilities to serve as the City of Ocoee, Florida's independent
auditors and business advisors. We've assembled a team of governmental audit specialists with substantial
experience in auditing municipalities like yours. This team already possesses the necessary prerequisite
qualifications and experience to serve as your independent auditors. Our goal is very simple, to be the best
public sector auditing firm in the state of Florida,
Experience and Responsiveness
Our Firm will provide the City with high-quality, responsive professional service. Our engagement team
leaders have been involved in providing professional services to Florida municipalities throughout their
entire professional accounting careers. Our proposed audit team will be headed by Dan O'Keefe (nearly 30
years' experience), who is recognized throughout the state as a top expert in the area of governmental
auditing and is one of the most sought after public sector instructors in the state of Florida. The team also
includes Technical Reviewer Julie Baird, who has over 20 years of public sector experience and who served
on the American Institute of CPA's State and Local Government Expert Panel in 2004. Your Manager will
be Bill Blend, who has over 12 years of governmental auditing experience. Together, they collectively
possess about 60 years of concentrated governmental industry experience. We are proud to have the unique
ability to offer and use extremely seasoned professionals to manage your engagement. Quite frankly, this
alone sets us apart from our competitors. We do not, and will not, rely upon first- and second-year audit
staff to supervise and/ or conduct your engagement,
Technical Matters and Other Important Issues
Keeping up with the numerous technical matters associated specifically with the governmental industry is
extremely difficult for firms who are not continuously involved in practicing in this industry. Dan O'Keefe
develops training courses for the governmental sector and trains finance officers and CPA's across Florida
and other parts of the United States. He has served on various technical committees of the Florida Institute
of CPA's, the Florida State Board of Accountancy, the Office of the Auditor General, the Florida
Government Finance Officers Association, and authored the Florida Single Audit Act, Julie Baird was one
of just 14 members of the American Institute of CPA's State and Local Government Expert Panel. This all-
important panel is charged with making standard recommendations to the Auditing Standards Board and
drafting the state and local government auditing guide.
3
Auditor Selection Committee
City of Ocoee, Florida
May 25, 2006
Page 2
Dan O'Keefe has been involved with the issuance of over 2 billion dollars in tax-exempt debt. As your
auditors, we are unable to serve as your [mancial advisors (independence violation under Government Auditing
Standards); however, we can provide objective opinions regarding compliance matters of debt instruments.
In addition, we are experienced in providing arbitrage services involving tax-exempt debt. MSL is a member
of Moore Stephens International Limited (MSIL), an international CPA fIrm, and has extensive experience
in the fInancial and banking sectors.
W11at Makes Us Different?
For us, the public sector is an extremely important part of our practice. As traditional national fIrms pull
away from the public sector, we continue to expand. Our Firm has a solid presence and reputation in the
state of Florida. Our staff turnover is nominal and our staff is highly regarded in the public sector. We will
service the City of Ocoee as if you were our only client. We will respond to your needs professionally and
timely. We view the success of our clients as a reflection of the quality service we provide.
Your Needs Come First
You need a fIrm that will provide an eff1cient, cost-effective, high-quality audit within critical time
constraints. You need a fInn with the prerequisite experience to perform your audit according to stringent
legal and regulatory requirements, a fIrm that understands the complex nature of governmental operations
and their very unique compliance and reporting requirements. You need a fIrrn with industry specialists
recognized and respected within the [mancial and governmental communities. And, certainly, you need a
fIrm that will provide you with the valuable feedback to enhance your current and future operations. Moore
Stephens Lovelace is that fIrm.
Services for the City will be performed out of the Winter Park offIce which has a staff of 46 professionals.
We fully recognize the signifIcance of this opportunity to serve the City of Ocoee, Florida, We have
committed our very best people to your engagement, and we promise that we can be a valuable resource to
you As Engagement Shareholder, I am authorized to make representations for the engagement team. I may
be contacted at my offIce (407) 740-5400 or my cell phone (407) 353-8053.
Pursuant to your Request for Proposal, we herein offer our express agreement to meet or exceed the
performance specifIcations stated in your RFP within the specifIed time period,
Thank you for considering our Firm in your auditor selection process. If you have any questions concerning
our proposal, please feel free to contact me at your earliest convenience.
Sincerely,
[~~ ~ ()\\~,~.
Daniel J. O'Keefe, CPA
Engagement Shareholder
4
PRICE PROPOSAL FORM
RFP #06-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #06-004 FOR FISCAL YEARS ENDING 2006, 2007,2008:
$ f'j q , So 0 . 00 annually (2DD\' ) - ? c'c~ 1"-'1' 3, ~or i{.>,,",ed f'Of~
1\1 i \r~1 \Ii I1l. -tt1oJ6~nd ~ ~e hundred dollars & -'Mere) cents
( I
(A renewal option for an additional two years may be negotiated).
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF R~QUIRED:S .
$ 5! 000 . 00 annually (7ooCo) ( <;(-C P;'1< S~ ~j ittvYIiVd ~eo/~ ~
tiv ~ +hoVSd1)c) dollars & 11t:rO cents
J
5/2+fo~
Date .
IM(m Sk~her1S ~V~ \y:~ I P A .
Company Name
AC. 2301DtLj
License Number
bcxv\\ c: \ ~.O. ~<:z~
Authorized Officer (print)
~~~nl~
Authorized Ignature
RFP #06-004
20
RFP #06-004 COMPAr-.,ry INFORMATION/SIG:r\ATURE SHEET
Fiill.-URE TO COMPLY "VITH THESE RFP INSTRUCTIONS "VILL RESULT IN DISQl.LA.LIFICATION OF
YOUR PROPOS.A.L. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
.A.LL RFP INSTRUCTIONS ANTI THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOS.A.L FORM" ARE ACCURATE AND WITHOUT COLLUSION.
f. ~\ .
l.tC'l-lYO-S~OO
TELEPHO"!\TE (INCLUDE AREA CODE)
4(;1-1 LI{)- 0012-
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E-MiuL ADDRESS
[J~~, 8l~
AUTHORIZED SIGNATURE (manual)
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J\AME/TITLE (pLEASE PRINT)
(201 S. orlAndo AVV')\ie ,'jfc: LICD
STREET 1fD~S '
WiMer 11\ f/L ~'l.159
CITY ST A ZIP
FEDERAL ill # S-q - 'SOlObbCj
_Individual V Corporation _Partnership _Other (Specify)
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
;) Itl
Sworn to and subscribed before me this
ly+~l
day of
M~1
. 20 ()~ .
Personally Known
~
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I
or
Produced Identification
I~
(Type of Identification)
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Notary Public - State of I I .&>
County of ~C'3"-
Sic .. re of~otary PUb~
A,'!/;/aR, WSb<fY
Printe . typed or stamped
Commissioned name of Notary Public
RFP #06-004
~ jj\. Angela R Landsberg
. -~ ,; My Commission 00230870
'\ ~,/ Expires July 10, 2007
21
Purvis
Gray ~
COffiQany
May 11, 2006
..
Auditor Selection Committee
Artn: Purchasing Agent
City of Ocoee Finance Department
150 N. Lakeshore Drive
Ocoee, Florida 34761-2258
We appreciate the opportunity to present Purvis, Gray and Company, LLP (Purvis, Gray and Company) to
your Audit Selection Committee and would take great pride in being selected as auditors for the City of
Ocoee, Florida (the City) for the fiscal years ending September 30, 2006, 2007 and 2008, with a renewal
option for two years.
We have received your Request for Proposal (RFP) for auditing services (#06-004). We understand the scope
of the work to be performed and give you our express commitment to meet or exceed the performance
specifications and time requirements stated in the RFP.
.......
Purvis, Gray and Company is a state-wide C.P.A. firm employing approximately eighty professionals and
support staff in our offices in Sarasota, Ocala, Gainesville, and Tallahassee. Our audit practice includes a
heavy concentration of governmental entities and utilities, and we believe that our combined experience in
serving cities, counties, special districts and utilities throughout the state of Florida provides us with unique
insight and ability to serve as your auditors. Our firm is currently providing auditing services to
approximately twenty-four Florida municipalities, most of which operate water and sewer utilities, and nine
Florida counties. You will get the best audit if the firm you select has extensive governmental experience.
We have the added bonus of being the premier audit firm for audits of utilities in the state of Florida.
We also audit financial institutions, contractors, builders, and engineering firms, and have gained contacts
and knowledge in those industries essential to our understanding of your business environment. We have
served as auditors for the Florida Institute of Certified Public Accountants, Inc. (FIep A), the Florida
Association of Court Clerks, Inc. (FACe), Florida Gas Utility (FGU), the Florida Municipal Power Agency
(FMP A), and the First Florida Governmental Financing Commission. Many of our governmental audits
include audits of redevelopment agencies, municipal pension plans, self-insurance funds, marinas, airports,
convention centers, and parking systems.
Since our organization in 1946, Purvis, Gray and Company's number one priority has been client service. We
are extremely proud of our record of client service, and encourage you to contact our current and former
clients in this regard. Exceptional client service is what sets our firm apart as the firm most qualified to serve
as auditors of the City.
~~
Certified Public Accountants
P.O. Box 23999 · 222 N.E. 1st Street. Gainesville, Florida 32602 . (352) 378-2461 . FAX (352) 378-2505
laurel Ridge Professional Center · 2347 S.E. 17th Street · Ocala, Florida 34471 · (352) 732-3872 . FAX (352) 732-0542
443 East College Avenue. Tallahassee, Florida 32301 .. (850) 224-7144 · FAX (850) 224-1762
2201 Cantu Court, Suite 1100 . Sarasota, Florida 34232 . (941) 379-2800 . FAX (941) 379-2899
MEMBERS OF AMERICAN AND FtORID'\ INSTITUTES OF CERTIFIED PUBLIC ,tCCOUNTANTS
MEMBER OF AMERICAN INSTI1lJTE OF CERTlfIED PUBLIC ,tCCOUNTANTS PRJW.TE COMPANIES AND S.E.C. PRICTICE SECTIONS
1
Auditor Selection Committee
Attn: Purchasing Agent
City of Ocoee Finance Department
Ocoee, Florida
May 11, 2006
The best way to provide value service is with quality personnel, and we pride ourselves on fmding and hiring
the best employees. We look for leaders with business and common sense, who will apply that knowledge in
your business. In addition, the individuals comprising your audit team are highly experienced in all areas of
governmental and utility accounting and auditing, and have been assembled on your audit team for those
attributes. You will not have to train our auditors; we do not randomly rotate staff, and you will
regularly see partners in the field.
Purvis, Gray and Company can and will perform all the auditing, accounting, and fmancial consulting
services needed by the City. We have extensive experience and are well received in the national bond
markets, we have audited hundreds of different federal and state grant programs, and we have assisted in
countless other governmental and utility consulting projects. We also have a large Information Technology
Department run by CPA's that has provided services for sixty years to all of the firm's clients.
....
Personnel from all our offices routinely work together on audit engagements, employing our firm-wide
approach to client service delivery. I am the partner-in-charge of the Sarasota office which consists of six
professional staff and I am authorized to represent the firm in this matter. I am an in-firm specialist in
governmental and utility accounting and auditing. Over a period of twenty-three years, all with Purvis, Gray
and Company, I have audited twenty different municipalities and five different county governments. I am
currently the lead auditor for five Florida municipalities and one Florida County. I can be reached at 2202
Cantu Court, Suite #100, Sarasota, Florida 34232, (941) 379-2800.
-
Further information about your team and our firm follows in this document. Again, we appreciate the
opportunity to introduce Purvis, Gray and Company to the City. We look forward to the opportunity to work
with you and fulfill this commitment to serve. If we can supply you with additional information or discuss
this commitment further with you, we will be available at your convenience.
Respectfully submitted,
PfRl:'IS. GRAY AND COMPANY.
'f7aeli~
Joseph J. Welch c.P.A.
Audit Partner
JJW /cjp
2
;{ji,;'#f'
MANDATORY ELEMENTS
Independence
The legal name of our firm is Purvis, Gray and Company, LLP. We are organized as a Florida Limited
Liability Partnership, authorized to do business in the state of Florida.
We are certified public accountants, independent of the City ofOcoee, Florida (the City) and all component
units or potential component units of the City as defined by generally accepted auditing standards and
Government Auditing Standards issued by the United States General Accounting Office.
We have had no professional relationships involving the City, or any of its actual or potential component units
over the last five years.
We confirm that we will give the City written notice of any professional relationships entered into involving
the City or component units during the period of this agreement.
License to Practice in Florida
We are properly licensed and registered for public practice as certified public accountants in the state of
Florida, and all assigned professional staff (senior accountants and above) are properly licensed and
registered to practice as certified public accountants in the state of Florida.
Purvis, Gray and Company is a member of the American Institute of Certified Public Accountants (AlCP A)
and Florida Institute of Certified Public Accountants (FlCP A), and several of the partners and staff of Purvis,
Gray and Company are members of the Government Finance Officers Association (GFOA), Florida
Government Finance Officers Association (FGFOA), American Public Power Association (APP A), Florida
Municipal Electric Association (FMEA), and Florida Rural Water Association (FRW A).
3
PRICE PROPOSAL FORM
AUDIT OF THE CITY OF OCOEE
RFP #06-004 AUDITING SERVICES
Attachment A
The annual price proposal for auditing services as described in RFP #06-004 for Fiscal Year Ending 2006,
2007, and 2008.
PURVIS, GRAY AND COMPANY, LLP YEARS 2006 2007 2008
Standard Proposed
Hourly Hourly
Hours Rates Rates
Partners 50 $ 230 $ 125 $ 6,250
Manager 120 200 115 13,800
Senior Staff 120 115 95 II ,400
Staff 110 100 85 9,350
Subtotal Fee 400 40,800 42,800 44,900
Preparation of the Comprehensive
Annual Financial Report
(CAFR), if Required:
55
100
5,500
5,500
5,500
Total Fee Including CAFR Preparation
$ 46,300 $ 48,300 $ 50,400
5 J2'/,/o~
Date
/i,evif. G~ ~ 6.
Company Name '
:R3787/ I - 7700
License Number
51
Attachment B
RFP #06-004 COMPANY INFORMATION/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION.
Purvis, Gray and Company, LLP
COMPANY NAME
(352) 732-3872
TELEPHONE (INCLUDE AREA CODE)
(352) 732-0542
FAX (INCLUDE AREA CODE)
MarkWhite@purvisgray.com
E-MAIL ADDRESS
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
Center
ZIP
FEDERALID# 59-0548468
_Individual _Corporation ~Partnership _Other (Specify)
Personally Known
/or
d3daYOf~201Jh
Sworn to and subscribed before me this
Produced Identification
(Type ofIdentification)
,...,
RFP #06-004
Printed, typed or stamped
Commissioned name of Notary Public
~"'":'"'''' R088lN C. WIl.J(WSON
m~ NotIfy PubIc - StIde ofFlollda
t .)urColI.-..oo ExpirllAug 29, 2009
"..~ ?A.~ eonllllilSklh' DD486908
~"1., Of: f\:g';'"
'.....". Bonded By NalIonaI Notary AsIn.
52
AVERETT WARMUS DURKEE
BAUDER THOMPSON
.
CERTIFIED PUBLIC ACCOUNTANTS
May 25, 2006
To the Members of the Audit Selection Committee
City of Ocoee, Florida
150 North Lakeshore Drive
Ocoee, Florida 34761
We appreciate the opportunity to present our credentials as a part of your independent
auditor selection process. We understand the importance you place on this process as you
constantly face new challenges that require the assistance of auditors and advisors who will
provide the highest quality service, on time and in a cost-effective manner.
c-{j
We audit numerous municipalities, not-for-profit entities and state agencies that receive
federal and state grants. We come to the engagement with an understanding of your needs
and the experience to help you meet them. This combination of experience and availability
will provide the City of Ocoee, Florida with the best possible service and advice as you face
the issues of the future.
We understand the scope of services requested by City ofOcoee, Florida to be as follows:
'iN
. Audit of basic financial statements (in accordance with auditing standards generally
accepted in the United States of America and standards applicable to financial audits
contained in Government Auditing Standards, including Federal and State Single Audit).
