ML031390244
| ML031390244 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 05/06/2002 |
| From: | Progress Energy Florida |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| 3F0503-05 | |
| Download: ML031390244 (197) | |
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CITY OF LEESBURG, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2002 Prepared By:
Thomas P. Klinker, CPA, CGFO, CPFO City Clerk/Finance Director
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INTRODUCTORY SECTION This section contains the following subsections:
+ Principal City Officials
+ Table of Contents
+ Letter of Transmittal
- Organizational Chart
+ Certificate of Achievement for Excellence in Financial Reporting
CITY OF LEESBURG, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 MAYOR C. Robert Lovell MAYOR-PRO-TEM David Knowles COMMISSION David L. Connelly Ben Perry Lewis Puckett Thomas P. Klinker, CPA, CGFO, CPFO CITY ATTORNEY Purvis, Gray and Company McLin, Burnsed, Morrison Johnson, Newman & Roy, P.A.
CITY MANAGER Ron Stock CITY CLERK/
FINANCE DIRECTOR CITY AUDITORS i
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CITY OF LEESBURG, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents Introductory Section Principal City Officials......
Table of Contents.........
Letter of Transmittal.......
Organizational Chart.......
Certificate of Achievement...
i ii-v 1-22 23 Financial Section Independent Auditors' Report.......................
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types.........
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types.................................
Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types..........
Combined Statement of Cash Flows - All Proprietary Fund Types Combining Statement of Additions, Deletions and Changes in Plan Net Assets - Pension Trust Funds...................
Notes to Financial Statements........................
28-31 33-34 36-37 39-63 Required Supplementary Information:
Schedules of Funding Progress.........................
Schedules of Contributions From Employer and Others.........
Analysis of Surplus - Section 8 Programs..................
Combining and Individual Fund and Account Group Statements and Schedules:
General Fund Balance Sheet..................................
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual.......................
Schedule of Revenues - Budget and Actual................
Schedule of Expenditures - Budget and Actual - By Department ii 64 65 66 67 68 69 70
CITY OF LEESBURG, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued)
Financial Section (Concluded)
Combining and Individual Fund and Account Group Statements and Schedules: (Concluded) 71-72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances..........................
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Community Development Fund...............
Housing Assistance Fund...................
Stormwater Fund........................
Greater Leesburg Community Development Fund....
Enterprise Funds Combining Balance Sheet......................
Combining Statement of Revenues, Expenses and Changes in Retained Earnings.........................
Combining Statement of Cash Flows...............
Internal Service Funds Combining Balance Sheet......................
Combining Statement of Revenues, Expenses and Changes in Retained Earnings.........................
Combining Statement of Cash Flows...............
Fiduciary Fund Types Combining Balance Sheet......................
Account Groups Schedules of General Fixed Assets By Source..........
Schedule of General Fixed Assets - By Function and Activity Schedule of Changes in General Fixed Assets - By Function and Activity.............................
Schedules of General Long-Term Debt..............
83-84 89 90 92 93 94 95 96 iii Special Revenue Funds Combining Balance Sheet
CITY OF LEESBURG, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued)
Statistical Section (Unaudited)
Table 1
General Governmental Expenditures By Function.
2 General Governmental Revenues By Source.
3 Property Tax Levies and Collections.
4 Property Tax Rates - All Direct and Overlapping Governments.
5 Assessed and Estimated Actual Value of Taxable Property.
6 Computation of Overlapping General Obligation Debt.
7 Ratio of Annual Debt Service Expenditures for General Obligation and Special Revenue Bonded Debt to Total General Governmental Expenditures.
8 Public Improvement Revenue Bonds, Series 1987 and Series 1999 (Refunding) Revenue Bond Coverage.
9 Combined Utility Funds - Series 1984 and 1999 (Refunding) Revenue Bond Coverage.
10 Demographic Statistics.
11 Property Value, Construction, and Bank Deposits.
12 Corporate Limits and Annexations.
13 Principal Taxpayers............................
14 Principal Employers.
15 Miscellaneous Statistics.
Additional Elements of Report Prepared in Accordance With Government Auditing Standards, Issued By the Comptroller General of the United States; the Provisions of Office of Management and Budget (OMB) Circular A-133; and the Rules of the Auditor General of the State of Florida Schedule of Expenditures of Federal Awards......................
Schedule of Expenditures of State Financial Assistance................
Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditors' Report on Compliance and Internal Control Over Compliance Applicable to Each Major Federal Awards Program and State Financial Assistance Project...............................
97-98 99-100 101 102 103-104 105 107-108 109-110 111 112 113 114 115 116-117 118 119 120-121 122-123 iv
CITY OF LEESBURG, FLORIDA COMIPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTENIBER 30, 2002 Table of Contents (Concluded)
Additional Elements of Report Prepared in Accordance With Government Auditing Standards, Issued By the Comptroller General of the United States; the Provisions of Office of Management and Budget (OMB) Circular A-133; and the Rules of the Auditor General of the State of Florida (Concluded)
Schedule of Findings and Questioned Costs - Federal Awards Programs and State Financial Assistance Projects.....................
Summary of Schedule of Prior Audit Findings in Accordance With OMB Circular A-133 Corrective Action Plan in Accordance With OMB Circular A-133.......
Independent Auditors' Report on Examination of Management's Assertion About Compliance With Specified Requirements Management Letter....................................
Management Letter Comments.............................
Management's Response.................................
124-125 126 127 128 129-130 131-132 133-134 v
-~March 17," 2003 Ni_
To the Honorable Mayor and City Commissioners of the City of Leesburg, Florida The Comprehensive Annual Financial Report of the City of Leesburg, Florida for the fiscal year ended September 30, 2002, is respecfully submitted.
This report was prepared by the Finance Division of the City Clerk/Finance Director.
I believe the financial and statistical information presented is accurate in'all material-respects, and is set forth in a manner de-ged to fairly present the =inancia position -and results of operations of the City as measured by the financial activity of its various funds.
The report contains all of the disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs.
Organization and Content
-The-purpose of this letter is to narratively.
point out the highlights of the City's financial operations-for-the fiscal year ended September 30,'-2002. The Comprehensive Annual Financial Report contains three major sections, which are the Introductory, the -
Financial, and the Statistical Sections. The Introductory Section is designed to give the reader some basic background about -the governmental unit as a whole. The Financial Section is divided into the following subsections:
MLEE Post Office Box 490630 1
- 352/728-9700 Fax 352/72
-AN EQUAL OPPORTUNITY/AF
- 1. General Purpose Financial Statements by fund type and account group.
- 2. Notes to the Financial Statements.
- 3. Combining, Individual Fund Account Group Statements Schedi si and and The Statistical Section presents social, demographic, and economic data together with information conceming the financial trends and-fiscal capacity of the City of Leesburg, and is generally presented on a multi-year basis.
The following -pages of this letter summarize' and highlight the -financial:
transactions of the City of Leesburg for the fiscal year ended September 30, 2002.
General Information Leesburg was founded and first settled in
- 1857 by Evander H.- Lee, a native of Sumter, South Carolina. The City received its name as a result of shipping directions given by
- Calvin Lee, Evander's brother, during-a merchandising trip to New York City in 1866.
By a citizen vote of 23 to 2, the City of
- Leesburg was incorporated on July 12, 1875.
SBURG
,akefront City lWeesburg, Florida 34749-0630 8-9734
- TDD 352/728-4138 FIRMATIVE ACrION EMPLOYER -
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j
March 17, 2003 The City of Leesburg is situated between Lake Harris and Lake Griffin. The City was originally a part of* Sumter County and served as the County seat until 1882 when the Florida Legislature created Lake County.
The City has been a part of Lake County since then and is the oldest and highest populated of the fourteen (14) incorporated municipalities in Lake County.
The estimated April 1, 2002 population of 16,104 residents ranks the City of Leesburg as the 105 h largest of Florida's 405 municipalities (the incorporated cities, towns and villages). In addition to Leesburg, the other thirteen incorporated municipalities located within Lake County are Astatula, Clermont, Eustis, Fruitland Park, Groveland, Howey-in-the-Hills, Lady Lake, Mascotte, Minneola, Montverde, Mount Dora, Tavares and Umatilla.
The City of Leesburg is located in north central Florida midway between the Gulf of Mexico and the Atlantic
- Ocean, approximately 200 miles southeast of the State
- Capitol, Tallahassee, 80 miles northeast of Tampa, 40 miles northwest of Orlando and 70 miles southwest of Daytona Beach. The City is bisected by State Road 44, US Highway 27, and US Highway 441.
Leesburg's location is depicted on the map below.
The major factors in the economy of the City of Leesburg and the surrounding areas are recreation and tourism.
The Leesburg Industrial Park is located on SR 44 and is occupied by several industrial and commercial enterprises.
Government Structure The City of Leesburg is a political subdivision of the State of Florida. As such, it is governed by and derives its operating authority from the constitution and laws of the State of Florida. -
The City operates under a
commission/manager form of government, with a governing board consisting of five City Commissioners, elected to staggered three-year terms. Three of the commission members must meet district residency requirements.
The remaining two commissioners are elected at-large without a district residency requirement.
The Financial Reporting Entity and Its Services This report contains all of the funds and account groups of the City of Leesburg, as well as component units which are required to be included pursuant to the provisions of Governmental Accounting Standards Board (GASB) Statement Number 14.
Statement 14 generally requires inclusion within the financial statements of organizations for which the City is financially accountable, and other organizations for which the nature and significance of their relationship with the City is such that exclusion would cause the City's financial statements to be misleading or incomplete.
1<
Based on the application of the foregoing criteria, the Greater Leesburg Community Redevelopment Agency is included as a blended component unit of the City.