. Report on compliance and on internal controls over financial reporting.
. Report on compliance and internal controls over compliance applicable to each
major federal program.
. Preparation of a management letter to report any material weaknesses noted in
internal controls, noncompliance with fiscal policies and potential expense reduction
opportunities.
. Assistance in providing guidance and implementing changes in governmental
accounting standards.
. Assistance to meet requirements of the Certificate of Achievement for Excellence in
Financial Reporting Program.
You can be assured of our commitment to providing quality service and sound business
advice to help you in meeting your public service and public accountability challenges.
,"
Sincerely,
...
~/~~,fv{~.,.~
Averett, Warmus, Durkee, Bauder & Thompson
1
141 7 EAST CONCORD STREET. ORLANDO, FLORIDA 32803
TELEPHONE (407) 849-1569 . FAX (407) 849-1 I 19
dM
PRICE PROPOSAL FORM
RFP #06-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #06-004 FOR FISCAL YEARS ENDING 2006, 2007, 2008:
$
35 ,000 .00
annually
105.000
dollars & 00
cents
(A renewal option for an additional two years may be negotiated).
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
$
2,500 . 00
annually
112,500
dollars &
00
cents
5/26/06
Date
Averett. Warmus. Durkee. Bauder & Thompson
Company Name
11783
License Number
James W. Warmus
uthorized Officer (print)
RFP #06-004
41
RFP #06-004 COMPANY INFORMATION/SIGNATURE SHEET
,
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN D1SQUALlFlCATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION.
Averett, Warmus, Durkee
Bauder, & Thompson, CPA's
COMPANY NAME
407-849-1569
TELEPHONE (INCLUDE AREA CODE)
407-84Q-111Q
FAX (INCLUDE AREA CODE)
j imw@awdbt.com
E-MAIL ADDRESS
tv . w --- ~
ORIZED SIGNATURE (manual)
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
es W. Warmus, Princi al
/TITLE (PLEASE PRINT)
17 East Concord Street
STREET ADDRESS
Orlando, FL
CITY STATE
32803
ZIP
FEDERALID# 59-3214308
_Individual _Corporation ~Partnership _Other (Specify)
N:J
Sworn to and subscribed before me this ad --- day of ~'V\ A,
,20~.
Personally Known
~. or
Produced Identification
(Type of Identification)
Notary Public - State of FLoR..\ ()A
County of cRi4Nt.~L
~~ -j . -;4.}~,')'-.)
Signature of Notary Public
RFP #06-004
G.:>A l L L . Lf) R. ~ () '"
Printed, typed or stamped
Commissioned name of Notary Public
~",,\\\IIIIIIIIIII.
~",... \.,. \..ARSOA/;'~
,:f1o~~\" ........ 'I' ~
~ "'...~sS\ON c-t;.. ~
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~'III. PUBLic. srt-'\\",~
1111"1/"1\1\\\"'"
42
Mavor
S, Scott Vandergrift
City Manager
Robert Frank
RFP #06-004
center of Good L .
'\,~e 11'i~
CITY OF OCOEE
Commissioners
Gary Hood, District 1
Scott Anderson, District 2
Rusty Johnson, District 3
Joel F, Keller, District 4
REQUEST FOR PROPOSALS
RFP #06-004
AUDITING SERVICES
1
RFP DOCUMENTS
3 thru 4
5 thru 7
8 thru 11
12
12
Legal Advertisement
Introduction
General Terms & Conditions
*Summary of Litigation
* Addenda Acknowledgment
SCOPE OF SERVICES/PROPOSAL FORM
13th ru 1 9
20
21
22 (89 pages)
Scope of Services
*Price Proposal Form
*Company Information/Signature Sheet
Exhibit A - 2005 CAFR
*Submit with Proposal
End Table of Contents
RFP #06-004
2
LEGAL ADVERTISEMENT
Ocoee City Commission
Sealed proposals will be accepted for REQUEST FOR PROPOSALS (RFP) #06-004,
AUDITING SERVICES, no later than 2:00 P.M., local time, on May 25, 2006.
Proposals received after that time will not be accepted or considered, and will be
returned unopened. No exceptions will be made. The City reserves the right to reject
any and all proposals and waive informalities.
The City of Ocoee, Florida, in conformance with Florida Statutes, Section 218.391
(Auditor Selection Procedures), and the policies and procedures of the City of
Ocoee (City) is soliciting proposals from Certified Public Accounting Firms with
Governmental Accounting experience to submit a response to our RFP to provide
Independent Financial Auditing Services in accordance to the RFP documents.
The fiscal years ended September 30, 2006, 2007, and 2008 will be included in this
RFP. A renewal option for an additional two years may be negotiated. The firm must
be duly licensed under Florida Statutes, Chapter 473 and qualified to conduct
audits in accordance with government auditing standards as adopted by the
Florida Board of Accountancy.
Each Respondent shall submit one (1) original and five (5) copies of the required
proposal documents, in a sealed envelope plainly marked on the outside with the
appropriate RFP number and closing date and time. Proposals will be received at the
City of Ocoee, Attn: Purchasing Agent, 150 N. Lakeshore Drive, Ocoee, Florida 34761-
2258. Proposals will be publicly opened and read aloud in the City Hall Conference
Room on the above-appointed date at 2:01 PM, local time, or as soon thereafter as
possible.
Interested Firms may secure a copy of the documents through Demandstar by accessing
the City's website at www.ci.ocoee.fl.us under Finance/Purchasing, or copies are available
from the Purchasing Agent for a non-refundable reproduction and/or administrative
fee of $20.00. Checks should be made payable to the City of Ocoee. Copies via e-mail
are not available and partial sets of RFP documents will not be issued.
To ensure fair consideration for all Respondents, companies interested in providing the
required services may be disqualified if they have contacts with the Mayor, City
Commissioners, or any City staff, other than the Purchasing Agent concerning the RFP
during the submission or selection process.
Award of Contract: The City of Ocoee reserves the right to waive technicalities or
irregularities, reject any or all proposals, and/or accept that proposal that is in the best
interest of the City, price, qualifications and other factors taken into consideration. The
City reserves the right to award the Contract to the Respondent, which, in the sole
discretion of the City, is the most responsive and responsible Proposer, price,
qualifications and other factors considered.
RFP #06-004
3
Pursuant to Section 287.133(2)(a), Florida Statutes, interested individuals or firms who
have been placed on the convicted vendor list following a conviction for public entity
crimes may not submit a Proposal on a contract to provide services for a public entity,
may not be awarded a consultant contract and may not transact business with a public
entity for services, the value of which exceeds CATEGORY TWO for a period of 36
months from the date of being placed on the convicted vendor list.
No fax or electronic submissions will be accepted.
City Clerk
April 16, 2006
RFP #06-004
4
Introduction:
A. Any questions or concerns regarding this RFP should be addressed in writing
to the Finance Department, City of Ocoee, FL, Attention: Joyce Tolbert,
Purchasing Agent (407) 905-3100, extension 1516 and fax (407) 656-3501 or
email jtolbert@ci.ocoee.fl.us. and shall be received not later than May 18,
2006. Any clarifications/changes will be made in the form of written addenda
only, issued by the Purchasing Agent. Proposers shall not contact other City
staff or other City consultants for information before the award date. Any
contact with any other member of the City Staff, City Commission, or its Agents
during this time period may be grounds for disqualification.
B. Proposals must be received as one (1) original and five (5) copies by the
Finance Department not later than 2:00 P.M., local time, on May 25, 2006.
Proposals received by the Finance Department after the time and date
specified will not be considered, but will be returned unopened. "Postage Due"
items will not be accepted. Proposals or any information transmitted by fax or e-
mail will not be accepted. Proposals shall be delivered in a sealed envelope,
clearly marked with the RFP number, title, and opening date and time to:
City of Ocoee Finance Department
Attention: Purchasing Agent
150 N lakeshore Drive
Ocoee, Fl 34761-2258
C. Proposals will be reviewed by a 5-member selection committee appointed by the
City Manager and will be ranked in accordance with the established evaluation
criteria. Date, time, and location of any scheduled selection committee
meeting(s) for this RFP will be announced publicly. The selection committee
shall recommend ranking of the proposals and recommendation for selection to
the City Commission for approval. Please be aware that all City Commission
meetings are duly noticed public meetings and all documents submitted to the
City as a part of a bid constitute public records under Florida law.
D. All Proposers shall thoroughly examine and become familiar with the this RFP
package and carefully note the items specifically called for in this RFP which
must be submitted.
E. Submission of a proposal shall constitute an acknowledgment that the
proposer has complied with Paragraph E. The failure or neglect of a proposer
to receive or examine a document shall in no way relieve it from any obligations
under its proposal or the contract. No claim for additional compensation will be
allowed which is based upon a lack of knowledge or understanding of any of the
Contract Documents or the scope of services. Proposals shall be in compliance
with the contract documents/scope of services.
RFP #06-004
5
F. Any response by the City to a request for clarification or correction will be made
in the form of a written addendum which will be mailed, e-mailed or faxed by
Demandstar to all parties to whom the RFP package have been issued. The City
reserves the right to issue Addenda, concerning date and time of review
committee meeting, clarifications, or corrections, at any time up to the date and
time set for proposal submission. In this case, proposals that have been
received by the City prior to such an addendum being issued, will be returned to
the Respondent, if requested, unopened. In case any proposer fails to
acknowledge receipt of any such Addendum in the space provided on the
Addendum and fails to attach the Addendum to their proposal, its' proposal
will nevertheless be construed as though the Addendum had been received
and acknowledged. Submission of a proposal will constitute
acknowledgment of the receipt of the RFP Documents and all Addenda.
Only interpretations or corrections provided by written Addenda shall be binding
on the City. Proposers are cautioned that any other source by which a proposer
receives information concerning, explaining, or interpreting the RFP Documents
shall not bind the City.
G. Any of the following causes may be considered as sufficient for the
disqualification and rejection of a proposal:
a) Submission of more than one (1) proposal for the same work by an individual,
firm, partnership or corporation under the same or different name. For
purposes of this subparagraph, firms, partnerships or corporations under
common control may be considered to be the same entity;
b) Evidence of collusion between or among the proposers;
c) Being in arrears on any existing contracts with the City, or litigation with the
City or having defaulted on a previous contract with the City;
d) Poor, defective or otherwise unsatisfactory performance of work for the City
or any other party on prior projects which, in the City's judgment and sole
discretion, raises doubts as to the proposer's ability to properly perform the
services; or
e) Any other cause which, in the City's judgment and sole discretion, is sufficient
to justify disqualification of proposer or the rejection of its proposal.
No proposal may be withdrawn and all proposed prices shall remain firm
for a period of ninety (90) days after the time and date scheduled for the
proposal deadline.
The City reserves the right to accept or reject any or all proposals, to waive
informalities or irregularities, to request clarification of information
submitted in any proposal, or to readvertise for new proposals. The City
may accept any item or group of items of any proposal.
The City will make an Award, in its absolute and sole discretion to the most
responsible and responsive proposer whose proposal, in the City's
opinion, will be most advantageous to the City, price and other factors
considered. The City reserves the right, to aid it in determining which
proposal is responsible, to require a proposer to submit such evidence of
qualifications as the City may deem necessary, and may consider any
RFP #06-004
6
evidence available to the City of the financial, technical, and other
qualifications and abilities of a proposer, including past performance
(experience) with the City and others. The City Commission shall be the
final authority in the award of any and all proposals.
RFP #06-004
7
GENERAL TERMS & CONDITIONS:
1. BID SECURITY:
None Required.
2. PERFORMANCE AND PAYMENT BONDS:
None Required.
3. PATENT INDEMNITY:
Except as otherwise provided, the successful respondent agrees to indemnify the
City and its officers, agents, and employees against liability, including costs and
expenses for infringement upon any letters patent of the United States arising out
of the performance of this Contract.
4. PRICING:
Pricing should be provided as indicated on the Scope of Work/Price Proposal
Form attached, to include any alternate proposals. Please note that alternate
proposals will not be accepted unless specifically called for on the Scope of
Services/Price Proposal Form. Cost of preparation of a response to this proposal
is solely that of the Respondent and the City assumes no responsibility for such
costs incurred by the Respondent.
By submission of this proposal, the proposer certifies, and in the case of a joint
proposal, each party thereto certifies as to its own organization, that in
connection with this procurement:
a) The prices in this RFP have been arrived at independently, without
consultation, communication, or agreement for the purpose of restricting
competition, as to any matter relating to such prices with any other proposers
or with any competitor;
b) Unless otherwise required by law, the prices which have been provided in this
RFP have not been knowingly disclosed by the proposer and will not
knowingly be disclosed by the proposer prior to opening, directly or indirectly
to any other proposer or to any competitor;
c) No attempt has been made or will be made by the proposer to induce any
other person or firm to submit or not to submit a proposal for the purpose of
restricting competition. Every contract, combination or conspiracy in restraint
of trade or commerce in this State is unlawful (Florida Statutes, Section
542.18 and all applicable federal regulations);
RFP #06-004
8
5. PROTESTS:
The City's Finance/Purchasing Department will consider Protests seeking
contract award, damages, and/or any other relief. Any proposer seeking to file a
Bid Protest SHALL use the following procedures:
1. A proposer SHALL file a written Protest under this Article, or be barred
any relief.
2. A Protest: (a) must be in writing (oral protests will NOT be
acknowledged); (b) the content of the Protest shall fully state the factual and
legal grounds for the protest and the legal basis for the relief requested; and (c)
The Protest shall be filed with the Purchasing Agent not later than three (3)
calendar days after the posting of the notice of intent to award or
recommendation of award by staff.
3. After a Protest has been properly filed with the City, the City, by and
through its Finance/Purchasing Department shall make a determination on the
merits of the protest not later than five (5) business days after receipt of the
protest. If the City denies the protest, the City may proceed with the award of the
Contract unless enjoined by order of a Court of competent jurisdiction.
4. A Protest shall be limited to the following grounds: (a) issues arising from
the procurement provisions of the Project Manual and/or the Proposal Package
or Contract Documents; and/or (b) applicable federal, state or local law.
6. PAYMENT TERMS:
Payment for work completed will be made within (30) days of approved invoice.
Any contract resulting from this solicitation is deemed effective only to the extent
of appropriations available.
The City of Ocoee, Florida has the following tax exemption certificates assigned:
. Florida Sales & Use Tax Exemption Certificate No. 58-00-094593-54C;
and
· The City is exempt from federal excise, state, and local sales taxes.
7. DRUG-FREE WORKPLACE:
If applicable, provide a statement concerning the respondent's status as a Drug-
Free Work Place or evidence of an implemented drug-free workplace program.
8. CERTIFICATION OF NON-SEGREGATED FACILITIES
The respondent certifies that it does not and will not maintain or provide for the
Respondent's employees any segregated facilities at any of the Respondent's
establishments and that the Respondent does not permit the Respondent's
employees to perform their services at any location, under the Respondent's
RFP #06-004 9
control, where segregated facilities are maintained. The Respondent agrees that
a breach of this certification will be a violation of the Equal Opportunity clause in
any contract resulting from acceptance of this Proposal. As used in this
certification, the term "segregated facilities" means any waiting room, work areas,
time clocks, locker rooms and other storage and dressing areas, parking lots,
drinking facilities provided for employees which are segregated on the basis of
race, color, religion, national origin, habit, local custom, or otherwise. The
Respondent agrees that (except where the Respondent has obtained identical
certification from proposed contractors for specific time periods) the Respondent
will obtain identical certifications from proposed subcontractors prior to the award
of such contracts exceeding $10,000 which are not exempt from the provisions of
the Equal Opportunity clause, and that the Respondent will retain such
certifications in the Respondent files.
The non-discriminatory guidelines as promulgated in Section 202, Executive
Order 11246, and as amended by Executive Order 11375 and as amended,
relative to Equal Opportunity for all persons and implementations of rules and
regulations prescribed by the U.S. Secretary of labor, are incorporated herein.