2
-j March 17, 2003 After a detailed review of the criteria set forth in Govemmental Accounting Standards Board Statement Number 14 (the Financial Reporting Entity),
the following
- boards, authorities, agencies, and districts have been excluded from the financial reporting entity:
North Lake County Hospital District Leesburg Regional Medical Center The City provides a full range of governmental services contemplated by state law and local ordinance, including police and fire protection, storm water drainage, the construction and maintenance of streets and infrastructure,
- library, recreational activities, cultural
- events, planning, zoning, housing, and administrative services. In addition to general govemment activities, the City also provides a full range of utility services, including electric, natural gas, solid waste, communication services (which includes internet service provider),
water and wastewater treatment.
Accounting System and Budgetary Control In developing and evaluating the City's accounting system, consideration is given to the adequacy of intemal accounting controls.
Intemal accounting controls are designed to provide reasonable, but not
- absolute, assurance regarding:
(1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records used in preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
All intemal control evaluations occur within the above framework to adequately safeguard assets, and provide reasonable assurance of proper recording of financial transactions.
Formal budgetary integration is used as a management control device during the year for all govemmental funds of the City.
During fiscal year 1997-98, the City adopted a budget policy which establishes budgetary control (i.e. the level at which expenditures cannot exceed the appropriated amount) at the fund level. Budgets for all govemmental fund types are adopted on a basis consistent with generally accepted accounting principles (GAAP). The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget adopted by the City Commission.
The City's accounting system is organized and operated on a "fund" basis, which is the basic fiscal and accounting entity in govemmental accounting.
Each fund is classified by category and fund type.
For descriptions of the City's fund types, account groups and a summary of significant accounting policies, see the notes to the financial statements.
For a description of individual
- funds, see the combining statements.
An abbreviated summary of the classes of funds is outlined below:
Governmental Funds In Govemmental Funds, measurement focus is based on a determination of the financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income determination. These funds are maintained on the modified accrual basis of accounting, where revenues and other financial resource increments are recognized in the accounting period in which they become both measurable and available to finance expenditures of the fiscal period.
Basic financial statements necessary to fairly present financial position and operating results for these funds are the balance sheet and the statement of revenues, expenditures and changes in fund balance.
3
March 17, 2003 Proprietary Funds The Proprietary Funds (the Enterprise Funds and the Internal Service Funds) are used to account for activities in a manner similar to that utilized in the private sector, where the determination of net income is necessary or useful for sound financial administration.
The Proprietary Funds are accounted for on the full accrual basis, where revenues are recognized when they are earned and expenses when they are incurred.
Fiduciary Funds The measurement focus for Trust and Agency Funds is dependent on the nature of the fund. The only Trust and Agency Funds of the City of Leesburg are the Pension Trust Funds, which are accounted for in essentially the same manner as the Proprietary Funds.
Account Groups The General Fixed Assets and General Long-Term Debt Account Groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt.
The City's general fixed assets are not financial resources available for expenditure.
The unmatured principal of the City's general long-term debt does not require the use of financial resources during the current accounting period. Accordingly, these are not accounted for in the governmental funds, but in self-balancing account groups.
General Governmental Functions
- Revenues, as included in the govemmental funds, totaled $20,301,379 during fiscal year 2001-02 and increased by
$702,184 or 3.58% over the total revenues of
$19,599,195 reported in fiscal year 2000-01.
Pursuant to the uniform classification of accounts prescribed by the State Comptroller's
- office, govemmental fund revenues are classified into one of the following six categories:
Taxes - Includes property (ad valorem) taxes, local option gas taxes, public service taxes (authorized pursuant to the provisions of Section 166.231, Florida Statutes), other local taxes, and franchise fees.
Licenses and Permits Includes occupational licenses, building, zoning, and utility permits, right-of-way permits, and other licenses and permits of a local nature.
Intergovernmental Revenues - Includes federal grants, payments, and revenue sharing, state grants, payments, and revenue sharing, such as the City's share of state collected motor fuel taxes and sales taxes.
Charges for Services - Includes park fees, recreational activity fees, marina merchandise and fuel sales, certification and copy of city documents and records, sale of official maps and publications, animal control fees, stormwater utility
- fees, zoning fees and other user charges.
Fines and Forfeitures - Includes court fines and fees (including police officers educational funding), the proceeds from the sale of judicially confiscated property, and library fines.
Miscellaneous Revenues Includes interest on investments, rents, sales of surplus property, insurance proceeds from lost or destroyed property, marina storage fees, assessments (including street lighting and impact fees), refunds, contributions, reimbursements, and revenues not more properly recorded in other classifications.
4
-1 March 17, 2003 Based on the preceding classifications, the amount of general govemment revenues received during fiscal year 2001-02 as compared follows:
to fiscal year 2000-01 was as Description Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenues(1 )
Totals Fiscal Year 2001-2002
$ 7,612,203 432,905 5,546,337 811,981 260,586 5,637,367
$ 20,301,379 Fiscal Year 2000-2001
$ 6,604,777 379,376 5,045,255 826,919 283,690 6,459,178
$ 19,599,195 Increase (Decrease)
$ 1,007,426 53,529 501,082 (14,938)
(23,104)
(821,811) 702,184
')Includes interest income and reimbursements received from the Enterprise Funds for services provided by General Fund Departments The relationships between the various sources of revenue received in fiscal year 2001-02, as compared to fiscal year 2000-01, may be shown graphically as follows:
Taxes: Revenue generated in this category experienced the single largest increase of any of the major revenue categories. The most significant cause of the increase can be attributed to the communications services tax.
The Florida Legislature enacted the Communications Services Tax Simplification Law", which became effective October 1, 2001, and eliminated three (3) revenue sources (public service tax on telecommunications, cable television franchise fees, and telecommunications franchise fees) which were previously available to units of local government. The new law replaces the eliminated revenues with a single tax collected by the Florida Department of Revenue. On July 9, 2001, the City Commission adopted Resolution Number 6263, which authorized the levy of the maximum discretionary communications services tax of 5.22% and elected not to collect right-of-way permit fees.
During fiscal year 2001-02, a total of $899,359 was collected, which accounts for 89.27% of the increase in this category.
Ad valorem tax revenues increased by
$45,290 or 6.73%, from $2,789,242 in fiscal year 2000-01 to $2,834,532 in fiscal year 2001-02. The millage rate (amount of taxes per $1,000 of assessed value) levied in the City remained constant at 4.50 mills for both years.
Therefore, the increase in ad valorem tax revenues is attributable totally to increases in the assessed value of taxable properties.
Aggregate taxable property values rose by 4.19%
or
$26,924,352 from $641,873,683 in fiscal year 2000-01 to $668,798,035 in fiscal year 2001-02.
In the past fifteen years, the increase in total taxable values has averaged 5.33%
annually, which, may be shown graphically as follows:
5 Percent Change 15.25 %
14.11 %
9.93 %
(1.81)%
(8.14)%
(12.72)%
3.58 %
March 17, 2003 The public service tax (authorized pursuant to the provisions of Section 166.231, Florida Statutes),
for electric, natural gas, and water service sold to customers in the incorporated limits of the City was implemented on April 1, 2000.
This revenue source rose by $44,693 or 2.46% from
$1,813,930 in fiscal year 2000-01 to $1,858,623.
Revenues received from the levy of the one cent infrastructure sales surtax experienced an increase of $56,746 from
$1,210,133 in fiscal year 2000-01 to
$1,266,879 in fiscal year 2001-02.
On November 6, 2001, Lake County voters renewed the levy of an additional one cent tax on sales in the County pursuant to the provisions of Section 212.055, Florida Statutes. The City receives a portion of the tax based on an interlocal agreement with Lake County and the fourteen incorporated Lake County municipalities, which expires December 31, 2017. Utilization of the proceeds of this tax is limited to infrastructure improvements, long-term maintenance costs associated with landfill closure, and public safety vehicles and equipment with a life expectancy of at least 5 years.
Collectively, the local option gas taxes, and the one cent voted gas tax increased by $34,445 over the amount received in fiscal year 2000-01.
It should be noted at this point that the voters of Lake County, in a referendum election, approved this tax.
The tax provides for the levy of a one cent per gallon tax on motor fuel and special fuel sold in the County and taxed pursuant to the provisions of Section 206, Florida Statutes. Utilization of the proceeds of this tax is limited to the costs of acquisition, construction, reconstruction, and maintenance of roads and streets; and the costs of establishing, operating, and maintaining a transportation system and related facilities.
Nearly 30% of both the one cent voted gas taxes as well as the six cent local option gas tax collected are shared with the municipalities based on a
cooperative agreement between Lake County and the fourteen incorporated Lake County municipalities.
On April 22, 2002, the City Commission approved Ordinance Number 02-24, which authorized collection of franchise fees from permit holders that service customers with solid waste collection and disposal within the City limits of Leesburg.
This new revenue source for a partial year generated
$11,935.
Licenses and permits:
The most significant increase in this category is building permits, which experienced an increase of $50,503 or 34.87%
from
$144,814 in fiscal year 2000-01 to $195,317 in fiscal year 2001-02. This increase can be attributed to the total construction value of permits issued, which increased by
$4,787,670 or 12.22% from $39,185,392 in fiscal year 2000-01 to $43,973,062 in fiscal year 2001-02. The total number of building permits issued decreased by 119 from 430 during fiscal year 2000-01 to 311 during fiscal year 2001-02. The decrease in number of permits issued compared to total construction value can be explained by numerous large commercial projects.
In addition, a large volume of permits with high construction values were submitted prior to the fee increase approved by Lake County.
6
_-I March 17, 2003 Occupational license revenue fell slightly by $5,242 or 2.87% from $182,343 in fiscal year 2000-01 to $177,101 in fiscal year 2001-02. This decrease can partially be attributed to three (3) businesses in the sales with inventory category: K-Mart and Belk's department store closed permanently and Publix was closed for renovation.
Gross revenue reported from businesses in this category dropped, which resulted in a decrease in fees collected.
Occupational license fees are payable on or before October 1 of each year; therefore, the timing of when these items are paid could have an impact on the amount received from one year to the next.
Intergovernmental revenue: This category experienced significant changes, which can be seen in the "Schedule of Expenditures" for federal and state financial awards.