9. STATEMENT OF AFFIRMATION AND INTENT:
The Respondent declares that the only persons or parties interested in their
proposal are those named herein, that this proposal is, in all respects, fair and
without fraud and that it is made without collusion with any other vendor or official
of the City of Ocoee. Neither the Affiant nor the above named entity has directly
or indirectly entered into any agreement, participated in any collusion, or
otherwise taken any action in restraint of free competitive pricing in connection
with the entity's submittal for the above project. This statement restricts the
discussion of pricing data until the completion of negotiations and execution of
the Agreement for this project.
The Respondent certifies that no City Commissioner, other City Official or City
employee directly or indirectly owns assets or capital stock of the Responding
entity, nor will directly or indirectly benefit by the profits or emoluments of this
proposal. (For purposes of this paragraph, indirect ownership or benefit does not
include ownership or benefit by a spouse or minor child.)
The Respondent certifies that no member of the entity's ownership or
management is presently applying for an employee position or actively seeking
an elected position with the City. In the event that a conflict of interest is
identified in the provision of services, the Respondent agrees to immediately
notify the City in writing.
The Respondent further declares that a careful examination of the scope of
services, instructions, and terms and conditions of this RFP has occurred, and
that the proposal is made according to the provisions of the RFP documents, and
will meet or exceed the scope of services, requirements, and standards
contained in the RFP documents.
RFP #06-004
10
Respondent agrees to abide by all conditions of the negotiation process. In
conducting negotiations with the City, Respondent offers and agrees that if this
negotiation is accepted, the Respondent will convey, sell, assign, or transfer to
the City all rights, title, and interest in and to all causes of action it may now or
hereafter acquire under the Anti-trust laws of the United States and the State of
Florida for price fixing relating to the particular commodities or services
purchased or acquired by the City. At the City's discretion, such assignment
shall be made and become effective at the time the City tenders final payment to
the Respondent. The proposal constitutes a firm and binding offer by the
Respondent to perform the services as stated.
10. PUBLIC ENTITY CRIME STATEMENT:
All invitations to bid as defined by Section 287.012(11), Florida Statutes,
requests for proposals as defined by Section 287.012(16), Florida Statutes, and
any contract document described by Section 287.058, Florida Statutes, shall
contain a statement informing persons of the provisions of paragraph (2)(a) of
Section 287.133, Florida Statutes, which reads as follows:
"A person or affiliate who has been placed on the convicted vendor list following
a conviction for a public entity crime may not submit a bid on a contract to
provide any goods or services to a public entity, may not submit a bid on a
contract with a public entity for the construction or repair of public building or
public work, may not submit proposals on leases of real property to a public
entity, may not be awarded or perform work as a contractor, supplier,
subcontractor, or consultant under a contract with any public entity, and may not
transact business with any public entity in excess of the threshold amount
provided in Section 287.017, for CATEGORY TWO for a period of 36 months
from the date of being placed on the convicted vendor list."
All bidders that submit a Bid or Request for Proposal to the City of Ocoee
are guaranteeing that they have read the previous statement and by
signing the bid documents are qualified to submit a bid under Section
287.133, (2)(a), Florida Statutes.
11. INSURANCE TERMS & CONDITIONS:
Proof of Professional Liabilitv Insurance: Provide a current insurance certificate
providing proof of Professional Liability Insurance. The successful Respondent
shall be required to provide evidence of both General (Public & Property) Liability
and Professional Liability Insurance in the form of a certificate of insurance
issued on behalf of the City of Ocoee by companies acceptable to the City at the
following minimum limits and coverage's with deductible amounts acceptable to
the city:
Comprehensive General Liability Insurance: $1,000,000.00
(The City of Ocoee is to be named as an additional insured)
Professional Liability Insurance:
$1,000,000.00
11
RFP #06-004
12. SUMMARY OF LITIGATION:
Provide a summary of any litigation, c1aim(s), bid or contract dispute(s) filed by or
against the proposer in the past five (5) years which is related to the services that
the proposer provides in the regular course of business. The summary shall
state the nature of the litigation, claim, or contact dispute, a brief description of
the case, the outcome or projected outcome, and the monetary amounts
involved. If none, please so state.
(Attach additional sheets if necessary)
13. ACKNOWLEDGMENT OF ADDENDA:
Proposer acknowledges receipt of the following addenda:
No.
No.
No.
Dated
Dated
Dated
RFP #06-004
12
City of Ocoee
Scope of Services
Request for Proposals (RFP) #06-004
Auditing Services
City of Ocoee invites Certified Public Accounting Firms with Governmental Accounting
experience to submit a response to our Request for Proposals (RFP) to provide
Independent Financial Auditing Services. The firm must be duly licensed under Florida
Statutes, Chapter 473 and qualified to conduct audits in accordance with government
auditing standards as adopted by the Florida Soard of Accountancy. The scope of
services to be provided shall include:
SERVICES TO BE PROVIDED
A. Financial Audit
1. The proposing firm (the firm) selected will be required to perform a
financial audit in accordance with generally accepted auditing standards
of the financial accounts and records of the City of Ocoee, Florida.
2. The audit shall comply with the Rules of the Auditor General of the
State of Florida, Statements on Auditing Standards (GAAS),
Government Audit Standards issued by the Comptroller of the United
States, OMS Circular A-133 and other applicable OMS circulars,
Florida Single Audit Act and other Florida Statutes as applicable,
Audits of State and Local Government Units (AICPA Audit Guide
revised, and other applicable authoritative standards.
3. As a result of the examination, 25 copies of the following reports will be
required, along with an electronic copy for permanent recordkeeping:
b.
Auditor's report;
Report on compliance and internal control structure;
Report on compliance with requirements applicable to each
major program and internal control over compliance in
accordance with OMS Circular A-133;
Management Letter;
Electronic version of the Annual Financial Report.
a.
c.
d.
e.
RFP #06-004
13
B. Single Audit
1. The firm selected will also be required to perform a single audit of all
federal financial assistance provided to the City.
2. The audit shall comply with the Rules of the Auditor General of the State
of Florida and be in accordance with the Single Audit Act of 1984 and
Amendments thereof.
3. As a result of the examination, 25 copies of the following reports will be
required, along with an electronic copy for permanent recordkeeping:
a. Auditor's report on financial statements, including the
supplementary schedule of federal assistance, must include
a statement whether the individual fund information is fairly
presented in all material respects in relation to the general
purpose financial statements.
b. A report on internal accounting control, including internal
controls, used to manage any federal financial assistance
programs.
c. Comments on compliance with the terms and conditions of
federal laws and regulations applicable to major and non-
major federal assistance programs.
Firms interested in providing these services should make their interest known by
submitting one (1) original and five (5) copies of their sealed proposal to:
City of Ocoee Finance Department
Attn: Purchasing Agent
150 N Lakeshore Drive
Ocoee, FL 34761
Proposals must be received no later than 2:00 p.m., local time, May 25, 2006.
Proposals received after that time will not be accepted or considered, and will be
returned unopened. No exceptions will be made. The City reserves the right to reject
any and all proposals and waive informalities.
RFP #06-004
14
DESCRIPTION OF ENTITY AND ACCOUNTING SYSTEM
A. General Information
The City of Ocoee operates under a commission/manager form of
government. Ocoee is home to 30,597 residents. The City is primarily a
residential and retail area with a small amount of light industry and
commercial business. The City provides water, wastewater, garbage, and
stormwater services. Ocoee has received the GFOA Certificate of
Achievement for Excellence in Financial Reporting for sixteen consecutive
years.
B. The Accounting System
1. Entity Definition
. The funds encompassed in the audit scope of services include all
of those activities defined as a part of the reporting entity of the
City (See attached copy of the City Fiscal Year Ended September
30, 2005 Comprehensive Annual Financial Report (CAFR) for
detail of funds (Exhibit A). Any material changes to the entity
during the term of the contract for audit services will be cause for
renegotiation of the basis of fee.
2. Generallnformation
RFP #06-004
a.
The accounting system is a window based application. The
software is American Data Group (ADG): Purchasing, AlP,
AIR, G/L, Payroll, Utility Billing, Permits and Licensing.
Vendor checks are processed on a bi-weekly basis.
Purchase orders are issued as evidence of commitments.
There is an encumbrance entered against the expenditure
account at the time of commitment and liquidated at the time
of payment.
Payroll is processed on a bi-weekly basis. The City currently
has approximately 305 full-time budgeted positions and 62
part-time budgeted positions. There are no substantial
fluctuations in personnel during the year.
Utility customers are billed in house.
The revenue and expenditure budgets for General Fund and
enterprise funds are integrated into the accounting system.
As of September 30, 2005
b.
c.
d.
e.
f.
15
. Total Assets were $161,185,725
. Long-term debt obligations were $57,901,070
3. Accounting Policies and Procedures
See footnote 1 of our CAFR - Fiscal Year Ended September 30, 2005
(Exhibit A) for a list of our significant accounting policies.
SCHEDULE OF AUDIT WORK
It is required that the CAFR be published by March 31 st of each year. The firm
selected must be able to meet the following schedule which indicates approximate
completion dates (dates may be adjusted for first year):
By September
By November 15
Interim work complete
The City will have adjustments made, books
closed and trial balance prepared
The firm's field work and review of CAFR will be
completed
Presentation of CAFR to City Commission by
by the firm and staff
By March 10
By 2nd City Commission
Meeting in March
The selected firm will be required to sign a contract with the City to provide the
required services. The exact schedule will be set on an annual basis and agreed upon
by both parties. The fiscal years ended September 30, 2006, 2007, and 2008 will be
included in this RFP. A renewal option for an additional two years may be negotiated.
In addition, the firm must be flexible to expand the scope of services, at a negotiated
price, in order to provide professional expertise and support related to future bond
issues throughout the term of the contract. The City will maintain the right to cancel the
contract if auditor performance is unsatisfactory.
INFORMATION REQUESTED FROM THE FIRM
In order to simplify the review process and obtain the maximum degree of comparison,
the firm must use the following format in responding to the RFP.
A. Title Page
RFP #06-004 16
Include the title "Proposal for Audit Services", the name of the firm,
local address, telephone number, name of the contact person, and the
date.
B. Table of Contents
Include a clear identification of the material by section and page
number. Include a statement that all working papers and reports will be
retained at auditors' expense for a minimum of five years after release
of audit, unless the firm is notified in writing by the City of the need to
extend the retention period. The firm will be required to make working
papers available, without charge, to the City upon request.
C. Letter of Transmittal
Limit to one or two pages and include the following:
1. Understanding of the work to be done and a positive commitment to
perform the work within the schedule previously discussed.
2. State the name of the person who will be authorized to make
representations for the firm, their title, address, and telephone number.
3. State whether the firm is local, regional, national, or international.
4. State the location of the office from which the work is to be done and the
number of professional staff at that office.
D. Mandatory Criteria
1. Affirm that the firm is properly licensed to practice public accounting in
the State of Florida and that all supervisory personnel assigned to the
audit are CPAs.
E. Firm's Qualifications (0-35 points)
1. Describe the firm's recent (last 3 years) governmental experience,
emphasizing work of the local office and provide a contact name and
phone number for each.
2. Describe staff training programs.
3. Give indications of the firm's depth in the governmental audit areas.
4. Describe the firm's commitment to the governmental sectors,
5. Does the firm participate in the AICPA's voluntary quality review
program? If so, indicate time of last review and results.
RFP #06-004
17
6. Describe the management advisory services the firm provides and
indicate which of those services are provided at the local level.
7. Describe the firm's experience in providing accounting services related to
the issuance of revenue and general obligation bonds.
F. Personnel Qualifications (0-30 points)
Identify manager and all other supervisory personnel that will be
assigned to this audit. Include resumes that identify experience in
governmental audits, and indicate type and amount of continuing
education. Include any other data that will indicate personnel's ability to
perform the services described. Any reduction in the level of
qualifications and expertise of personnel during the term of the contract
must be consented to by the City.
G. Audit Approach (0-25 points)
Submit a work plan to accomplish the scope of the RFP. The work
plan should include time estimates for each significant segment of
the work and the staff level to be assigned. Where possible,
individual staff members should be named. The planned use of
specialists should be specified. Indicate your ability to meet the
schedule outlined in the Schedule of Audit Work. Indicate to what
extent statistical sampling techniques and analytical procedures will
be employed. In addition, what approach is proposed for gaining and
documenting the auditor's understanding of internal control structure?
Finally, indicate what approach is proposed for determining which
laws and regulations should be tested for compliance.
H. Price Proposal (0-10 points)
EVALUATION OF PROPOSALS
Proposals will be reviewed and evaluated by a committee based upon the following
criteria and information requested from the firm:
1. Responsiveness of the proposal related to the scope of work.
2. Ability, capacity, and skill of the audit firm to perform the services on a timely
basis.
3. Responses of the client references.
RFP #06-004
18
4. Experience of the business and individual members of the business in
accomplishing similar services.
5. The sufficiency of financial resources and ability of business to perform the
contract.
6. The quality, availability, and Adaptability of the services to the particular need
requested.
7. Such other information as may be required or secured.
The short listed firms may be invited for oral interviews prior to final selection. After the
committee has evaluated the short listed firms, the City Commission shall select the
highest-ranked qualified firm or will document the reason for not selecting the highest-
ranked firm. The City reserves the right to accept or reject any or all proposals, to waive
informalities or irregularities, to request clarification of information submitted in any
proposal, or to readvertise for new proposals. The City may accept any item or group of
items of any proposal.
The City will make an Award, in its absolute and sole discretion to the most responsible
and responsive proposer whose proposal, in the City's opinion, will be most
advantageous to the City, price and other factors considered. The City reserves the
right, to aid it in determining which proposal is responsible, to require a proposer to
submit such evidence of qualifications as the City may deem necessary, and may
consider any evidence available to the City of the financial, technical, and other
qualifications and abilities of a proposer, including past performance (experience) with
the City and others. The City Commission shall be the final authority in the award of
any and all proposals.
No proposal may be withdrawn and all proposed prices shall remain firm for a
period of ninety (90) days after the time and date scheduled for the proposal
deadline.
RFP #06-004
19
PRICE PROPOSAL FORM
RFP #06-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #06-004 FOR FISCAL YEARS ENDING 2006, 2007, 2008:
$
annually
dollars &
cents
(A renewal option for an additional two years may be negotiated).
Date
Company Name
License Number
Authorized Officer (print)
Authorized Signature
RFP #06-004
20
RFP #06-004 COMPANY INFORMA nON/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION,
COMPANY NAME
TELEPHONE (INCLUDE AREA CODE)
FAX (INCLUDE AREA CODE)
E-MAIL ADDRESS
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
AUTHORIZED SIGNATURE (manual)
NAME/TITLE (PLEASE PRINT)
STREET ADDRESS
CITY
ST ATE
ZIP
FEDERAL ID #
_Individual _Corporation _Partnership _Other (Specify)
Sworn to and subscribed before me this
day of
,20_
Personally Known
or
Produced Identification
(Type of Identification)
Notary Public - State of
County of
Signature of Notary Public
Printed, typed or stamped
Commissioned name of Notary Public
RFP #06-004
21
- Exhibit A -
2005 Annual Financial Report
22
City of Ocoee, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For The Year Ended September 30, 2005
Prepared by: Finance Department
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center of Gooct L .
,\,.'o.e J 1V1lW
m
INTRODUCTORY SECTION
This section contains the following subsections:
. Table of Contents
. Letter of Transmittal
. GFOA Certificate of Achievement
. List of Principal Officials
. Organizational Chart
This page intentionally left blank.
ceutel of Good l '
'\.,'o~ 'Ifllli'
m
CITY OF OCOEE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2005
Paae
I.
Introductory Section:
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement
List of Principal Officials
Organizational Chart
i-ii
iii-vi
vii
viii
ix
II.