Federal grants decreased by $2,096,130 and State grants increased by $2,151,966.
The decrease in federal grants can be attributed to the amount of grant revenue recognized in the stormwater fund in connection with the construction of improvements to the Carver Heights drainage basin.
Grant revenues for this project decreased by $1,178,617 or 74.96%
from $1,569,681 in fiscal year 2000-01 to
$391,064 in fiscal year 2001-02. Grant sources for this project included a federal grant passed through the State of Florida, Department of Community Affairs, as well as funding from the St. John's River Water Management District.
Another decrease can be attributed to a housing rehabilitation grant secured in July 2001, which provided improvements to substandard housing units owned by eligible low-income individuals and families.
Since the amount of grant revenue recognized relates directly to the amount of expenditures incurred, revenues from this source totaled $692,500 during fiscal year 2000-01 and $7,500 in fiscal year 2001-02 to complete the grant.
Finally, the level of activity during fiscal year 2001-02 for various grants related to the provision of law enforcement services from the U.S.
Department of Justice decreased from $236,858 to $144,605. The City received funding from the following agencies:
Type Agency Number Cops Fast Federal I
Local Law Enforcement Federal 2
Block Grant SRO
- program, passed State 1
through from the U.S.
Department of Justice SROIDARE I
County 3
These decreases are offset by the increase in state grants, which is primarily due to all the activity associated with airport improvements, specifically land acquisition which totaled $2,166,897 in fiscal year 2001-02.
Also, the proceeds received from the local govemment half-cent sales tax increased $60,211 or 8.16% from $737,543 in fiscal year 2000-01 to $797,754 in fiscal year 2001-02.
Finally, housing grant revenues received from the United States Department of Housing and Urban Development remained relatively stable and rose by $27,082 or 3.76% from $719,547 in fiscal year 2000-01 to $746,629 in fiscal year 2001-02. Funding is based on the number of leased units, which remained
- constant, and the established rate per unit. As of September 30, 2002, this program was transferred to Lake County.
Charges for services: Revenue from this source is subject to variances from year to year. Although this category experienced an overall decrease, stormwater utility fees increased slightly and traffic fine revenues increased $14,458.
Conversely, criminal fines and sales of forfeited property experienced a decrease of $16,583 and
$16,611 respectively.
Activity fees for 7
March 17, 2003 recreation decreased by $8,804 and zoning fees decreased $11,089.
Miscellaneous revenues: The decrease of
$821,811 or 12.72% can be attributed to increases and decreases in the four (4) areas within the category.
The major decrease is related to proceeds from the sale of real property, which generated one time revenues in both the general fund as well as the capital projects fund. In fiscal year 2000-01, the City realized revenue from the sale of the remaining parcels the City owned in the Municipal Industrial Park
($303,219) and the sale of property on the comer of Dixie Avenue and Canal Street, known as the Babe Ruth ball field
($820,310). The proceeds from this sale were deposited into the capital projects fund and will be used to construct the new baseball and softball fields at the Sleepy Hollow Recreation Complex.
Interest earnings also fell from $756,079 in fiscal year 2000-01 to $435,637 in fiscal year 2001-02, a decrease of 42.38% or
$320,442. Although, the amount of surplus funds available for investment (reported as equity in pooled cash and cash equivalents) grew by $766,443 from $12,093,793 as of September 30, 2001 to $12,860,236 as of September 30, 2002, interest revenues decreased as a result of the decline in interest rates. The change in general fund equity in pooled cash and cash equivalents from $5,280,905 as of September 30, 2001 to $6,214,234 as of September 30, 2002 was a result of the effort to restore the general fund to a strong fiscal foundation.
The adjustments required (pursuant to the provisions of GASB Statement 31) to adjust investment values to market prices resulted in a decrease to investment income totaling
$26,317 in fiscal year 2001-02.
The City recorded a market value decrease of
$130,888, which is a change of $157,205.
The reimbursement revenue from the six (6) enterprise funds increased by
$499,912 or 28.72% from $3,835,994 in fiscal year 2000-01 to $4,335,906 in fiscal year 2001-02. General fund departments provide a wide variety of services to the enterprise funds.
The costs of providing these services are recovered from the enterprise funds by way of cost allocation, and are deposited into the general fund as reimbursement revenues. As general fund expenditures of the departments providing services to the enterprise funds increase, the amount of reimbursement revenue generated also increases.
Rent and royalty revenue also rose by
$104,200 or 20.85% from $499,705 in fiscal year 2000-01 to $603,905 in fiscal year 2001-02. More than 100% of this increase can be directly attributed to increases in rental income generated by the Leesburg Regional Airport, which rose by $123,880.
This increase is offset by a decrease of
$7,774 in community building fees and
$9,988 in dry slip rental fees.
Total expenditures, as included in the governmental funds, rose by $2,835,512 or 12.30% from $23,046,920 in fiscal year 2000-01 to $25,882,432 in fiscal year 2001-02.
Similar to the fashion in which revenues are classified into major categories, governmental fund type expenditures are classified into one of the following nine functional categories:
General Government - Includes the costs of services provided by the legislative, judicial and administrative branches of govemment for the benefit of the public and the governmental body as a whole.
Public Safety - Includes expenditures related to the security of persons and
- property, such as police services, building inspection
- services, fire protection and rescue services.
8
March 17, 2003 Physical Environment - Includes the costs of services necessary for the attainment of a satisfactory living environment, such as pollution control, stormwater management, and other activities relating to the environment.
Transportation Includes those expenditures necessary to provide for the safe and efficient flow of vehicle and pedestrian traffic throughout the City, primarily through construction and maintenance of roads, as well as those costs related to the construction and maintenance of airport facilities.
Economic Environment -
Includes costs incurred for the development and improvement of economic conditions for the community and its citizens.
Human Services Includes expenditures for the care, treatment, and control of human illness, injury, or handicap, and for the welfare of the community as a whole, such as the Citizens Utility Relief Effort (C.U.R.E.)
and animal control services.
Culture/Recreation - Includes the costs of providing and maintaining cultural and recreational facilities throughout the City for the benefit of all its citizens.
Capital Projects Includes expenditures for major construction projects, which generally require longer than one fiscal year to complete.
Debt Service - Includes the costs of liquidating long-term liabilities of the City, such as principal and interest on bond issues and
- notes, contracts payable and related expenditures.
Utilizing the functional categories listed above, the amount of expenditures incurred in the governmental funds during fiscal year 2001-02, as compared to fiscal year 2000-01, was as follows:
Description General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and Recreation Capital Projects Debt Service Totals Fiscal Year 2001-2002
$ 5,300,534 7,793,941 1,992,276 1,329,190 957,399 46,551 3,243,260 4,719,851 499,430
$ 25,882,432 Fiscal Year 2000-2001
$ 4,920,929 7,076,688 3,122,998 1,369,496 1,740,293 46,153 2,810,475 1,520,633 439,255
$ 23,046,920 Increase Percent (Decrease)
Change 379,605 7.71 %
717,253 10.14 %
(1,130,722)
(36.21)%
(40,306)
(2.94)%
(782,894)
(44.99)%
398 0.86 %
432,785 15.40 %
3,199,218 210.39 %
60,175 13.70 %
$ 2,835,512 12.30 %
As shown in the above table, significant increases in expenditures for general government, specifically general fund
($2,835,512) and capital projects fund
($3,199,218), are offset by the'decreases in the special revenue funds ($2,191,567) as discussed in the physical environment and economic environment categories.
Throughout the various categories, there will be reference to increases in personal service costs.
In the governmental funds, those costs increased from $12,112,336 in fiscal year 2001-02 to $13,576,908 in fiscal year 2001-02, which is a 12.09% increase totaling $1,464,572.
In addition to the regular merit increases, the market salary survey adjustment
($668,757) and the employer health insurance cost increase
($231,019) were the cause for over 60% of the increase.
9
=
March 17, 2003 The following is a graphic representation of the changes in expenditures by category from fiscal year 2000-01 to fiscal year 2001-02:
General Government: Personal services expenditures (i.e. salaries and benefits) account for over 60%
of the total expenditures in the general govemment category and experienced an increase of
$516,558 or 17.04% over fiscal year 2001-
- 02. The other major increase was $108,870 over fiscal year 2000-01 for professional services for the consultant to update the comprehensive plan.
Public Safety:
Personal services expenditures for police department
($469,211) and fire department ($207,975) represent over 94% of the increase.
Physical Environment:
Other than the capital projects category, this category experienced the largest dollar decrease of any of the major expenditure categories. As discussed in the intergovemmental revenue category, more than 100% of this decrease is a result of stormwater projects.
The Carver Heights drainage project, grant funded, was completed in fiscal year 2000-01 and accounted for $973,890 of the decrease.
The engineering division experienced an increase in the personal services category ($46,604) and purchased new software and licenses ($31,532) to improve the operation of the department.
Finally, the public works administration division purchased a new vehicle and copier, which accounts for $29,000 of the increase.
Transportation: In March 2002, the City contracted with Superior Asphalt to perform services for streets division including street and sidewalk repairs.
This resulted in a
$22,511 savings for fiscal year 2001-02.
Expenditures associated with the Leesburg Regional Airport fell by $17,795 for two (2) reasons. There was a decrease in capital outlay expenditures above and beyond those funded out of the capital projects fund. Capital outlay expenditures in fiscal year 2000-01 totaling $44,000 were made for road construction to the Lowe's store located on airport property. Second, there were two (2) major repairs in fiscal year 2000-01 including a roof repair on Phil's Aircraft associated with the storm of July 20,'
2001 ($15,300), and repairs to the Sim's hangar ($9,175) that accounted for the change.
Economic Environment: The majority of the decrease in this category was associated with the community development block grant for low-income housing units. Expenditures fell from $832,500 in fiscal year 2001-02, when work on the grant neared completion to
$7,500 in fiscal year 2001-02, which was the final administrative payment.
Conversely, personal service expenditures for economic development division increased by $32,648 over fiscal year 2000-01. Expenditures in the federally assisted housing voucher program remained relatively stable and rose by only
$27,082.
Human Services: The change in this category was so minimal there is little need to identify the reasons.
Expenditures associated with the Citizens Utility Relief Effort (C.U.R.E.) Program are dependent on the amount of citizen contributions received, and tend to vary from year to year.
10
-I March 17, 2003 Culture/Recreation:
Excluding capital projects, this category had the second largest increase. In addition to the increases in personal service costs of $13,706 in library and $244,779 in recreation, there were five (5) other expenditures significant to this category, specifically clean air ducts at the library
($19,000),
purchase software
($32,154), and overhead projector ($15,534).
The recreation department spent $20,000 on Venetian Gardens canal dredging and
$20,000 for a new vehicle.
Capital Projects: The significant increase in this category can be attributed to land acquisition at the airport, which represents 90% or $2,882,459 of the increase.
The other major capital project that began during fiscal year 2000-01 and had significant increases is land acquisition for the remaining parcels for the police department and the design and engineering costs associated with the construction of the police station, which increased by $429,678 for both projects.
Debt Service: Expenditures vary depending on the amount of the periodic installments of principal and interest due on long-term obligations during a particular fiscal year.
Total debt service expenditures increased by
$52,952 or 13.71% from $386,303 in fiscal year 2000-01 to $439,255 in fiscal year 2001-02.
The debt service expenditures are associated with the issuance of the
$7,345,000 City of
- Leesburg, Florida Refunding and Capital Improvement Bonds, Series 1999 remained relatively stable
($384,255 in fiscal year 2000-01 and
$379,430 in fiscal year 2001-02).
The majority of the change resulted from an increase in principal repayment from $55,000 in fiscal year 2000-01 to $125,000 in fiscal year 2001-02.
Debt Administration The $7,345,000 Refunding and Capital Improvement Revenue Bonds, Series 1999, the $15,705,000 Utilities System Refunding Revenue Bonds, Series 1999A and the
$12,145,000 Utilities System Revenue Bonds, Series 1999B are insured by Ambac Assurance Corporation (Ambac) and carry a AM Standard and Poors Bond Rating and AAA Fitch IBCA Bond Rating.
The following is a summary of long-term debt activity for the fiscal year ended September 30, 2002:
11
March 17, 2003 Description Refunding and Capital Improvement Revenue Bonds, Series 1999 Utilities System Refunding Revenue Bonds, Series 1999A(1)
Utilities System Revenue Bonds, Series 1999B')
Balance Balance October 1, Additions Retirements September 30, 2001 2002 7,290,000 120,000 7,170,000 14,950,000 11,945,000 400,000 105,000 14,550,000 11,840,000 Total Long-Term Bonded Debtt )
34,185,000 625,000 33,560,000 Plus:
Compensated Absences">
Suit Settlement Payable 3 Notes Payable(4)
Total Long-Term Debt t )
36,122,663 120,313 697,687 35,545,289
')Includes the Long-Term portion of the Utilities System Refunding Revenue Bonds, Series 1999A, the Utilities System Revenue Bonds, Series 1999B, which are payable from the enterprise funds.
()Includes only compensated absence liabilities payable from the govemmental funds (i.e. the general fund and the special revenue funds).
3)Represents that portion of the legal settlement with the Tri-County Branch of the NAACP which does not represent a current liability. Specifically, the terms of the settlement require the City of Leesburg to continue an annual funding subsidy, in the amount of $30,000, to the Community Development Corporation, for a period of 10 years, which began in fiscal year 1997-98. In addition, the City is also required to pay an additional $30,000 per year for a period of 10 years, which began in fiscal year 2000-01. The balance due for both settlements, recorded as a long term liability, totals $390,000.
(4)Represents the principal portion of the purchase of the Christley property by the Greater Leesburg Community Redevelopment Agency (CRA) Fund, which is subject to a 15 year mortgage that extends until May 2014.
Capital Projects Fund As previously described, the City has created a capital projects fund to account for major construction projects, which generally require longer than one fiscal year to complete.
As reported
- above, expenditures from the capital projects fund totaled
$4,719,851 during fiscal year 2001-02. Significant revenue sources used to fund the capital projects fund include the proceeds received by the City from the one-cent local government infrastructure surtax, as well as federal and state grants such as the State Department of Transportation airport funding agreements.
Fiscal year 2001-02 capital projects fund revenues totaled $4,016,451.
All other capital improvement expenditures are reported within the appropriate governmental fund type.
Fiduciary Operations The City utilizes three pension trust funds to account for three defined benefit pension plans operated by the City: the General Employees' Pension Fund, the Municipal Police Officers' Retirement Trust Fund and the Municipal Firemen's Retirement Trust Fund. All investments are managed by 12 1,265,521 450,000 120,313 222,142 1,385,834 60,000 12,687 390,000 209,455
March 17, 2003 outside fund managers. The operation of the three pension plans declined during fiscal year 2001-02.
Even though the net decrease to the funds totaled $3,065,681, the net assets held in trust for pension benefits totaled
$35,126,389 as of September 30, 2002.
General Fixed Assets The general fixed assets of the City are those fixed assets used in the performance of general govemmental functions and exclude those fixed assets known collectively as infrastructure, i.e., roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar assets which are immovable and generally of value only to the City of Leesburg. Also excluded from general fixed assets are the fixed assets of enterprise and internal service Electric Gas Utility Utility Operating Revenues Operating Expenses Operating Income (Loss) funds, if any. As of September 30, 2002, the general fixed assets of the City amounted to
$45,167,624. This amount represents the historical cost of purchased assets or the estimated fair market value at the date of acquisition of assets acquired through donation or other means. The City's fixed asset accounting policy requires capitalization in the accounting records of fixed assets with a value of $1,000 or more.
Proprietary Operations The City has created a total of six enterprise funds to account for the following utility services: electric, natural gas, solid waste services, communication services, water and wastewater treatment. The results of operations of the enterprise funds for the fiscal year ending September 30, 2002 may be summarized as follows:
Sanitary Communi-Sewer and Solid cation Water Wastewater Waste Services Utility Utility Utility Utility Total
$ 36,997,082
$ 5,575,909
$ 3,804,857
$ 3,815,141
$ 2,725,740 316,318 t 53,235,047 (32,924,316)
(4,798,412)
(2,871,721)
(4,753,803)
(2,837,378)
(361,337)
(48,546,967)
$ 4,072,766 777,497 933,136 S (938,662)
(111,638) $
(45,019)
$ 4,688.080 Nonoperating Revenue(Expenses) 690,546 96,325 522,609 (180,059) 63,310 38,461 1,231,192 IncomebeforeOpera5ngTransfer S 4,763,312 873,822
$ 1,455,745
$ (1,118,721)
(48,328)
(6,558)
S 5,919,272 Operating Transfer Net Income (Loss)
(4,446,783)
(591,470)
(1,007,067)
(256,846)
(183,275) 89,761 (6,395,680) 316,529 282,352 5
448,678
_ (1,375,567) 5 (231,603) $
83,203
$ (476,408)
In addition to the general government services provided, the following six (6) utility systems are also an important part of the City organization. As shown in the schedule above, four of the six enterprise funds had positive net income during fiscal year 2001-02.
The Wastewater Utility Fund experienced a net loss of $1,375,567 as a result of several factors:
additional expenditures associated with the operation of a second treatment plant, and a reduction in interest revenue earned.
The rate study was completed subsequent to this audit report and the revenue increases in future years will be sufficient to support the operating expenditures of this utility. The loss in the solid waste fund was a result in restatement of the landfill postclosure estimate.
In the aggregate, the net loss (after subtracting operating transfers to the general fund) in the six enterprise funds totaled 13
March 17, 2003
$476,408.
A majority of this loss can be attributed to the decrease in interest earnings from $3,754,972 in fiscal year 2000-01 to,$1,829,975 in fiscal year 2001-
- 02. In addition to the declining interest rates, the amount of surplus funds available for investment (reported as equity in pooled cash and cash equivalents) fell by
$6,466,532.
Much of this cash was reinvested in capital assets, which had a net increase of $5,256,788.
The City of Leesburg serves residents and many customers outside the incorporated limits. The City has an active maintenance program and considers all systems to be in good condition.
The City believes the rates charged for the use of all the utility systems are reasonably comparable to rates charged by similar utilities. The rates of the electric system are established by ordinance of the City Commission. The current rate structure of the City (as opposed to the actual rates) is subject to the approval of the Public Service Commission (PSC). Rates for the use of the natural gas, water, wastewater, solid waste, communications, and stormwater systems are established by ordinance of the City Commission and are not regulated by any other agency.
Electric System The electric system, established in 1926, serves 19,763 customers.
The system includes five substations, distribution facilities, 371.4 miles of primary electric lines, and covers a total area of 50 square miles.
The City of Leesburg purchases power from the Florida Municipal Power Agency (FMPA) on an all-requirements basis.
FMPA was created pursuant to Florida Statutes Chapter 163, Parts I and 11 ("The Interlocal Act": and "The Joint Power Act") which, among other
- things, provides a means for Florida municipal corporations to cooperate with each other to provide for their present and future energy needs.
The agreement remains in effect until October 1, 2020, with two optional successive ten-year renewal periods.
The power rates that FMPA charges the City are subject to a majority vote of the FMPA Board of Directors. The City has limited oversight authority over the operation.
The City operates no generation facilities, but owns an undivided 0.8244%
interest in and generation entitlement share to Crystal River Number 3, a nuclear steam electric generating unit. Florida Progress (formerly known as Florida Power Corporation) owns 90% of the unit and is responsible for the operation of the plant.
The City acquired its share of the facilities in 1975. Participants are entitled to energy output of the unit based upon their respective generation entitlement share.
Operation costs are paid monthly in proportion to the entitlement share. Nuclear fuel payments are required of participants in advance.
The City, through FMPA, negotiated an agreement with Florida Power and Light Corporation guaranteeing the City the right to purchase up to 1.716 megawatts of generating capacity from the St. Lucie No. 2 nuclear generating plant.