Financial Section:
Independent Auditor's Report
Management's Discussion and Analysis
1-2
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 28-53
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds 54-56
Combining Statement of Revenues, Expenditures and Changes
In Fund Balances - Nonmajor Governmental Funds 57-58
CITY OF OCOEE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - Continued
Year Ended September 30, 2005
II. Financial Section - Continued:
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets:
Combining Statement of Charges in Fiduciary Net Assets
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Function and Activity
III. Statistical Section:
Government-Wide Information:
Government-Wide Expenses Function
Government-Wide Revenues
Fund Information:
General Governmental Expenditures by Function
General Governmental Revenues by Source
Property Tax Levies and Collections
Assessed and Estimated Value of Taxable Property, Net of Exemptions
Property Tax Rates, Direct and Overlapping Governments
Tax Revenue By Source
Schedule of Ten Largest Taxpayers
Special Assessment Billings and Collections
Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita
Ratio of Annual Debt Service Expenditures for General Bonded Debt
To Total General Governmental Expenditures
Computation of Direct and Overlapping General Obligation Debt
Revenue Bond Coverage
Demographic Statistical Data
Property Values and Construction
Miscellaneous Statistical Data
Schedule of Insurance in Force
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
ii
Paqe
59
60
61
62-63
64-65
66-67
68-70
71
72-73
74
75
76
77
78
79
80
81
82
83
84
85-86
87
88-89
Mayor
S. Scott Vandergrift
center of Good L .
'\,"o-e Jl->i1s>
Commissioners
Danny Howell, District 1
Scott Anderson, District 2
Rusty Johnson, District 3
Nancy ,I. Parker, District 4
City Manager
Ro bert Frank
March 15, 2006
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, 2005, 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.
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. We encourage readers to consider information provided in the Management
Discussion and Analysis (p. 3-13) in conjunction with the information provided in this
Transmittal.
The City of Ocoee's financial statements have been audited by McDirmit, Davis, & 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, 2005, 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, 2005, 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.
iii
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 30,597 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 employers in Ocoee - Health Central Hospital, Sysco Foods, Inc. and Florida Auto
Auction -- have completed expansions to their businesses. With such continuing economic
growth, the financial position of the City remains sound. The City had 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. 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 provides 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 and is currently in design to widen the
segment from SR50 to Story Road to four lanes.
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.
The Ocoee Crown Point PUD project is located in the northwest quadrant of the City. This project
is envisioned to be a multi-use project combining an assortment of public uses with residential,
office, and commercial uses in a high quality traditional neighborhood development environment.
The centerpiece of the project is the new Ocoee High School which opened in August 2005, The
city plans to award a contract for development during fiscal year 2006.
iv
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 11.7% from the prior year and 196% since 1995. This increase in
valuations and millage resulted in an increased tax levy of $669,857 over last year. The City's
population has increased 59% 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 2005 (tax year 2004).
Long-term financial planning. The City updated and adopted a 5-year Capital Improvements
Plan (Crp) during fiscal year 2005. 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. 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 2005 were $2,740,594. The City has funded 87.9% of its
actuarial accrued liability for general fund pension benefits and 89.13% for police and firefighters.
A four-year trend shows an overall increase in the City's funding ratio each year. The unfunded
actuarial liability as of October 1,2005 is $1,616,741 for general and $1,795,291 for police and
fire, The City of Ocoee does not provide any postretirement health or dental benefits for retirees
or their dependents.
v
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, 2004. This was the seventeenth 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 in a responsible and
progressive manner.
Respectfully submitted,
/J
~~~
Robert Frank
City Manager
Wanda Horton
Finance Director
vi
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, 2004
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 [rnancial repolting,
~t~
President
~/~
Executive Director
vii
CITY OF OCOEE, FLORIDA
LIST OF PRINCIPAL OFFICIALS
September 30, 2005
ELECTED OFFICIALS
MAYOR
COMMISSIONER
COMMISSIONER
COMMISSIONER
COMMISSIONER
STAFF
CITY MANAGER
CITY CLERK
FINANCE DIRECTOR
INFORMATION SERVICES
HUMAN RESOURCES
POLICE CHIEF
FIRE CHIEF
PUBLIC WORKS DIRECTOR
CITY ENGINEER
COMMUNITY DEVELOPMENT DIRECTOR
UTILITIES DIRECTOR
PARKS AND RECREATION DIRECTOR
LEGAL COUNSEL
Paul Rosenthal, Esq.
Foley and Lardner
FINANCIAL ADVISOR
Mark Galvin
First Southwest Company
AUDITORS
McDirmit Davis & Company, LLC
viii
S, Scott Vandergrift
Danny Howell
Scott Anderson
Leon "Rusty" Johnson
Nancy Parker
Robert Frank
Beth Eikenberry
Wanda Horton
Brian Ross
James Carnicella
Steve Goclon
Richard Firstner
Robert Zaitooni
David Wheeler
Russ Wagner
Charles Smith
Vito Petrone
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FINANCIAL SECTION
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MC'DIR.MIT III DA.VIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Commission
City of 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 3D, 2005, 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 3D, 2005, 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.
605 E ROBINSON STREET, SUITE 635
ORLANDO, FLORIDA 32801
TELEPHONE: 407-843-5406
FAX: 407-649-9339
Email: info@mcdirmitdavis.com
1
In accordance with Government Auditing Standards, we have also issued a report dated
January 27, 2006 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 grant agreements and other matters. The purpose of that report is to describe
the scope of our testing and internal control over financial compliance and the result of that
testing, and not to provide and opinion on the internal control over financial reporting or on
compliance, 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 and nonmajor fund financial statements, schedules and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining nonmajor fund financial statements and schedules 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.
fJtc/JJAmiZ ~ & eemp&vrAfLLt
McDIRMIT DAVIS & COMPANY, LLC
January 27, 2006
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
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center of Good I. .
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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, 2005 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-vi 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 $161,185,725 (net assets). Of this amount, $32,984,711 (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 $7,631,218 or 5%.
. As of the close of the current fiscal year, the City of Ocoee's governmental funds reported
combined ending fund balances of $22,886,343. Approximately 99% of this total amount,
$22,675,711 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
$11,178,795, or 52% of total general fund expenditures.
. The City of Ocoee's total debt decreased by $955,147 (2%) during the current fiscal
year.
Using this Annual Report
The financial statement's focus 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
Management's Discussion and Analysis (continued)
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 Gcoee 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 Gcoee include general government, public safety, physical environment, and culture and
recreation. The business-type activities of the City of Gcoee include Water and Wastewater,
Solid Waste, and Stormwater.
The government-wide financial statements include only the City of Gcoee itself (known as the
primary government). The City of Gcoee has no component units. The Water and Wastewater
fund, Solid Waste fund, and the Stormwater fund function as departments of the City of Gcoee,
and therefore have 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 Gcoee, 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
Gcoee 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.
4
Management's Discussion and Analysis (continued)
The City of Ccoee maintains 20 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
fund. Data from the other 18 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.
The City of Ccoee 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 Ccoee 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 Ccoee uses enterprise funds to account for
its Water and Wastewater fund, Solid Waste fund, and Stormwater fund. Annual operating
budgets are adopted for these funds.
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 Ccoee'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 28-53 of this report.
Other information. The combining statements referred to earlier in connection with non-major
governmental funds are presented immediately following the Notes to Financial Statements.
Combining and individual fund statements and schedules can be found on pages 54-61 of this
report.
5
Management's Discussion and Analysis (continued)
Government-wide Financial Analysis
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
$161,185,725 at the close of the most recent fiscal year.
By far the largest portion of the City of Ocoee's net assets (72%) 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
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 (7%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets
($32,984,711) may be used to meet the government's ongoing obligations to citizens and
creditors.
At September 30, 2005, 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 and prior year, For more detail see the Statement of
Net Assets on page 14.
STATEMENT OF NET ASSETS
AS OF SEPTEMBER 30 2005
GOVERNMENTAL BUSINESS Total
ACTIVITIES ACTIVITIES
2005 2004 2005 2004 2005 2004
Current and other
assets $27,331 337 $24,810,495 $9,774,947 $10.185.766 $37 106,284 $34,996,261
Restricted assets - - 13,821015 12.956,436 13.821,015 12.956,436
Cacital assets 111 428,831 107,387,959 62,803,216 62.935,871 174,232,047 170,323,830
Total assets 138,760,168 132198,454 86 399,178 86,078,073 225.159,346 218,276.527
Current liabilities 4,421,008 3.985 584 1,248 263 1,436,883 5669,271 5,422,467
Long term liabilities
outstandina 34,820.807 35,413,269 23,080,263 23,442,948 57.901,070 58856217
Other liabilities - - 403 280 443,336 403,280 443,336
Total liabilities 39,241,815 39.398,853 24 731 806 25323.167 63.973,621 64,722.020
Net Assets:
Invested in capital
assets, net of
related debt 76,575,113 71,961,025 39,352,386 38,854742 115927,499 110,815.767
Restricted 9,123229 8,438,051 3,150,286 2.937,451 12,060,680 11,375,502
Unrestricted 13,820.011 12,400 525 19,164,700 18,962,712 32.984,711 31,363,238
Total net assets 99,518.353 92.799,601 61,667.372 $60,754,906 161.185,725 $153,554.507
6
Management's Discussion and Analysis (continued)
Statement of Activities
The following table reflects the condensed Statement of Activities for the current and prior year.
For more detailed information see the Statement of Activities on page 15, Note that total net
assets increased by $7,631,218.
Assets for governmental activities increased by $6,718,752representing 88% of the total growth in
the net assets for the City of Ocoee. Key elements of this increase are as follows:
. Property taxes increased by $649,975 representing a significant growth in the property
appraised value (24%).
. The increase in Franchise Fees and Utility Taxes is attributable to the increase in energy
costs.
. Expenses for governmental activities increased by 8% over the previous year. The largest
portion of this increase was for additional personnel and equipment in Public Safety.
Assets for business-type activities increased by $912,466 which represents 12% of the increase
for total net assets. Key elements of this increase are as follows:
. A $608,080 increase in contributions representing capital charges for connecting to the
water/wastewater system.
. The 68% increase in Other reflects the increase in investment earnings due to an
increase in the size of the portfolio and higher interest rates.
( The remainder of this page intentionally blank)
7
Management's Discussion and Analysis (continued)
City of Ocoee, Florida
Changes in Net Assets
For the year Ended September 30,2005
Governmental Business
Activities Activities Total
2005 2004 2005 2004 2005 2004
Revenues:
Program revenues:
Charges for services $6,638,565 $5,819,868 $9,920,919 $10,714,456 $16,559,484 $16,534,324
Operating grants and
contributions 1,680,344 1,218,225 179,570 1,680,344 1,397,795
Capital grants and
contributions 2,195,635 3,007,763 1,923,885 1,315.805 4,119,520 4,323,568
General revenues:
Property taxes 6,133,267 5,483,292 6,133,267 5,483,292
Franchise fees and
utility taxes 4,410,565 3,434,744 4,410.565 3,434,744
Intergovernmental 5,891,536 5,997,002 5,891,536 5,997,002
Other 2,686,460 362,409 470,607 279,309 3,157,067 641,718
Total revenues 29,636,372 25,323,303 12,315,411 12,489,140 41,951,783 37,812,443
Expenses:
General government 4,572,163 4,424,241 4,572,163 4,424,241
Public safety 12,087,397 11,384,815 12,087,397 11,384,815
Physical environment 4,086,246 3,638,985 4,086,246 3,638,985
Culture and recreation 2,296,163 1,746,032 2,296,163 1,746.032
Interest on long-term debt 1,405,422 1,369,210 1,405,422 1.369.210
Water and Wastewater 6,166,465 6,036,340 6,166,465 6,036,340
Solid Waste 1,582,533 1,675,542 1,582,533 1,675,542
Stormwater 2,124,176 1,896,163 2,124,176 1 ,896,163
Total expenses 24,447,391 22,563.283 9,873,174 9,608.045 34,320,565 32,171.328
Increase (decrease) in net
assets before transfers
5.188,981 2,760,020 2,442.237 2.881,095 7.631,218 5,641,115
Transfers 1.529,771 2,649,880 (1,529,771) (2,649,880)
Increase (decrease) in net
assets 6,718.752 5,409,900 912,466 231,215 7,631,218 5,641.115
Net assels - Oclober 1 ,
2004 92,799,601 87.389,701 60,754,906 60,523.691 153.554,507 147,913,392
Net assets - September
30,2005 $99,518,353 $92,799,601 $61,667,372 $60.754,906 $161.185,725 $153.554.507
8
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Expenses and Program Revenues - Governmental Activities
General government
Public safety
Interest on long-term
debt
Physical environment
Culture and recreation
I . Expenses
[J Program revenues
Revenues by Source - Governmental Activities
Program revenues
35,5%
Property taxes
20.7%
Investment income &
miscellaneous
9.1%
Franchise fees and
utility taxes
14.9%
Intergovernmental
19,9%
9
MANAGEMENT'S DISCUSSION AND ANALYSIS - CONTINUED
Expenses and Programs Revenues - Business - Type Activites
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
I c Ex:;:~';e~'~"'^ . Program revenuesC'Tmwater
Revenues by Source - Business-Type Activities
Operating Grants and
Contributions
0.0%
Charges for Services
80.6%
10
Capital Grants and
Contributions
15.6%
Investment income &
miscellaneous
3.8%
Management's Discussion and Analysis (continued)
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, 2005, the City of Ocoee's governmental funds reported combined ending
fund balances of $22,886,343, an increase of $2,192,319 in comparison with the prior year.
Approximately 99% or $22,675,771 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 $11,178,795, while total fund
balance reached $11,280,727. 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 fund balance represents 52% of total general fund expenditures compared to 41 %
for last year, Total fund balance represents 52% of total general fund expenditures compared
to 42% for last year.
Fund balance of the City of Ocoee's general fund increased by $3,137,109 during the current
fiscal year, primarily because intergovernmental revenues exceeded budget, expenditures in
most departments were less than budget, and gains from the sale of capital assets.
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
$15,729,648 compared to $15,514,901 for the prior year. Unrestricted net assets for the Solid
Waste and Stormwater Fund amounted to $1,192,078 and $2,242,974 respectively. This
compares to $1,280,978 for Solid Waste and $2,166,833 for Stormwater the prior year. Water
and Wastewater experienced an increase in its net assets while Solid Waste and Stormwater
had decreases.
General Fund Budgetary Highlights
Differences between the original General Fund expenditure budget and the final amended
General Fund expenditure budget consists of $571,527 in appropriations and can be briefly
summarized as follows:
. $14,530 increase in Legislative for community promotion activities and organizations
. $38,905 increase in Finance and Administration for salary HR consulting and software
. $(9,936) decrease in Community Development to transfer funds for plan review
consulting
11
Management's Discussion and Analysis (continued)
General fund Budgetary Highlights (continued)
. $(486,470) decrease in General Governmental to transfer funds for a departmental
reorganization and transfer funds for a capital project to a reserve fund (project won't
be completed until next fiscal year)
. $4,640 increase in Police for equipment purchase
. $(75,121) decrease in Fire for departmental reorganization
. $11,629 increase in Inspections for contractual services
. $6,823 increase in Public Works for departmental reorganization
. $495,000 increase in Transfer-Out due to departmental reorganizations and funds for
a capital project
These transactions resulted in a zero effect to the overall budget. During the year revenues
exceeded budgetary estimates and expenditures were less than budgetary estimates, thus
eliminating the need to draw upon existing fund balance.
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, 2005 amounts to $174,232,047 (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 construction of Maguire Road
pumping station, drainage upgrade project on Log Run Court, and Stormwater improvements
on Flewellyn Avenue. Additional information on the City of Ocoee's capital assets can be
found in note 7 on pages 41-42 of this report.
Capital Assets
(net of depreciation)
As of September 30, 2005 and September 30, 2004
Governmental Business
Activities Activities Total
2005 2004 2005 2004 2005 2004
Land $17,619,377 $17,619,377 $4,163,808 $4,163,808 $21,783,185 $21,783,185
Buildings 9,674,723 10,098,133 7,722,183 8,194,813 17,396,906 18,292,946
Improvements 3,709,604 3,382,280 46,860,409 49,057,255 50,570,013 52,439,535
Machinery and
equipment 3,610,022 3,569,641 792,046 629,257 4,402,068 4,198,898
Infrastructure 65,841,114 66,657,993 65,841,114 66,657,993
Construction in
Progress 10,973.991 6,060.535 3,264.770 890,738 14,238.761 6,951.273
Total $111428831 $107387959 $62803216 . $62935871 $174232047 $170323830
12
Management's Discussion and Analvsis (continued)
Long-term debt. At the end of the current fiscal year, the City of Ocoee had total bonded debt
outstanding of $50,200,000. 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,
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 43-46 of this report.
Economic Factors and Next Year's Budgets and Rates
The City considered many economic factors during the preparation of the fiscal year 2005 budget
namely the affect the downturn in the economy would have on intergovernmental revenue sources
and public service taxes.
The City adopted a revised rate schedules for Road, Recreation, Police and Fire impact fees,
The revised schedule was implemented to capture the increase in building materials and the
overall increase in materials and supplies,
Reauests for Information
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,
13
This page intentionally left blank.
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GOVERNMENT WIDE FINANCIAL STATEMENTS
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CITY OF OCOEE, FLORIDA
STATEMENT OF NET ASSETS
September 30, 2005
Primary Government
Governmental Business-type
Activities Activites Total
Assets:
Cash and cash equivalents $10,351,701 $ 3,186,829 $ 13,538,530
Investments 14,282,900 4,859,472 19,142,372
Receivables, net 193,631 1,123,888 1,317,519
Inventories - at cost 62,358 22,152 84,510
Due from other governments 2,376,712 15,158 2,391,870
Prepaid costs 40,049 1,000 41,049
Restricted assets:
Cash and cash equivalents 4,896,053 4,896,053
Investments 8,881,461 8,881,461
Assessments receivables 43,501 43,501
Bond issuance costs 23,986 566,448 590,434
Capital assets (not being depreciated) 28,593,368 7,428,578 36,021,946
Capital assets ( being depreciated net of
accumulated depreciation) 82,835,463 55,374,638 138,210,101
Total Assets 138,760,168 86,399,178 225,159,346
Liabilities:
Accounts payable and other current liabilities 1,403,158 148,860 1,552,018
Matured bonds and interest payable 1,344,584 1,099,403 2,443,987
Unearned revenue 1,673,266 1,673,266
Customer deposits payable 403,280 403,280
Noncurrent liabilities:
Due within one year 1,969,979 592,359 2,562,338
Due in more than one year 32,850,828 22,487,904 55,338,732
Total Liabilities 39,241,815 24,731,806 63,973,621
Net Assets:
Invested in capital assets, net of related debt 76,575,113 39,352,386 115,927,499
Restricted-
Debt service 108,640 3,150,286 3,258,926
Highways and streets 5,538,540 5,538,540
Public safety 1,967,370 1,967,370
Culture and recreation 1,508,679 1,508,679
Unrestricted 13,820,011 19,164,700 32,984,711
Total Net Assets $ 99,518,353 $ 61,667,372 $ 161,185,725
The accompanying Notes to Financial Statements are an integral part of these statements.
14
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FUND FINANCIAL STATEMENTS
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CITY OF OCOEE, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2005
Other Total
Road Governmental Governmental
General Impact Funds Funds
Assets:
Cash and cash equivalents $ 2,400,675 $ 2,582,397 $ 4,024,045 $ 9,007,117
Cash with paying agent 1,344,584 1,344,584
Investments 9,630,282 3,604,725 1,047,893 14,282,900
Receivables, net 160,899 21,053 11 ,679 193,631
Inventories, at cost 62,358 62,358
Due from other governments 121,389 2,255,323 2,376,712
Due from other funds 454 700,000 9,514 709,968
Prepaid costs 39,574 475 40,049
Total Assets $ 12,415,631 $ 6,908,175 $ 8,693,513 $ 28,017,319
Liabilities and Fund Balances:
Accounts payable $ 142,709 $ 120 $ 233,696 $ 376,525
Accrued liabilities 702,623 702,623
Retainage payable 324,010 324,010
Due to other funds 9,514 700,454 709,968
Matured bonds payable 705,000 705,000
Matured interest payable 639,584 639,584
Unearned revenue 289,572 1,360,001 23,693 1,673,266
Total Liabilities 1,134,904 1,369,635 2,626,437 5,130,976
Fund balances:
Reserved:
Inventories and prepaid costs 101,932 101,932
Debt service 108,640 108,640
Unreserved, reported in:
General fund 11,178,795 11,178,795
Special revenue funds 5,538,540 3,484,948 9,023,488
Capital projects funds 2,473,488 2,473,488
Total fund balances 11,280,727 5,538,540 6,067,076 22,886,343
Total Liabilities and Fund
Balances $ 12,415,631 $ 6,908,175 $ 8,693,513
Amounts reported for governmental activities in
the statement of net assets are different because:
Capital assets used in governmental activities
are not financial resources and, therefore
are not reported in the funds 111,428,831
Long-term liabilities are not due and payable
in the current period and therefore are not
reported in the funds (34,796,821)
Net assets of governmental activities $ 99,518,353
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, 2005
Other Totals
Road Governmental Governmental
General Impact Funds Funds
Revenues:
Taxes and impact fees $ 10,543,832 $ 1,884,406 $ 1,013,365 $ 13,441,603
Licenses and permits 1,938,169 1,938,169
Intergovernmental revenues 7,926,779 2,216,836 10,143,615
Charges for services 536,035 136,767 672,802
Fines and forfeitures 219,549 112,448 331,997
Investment income 304,268 117,418 574,050 995,736
Miscellaneous 253,678 694,578 290,609 1,238,865
Total revenues 21,722,310 2,696,402 4,344,075 28,762,787
Expenditures:
Current:
General government 4,193,990 54,767 4,248,757
Public safety 11,333,792 161,975 11,495,767
Physical environment 1,991,591 1,365,945 168,378 3,525,914
Culture and recreation 1,743,446 165,075 1,908,521
Debt service:
Principal retirement 399,211 705,000 1,104,211
Interest and fiscal charges 126,405 1,279,017 1,405,422
Capital outlay:
General government 776,275 154,139 930,414
Public safety 407,613 12,760 420,373
Physical environment 465,381 4,232,316 4,697,697
Culture and recreation 87,985 136,246 224,231
Total expenditures 21,525,689 1,365,945 7,069,673 29,961,307
Excess (Deficiency) of
Revenues Over Expenditures 196,621 1,330,457 (2,725,598) (1,198,520)
Other Financing Sources (Uses)
Transfers in 3,261,346 2,633,427 5,894,773
Transfers out (2,181,926) (1,332,518) (850,558) (4,365,002)
Capital leases 505,995 505,995
Sale of capital assets 1,355,073 1,355,073
Net other financing sources (uses) 2,940,488 (1,332,518) 1,782,869 3,390,839
Net Change in Fund Balances 3,137,109 (2,061) (942,729) 2,192,319
Fund Balances - Beginning 8,143,618 5,540,601 7,009,805 20,694,024
Fund Balances - Ending $ 11,280,727 $ 5,538,540 $ 6,067,076 $ 22,886,343
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 30,2005
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 17)
2,192,319
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,
4,412,712
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,
598,216
The net effect of various transactions involving capital assets
(Le, sales, trade-ins, and transfers) is to decrease net assets
(371,842)
FEMA revenue reported in the funds in the current year must be eliminated
from the statement of activities since revenue was recognized in
prior year
(104,500)
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.
(8,153)
6,718,752
Change in net assets of governmental activities (page 15)
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, 2005
Variance With
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes:
Property $ 6,167,205 $ 6,167,205 $ 6,133,267 $ (33,938)
Franchise 1,855,000 1,855,000 2,083,755 228,755
Utility 2,259,500 2,259,500 2,326,810 67,310
10,281,705 10,281,705 10,543,832 262,127
Permits and Licenses:
Building 1,968,910 1,968,910 1,534,107 (434,803)
Occupational 421,000 421,000 404,062 (16,938)
2,389,910 2,389,910 1,938,169 (451,741)
Intergovernmental revenues:
Sales tax 3,475,320 3,475,320 3,936,084 460,764
State revenue sharing 1,111,620 1,111,620 1,203,D93 91,473
Other state shared revenue 370,300 370,300 117,993 (252,307)
Other county shared revenue 2,505,385 2,505,385 2,398,009 (107,376)
Federal grants 271,600 271,600
7,462,625 7,462,625 7,926,779 464,154
Charges for services:
Fire Contract 131,585 131,585 131,586 1
Program activity fees 331 ,200 331,200 279,755 (51,445)
Develop. Review 101,000 101,000 116,531 15,531
Miscellaneous 8,200 8,200 8,163 (37)
571,985 571,985 536,035 (35,950)
Fines and forfeitures:
Fines and forfeitures 225,000 225,000 219,549 (5,451)
Investment income 85,000 85,000 304,268 219,268
Miscellaneous
144,400
144,400
253,678
109,278
$ 21,160,625 $ 21,160,625 $ 21,722,310 $ 561,685
Total revenues
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 $ 177 ,850 $ 192,380 $ 176,057 $ 16,323
Executive 948,210 948,210 813,835 134,375
Finance 1,715,695 1,754,600 1,639,949 114,651
Legal 279,500 279,500 206,808 72;692
Comm Dev 624,420 614,484 597,977 16,507
General services 2,107,035 1,620,565 1,189,071 431,494
Bldg Maint 464,560 464,560 424,452 40,108
6,317,270 5,874,299 5,048,149 826,150
Public safety:
Police 6,998,405 7,003,045 6,378,987 624,058
Fire 4,445,380 4,370,259 4,243,841 126,418
Inspections 1,271,185 1,282,814 1,164,288 118,526
12,714,970 12,656,118 11,787,116 869,002
Physical environment:
Public works 2,686,040 2,692,863 2,344,185 348,678
Culture and recreation:
Parks and recreation 2,000,390 1,994,890 1,840,244 154,646
Total expenditures 23,718,670 23,218,170 21,019,694 2,198,476
Excess (Deficiency) of Revenues
Over Expenditures (2,558,045) (2,057,545) 702,616 2,760,161
Other Financing Sources (Uses)
Transfers in 3,354,475 3,354,475 3,261,346 (93,129)
Tansfers out (1,716,430) (2,216,930) (2,181,926) 35,004
Sale of Property 605,000 605,000 1,355,073 750,073
Net other financing sources (uses) 2,243,045 1,742,545 2,434,493 691,948
Net Change in Fund Balance (315,000) (315,000) 3,137,109 3,452,109
Fund Balances. Beginning 8,143,618 8,143,618 8,143,618
Fund Balances - Ending $ 7,828,618 $ 7,828,618 $ 11,280,727 $ 3,452,109
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, 2005
Business-type Activities - Enterprise Funds
Water and Solid
Wastewater Waste Storm water
Fund Fund Fund Total
Assets
Current assets:
Cash and cash equivalents $ 1,022,237 $ 641,020 $ 424,169 $ 2,087,426
Cash with fiscal agent 934,976 164,427 1,099,403
Investments 3,798,737 415,260 645,475 4,859,472
Receivables, net 786,942 188,504 148,442 1,123,888
Due from other governments 15,158 15,158
Inventories 22,152 22,152
Prepaid Items 1,000 1,000
Total current assets 6,581,202 1,244,784 1,382,513 9,208,499
Noncurrent assets:
Restricted cash and cash equivalents 4,009,254 886,799 4,896,053
Restricted investments 8,881,461 8,881,461
Total restricted assets 12,890,715 886,799 13,777,514
Assessments receivable 43,501 43,501
Bond issuance costs 547,557 18,891 566,448
Capital assets:
Land, buildings and equipment 54,002,519 556,163 42,307,317 96,865,999
Construction in progress 3,182,304 82,466 3,264,770
Less accumulated depreciation (21,871,587) (528,091 ) (14,927,875) (37,327,553)
Total capital assets (net of depreciation) 35,313,236 28,072 27,461,908 62,803,216
Total noncurrent assets 48,795,009 28,072 28,367,598 77,190,679
Total assets $ 55,376,211 $ 1,272,856 $ 29,750,111 $ 86,399,178
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 $ 18,734 $ 1,130 $ 3,979 $ 23,843
Accrued liabilities 148,155 51,576 31,823 231,554
Retainage payable 62,896 62,896
Customer deposits payable 403,280 403,280
Matured bonds payable 385,000 155,000 540,000
Matured interest payable 549,976 9,427 559,403
Capital lease-current 92,008 38,451 130,459
Total.current liabilities 1,660,049 52,706 238,680 1,951,435
Noncurrent liabilities:
Revenue bonds payable(net of discount) 21,561,147 1,035,000 22,596,147
Capital lease 164,628 19,596 184,224
Total noncurrent liabilities 21,725,775 1,054,596 22,780,371
Totalliabiljties 23,385,824 52,706 1,293,276 24,731,806
Net Assets
Invested in capital assets, net of related debt 13,110,453 28,072 26,213,861 39,352,386
Restricted 3,150,286 3,150,286
Unrestricted 15,729,648 1,192,078 2,242,974 19,164,700
Total net assets $ 31,990,387 $ 1,220,150 $ 28,456,835 $ 61,667,372
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, 2005
Business-type Activities - Enterprise Funds
Water and
Wastewater Solid Waste Stormwater
Fund Fund Fund Total
Operating Revenues:
User charges $ 6,793,455 $ 1,778,796 $ 1,348,668 $ 9,920,919
Operating Expenses:
Salaries and benefits 1,509,785 123,932 343,592 1,977,309
Materials and supplies 483,010 208,126 78,773 769,909
Depreciation and amortization 1,955,733 7,238 1,447,451 3,410,422
Other operating expenses 1,117,146 1,243,054 214,563 2,574,763
Total operating expenses 5,065,674 1,582,350 2,084,379 8,732,403
Operating income (loss) 1,727,781 196,446 (735,711 ) 1,188,516
Nonoperating Revenue (Expenses):
Miscellaneous income 99 39,700 39,799
Investment income 360,341 24,571 42,665 427,577
Interest expense (1,100,791) (183) (39,797) (1,140,771)
Gain (loss) on disposal of capital assets 540 556 2,135 3,231
Total nonoperating revenue (expense) (739,910) 25,043 44,703 (670,164)
Income (loss) before contributions and transfers 987,871 221,489 (691,008) 518,352
Connection fees 1,923,885 1,923,885
Transfers in 191,222 21,917 1,190,631 1,403,770
Transfers out (1,225,322) (312,532) (1,395,687) (2,933,541 )
Change in net assets 1,877,656 (69,126) (896,064) 912,466
Total Net Assets. Beginning 30,112,731 1,289,276 29,352,899 60,754,906
Total Net Assets - End $ 31,990,387 $ 1,220,150 $ 28,456,835 $ 61,667,372
The accompanying Notes to Financial Statements are an integral part of these statements.