This plant became operational in 1984.
The Public Service Commission approved a
territorial agreement with Florida Power Corporation in May 1982 and with Sumter Electric Cooperative in May 1991. The City of Leesburg entered into a franchise agreement, effective November 1, 1983, with the City of Fruitland Park to provide electric services for 25 years and the right for the City of Fruitland Park to purchase the distribution system in 2008.
The capital improvements plan for the electric system for the fiscal years ending September 30, 2003 through 2007 includes 14
March 17, 2003 various capital expenditures aggregating
$32,990,956 (including
$5,000,000 for converting electric utilities to underground),
all of which are projected to be paid from revenues of the electric system.
No indebtedness is anticipated to be issued with respect to the electric system in order to finance such capital improvements.
Natural Gas System The natural gas system, established in 1959, encompasses 83 square miles, both inside and outside the City limits, and is composed of 211 miles of steel gas mains and 9,510 steel services. The areas served include the City of Leesburg, the area west along SR 44 including the Municipal Industrial Park and Pennbrooke Fairways, the area east of the City which includes the Lake Square Mall and Bassville Park and is bounded by Dead River, the City of Fruitland Park to the north and the area west of US Highway 27, which includes Okahumpka and extends along CR 470 to the Coleman Federal Correction Facility to the west and the area along US Highway 27 South including Legacy, Highland Lakes, and ending at Royal Highlands just south of the Florida Turnpike to the south.
The City of Fruitland Park is served under a franchise agreement which became effective November 1,
1983.
The agreement provides for 25 years of service and the right for the City of Fruitland Park to purchase its distribution system in 2008.
Installation and maintenance of all gas mains and service lines are the responsibility of the City Gas Department.
Mains that are 4 inches in diameter and larger are installed by outside contractors.
The City of Leesburg is a member of the Florida Gas Utility (FGU) consortium. FGU purchases natural gas for its members from various suppliers and coordinates day-to-day nominations to Florida Gas Transmission Company (FGT, an interstate pipeline company) for delivery of natural gas to the City's two gate stations.
The scheduled volumes are based on the weather forecast, daily consumption needs not related to weather, and FGT system constraints.
The Capital Improvement Plan for the gas system for the fiscal years ending September 30, 2003 through 2007 includes various capital expenditures aggregating
$6,783,823 all of which are projected to be paid from revenues of the gas system. No indebtedness is anticipated to be issued with respect to the gas system in order to finance such capital improvements.
Water System The water system was established nearly 100 years ago.
The water service area encompasses 26 square miles inside and outside the City limits and serves 13,173 customers.
The water distribution system is primarily composed of 332 miles of water mains. The system includes four (4) elevated storage tanks, (College Street 500,000
- gallons, Newell Hill 200,000 gallons, Highland Lakes 200,000 gallons, and Lake Square Mall 150,000 gallons).
There are three (3) ground storage tanks within the system. Two (2) of the ground storage tanks within the City limits are rated at 1.5 million gallons per day (MGD) and the one at Royal Highlands is a 500,000 MGD tank. In addition, there is a 10,000 gallon hydropneumatic tanks at the Leesburg Regional Airport and the Legacy Development.
Water is obtained from 15 Floridian aquifer wells.
The City has a consumptive use permit from St. Johns River Water Management District to withdraw 2,897.9 million gallons in 2002, which is an average daily flow of 7.94 million gallons. Treatment of the raw water is accomplished through the main water treatment plant and four (4) satellite plants.
15
March 17, 2003 The water system is anticipated to have the capacity to meet the needs of the existing customers of the City through the year 2020. The water system received the "Outstanding Water Distribution Award, Division II" from the Florida Section of the American Water Works Association for 1999 and 2000.
The City meets all federal and state drinking water standards.
The Capital Improvement Plan for the water system for the fiscal years ending September 30, 2003 through 2007 include various capital expenditures aggregating
$11,808,462 all of which are projected to be paid from revenues of the water system.
No indebtedness is anticipated to be issued with respect to the water system in order to finance such capital improvements.
Wastewater System The wastewater treatment system was established in the 1920's. The wastewater collection system serves the City and the surrounding service area which totals 26 square miles and serves 10,338 customers.
The wastewater collection system consists of 100 pumping lift stations and 103 miles of sewer force mains and 70 miles of sewer gravity lines.
Gravity sewer lines range from 4 to 24 inches in diameter and force mains range from 4 to 20 inches in diameter. The City has an operating permit from the Florida Department of Environmental Protection to operate two wastewater treatment plants, the Canal Street Plant, which is rated at 3.5 MGD, and the new Turnpike Plant, which is rated at 3.0 MGD.
The system is in compliance with all state and federal regulations. The City treats its effluent water to an advance secondary standard and irrigates 675 acres of City owned property of which 365 acres are utilized for the hay operation.
The resulting sludge waste generated from the wastewater treatment process is disposed of on 340 acres of City-owned hay fields.
With both the Turnpike and Canal Street wastewater treatment plants and land disposal sites maintained and in service, the City anticipates having sufficient wastewater treatment/disposal capacity through the year 2015.
Wastewater reuse is a commodity that will help the City maximize the life of the drinking water aquifer available for customers. Reuse is a valuable resource for not only residential customers, but for commercial customers that require high volumes of water at reasonable rates. The availability of reuse water in industrial and residential applications will be utilized to provide a means of reducing the City's use of potable water. Construction of a reuse facility and reuse line extensions began in fiscal year 1999-2000.
Although the City has 86 customers in selected areas using the reuse pipelines, the City will be able to expand the reuse water service once the facility is complete. The City anticipates the construction of the additional reuse equipment and the reuse pipeline will be completed by December 2003. This new service will allow certain users to purchase irrigation water at a lower rate than the potable water rate, as well as meet the St.
Johns River Water Management District water consumption requirement.
The Capital Improvement Plan for the wastewater system for the fiscal years ending September 30, 2003 through 2007 include various capital expenditures aggregating
$30,208,576, of which the majority are projected to be paid from revenues of the wastewater system.
In addition, Canal Street Plant improvements have been identified and estimated to cost
$13 million and will require the issuance of indebtedness with respect to the wastewater system in order to finance such capital improvements. As of September 30,
- 2002, all the proceeds from the
$12,145,000 Utilities System Revenue Bonds, Series 1999B, have been used to complete specific capital improvements.
16
March 17, 2003 Communication System The communication utility system was established in 1993 and serves customers both inside and outside the City limits. This utility has a variety of customers: cellular telephone tower rental, internet services, and fiber optic communications.
A monopole tower, located at the wastewater system spraysite on CR
- 470, was constructed in fiscal year 1998 and currently has two (2) cellular tower rental customers.
The water towers serve four (4) customers for cellular telephone tower rental space.
Intemet services were first offered in November 1998 and currently serve 336 customers.
The fiber optic extensions serve 26 municipal facilities and five (5) substations that interconnect all City offices to the IBM AS/400 computer located in the City Hall building. The City currently has seven (7) outside commercial customers.
The City has installed 77 miles of fiber-optic cable, including 12 miles of new cable from 2nd Street north to The Villages retirement community. The City has embarked on an aggressive campaign to install fiber-optic cable. The budget includes funds to install 80,000 feet of new fiber optic lines to customers for high speed internet access, video conferencing, and to secure data transfer between multiple business sites.
In fiscal year 2001-02, the City began offering a 10 mb ethernet service to provide service for easy connectivity and extensions for computer networks that are cost effective.
The Capital Improvement Plan for the communications system for the fiscal years ending September 30, 2003 through 2007 include various capital expenditures aggregating $7,144,599, the majority of which are projected to be paid from revenues of the electric system as a loan to be repaid from user charges over 10 years.
Solid Waste System The solid waste system serves the incorporated area of the City, which totals almost 30 square miles and serves 6,671 customers.
The City provides 90 gallon garbage cans for all residential and small commercial customers.
Large commercial customers are now provided commercial dumpsters in various sizes from 2 cubic yards up to 10 cubic yards, which the City leases. Solid waste management instituted roll off service for construction and demolition debris. During fiscal year 2000-01, the City purchased the following roll off containers: 5 10-yards, 7 20-yards, 7 30-yards, and 4 40-yards. Presently there are:
175(2cy), 170(4cy), 53(6cy), and 75(8cy) dumpsters in service city-wide, 40% of which are City owned.
Internal Service Funds The City has created three intemal service funds to account for fleet maintenance
- services, employee health benefits
- coverage, and workers' compensation coverage.
As of September 30, 2002, the Fleet Maintenance Fund was transferred to the general fund.
Activity for this fund was reported on the income statement, and assets and liabilities were transferred to the general fund, so the balance sheet reflects a zero balance.
The Health Insurance Fund experienced a net income of $616,574 resulting in positive retained earnings of $313,745.
Although administrative expenses increased significantly, claims experience decreased
$907,584.
On October 1, 2000, the City increased rates in order to build a
substantial reserve over a two year period, which proved to be a successful endeavor.
The City Commission terminated the contract with Well America Group, effective May 31, 2000 and continues litigation to 17
March 17, 2003 recover
$744,109 of claims expense incurred by City participants that should have been paid by Well America as the third party insurance company.
The program provides for the payment of City and employee contributions into a
self-insurance fund, which is managed by the City and a third party administrator.
Specific and aggregate stop loss coverage remains in effect, subject to the limits detailed in the following section.
The Workers' Compensation Fund experienced a net loss of $186,164, resulting in a positive retained earning of $1,103,830.
This loss for the second year led to an increase in user charges from 25% of the state established rates to 37.5%.
Risk Management Risk management is the process of managing the City's activities in order to minimize the potential adverse effects of certain types of losses. The main elements of the risk management program are risk control (loss reduction) and risk financing (restoration of the economic damages of losses incurred).
Presently, the City's risk management program calls for self-insuring many types of risk, subject to the following limitations:
fiscal year 1994-95, the City Commission adopted the City's first comprehensive investment policy.