23
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CITY OF OCOEE, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended September 30, 2005
Business-type Activities - Enterprise Funds
Water and
Wastewater Solid Waste Stormwater
Fund Fund Fund Total
Cash Flows from Operating Activities:
Receipts from customers $ 6,820,723 $ 1,765,882 $ 1,372,951 $ 9,959,556
Payments to suppliers (1,528.349) (1,610.890) (303,233) (3,442,472)
Payments to employees (1,505,915) (120,870) (332,531 ) (1,959,316)
Net cash provided by operating activities 3,786,459 34,122 737,187 4,557,768
Cash Flows from Non-Capital
Financing Activities:
Transfers in 191,222 21,917 1,190,631 1,403,770
Transfers out (1,225,322) (312,532) (1,395,687) (2,933,541)
Decrease in due from other funds 1,191,560 1,191,560
Net cash provided (used) by non-capital
financing activities 157,460 (290,615) (205,056) (338,211 )
Cash Flows from Capital and Related
Financing Activities:
Proceeds from sale of capital assets 540 556 2,135 3,231
Acquisition of capital assets (2,954,655) (25,603) (271,891 ) (3,252,149)
Capital lease proceeds 284,199 284,199
Principal paid on bonds, notes & leases (344,073) (1,409) (200,206) (545,688)
Interest paid on bonds, notes & leases (1,114,781 ) (183) (40,986) (1,155,950)
Connection fees 1,923,885 1,923,885
Net cash provided (used) by capital and
related financing activities (2.204,885) (26,639) (510,948) (2,742,472)
Cash Flows from Investing Activities:
Purchase of investments (1,805,264) (102,748) (531,248) (2,439,260)
Investment income 360,524 24,571 42,665 427,760
Net cash provided (used) by investing activities (1,444,740) (78,177) (488,583) (2,011,500)
Net Increase (Decrease) in Cash and
Cash Equivalents 294,294 (361,309) (467,400) (534,415)
Cash and Cash Equivalents - Beginning 5,672,173 1,002,329 1,942,795 8,617,297
Cash and Cash Equivalents - End $ 5,966,467 $ 641,020 $ 1,475,395 $ 8,082,882
Classified As:
Current assets $ 1,957,213 $ 641,020 $ 588,596 $ 3,186,829
Restricted assets 4,009,254 886,799 4,896,053
Total $ 5,966,467 $ 641,020 $ 1,475,395 $ 8,082,882
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) $ 1,727,781 $ 196.446 $ (735,711) $ 1,188,516
Adjustments Not Affecting Cash:
Depreciation 1,933,264 7,238 1,444,302 3,384,804
Amortization 22,469 3,149 25,618
Change in Assets and Liabilities:
(Increase) decrease in accounts receivable 67,324 (13,013) (15,417) 38,894
(Increase) decrease in due from other governments 12,030 179,570 191,600
(Increase) decrease in prepaid items 3,230 3,230
Increase (decrease) in accounts payable 1,621 (339,280) (3,061) (340,720)
Increase (decrease) in accrued liabilities 3,870 3,062 11,061 17,993
Increase (decrease) in retalnage payable 54,926 (6,836) 48,090
(Decrease) in customer deposits (40,056) (40,056)
Total adjustments 2,058,678 (162,423) 1,433,198 3,329,453
Net Cash Provided by Operating
Activities $ 3,786,459 $ 34,023 $ 697,487 $ 4,517,969
25
CITY OF OCOEE, FLORIDA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
September 30, 2005
Total Employee
Pension Funds
Assets:
Cash and cash equivalents
Receivables:
Plan members contributions
Investments, at fair value:
Common funds - equity
Common funds - bonds
Total investments
Total assets
$ 394,212
17,828,298
9,350,042
27,178,250
27,572,462
Liabilities
Net Assets:
Held in trust for pension benefits
$ 27,572,462
The accompanying Notes to the Financial Statements are an integral part of these statements.
26
CITY OF OCOEE, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2005
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest
Net investment income
Total additions
Deductions:
Benefits
Administrative expenses
Total deductions
Change in Net Assets
Net Assets - Beginning
Net Assets - End
Total
Employee
Pension Funds
$
1,619,321
859,733
261,540
2,740,594
1,927,916
263,115
2,191,031
4,931,625
1,104,312
210,645
1,314,957
3,616,668
23,955,794
27,572,462
27
The accompanying Notes to Financial Statements are an integral part of these statements.
This page intentionally left blank.
ceDteI of Good [ ,
,\y:>e ~nl1i{f
NOTES TO FINANCIAL STATEMENTS
This page intentionally left blank.
centel of Good 1 .
,\. \t;;>e ~Jf.1II{f
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
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,
B. Government-Wide and Fund Financial Statements
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, However interfund services provided and used are not eliminated.
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,
28
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
B. Government-Wide and Fund Financial Statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is 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.
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.
29
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
The government reports the following funds:
Major Governmental Funds
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.
Non-Major 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,
Major Proprietary 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 Storm water 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.
30
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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 employees.
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 City 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,
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 and Wastewater Utility, Solid Waste,
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,
31
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
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 Jess from the date of acquisition. The City implemented
Governmental Accounting Standards Board (GASB) Statement No, 40, Deposit
and Investment Risk Disclosure, for fiscal year 2005, The effect of this
statement is the inclusion of new disclosures for deposit and investment risk.
Investments of the City are reported at fair value. The City's investments consist
of investments authorized per the 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.
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,
32
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
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.
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 $1,140,771.
33
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
Property, plant, and equipment of the City are depreciated using the straight line
method over the following estimated useful lives:
Assets
Buildings
Improvements
I nfrastructu re
Equipment
Years
10-30
20-40
30-50
5-10
6. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused
personal leave benefits. Since the City's policy is to pay accumulated personal
leave when employees separate from service, all personal leave 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 funds, 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.
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,
Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
34
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 1 - Summary of Significant Accounting Policies (Continued):
D. Assets, Liabilities, and Net Assets or Equity - (Continued)
B. 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 $34,796,821 difference are as follows:
Bonds payable
Less: Deferred charge for issuance costs
(to be amortized over life of debt)
Notes payable
Capital leases payable
Compensated absences
Net adjustment to reduce fund balance- total
governmental funds to arrive at net assets-
governmental activities
$28,110,000
(23,986)
5,345,079
693,639
672,089
$34.796,821
35
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
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
"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 $4,412,712 difference are as follows:
Capital outlay
Depreciation expense
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$ 7,429,714
(3.017.002)
$4412712
Another element of that reconciliation states lithe 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 $(598,216) difference are as follows:
Debt issued or incurred:
Capital leases
Principal repayment
$505,995
(1.104,211)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities
$ (598.216)
36
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30,2005
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 $(8,153) difference
are as follows:
Compensated absences
Amortization of issuance costs
$(5,754)
(2,399)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net assets of
governmental activities
$(8.153)
Note 3 - Stewardship, Compliance, and Accountability:
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting
principles for the general and enterprise 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 1 a\ 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
NOTES TO FINANCIAL STATEMENTS. Continued
September 30, 2005
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 2005 fiscal year, the following adjustments were necessary to convert General
Fund expenditures on the GAAP basis to the budgetary basis:
EXDendltures
Other Financing
Sources IUsesl
General Fund:
GAAP Basis $
Nonbudgeted capital lease transactions
Budgetary Basis $
21,525,689
505.995)
21.019694
$ 2,940,488
(505.995)
$ 2.434 493
Note 5- Deposits and Investments:
Deposits
At year-end, the carrying amount of the City's deposits was $408,556 and the bank
balance was $2,800,221, Fiduciary cash of $394,212 held by the pension fund is not in
the City's bank, 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 "authorized 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.
Investments
The City's investment policy is governed by State Statutes and City ordinances. The
investment policy does not apply to the City's Pension Funds and funds related to the
issuance of debt where there are other existing policies or indentures in effect. City
ordinance allows investments in any financial institution that is a qualified public depository
of the State of Florida as identified by the State Treasurer, in accordance with chapter 280
of the Florida Statutes, Authorized investments are:
1. State Board of Administration Local Government Investment Pool (SBA);
2. Registered investment companies (money market mutual funds);
38
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 5- Deposits and Investments (Continued):
Investments (Continued)
3. Money Market funds and Certificates of Deposit in state-certified qualified public
depositories;
4. U.S. Government Agency Securities and U,S, Treasury Bills, Notes and Bonds;
5. Repurchase agreements
The SBA is not a registrant with the Securities and Exchange Commission (SEC);
however, the Board has adopted operating procedures consistent with the requirements
for a 2a-7 fund. Therefore, the pool account balance can be used as fair value for the
financial reporting.
Investments made by the City of Ocoee at September 3D, 2005 are summarized below.
Defined benefit pension plan investments, other than $17,828,208 in mutual funds
investing in equity securities, are included below
WeiQhted AveraQe
Investment Tvoe Fair Value Credit Ratina Maturitv (vears)
State Board of
Administration $ 1,560,392 Unrated < 90 days
Repurchase
AQreements 18,026,027 Unrated < 90 days
U,S. Government and
AQency Securities 26,463 441 AAAlAaa 1.5
Pension Plan
Investments:
Suntrust Retirement
High Grade Bond
Fund 9,350,042 AAA 7.2
$55 399 902
Credit Risk:
The City's investment policy limits credit risk by restricting authorized investments to those
described above. The policy requires that investments in U.S. Government Agency
Securities be guaranteed by the full faith of the U,S. Government. Also, term repurchase
agreements must be collateralized by U.S, Treasury securities and overnight (sweep)
repurchase agreements must be collateralized by the full faith or general faith and credit
obligations of the U,S, Government or U.S. Government Agency Securities. Securities of
registered investment companies must be limited to U.S. Government obligations and to
repurchase agreements fully collateralized by such U.S, Government obligations.
39
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 5 - Deposits and Investments (Continued):
Custodial Credit Risk:
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits
may not be returned to it. The City's investment policy requires that bank deposits be
secured as provided by Chapter 280, Florida Statutes, This law requires local
governments to deposit funds only in financial institutions designated as qualified public
depositories by the Chief Financial officer of the State of Florida, and creates the Public
Deposits Trust Fund, a multiple financial institution pool with the ability to assess its
member financial institutions for collateral shortfalls if a default or insolvency has occurred.
At September 30, 2005, all of the city's bank deposits were in qualified public
depositories,
For an investment, this is the risk that, in the event of the failure of the counterparty, the
government will not be able to recover the value of its investments of collateral securities
that are in the possession of an outside party. At September 30, 2005, none of the
investments listed are exposed to custodial credit risk because their existence is not
evidenced by securities that exist in physical or book entry form.
Concentration of Credit Risk:
The policy establishes limitations on portfolio composition in order to control concentration
of credit risk, The policy provides that a maximum of 25% of the portfolio may be invested
in U,S, Government Agency Securities and a maximum of 75% may be invested in the
SBA.
Interest Rate Risk:
The policy limits investment in U.S. Government Agency Securities, Treasury Bills, Notes
and Bonds to a maximum maturity of five years. The maximum length to maturity for
Certificates of Deposit is three years.
Note 6 - Receivables:
Receivables as of year end for the City's individual major funds and non-major and fiduciary
funds in the aggregate, including the applicable allowances for uncollectible accounts, are as
follows:
Water and
Road Wastewater Solid Non-Major
General Impact Utility Waste Stormwater And Other
Fund Fund Fund Fund Fund Funds Total
Receivables:
Accounts $175,889 $21,053 $ 841,942 $212,504 $ 153,451 $11,679 $1,416,518
Less allowance
for uncollectible
accounts (14,990) (55,000) (24.000) (5,009) (98,999)
$160899 ~ $ 786 942 $188 504 $ 148442 $ 11 679 $1 317519
40
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 7 - Capital Assets:
Capital asset activity for the year ended September 30,2005 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being
depreciated:
Land $ 17,619,377 $ $ $17,619,377
Construction in progress 6,060,535 5,762,799 (849.343) 10,973,991
Total capital assets, not being
depreciated 23.679,912 5.762,799 (849,343) 28,593,368
Capital assets, being
depreciated:
Buildings 11,496,335 130,367 (375,100) 11,251,602
Improvements 4,257,932 468,417 4,726,349
Machinery and equipment 10,447,451 1,008,623 (533,228) 10,922,846
Infrastructure 81,616,204 926,343 82,542.547
Total capital assets, being
depreciated 107.817,922 2,533,750 (908,328) 109.443.344
Less accumulated depreciation
for:
Buildings (1,398,202) (294,958) 116,281 (1,576,879)
Improvements (875,652) (141,093) (1,016,745)
Machinery and equipment (6,877,810) (855,219) 420,205 (7,312,824)
Infrastructure (14,958.211) (1,743.222) (16,701.433)
Total accumulated depreciation (24,109.875) (3,034.492) 536.486 (26,607.881)
Total capital assets, being
depreciated, net 83,708,047 (500,742) (371.842) 82,835.463
Governmental activities capital
assets, net $107.387.959 $ 5262057 $(1,221 185) $111428.831
Increases in accumulated depreciation for governmental activities includes accumulated
depreciation on assets transferred from business-type activities, therefore, total increases is not
the same as depreciation expense disclosed below
41
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 7 - Capital Assets (Continued):
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being
depreciated:
Land $ 4,163,808 $ $ $ 4,163,808
Construction in progress 890,738 2,772,162 (398,130) 3,264,770
Total capital assets, not being
depreciated 5,054,546 2,772,162 (398,130) 7.428,578
Capital assets, being depreciated:
Buildings 13,374,210 13,374,210
Improvements 75,292,447 496,989 75,789,436
Machinery and equipment 3,178.224 381,128 (20,807) 3,538.545
Total capital assets, being
depreciated 91,844,881 878,117 (20,807) 92,702,191
Less accumulated depreciation
for:
Buildings (5,179,398) (472,629) (5,652,027)
Improvements (26,235,191 ) (2,693,836) (28,929,027)
Machinery and equipment (2,548,967) (218.339) 20,807 (2,746.499)
Total accumulated depreciation (33,963,556) (3,384,804) 20,807 (37,327.553)
Total capital assets, being
depreciated, net 57.881 ,325 (2.506,687) 55,374,638
Business-type activities capital
assets, net $62.935,871 $265475 $ (398.130) $62803216
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government
Public safety
Physical environment
Culture and recreation
Total depreciation expense - governmental activities
$ 201,935
629,014
1,974,422
211.631
$3017.002
Business-type activities:
Water and Wastewater
Solid Waste
Storm water
Total depreciation expense - business-type activities
$1,933,264
7,238
1.444.302
$3.384.804
42
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 3D, 2005
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
Activities
Assets -
Machinery & equipment
Less: accumulated depreciation
Total
$ 1,982,367
(691.912)
$ 1.290.455
Business-type
Activities
$722,229
(236,584)
$485.645
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, 2005 were as follows:
Governmental Business-type
Activities Activities
Year Endinq September 30
2006
2007
2008
2009
Total minimum lease payments
Less: Amount representing interest
$390,417
216,157
95,475
19.115
721,164
(27.525)
_ $693.639
43
$132,056
103,811
75,566
18.892
330,325
(15.642)
$314.683
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
Note 9 - Long-Term Debt:
Revenue Bonds
September 3D, 2005
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. Revenue bonds outstanding at year end are as follows:
Governmental Activities
Transportation Refunding
Revenue Bonds - Series 1998
Capital Improvement Refunding
Revenue Bonds - Series 1999
Transportation Refunding
Revenue Bonds - Series 2002
Total
Business- Type Activities
Water and Sewer System
Refunding and Improvement
Revenue Bonds, Series 2003
Water and Wastewater
Improvement
Revenue Bonds - Series 1997
Total
Interest Balance
Rates and Original September
Dates Matu ritv Amount 30.2005
3.35-4.5% 10/1/99 -
(4/1 & 10/1) 10/1/28 $19.255000 $ 17,110,000
3.0 - 4.75% 10/1/99-
(4/1 & 10/1) 10/1/28 $11.405.000 9,885,000
3,69% 10/1/03-
(10/1 ) 10/1/15 $1.360 000 1.115.000
$ 28.110.000
2,0- 5.125%
(4/1 & 10/1)
10/1/04 -
10/1/33 $13.795.000 $ 13,575,000
3.6-5.62%
(4/1 & 10/1)
10/1/97-
10/1/26 $10.150.000
8,515.000
$ 22.090.000
44
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 9 - Long-Term Debt (Continued):
Revenue Bonds (Continued)
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending Governmental Activities Business- Tvpe Activities
September 30. Principal Interest Principal Interest
2006 $ 730,000 $ 1,252,226 $ 400,000 $ 1,086,091
2007 760,000 1,224,463 415,000 1,071,421
2008 785,000 1,195,428 430,000 1,055,921
2009 815,000 1,164,885 445,000 1,038,541
2010 850,000 1,132,466 465,000 1,019,812
2011-2015 4,815,000 5,093,132 2,660,000 4,765,853
2016-2020 6,150,000 3,901,288 3,365,000 4,060,512
2021-2025 7,690,000 2,355,550 4,330,000 3,095,443
2026-2030 5,515,000 513,675 5,540,000 1,880,594
2031-2033 4.040.000 421.019
$28.110.000 $17.833.113 $22.090.000 $19.495207
Notes Pavable
The City has notes payable for both governmental and business-type activities. Notes
payable outstanding at year end are as follows:
Governmental Activities
Coca Cola Property Improvements- Interest only payable quarterly
through 12/01/04 at 90 day L1BOR plus 78 points up to a maximum of
5% for taxable portion and 74.5% of 90 day L1BOR up to a maximum of
7.49% for non-taxable portion. Principal payments start 12/01/05
through 12/01/10
$5.345.079
Business - Tvpe 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 %
$1,035000
45
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 9 - Long-Term Debt (Continued):
Notes Pavable (continued)
Annual debt service requirements to maturity for notes payable are as follows:
Year Ending
September 30
2006
2007
2008
2009
2010
2011-2013
Governmental Activities
Business-Type Activities
Principal
$ 835,000
880,000
940,000
990,000
1,050,000
650,079
$5.345.079
Changes in Long-Term Liabilities
Interest
$ 227,000
194,475
160,150
123,425
84,650
43.475
$833.175
Principal
$ 160,000
165,000
170,000
175,000
180,000
185,000
$1.035.000
Interest
$ 32,085
27,125
22,010
16,740
11,315
5,735
$115010
Long-term liability activity for the year ended September 30, 2005 was as follows:
Governmental activities:
Bonds payable -
Revenue bonds
Notes payable -
Capital improvement
notes
Capital lease
Compensated absences
Governmental activity
long-term liabilities
Business-type activities:
Bonds payable -
Revenue bonds
Less deferred
amounts:
On refunding
For issuance
Discount
Total bonds
payable
Note Payable-
Stormwater Fund
Capital lease
Compensated absences
Business-type activity
long-term liabilities
Beginning
Balance
$28,815,000
5,345,079
586,855
666,335
$35413269
$22,475,000
(389,369)
(160,043)
21,925,588
1,190,000
161,172
166,188
$23 442 948
Due Within
Ending One Year
Additions Reductions Balance
$ $ (705,000) $28,110,000 $730,000
5,345,079 835,000
505,995 (399,211) 693,639 337,779
5,754 672.089 67,200
$ 511749 $ (1104211) $34 820 807 $1 969979
$(385,000) $22,090,000
13,906 (375,463)
6,653 (153,390)
(364,441 ) 21,561,147
(155,000) 1,035,000
284,199 (130,688) 314,683
3,245 169.433
$287 444 $(650 129) $23 080.263
46
$285,000
285,000
160,000
130,459
16,900
$592 359
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 10 - Interfund Receivables, Payables and Transfers:
The composition of due to/from at September 30,2005 is as follows:
Receivable Fund
General Fund
Road Impact
Other Governmental
Pavable Fund
Other Governmental
Other Governmental
Road Impact
Amount
$454
700,000
9,514
The General Fund and Other Governmental receivable is the result expenses paid from the
incorrect account and the transfer of cash not occurring until after the end of the fiscal year. The
Other Governmental receivable results from a temporary inter fund loan to cover expenses for a
road project to be reimbursed by the County in FY06. The funds were received in November.
Note 10 -Interfund Receivables, Payables and Transfers:
Interfund transfers for the year ended September 30, 2005 consisted of the following:
Transfers In
Water and
General Nonmajor Wastewater Stormwater Solid Waste
Fund Governmental Fund Fund Fund Total
Transfer Out:
General Fund $ $2,176,426 $5,500 $ $ $2,181,926
Road Impact
Special Revenue
Fund 1,332,518 1,332,518
Non-Major
Governmental 393,557 457,001 850,558
WaterlWastewater
Fund 1,039,600 185,722 1,225,322
Solid Waste Fund 290,615 21,917 312,532
Stormwater Fund 205.056 1.190.631 1.395.687
Total $3261 346 $2 633 427 $191222 $1 190631 $21917 $7298543
Transfers are used to (1) move revenues from the fund that statute or budget requires
collecting 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.
47
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 11 - Retirement Plans:
Defined Benefit Plan and Trust
The City maintains two separate single~employer defined benefit pension plans for police
officers and firefighters and 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 boards
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, 2005 to be reserved for general
employees and police and fire pension funds are $11,986,103 and $15,586,359,
respectively,
Summary of Significant Accountina Principles
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.
Fundina Policv
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 10.9% 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 and recorded as
revenue and expenditures in the general fund before being reported in the pension funds.
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 18.3%, including expected State
contribution, of annual covered payroll. Costs to administer the plans are deducted from
net assets of the respective plans.
48
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 11 - Retirement Plans (Continued):
Fundina Policy (Continued)
Membership in both plans consisted of the following at October 1, 2004:
Members:
Retirees and beneficiaries receiving benefits
Members In Drop Plan
Terminated plan members entitled to but not
receiving benefits
Active plan members:
Vested
Non-vested
General
Employees
29
o
Police and
Fire
11
3
27
10
128
33
217
93
~
125
Annual Pension Cost and Net Pension Obligation - The City has traditionally
contributed the Annual Required Contribution (ARC) 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
Year Ended
September 30
2005
2004
2003
2002
2001
2000
General Emplovees
Annual
Required
Contributions
673,189
695,564
617,788
447,994
459,130
460,161
Percent
Contributed
100%
100%
100%
100%
100%
100%
Police Officers & Firefiahters
Annual
Required
Contributions
$1,111,781
1,015,675
917,305
779,692
673,570
634,575
Percent
Contributed
100%
100%
100%
100%
100%
100%
49
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 11 - Defined Benefit Pension Plan (Continued):
Schedule of Fundina Proaress
Actuarial UAAL as
Actuarial Accrued a %of
Actuarial Value of (AAL) Unfunded Funded Covered Covered
Valuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (boa) Ic
General Fund
10/01/04 $10,604,164 $12,214,901 $1,610,737 86,81% $5,835,922 27.60%
10/01/03 $9,609,758 $11,270,865 $1,661,107 85.26% $5,802,144 28.63%
10/01/02 8,713,006 10,316,494 1,603,488 84.46% 5,797,477 27.66%
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%
Police Officers and Firefighters
10/01104 $13,056,567 $14,399,584 $1,343,017 90.67% $4,953,418 27,11 %
10/01/03 11,812,638 13,167,737 1,355,099 89,71% 4,870,556 27.82%
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%
10101/99 6,656,107 7,926,608 1,270,501 83.97% 3,697,592 34.36%
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, 2004) actuarial valuation follows:
Assumptions:
Investment Earnings
Salary Increases-
Inflation
Postretirement Benefit Increases
Mortality Table
8%
3%
0%
1983 Group Annuity Mortality Table
Actuarial Valuation:
Frequency
Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Annual
Frozen Entry Age
Level Percentage of Pay, Closed
23 Years
4 Year Smooth Market Value
50
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
Note 11 - Defined Benefit Pension Plan (Continued):
Individual Pension Fund Statements- Individual statements of net assets and changes in
pension fund net assets for the two pension plans included in the City of Ocoee fiduciary funds
are as follows:
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Assets:
Cash and cash equivalents
Receivables:
Plan members contributions
Investments, at fair value:
Common funds - equity
Common funds - bonds
Total investments
Total assets
September 30, 2005
General Police and Employee
Employees Fire Pension
Pension Pension Fund
Trust Fund Trust Fund Totals
$206,963 $187,249 $394,212
7,815,512
3.963,628
11,779.140
11,986,103
10,012,696
5.386.414
15,399,110
15.586.359
17,828,208
9,350.042
27,178.250
27.572.462
Liabilities
Net Assets:
Held in trust for pension benefits
$11 986 103
$15586359
$27 572 462
51
CITY OF OCOEE, FLORI DA
NOTES TO FINANCIAL STATEMENTS - Continued
September 3D, 2005
Note 11 - Defined Benefit Pension Plan (Continued):
CITY OF OCOEE, FLORIDA
INDIVIDUAL STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2005
General Police and
Employees Firefighters
Pension Pension
Trust Fund Trust Fund
Additions:
Contributions:
Employer $673,190 $946,131
Plan members 466,143 393,590
State 261,540
Total contributions 1,139,333 1,601,261
Investment income:
Net appreciation in fair value of investments 843,647 1,084,269
Interest 115,368 147,747
Net investment income 959,015 1 ,232,016
Total additions 2,098,348 2,833,277
Deductions:
Benefits 509,524 594,788
Administrative expenses 106,893 103,752
Total deductions 616,417 698,540
Change in Net Assets 1,481,931 2,134,737
Net Assets" Beginning 10,504,172 13,451,622
Net Assets - End $11,986,103 $15,586,359
52
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - Continued
September 30, 2005
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 have been no settlements in excess of insurance
coverage in any of the prior three fiscal years,
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,
Note 15- Commitments:
At September 30, 2005, the City had entered into contracts for construction in the amount of
$2,844,127,
53
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Special Revenue Funds
Fire Impact
Police Impact
Ocoee Recreation
Recreation
Police Trust
Police Training
Founders Day
Fire Fully
Involved
Non Major Governmental Funds
- 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. Expenditures are approved as part of the Capital Improvements
Plan during the adoption of the budget and by commission action
during the year.
- 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. Expenditures are approved as part of the Capital Improvements
Plan during the adoption of the budget and by commission action
during the year.
- Accounts for fees collected for various athletic leagues.
- 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. Expenditures are approved as part of the
Capital Improvements Plan during the adoption of the budget and by
commission action during the year.
- 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.
- 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.
- Accounts for revenues and disbursements related to the celebration of
the City's Founder's Day,
- Accounts for donations from the community for safety improvements to
residencies in the community. The projects are approved by the
Citizens Advisory Board and performed by volunteers.
Debt Service Funds
Transportation Refunding
and Improvement
Revenue Bonds, Series
1998
Capital Improvement
Refunding Revenue
Bonds, Series 1999
Transportation Refunding
and Improvement Revenue
Bonds, Series 2002
CAPITAL PROJECTS FUNDS
Computer Acquisition
Capital Projects Reserve
Transportation
Improvements, 1998 Bond
Issue
Capital Improvements,
1999 Bond Issue
Coca Cola Property
Improvements
Accounts for Principal and interest payments on the 1998
Transportation Refunding and Improvement Revenue
Bonds issued to refund a portion of the 1990
Transportation Refunding and Improvement Revenue
Bonds and to finance the design, construction, paving and
improvement of certain roads and drainage improvements
within the city,
- Accounts for principal and interest payments on the 1999
Capital Improvement Refunding Revenue Bonds, issued
to (1) refund the 1991 Capital Improvement Revenue
Bonds, (2) payoff 1996 Capital Improvement Revenue
Promissory Note and (3) finance certain capital
improvements, including acquisition of land,
- Accounts for the principal and interest payments on the
2002 Transportation Refunding and Improvement
Revenue Bonds which funded the design, construction,
paving and improvement of roads and related drainage
improvements within the City,
- Accounts for funds budgeted for the acquisition and
installation of a new computer system.
- Accounts for transfers from the General Fund for certain
capital projects approved by the commission but not
completed at year end.
- Accounts for proceeds of the 1998 Transportation
Refunding and Improvement Revenue Bonds issued to
finance the design, construction, paving and improvement
of certain roads and drainage improvements within the
City.
Accounts for proceeds of the 1999 Capital Improvement
Refunding Revenues Bonds Issued to finance certain
capital improvements, including acquisition of land.
Accounts for the proceeds of the Line of Credit issued to
finance the acquisition of land and certain improvements
including municipal buildings and parks.
This page intentionally left blank.
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Pension Trust Funds:
General Employees
Police and Firefighters
FIDUCIARY FUND TYPES
- 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.
- 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,
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CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
September 30, 2005
Assets:
Cash and cash equivalents
Receivables:
Plan members contributions
Investments, at fair value:
Common funds - equity
Common funds - bonds
Total investments
Total assets
Liabilities
Net Assets:
Held in trust for pension benefits
General
Employees
Pension
Trust Fund
$ 206,963
7,815,512
3,963,628
11,779,140
11,986,103
Police and
Fire
Pension
Trust Fund
$ 187,249
10,012,696
5,386,414
15,399,110
15,586,359
Employee
Pension
Fund
Totals
$ 394,212
17,828,208
9,350,042
27,178,250
27,572,462
$11,986,103 $15,586,359 $27,572,462
59
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For The Year Ended September 30, 2005
Additions:
Contributions:
Employer
Plan members
State
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest
Net investment income
Total additions
Deductions:
Benefits
Administrative expenses
Total deductions
Change in Net Assets
Net Assets. Beginning
Net Assets - End
General Police and Employee
Employees Firefighters Pension
Pension Pension Funds
Trust Fund Trust Fund Total
$ 673,190 $ 946,131 $ 1,619,321
466,143 393.590 859,733
261,540 261,540
1,139,333 1,601,261 2,740,594
843,647 1,084,269 1,927,916
115,368 147,747 263,115
959,015 1,232,016 2,191,031
2,098,348 2,833,277 4,931,625
509,524 594,788 1,104,312
106,893 103,752 210,645
616,417 698,540 1,314,957
1,481,931 2,134,737 3,616,668
10,504,172 13,451,622 23,955,794
$11,986,103 $15,586,359 $27,572,462
60
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
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CITY OF OCOEE, FLORIDA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
Land $ 3,059,400 $ 570,539 $ 13,152,152 $ 837,286 $ 17,619,377
Buildings 2,230,524 6,306,505 19,339 2,695,234 11,251,602
Improvements 846,319 1,808 330,499 3,547,723 4,726,349
Machinery & equipment 1,757,558 5,542,375 2,884,149 738,764 10,922,846
Infrastructure 82,542,547 82,542,547
Construction in
progress 10,973,991 10,973,991
Total $ 7,893,801 $12,421,227 $ 109,902,677 $ 7,819,007 $ 138,036,712
For The Year Ended September 30, 2005
General
Government
Public
Safety
Physical
Environment
Culture
And
Recreation
Deletions
Balance and Balance
09/30/04 Additions Transfers 09/30/05
General Government $ 7,155,999 $ 803,798 $ 65,996 $ 7,893,801
Public Safety 12,270,921 463,511 313,205 12,421,227
Physical Environment 104,277,749 6,963,530 1,338,602 109,902,677
Culture & Recreation 7,793,164 48,220 22,377 7,819,007
Total $ 131,497,833 $ 8,279,059 $ 1,740,180 $ 138,036,712
61
Total
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m
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
1996 * * * *
1997 * * * *
1998 * * * *
1999 * * * *
2000 * * * *
2001 * * * *
2002 * * * *
2003 3,363,718 10,650,950 2,917,657 2,187,257
2004 4,424,241 11,384,815 3,638,985 1,746,032
2005 4,572,163 12,087,397 4,086,246 2,296,163
* 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
1,369,210 6,036,340 1,675,542 1,896,163 32,171,328
1,405,422 6,166,465 1,582,533 2,124,176 34,320,565
63
CITY OF OCOEE, FLORIDA
GOVERNMENT - WIDE REVENUES
Last Ten Fiscal Years
Fiscal
Year
Charges
For
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Taxes
Intergov-
ernmental
1996 * * * * *
1997 * * * * *
1998 * * * * *
1999 * * * * *
2000 * * * * *
2001 * * * * *
2002 * * * * *
2003 12,244,107 1,277,980 1,545,827 8,398,963 5,644,397
2004 16,534,324 1,397,795 4,323,568 8,918,036 5,997,002
2005 16,559,484 1,680,344 4,119,520 10,543,832 5,891,536
* Data not available prior to the implementation of GASB 34.
64
Investment
Income &
Miscellaneous Total
." ."
." ."
." ."
." ."
." ."
." ."
." ."