These policies were amended during fiscal year 1998-1999 to incorporate basic intemal controls over the investment function.
Cash temporarily idle during the year was invested in demand
- deposits, in ovemight repurchase agreements, in the Local Govemment Surplus Funds Trust Fund administered by the State Board of Administration, and in govemment securities authorized by the investment policy.
Interest rates and maturities (from the date of purchase) on securities purchased by the City during fiscal year 2001-02 were as follows:
Description Federal Agencies and Discount Notes:
Federal National Mortgage Associabon Federal Home Loan Bank Days to Maturity Low Hiah Interest Rate Low ia 1,826 1,826 5.00 5.00 820 1,826 3.125 5.45 Funds deposited in local banks and savings and loan associations were secured by a pledge of approved collateral securities by the participating institutions with the State Treasurer's office.
In addition, funds were invested in the Local Government Surplus Funds Trust Fund in order to take advantage of the higher yields and greater liquidity available therein.
Limit of Excess Insurance Coverage None 45,000 955,000 The limits stated above are on a per occurrence basis.
Cash Managem'ent The City Clerk/Finance Director invests and disburses funds on behalf of the City Commission as required by law and applicable management directives.
During Major Initiatives' During the past several years, it became increasingly apparent that the financial health of the City's general fund was experiencing considerable stress.
This stress was caused, at least in part, by an increasing dependency on operating transfers from the enterprise funds to finance general govemment operations including certain large scale capital improvements.
In an effort to deal with these issues, on August 14, 2000, the City adopted, by ordinance, three financial policies, which became effective for the fiscal year beginning on October 1, 2000.
18 Amount of Risk Retained by City 400,000 Type of Risk Workers' Compensation Health Benefits
-I March 17, 2003 The first policy requires that the City Commission maintain adequate fund balance/retained earnings and reserves in its various operating funds. This policy basically provides a minimum threshold balance of unreserved undesignated fund balance in the general fund equal to 20% of the adopted budget, and a minimum threshold balance of unreserved retained eamings in each of the enterprise funds equal to 25% of the adopted budget.
During the annual review to determine compliance with this policy, all funds were determined to be in compliance.
The second policy governs the transfer of funds from each of the enterprise funds to the general fund. The policy provides that the operating transfer shall not exceed 10% of operating revenues generated by each of the City's six (6) enterprise funds. During fiscal year 2001-02, operating transfers from the enterprise funds to the general fund totaled 8% of estimated revenues.
The third policy, the special projects transfer policy, governs transfers made from the utility funds for the purpose of financing general government special projects. Once the Commission determines a need for a nonrecurring transfer to a non-enterprise fund for capital improvements, the policy establishes a means to determine if funding is available.
A total of $900,227 was transferred from the enterprise
- funds, specifically electric and water funds, to the capital projects fund during fiscal year 2001-02 for the purpose of funding projects including rails to trails and improvements at the Leesburg Regional Airport.
Although not reflected in the total annexations for fiscal year 2001-02, the City continues an active annexation program.
Over the past ten years, the City has expanded in size, from 19.63 square miles in 1993, to 29.71 square miles as of September 30, 2002, which represents an increase of over 50% during the ten year period. While annexations do provide the City with an expanding revenue base, they also create demands for additional services which must be carefully considered as a part of the overall annexation decision.
Also during fiscal year 2001-02, the City entered into a contract with Lake-Sumter Emergency Medical Services, Inc. allowing the Leesburg Fire Department to upgrade and provide Advanced Life Support (ALS) services to the residents of Leesburg and the surrounding area. The fire department has provided Basic Life Support (BLS) services for a number of years. ALS services differ from BLS services in that ALS allows personnel to administer drugs, interpret basic cardiac EKG's and administer advanced life sustaining treatment.
In return for the provision of ALS services by the Leesburg Fire Department, Lake-Sumter Emergency Medical Services, Inc. will compensate the City in an amount equal to a 0.10 mill property tax levy on all City property. The program began to generate revenue in September 2001, and realized revenue of
$63,312 for fiscal year 2001-02.
Prospects for the Future The City of Leesburg Electric Utility represents the single most important financial aspect of the City's operation.
Revenues generated from the electric utility fund accounts for nearly half of all City revenues. Nevertheless, the electric system may be affected by a number of factors which could have a material adverse impact on its financial condition.
Deregulation of the electric utility industry has the potential for significant detrimental impact upon the City of Leesburg. Presently, most customers of electric utilities are unable to choose among various suppliers of electricity and are dependent upon the local utility. Rates charged by local utilities are either set or regulated by the govemment, and utilities are generally not subject to competitive-pressures.
The electric utility 19
March 17, 2003 industry may in the future become subject to open retail competition, and it is not possible to predict whether it would have any adverse impact upon the electric system. The City of Leesburg will continue to prepare the electric utility for the prospect of increased competition.
During fiscal year 1999-2000, the City implemented a public service tax on electric, gas, and water services in an effort to protect the City's revenue stream, provide an equitable system to fund City services, and maintain utility rates that are competitive, and to reduce general fund dependence on utility fund income for survival.
Over the past two (2) years, volatility in the cost of fuel used to produce energy has required pricing reactions on the part of the City with respect to electricity and natural gas.
Increasingly, natural gas is used as a fuel source for the production of electricity.
The increase in natural gas prices also had a significant impact to the city's electric utility.
Unfortunately, the City has no option but to pass these increases on to the electric customers. The volatility of the current energy market, and the threat of war, will cause the City to more aggressively monitor these costs and may necessitate additional adjustments to the Bulk Power Cost Adjustment in the months ahead.
One other major issue on the horizon which is of significant concem to the City of Leesburg is the upcoming implementation of the Govemmental Accounting Standards Board Statement 34 entitled Basic Financial Statements - and Management's Discussion and Analysis for State and Local Govemments.
While the City intends to implement the provisions of GASB-34 statement as required this fiscal year, nevertheless the City has concerns over the effects of its implementation. Specifically, in the global sense, Statement 34 radically changes the traditional focus of governmental financial reporting from one of stewardship and the flow of current financial resources, to a focus on the results of operations and the flow of economic resources. We believe this radical change may not be readily acceptable by several of the classes of users of govemmental financial reports, namely, elected officials, the public and the news media. To illustrate, one of the principal tenets of Statement 34 is the preparation of govemment-wide financial statements. Under current practice, long lived assets and long term liabilities associated with the governmental funds are accounted for in account groups rather than being reported on the balance sheet of the various funds. This permits the users of the financial statements to evaluate the amount of current financial resources available in the govemmental funds.
However, with the entity wide statement of net assets (there will no longer be a balance sheet) required pursuant to Statement 34, long lived assets and long term liabilities will be commingled with current assets and liabilities, which could distort the total amount of resources available to fund the ongoing operations.
By assuming that the value of general fixed assets is equal to approximately half of their useful life remaining, then the un-depreciated value of these assets could appear to show greater financial resources, and could increase the perceived value of the City's net assets. Although the amounts reported do not represent the current cash resources of the City, we are nevertheless concemed about the perception created about the financial health, or lack thereof, of the governmental unit as a whole.
Economic Condition and Outlook The City of Leesburg is part of the Greater Orlando Metropolitan Statistical Area (MSA). As a member of the Economic Development Commission of Mid Florida, Inc., the City of Leesburg is able to take advantage of the unique partnership created with the City of Orlando, Orange, Seminole, 20
March 17, 2003 Lake and Osceola counties to provide a progressive, cohesive effort for new and expanding businesses.
A strong pro business environment also can be seen from a financial point of view. Florida ranks sixth lowest nationwide in corporate income taxes, and there is no state personal income tax. In addition, state and local incentives are available to create enticing packages based on economic impact.
With the adoption of the 1996 fiscal year budget, the City Commission made a
commitment to continue city-wide economic development activities to create more and better jobs for our citizens, stability for their families, and develop balance within the local economy.
Since March 1993, when the City initiated its first formal economic development office, efforts to attract new industry and assist the expansion of existing business in Leesburg has been significant. The City has developed strategies to diversify its service based job economy by creating more semi skilled and skilled positions at higher wages. By doing so, the City also hopes to enhance property values and to stabilize taxes.
On March 27, 2000, the City Commission adopted the City of Leesburg Strategic Economic Development Plan. As part of this incentive plan, the Commission has adopted two (2) incentive strategies, a fast track permitting process and a job growth incentive program.
The job growth incentive program adopted by the City Commission mirrors the program approved by the Lake County Commission for the Lake County Industrial Development Authority. In order to fund the job growth incentive program for the City of Leesburg, during fiscal year 2001 2002, the City committed
$15,000 for economic incentive programs, with a maximum of $500 per job. In order to qualify for receipt of job growth incentive funds the following criteria must be met:
Create a minimum of 10 new full time jobs in the City of Leesburg within two years for new businesses, or a minimum of 5 full time jobs in one year for existing businesses, and The starting wage of each position provided an incentive must be 110% of the average wage in Lake County, Florida, as may be annually adjusted, and Created jobs must be from one of the targeted industries identified in the tables provided in the ordinance.
Independent Audit Section 11.45, Florida Statutes, requires a financial audit of the annual financial statements of The City of Leesburg by an independent Certified Public Accountant selected by the City Commission and paid from City funds. This requirement has been accomplished, and the report of our auditors is included in the financial section of this report.
Certificate of Achievement The Govemment Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Leesburg, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2001.
The Certificate of Achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state and local govemment financial reports.
In order to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program 21
March 17, 2003 standards.
Such comprehensive annual financial reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.
The City of Leesburg has received a Certificate of Achievement for the last twelve consecutive years (fiscal years ended 1990-2001). The City's current report continues to conform to the Certificate of Achievement Program requirements, and will be submitted to the GFOA to determine its eligibility for another Certificate.
Acknowledgments A comprehensive annual financial report of this nature could not have been prepared without the efficient and dedicated service of all staff members involved. I would like to express my appreciation to the staff of the Accounting Division of the Office of the City Clerk/Finance
- Director, and specifically Deputy Finance Director Diane Reichard, for their efforts in producing this report, and to the accounting firm of Purvis Gray and Company for their contributions to the design, preparation and publication of this document. Finally, my thanks for the interest and support of the City Commission and the City Manager in planning and conducting the fiscal operations of the City of Leesburg.
22
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City of Leesburg, Florida Organizational Chart CITY ATTORNEY (1)
CITY COMMISSION (5)
I GASNWATERI WASTEWATER/
ENGINEERING (86)
MIS (10)
I. ~ ~
~
~
~
I CITY CLERK]
FINANCE DIRECTOR (41)
NUMBERS REFLECT FULL TIME EQUIVALENT EMPLOYEES IN RESPECTIVE DEPARTMENTS 23 CITY MANAGER (5) p ~~~~-
ASSISTANT CITY MANAGER ECONOMIC DEVELOPMENT (2)
HOUSING (3)
FIRE (38)
POLICE (88.85)
LIBRARY (23)
RECREATION
& PARKS (40.25)
PUBLIC WORKS (54)
ELECTRIC (54)
HUMAN RESOURCES (5)
AJRPORT DEVELOPMENT SERVICES (12)
I
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Certificate of Achievement for Excellence in Financial Reporting Presented to City of Leesburg, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.
tMM President ecutive Director 24
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The Government Financial Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Leesburg, Florida for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1999. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to GFOA.
25
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K FINANCIAL SECTION This section contains the following subsections:
- Report of Independent Auditors
+ General Purpose Financial Statements
+ Combining Statements - By Fund Type
+ Schedules
FINANCIAL SECTION Independent Auditors' Report General Purpose Financial Statements Required Supplementary Information Combining and Individual Fund and Account Group Statements and Schedules
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Purvis Gray &
Company INDEPENDENT AUDITORS' REPORT Honorable City Commission City of Leesburg Leesburg, Florida We have audited the accompanying general purpose financial statements of the City of Leesburg, Florida, as of and for the year ended September 30, 2002, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Leesburg, Florida's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Our audit was made 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 general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Leesburg, Florida at September 30, 2002, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated January 24, 2003, on our consideration of the City of Leesburg, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Certified Public Accountants P
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 1727 2nd Street
- Sarasota, Florida 34236 * (941) 365-3774
- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBIK ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 26
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Honorable City Commission City of Leesburg Leesburg, Florida INDEPENDENT AUDITORS' REPORT (Concluded)
Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Leesburg, Florida taken as a whole. The required supplementary information listed in the table of contents is not a required part of the general purpose financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information.
However, we did not audit the information and express no opinion on it. The accompanying schedule of expenditures of federal awards and state financial assistance as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and the Rules of the Auditor General of the State of Florida, and combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Leesburg, Florida.
Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The information presented in the statistical section is presented for the purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it.
January 24, 2003 Ocala, Florida 27
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GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF LEESBURG, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 Governmental Fund Types Assets and Other Debits Equity in Pooled Cash and Cash Equivalents Cash and Investments With Trustees Receivables:
Customer Accounts:
Unbilled Billed Allowance for Doubtful Accounts Accrued Interest Other Prepaid Items Due From Other Funds Due From Other Governments Inventory Restricted Assets:
Equity in Pooled Cash and Cash Equivalents Investments Notes Receivable - Employees Property, Plant and Equipment General Fixed Assets (Accumulated Depreciation)
Construction in Progress Unamortized Bond Issue Costs Amount Available for Debt Service Amount to be Provided for Retirement of General Long-Term Debt General 6,214,234 Special Revenue 626,662 Debt Service Capital Projects 314,503 5,704,837 43,115 48,579 (11,265) 189,305 28,026 659,219 58,345 150,583 1,064,109 167,312 Total Assets and Other Debits 7,316,441 857,674 $
314,503 6,768,946 See accompanying notes.
28
(Page 1 of 2 Pages)
Proprietary Fund Types Enterprise Internal Service Fiduciary Fund Types Account Groups General General Trust and Fixed Long-Term Agency Assets Debt Totals (Memorandum Only) 2002 2001 38,170,038 2,338,381 3,742,859 (608,109) 212,550 2,300,555
$ 35,004,913 121,476
$ 53,330,829 $ 58,501,284 35,004,913 38,059,588 2,381,496 3,791,438 (619,374) 121,476 401,855 28,026 1,152,860 1,879,123 1,765,599 1,152,860 5,212 1,707,254 2,478,760 4,154,802 (554,911) 132,482 443,591 13,655 788,767 1,540,455 1,603,398 10,008,462 2,553,129 130,135,683
$ 45,167,624 (52,065,081) 5,964,373 460,221 125,000 9,030,289 143,565,282
$ 2,513,105
$ 35,126,389
$ 45,167,624
$ 9,155,289 10,008,462 2,553,129 167,312 130,135,683 45,167,624 (52,065,081) 5,964,373 460,221 125,000 10,297,223 2,140,798 155,254 121,963,681 39,994,063 (48,735,241) 4,625,414 489,026 120,000 9,030,289 9,107,663
$250,785,253
$ 247,319,752 (Continued)
See accompanying notes.
29
CITY OF LEESBURG, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 (Concluded)
Governmental Fund Types Liabilities, Fund Equity and Other Credits General Special Debt Revenue Service Liabilities Accounts Payable Accrued Items Customer Advances for Construction Due to Other Governments Due to Other Funds Payable From Restricted Assets:
Customer Deposits Accrued Interest on Revenue Bonds Current Portion - Revenue Bonds Claims Payable Matured Interest Payable Revenue Bonds Payable - Net Compensated Absences Suit Settlement Payable Mortgage Payable Unearned Revenue Landfill Postclosure Costs Payable Decommissioning Costs Payable Total Liabilities Fund Equity and Other Credits Contributed Capital Investment in General Fixed Assets Retained Earnings:
Reserved Unreserved Fund Balances:
Reserved for Employee Benefits Other Reserves Unreserved Total Fund Equity and Other Credits 424,773 341,807 48,112 343,840 12,342 189,503 265,752 1,032,332 60,454 189,503 343,840 4,936,044 1,348,065 6,284,109 193,486 603,734 797,220 125,000 125,000 6,425,106 6,425,106 Total Liabilities, Fund Equity and Other Credits 7,316,441 857,674 $
314,503 6,768,946 See accompanying notes.
30 Capital Projects
(Page 2 of 2 Pages)
Proprietary Fund Types Enterprise Internal Service Fiduciary Fund Types Trust and Agency Account Groups General General Fixed Long-Term Assets Debt Totals (Memorandum Only) 2002 2001 3,283,536 1,098,887 29,890 1,010,516
$ 7,170,000 1,385,834 390,000 209,455 0
9,155,289 24,291,418 45,167,624 24,291,418 24,307,397 45,167,624 39,994,063 26,938,651 26,657,780 54,512,053 54,864,127 35,126,389 104,324,547 1,417,575 35,126,389 45,167,624 0
143,565,282
$ 2,513,105
$ 35,126,389
$ 45,167,624
$ 9,155,289
$250,785,253
$ 247,319,752 See accompanying notes.
31 85,014 1,152,860
$ 4,185,275 1,440,694 29,890 12,342 1,152,860 4,173,216 1,283,290 11,945 24,717 788,767 2,057,308 688,581 504,999 25,694,172 922,352 3,808,150 39,240,735 1,095,530 2,057,308 688,581 504,999 1,010,516 189,503 32,864,172 1,385,834 390,000 209,455 265,752 922,352 3,808,150 51,117,683 1,975,127 698,282 485,000 850,312 191,903 33,419,529 1,265,521 450,000 222,142 301,167 752,341 3,599,950 50,493,209 25,521,076 54,512,053 1,417,575 35,126,389 11,679,636 1,951,799 199,667,570 38,192,070 10,713,230 2,097,876 196,826,543
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V-
-- (--'
1
(- ---
f---
I V
1-r F-V r
CITY OF LEESBURG, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2002 Governmental Fund Types Revenues Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous:
Interest Other Total Revenues Expenditures Current:
General Government Public Safety Physical Environment Transportation Economic Enviromnent Human Services Culture and Recreation Capital Projects Debt Service:
Principal Interest (Total Expenditures)
Excess (Deficiency) of Revenues Over (Under) Expenditures Before Other Financing Sources (Uses)
Other Financing Sources (Uses)
Operating Transfers In Operating Transfers Out Proceeds From Issuance of Debt Total Other Financing Sources (Uses)
Excess (Deficiency) or Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balances, Beginning of Year Fund Balances, End of Year General
$6,345,324 432,905 1,295,581 207,956 260,586 212,148 5,125,688 13,880,188 5,300,534 7,793,941 806,922 1,329,190 161,011 46,551 3,243,260 Special Debt Revenue Service 1,267,017 604,025 22,469 6,799 1,900,310 1,185,354 796,388 120,000
____ ____98 742_
379,430 (18,681,409)
(1,981,742)
(499,430)
(4,801,221)
(81,432) 5,000 5,579,236 (86,413) 86,412 (78,080) 5,492,823 8,332 0
691,602 5,592,507
$ 6,284,109 See accompanying notes.