185,862 29,297,136
641,718 37,812,443
3,157,067 41,951,783
65
CITY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES
BY FUNCTION
Last Ten Fiscal Years
Fiscal Total (a) General Public
Year Expenditures % Government % Safety %
1996 9,362,905 100.0% 1,907,097 20.4% 4,689,003 50,1%
1997 11,217,057 100,0% 2,432,702 21.7% 5,826,668 51.9%
1998 13,967,349 100.0% 2,826,467 20.2% 6,890,597 49.3%
1999 15,239,562 100.0% 2,945,543 19,3% 7,532,736 49.4%
2000 15,604,975 100.0% 2,966,837 19.0% 7,944,122 50.9%
2001 18,395,185 100.0% 3,556,126 19,3% 9,421,083 51.2%
2002 18,685,329 100,0% 3,497,830 18.7% 9,937,715 53.2%
2003 19,842,884 100,0% 3,956,473 19,9% 10,131,515 51.1%
2004 21,328,845 100.0% 4,258,358 20.0% 11,241,929 52,7%
2005 23,707,616 100.0% 4,970,265 21.0% 11 ,741 ,405 49.5%
66
Physical Culture and Debt (b) Transfers to
Environment % Recreation % Service % Other Funds %
1,151,049 12.3% 417,495 4.5% 133,416 1.4% 1,064,845 11.4%
1,162,242 10.4% 466,593 4.2% 339,375 3.0% 989,477 8.8%
1,522,812 10.9% 628,211 4.5% 403,034 2,9% 1,696,228 12.2%
1,857,066 12.2% 592,985 3,9% 574,581 3.8% 1,736,651 11.4%
1,810,784 11.6% 593,745 3.8% 650,460 4,2% 1,639,027 10.5%
1,980,866 10,8% 1,031,910 5.6% 616,560 3.4% 1,788,640 9.7%
1,798,985 9.6% 1,119,031 6.0% 539,373 2,9% 1,792,395 9.6%
1,498,296 7.6% 1,584,131 8.0% 449,482 2,3% 2,222,987 11.2%
1,811,144 8.5% 1,778,553 8.3% 419,983 2.0% 1,814,878 8.5%
2,456,972 10.4% 1,831,431 7.7% 525,616 2,2% 2,181,926 9.2%
67
CITY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL REVENUES
BY SOURCE
Last Ten Fiscal Years
Licenses
Fiscal Total (a) And
Year Revenues % Taxes % Permits %
1996 10,263,930 100.0% 4,269.994 41,6% 850,427 8.3%
1997 11,744,062 100.0% 4,966,592 42,3% 879,650 7.5%
1998 13,623,375 100.0% 5,733,592 42,1% 856,448 6.3%
1999 15,797,804 100.0% 6,208,882 39,3% 1,067,010 6,8%
2000 16,471,126 100.0% 6,644,332 40.3% 1,095,829 6.7%
2001 18,742,615 100,0% 8,018,880 42.8% 1,009,146 5.4%
2002 19,902,980 100,0% 8,022,142 40.3% 1,392,977 7.0%
2003 20,971,342 100.0% 8,398,963 40,0% 1,349,246 6.4%
2004 23,545,776 100.0% 8,918,036 37.9% 2,027,697 8,6%
2005 26,844,724 100,0% 10,543,832 39.3% 1,938,169 7.2%
(a) This schedule includes revenues of the General Fund only.
68
lnter- Charges
Governmental For Fines and Investment
Revenues % Services % Forfeitures % Income %
3,088,521 30.1% 186,163 1.8% 101,895 1.0% 89,666 0.9%
3,368,182 28.7% 208,119 1.8% 75,483 0,6% 146,357 1,2%
4,160,011 30.5% 351,846 2.6% 120,259 0.9% 163,241 1,2%
4,476,397 28.3% 554,663 3,5% 192,015 1.2% 137,330 0.9%
5,014,951 30.4% 570,863 3.5% 182,226 1.1% 230,049 1.4%
5,417,653 28.9% 373,406 2.0% 211,773 1.1% 293,663 1.6%
6,595,999 33,1% 299,835 1.5% 226,066 1.1% 129,605 0.7%
6,846,639 32.6% 502,398 2.4% 224,453 1.1% 111,068 0.5%
7,096,521 30.1% 603,244 2,6% 277,435 1,2% 87,772 0.4%
7,926,779 28.5% 536,035 2.0% 219,549 0,8% 304,268 1,1%
69
CITY OF OCOEE
GENERAL GOVERNMENTAL REVENUES
BY SOURCE
Last Ten Fiscal Years
Other
Fiscal Misc. Financing
Year Income % Sources %
1996 108,379 1.1% 1,568,885 15.3%
1997 163,504 1.4% 1,936,175 16,5%
1998 103,355 0.8% 2,134,623 15,7%
1999 173,758 1.1% 2,987,749 18.9%
2000 141,861 0.9% 2,591,015 15.7%
2001 240,514 1.3% 3,177,580 17.0%
2002 138,584 0.7% 3,097,772 15.6%
2003 134,815 0.6% 3,403,760 16.2%
2004 150,120 0.6% 4,384,951 18,6%
2005 253,678 2.0% 5,122,414 19.1%
70
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
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 0.00%
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%
2004 5,685,241 5,483,292 96.45%
2005 6,353,572 6,133,267 96,53%
(1) Gross taxes before discounts.
71
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
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
2004 1,141,046,187 1,141,046,187 100,570,992 100,570,992
2005 1,417,585,532 1,417,585,532 126,120,808 126,120,808
72
Totals
Assessed Estimated
Value Actual Value
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
1,241,617,179 1,241,617,179
1,543,706,340 1,543,706,340
73
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)
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
2004 4.58 5.1639 7.5400 17.2839
2005 4.58 5.1639 7.761 0 17,5049
Tax Levies
Fiscal City of Orange School
Year Ocoee County Board Total (a)
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 4,549,058 265,940,850 403,632,264 674,122,172
2002 4,966,552 290,228,395 442,304,630 737,499,577
2003 5,271,856 278,169,779 473,682,204 757,123,839
2004 5,685,241 347,990,339 509,092,508 862,768,088
2005 6,353,572 390,016,805 587,088,190 983,458,567
(a) Tax Rates and Levies of a fraction of one mill assessed in various years by other units
against districts covering less than the entire City or County were omitted here.
74
CITY OF OCOEE, FLORIDA
TAX REVENUE BY SOURCE
Last Ten Fiscal Years
Property Franchise Utility Total
Fiscal Year Taxes Taxes Taxes Taxes
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
2004 5,483,292 1,631,004 1,803,740 8,918,033
2005 6,133,267 2,083,755 2,326,910 10,543,832
75
CITY OF OCOEE, FLORIDA
SCHEDULE OF TEN LARGEST TAXPAYERS
September 30, 2005
Taxable Assessed
Type of Valuation As of
Taxpayer Business 2000 Tax Roll (1) Percentaae
1. West Oaks Mall Trust. West Oaks Mall $ 68,550,312 4.5%
2. Manheim Remarketing L.P.. Developer 18,931,892 1.2
3. Arden Park Ventures LLC Developer 18,673,570 1.2
4. Foxfire Apartment Association Apartments 16,543,199 1,1
5, Wal-Mart Stores East, Inc. Retail Sales 12,935,026 0.8
6. Good Homes Plaza (E&A) LLC Developer 12,919,555 0.8
7. Lake Lotta Apartments, LLC Apartments 11,431,334 0.7
8. Oak Forest Partners, Ltd. Developer 10,783,164 0.7
9. Belk Inc Developer 8,964,127 0,6
10. Dillards Department Stores Inc Retail Sales 8,641,741 0.6
Total taxable assessed value of 10 largest
Taxpayers 188,373,920 12,2
Total taxable assessed value of other
Taxpayers 1 .355.332.420 87.8
Total taxable assessed value of all
Taxpayers $ 1.543.706.340 100.0%
Note:
(1) The tax levy for the fiscal year ended September 30, 2005 is based on the 2004 taxable value,
76
CITY OF OCOEE, FLORIDA
SPECIAL ASSESSMENT COLLECTIONS
Last Ten Fiscal Years
The City of Ocoee, Florida did not have any material special assessment collections in the
last ten fiscal years,
77
CITY OF OCOEE, FLORIDA
LEGAL DEBT MARGIN
September 30, 2005
Debt Limit: 50% of Assessed Value
$ 1.387.576.057
693,788,028
Assessed Value
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt
Legal Debt Margin
28.110,000
$ 665.678.028
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.
78
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
1996 19,261 505,656,888
1997 20,560 582,355,145
1998 21,653 751,226,256
1999 22,746 821,365,533
2000 23,531 884,794,580
2001 25,993 959,980,083
2002 27,246 1,066,607,573
2003 28,093 1,151,336,799
2004 29,215 1,241,617,179
2005 30,597 1,543,706,340
Note: The City of Ocoee does not have any general obligation debt which is being repaid through general property taxes,
79
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
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%
2004 680,000 1,346,619 2,026,619 21,324,845 9.5%
2005 705,000 1,388,730 2,093,720 23,707,616 8.8%
(1) Includes expenditures for the General Fund only,
80
CITY OF OCOEE, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT
September 30. 2005
Government Unit
Bonds
Outstandina
Applicable To
City Of Ocoee
Percent (1)
Amount
Library District Refunding Bonds - Series 1993
$4,505,000
1.43%
$ 64.421
64,421
Total Overlapping Debt
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.
81
CITY OF OCOEE, FLORIDA
WATER AND WASTEWATER REVENUE BOND COVERAGE
LAST FIVE FISCAL YEARS
2001 2002 2003 2004 2005
Operating Revenue 1
Water Charges $2,366,720 $2,367,620 $2,746,809 $4,396,077 $3,971,363
Sewer Charges 2,314,312 2,335,331 2,354,010 2,687,106 2,805,042
Non-Operating Revenue2 751,458 351 ,645 159,685 306,140 377,931
Gross Revenue $5,432,490 $5,054,596 $5,260,504 $7,389,343 $6,828,000
Operatin~ & Maintenance $3,550,449 $3,408,455 $3,550,828 $4,141,478 $4,122,408
Expense
Net Revenue Available
For Debt Service $1,882,041 $1,646,141 $1,709,676 $3,247,865 $3,031,928
Impact Fees4 $591,216 $547,213 $76,709 $414,341 $1,923,885
Maximum Annual
Debt ServiceS $1,349,194 $1,349,194 $1,349,194 $1,487,950 $1,487,950
Debt Service Coverage
Net Revenues Only 1.39x 1.22x 1.27x 2,18x 2.04x
Net Revenues
And Impact Fees 1,83x 1,63x 1.32x 2.46x 3.33x
(1) Operating Revenues from water charges are shown net of Utility tax,
(2) Non-Operating Revenue includes reclaimed water in fiscal year 2002 through fiscal year 2005.
Reclaimed water rates were not in force prior to fiscal year 2002.
(3) Excludes Depreciation. For fiscal year 2001 and fiscal year 2003 Operating and Maintenance Expense does not
include Administrative Transfers for such service as Accounting, Human Resources and Information Technology.
These transfers amounted to $465,467 and $442,076 respectively. For fiscal year 2003, these transfer costs are
included as Operation and Maintenance Expenses in the amount of $698,539. The increase in the transfers for fiscal
year 2003 ($233,785) results from restructuring the Water & Sewer System such that a portion of expenses reported
as Operations and Maintenance Expense in previous years has been transferred to the General Fund. All future
projections include Administrative Transfers as Operation and Maintenance Expense,
(4) Constitutes Water System Development Charges Bond Service Component & Sewer System Development Charges
Bond Service Component.
(5) Fiscal years 2001 through 2003, consists of the maximum annual debt service on the Parity Bonds; for the fiscal
years 2004 through 2008, consists of the aggregate maximum annual debt service on the Parity Bonds and the
Series 2003 Bonds.
Sources: City of Ocoee,
82
CITY OF OCOEE, FLORIDA
DEMOGRAPHIC STATISTICS
Year
Population Projections
Oranae County State Of Florida
2005
1,019,300 17,436,400
2010
1,135,000 19,866,700
Year
0-17
18-34
35-54
55-64
65 and over
Population Distribution by Age
Oranae County State Of Florida
25.4% 22.5%
27.4 21.1
29.2 28.2
8.3 10.8
9,6 17.4
Source: University of Florida, Bureau of Economic and Business Research
U.S. Census Bureau.
83
CITY OF OCOEE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Commercial Additions!
Residential Construction ( 1) Construction ( 1) Alterations (1)
Number of Units
Single Multi Total
Year Family Family Value Value Value Value
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
2004 518 67 150,436,974 9,121,392 2,956,845 162,515,211
2005 503 0 137,603,407 12,667,375 465,561 150,736,343
(1) Source: City of Ocoee Building Department
84
CITY OF OCOEE
MISCEllANEOUS STATISTICAL DATA
September 30,2005
Date of Incorporation
City Charter Adopted
Commission Composed of:
Terms of Office:
Mayor
Commissioners
City Administrator
Areas of City
Municipal Employees (Including Part-Time)
Elections:
Registered voters
Votes cast in last municipal elections (March 2004)
Miles of Streets, Sidewalks and Bike Paths
Streets - paved
Streets - unpaved
Streets - brick
Sidewalks
Bike paths
Fire Protection:
Stations
Employees
Police Protection:
Stations
Employees
Vehicular Patrol Units:
Patrol cars
Other vehicles
Recreation:
Multi-purpose recreation center
Community Center
Athletic fields
Tennis courts
Racquetball courts
Shuffleboard courts
Passive parks
Parks and recreation developed ares (including city playgrounds)
Water System:
Miles of water mains
Daily Average Consumption (gallons)
Plant capacity (Gallons)
Plant Permitted Daily capacity (Gallons)
Service connections
Deep wells
Fire hydrants
85
May 13, 1925
November 8, 1988
1 Mayor, 4 Commissioners
3 Years
3 Years
Appointed
14.76 Square Miles
314
15,510
4,476
200.32 Miles
,046 Miles
6.3 Miles
159.51 Miles
.5 Miles
3
49
1
99
28
1
3
14
7
2
2
6
18
126.35
4.1038 (MGD)
11,77 (MGD)
4.1674 (MGD)
11,284
6
891
CITY OF OCOEE
MISCELLANEOUS STATISTICAL DATA. CONTINUED
September 30,2005
Sewer System:
Miles of sanitary sewers
Lift stations
Daily average treatment
Plants(s) capacity (MGD)
Disposal sites
69.44
50
1.646 (MGD)
1 plant @ 3MGD
2
86
CITY OF OCOEE, FLORIDA
SCHEDULE OF INSURANCE IN FORCE
September 30, 2005
Buildings and Personal Property:
Multi-period, "all risk"
100% of replacement value
Comprehensive General Liability:
Combined single limit for bodily & property
Automobile Liability:
Combined single limit
Uninsured motorist
Law Enforcement Liability:
Combined single limit for bodily & property
Blanket Fidelity
Public Official Errors & Omission Insurance:
Worker's Compensation
Stated values
Blanket building coverage
Blanket contents coverage
Boiler & machinery
Inland marine - computer
Inland marine - equipment
Valuable papers
Radio equipment
$2,000, ODD/occurrence
$6,OOO,OOO/aggregate
$2,OOO,000/person
$2,000, ODD/occurrence
$100,000
$2,OOO,000/occurrence
$2,OOO,000/aggregate
$50,000
$2,000,OOO/occurence
$2,000, ODD/aggregate
$1,000,000/occurrence
$1,OOO,000/aggregate
87
$29,997,956
Incl. in bldg. limit
29,997,956
931,288
4,456,339
100,000
50,000
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Centel of Gooci I .
V.e ,1f.1j
'\Y 11s~
rn
REPORT ON INTERNAL CONTROL AND COMPLIANCE
This page intentionally left blank.
Center of Good 1. .
V.e ~ 'It?j
,\v l{f
MCDIRMIT III DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
REPORT ON INTERNAL CONTROL OVER
FINANCIAL 'REPORTING AND ON COMPLIANCE AND OTHER MATTERS
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 Oeoee, Florida as of and for the year
ended September 30, 2005, and have issued our report thereon dated January 27, 2006, 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 Comptro,lIer General of the United States.
Internal Control Over Financial Reporting - In planning and performing our audit, we
considered the City of Oeoee, 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 Oeoee, Florida, in a separate letter dated January 27, 2006.
Compliance - As part of obtaining reasonable assurance about whether the City of Oeoee,
Florida's basic financial statements are free of material misstatement, we performed tests of Its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
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 man.agement of City of Oeoee, Florida, in a separate letter dated January 27,
2006.
MCDIRMIT DAVIS & COMPANY, LLC
605 E. ROBINSON S'rREET. SUITE 635 . ORLANDO, FLORIDA 3280 I
TELEP~IONE 407.843.5406. FAX 407,649.9339. EMAIL: INFO@McD1RMn'OAVIS,COM
MGM8ERS: PRIVAT~ COMPANIeS P~AC'TI("e SI!("TION' AMeRI('I\N INSTITUTE OF CF.RTlFIED PlIOl.lC M'('()UNTANTS' Fl.ORIDA INSTITUTE OF CERTII'IED PUBI.IC' A("('()UNTANTS
88
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.
fJl,c!li4ntiZ ~ it eMnpCW;LLt
McDIRMIT DAVIS & COMPANY, LLC
January 27,2006
89