(73,100) 870,320 797,220 5,000 120,000 125,000 500,419 Totals (Memorandum Only)
Capital Projects 2002 1,266,879
$ 7,612,203 432,905 2,483,320 5,546,337 811,981 260,586 4,011 197,008 69,244 504,430 4,016,451 435,636 5,201,731 20,301,379 5,300,534 7,793,941 1,992,276 1,329,190 957,399 46,551 3,243,260 4,719,851 4,719,851 (4,719,851) 120,000 379,430 (25,882,432) 2001
$ 6,604,777 379,376 5,045,255 826,919 283,690 756,080 5,703,098 19,599,195 4,920,929 7,076,688 3,122,998 1,369,496 1,740,293 46,153 2,810,475 1,520,633 55,000 384,255 (23,046,920)
(703,400)
(5,581,053)
(3,447,725) 900,227 6,565,875 5,967,417 (164,493) 0 0
(479,528) 900,227 6,401,382 5,487,889 196,827 820,329 2,040,164 6,228,279 12,811,106 10,770,942
$ 6,425,106
$ 13,631,435
$ 12,811,106 32
CITY OF LEESBURG, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2002 General Budget Actual Revenues Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous:
Interest Other Total Revenues 6,402,122 377,000 1,058,735 258,000 286,000 244,262 5,262,999 13,889,118 S
6,345,324 432,905 1,295,581 207,956 260,586 212,148 5,125,688 13,880,188 Expenditures Current Operating:
General Government Public Safety Physical Envirorunent Transportation Economic Environment Human Services Culture/Recreation Capital Projects Debt Service:
Principal Interest (Total Expenditures) 6,015,499 7,855,059 844,075 1,107,989 42,610 47,830 3,353,830 5,300,534 7,793,941 806,922 1,329,190 161,011 46,551 3,243,260 714,965 61,118 37,153 (221,201)
(118,401) 1,279 110,570 (19,266,892)
(18,681,409) 585,483 Excess (Deficiency) of Revenues (Under) Over Expenditures Before Other Fnancing Sources (Uses)
Other Ftnancing Sources (Uses)
Operating Transfers In Operating Transfers Out Proceeds From Issuance of Debt Total Other Fiancing Sources (Uses)
(5,377,774)
(4,801,221) 576,553 5,800,946 (86,413)
(221,710) 5,579,236 (86,413) 5,114,33 5,492,823 (221,710)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Fmancing Uses Fund Balances, Beginning of Year Fund Balances, End of Year 5,592,507 5,592,507 5,929,266 6,284,109 $
354,843 See accompanying notes.
33 S
(32,114)
(137,311)
(8,930)
Variance Favorable (Unfavorable)
(56,798) 55,905 236,846 (50,044)
(25,414) 336,759 691,602 354,843
Special Revenue Debt Service Variance Variance Favorable Favorable Budget Actual (Jnfavorable)
Budget Actual (Unfavorable)
Budget
$ 1,096,686
$ 1,258,220 $ 1,267,017 8,797 $ 500,767 $ 500,419 (348) 3,164,397 606,000 604,025 29,341 I,893,561 Capital Projects Variance Favorable Actual (Unfavorable)
$ 1,266,879 170,193 2,483,320 (681,077)
(1,975) 22,469 (6,872) 3,238 4,011 773 283,485 6,799 6,799 50,000 1,900,310 6,749 504,005 -
504,430 425 4,594,568 197,008 (86,477) 69,244 19,244
,T6_,4 51 (578,117) 1,366,819 1,185,354 796,441 796,388 181,465 53 6,104,963 4,719,851 (2,163,260)
(1,981,742)
(269,699)
(81,432) 86,413 86,412 (246,709)
(78,080) 32,632 (i27,664) 8,332 (397,363)
(73,100) 397,363 870,320 0 $ 797,220 181,518 188,267 (1) 168,629 (32,632) 135,996 324,263 472,957 S
797,220 120,000 120,000 379,005 379,430 (425)
(499,005)
(499,430)
(425) (6,104,963) 5,000 5,000 0
(1,510,395) 926,594 554,700 o
0__
0 1,8 9
5,000 5,000 (29,101) 120,000 120,000 0
29,101 S
125,000 $ 125,000 0 $
0 (4,719,851) 1,385,112 (703,400) 806,995 900,227 (26,367)
(554,700) 900,27 (581,067) 196,827 225,928 6,228,279 6,199,178
$6,425,106 $
6,425,106 See accompanying notes.
34 1,385,112
CITY OF LEESBURG, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENSES AN]
CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2002 Proprietary Fund Types Operating Revenues Charges for Services Other Operating Total Operating Revenues Enterprise 52,443,922 791,125 53,235,047 Totals (Memorandum Only)
Internal Service 2002 3,823,740 56,267,662 791,125 3,823,740 57,058,787 2001 58,144,327 752,095 58,896,422 Operating Expenses Power Generation and Transmission Purchased Energy Operations and Maintenance General and Administrative Depreciation and Amortization Claims Expense Change in Postclosure Estimate (Total Operating Expenses)
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Investment Income Capital Contributions - Impact Fees Other Nonoperating Income Interest Expense Other Nonoperating Expenses Total Nonoperating Revenues (Expenses)
Income (Loss) Before Operating Transfers Other Financing Sources (Uses)
Operating Transfers In Operating Transfers (Out)
Total Other Financing Sources (Uses)
Net Income (Loss)
Retained Earnings, Beginning of Year Retained Earnings, End of Year (476,408) 80,509,537 80,033,129 405,205 1,012,370 1,417,575 (71,203) 81,521,907 81,450,704 3,284,823 78,237,084 81,521,907 See accompanying notes.
35 1,322,803 26,463,837 11,727,757 3,885,267 4,977,292 170,011 (48,546,967) 4,688,080 1,838,521 475,959 450,081 (1,425,922)
(107,447) 1,231,192 5,919,272 106,951 (6,502,631)
(6,395,680) 1,054,292 373,903 21,014 1,951,208 (3,400,417) 423,323 57,897 (70,313)
(12,416) 410,907 (5,702)
(5,702) 1,322,803 26,463,837 12,782,049 4,259,170 4,998,306 1,951,208 170,011 (51,947,384) 5,111,403 1,896,418 475,959 450,081 (1,425,922)
(177,760) 1,218,776 6,330,179 106,951 (6,508,333)
(6,401,382) 1,171,459 29,710,316 10,874,153 3,725,739 4,811,417 2,927,779 (49,787)
(53,171,076) 5,725,346 3,877,890 0
0 (1,516,818) 686,294 3,047,366 8,772,712 377,996 (5,865,885)
(5,487,889)
CITY OF LEESBURG, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2002 Proprietary Fund Types Net Cash Provided By (Used In) Operating Activities Cash Flows From Noncapital Financing Activities Operating Transfers (Out) Other Funds Operating Transfers In Net Cash Provided By (Used In) Noncapital Financing Activities Cash Flovs From Capital and Related Financing Activities Interest Paid on Revenue Bonds and Customer Deposits Acquisition and Construction of Capital Assets Proceeds From Sales of Fixed Assets Principal Paid on Bond Maturities Principal Paid on Note Payable Capital Contributed Net Cash Provided By (Used In) Capital and Related Financing Activities Cash Flows From Investing Activities Investnent Income Purchase of Crystal River Decommissioning Investnents Net Cash Provided By (Used In) Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year Enterprise Internal Service 10,359,885 392,017 (6,502,631) 106,951 Totals (Memorandum Only) 2002 2001
$ 10,751,902
$ 9,846,547 (5,702)
(6,508,333) 106,951 (6,395,680)
(5,702)
(1,425,922)
(11,323,550) 307,006 (485,001) 85,422 797,036 (12,130,431) 85,422 1,838,521 57,897 (427,588) 1,410,933 57,897 (5,865,885) 377,996 (6,401,382)
(5,487,889)
(1,425,922)
(11,323,550) 392,428 (485,001) 797,036 (1,486)
(1,523,791)
(5,675,121)
(4,019,912)
(410,000) 695,942 (12,045,009)
(10,934,368) 1,896,418 3,910,675 (427,588)
(226,535) 1,468,830 3,684,140 (6,755,293) 529,634 (6,225,659)
(2,891,570) 54,933,793 48,178,500 1,770,921
$ 2,300,555 56,704,714
$ 50,479,055 59,596,284
$ 56,704,714 Reconciliation of Cash and Cash Equivalents (Above) to Combined Balance Sheet Current Assets Equity in Pooled Cash and Cash Equivalents Restricted Assets Equity in Pooled Cash and Cash Equivalents Cash and Cash Equivalents, End of Y 38,170,038
$ 2,300,555 10,008,462 0
ear 48,178,500
$ 2,300,555 See accompanying notes.
$ 40,470,593
$46,407,491 10,008,462
$ 50,479,055 36 10,297,223
$56,704,714
CITY OF LEESBURG, FLORIDA COMBINED STATEIENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 2002 (Concluded)
Proprietary Fund Types Internal Enterprise Service Totals (Iemorandum Only) 2002 2001 Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Loss (Gain) on Sale of Fixed Assets Depreciation and Amortization Bad Debt Expense Nonoperating Income Nonoperating Expense Change in Postclosure Estimate Decrease (Increase) in Customer Accounts Decrease (Increase) in Due From Other Governments Decrease (Increase) in Due (to) From Other Funds Decrease (Increase) in Inventory Decrease (Increase) in Miscellaneous Receivables Increase (Decrease) in Accounts Payable Increase (Decrease) in Claims Payable Increase (Decrease) in Accrued Expenses Increase (Decrease) in Customer Advances for Construction Increase (Decrease) in Customer Deposits Net Cash Provided By (Used In) Operating Activities 4,688,080 $
57,621 4,977,292 63,656 129,004 (107,447) 170,011 454,404 3,145 (164,093)
(122,491) 110,577 17,945 82,181 423,323
$ 5,111,403
$ 5,725,346 57,621 21,014 4,998,306 63,656 129,004 (70,313)
(177,760) 170,011 0
4,811,417 144,273 803,542 (108,139)
(49,787) 454,404 (1,531,753) 3,145 (57,442) 57,507 (57,442) 200,658 (106,586) 217,887 69,106 69,106 (122,491) 160,204 160,204 (211,382)
(100,805) 17,945 82,181 10,359,885 $
392,017
$ 10,751,902 (132,762)
(130,859) 264,213 (385,935)
(19,349) 35,850
$ 9,846,547 See accompanying notes.
37 1,945
-J
CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF ADDITIONS, DELETIONS AND CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS FOR TlE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Pension Trust Funds Municipal Police Retirement Trust Additions Municipal Firemen's Retirement Trust General Employees' Retirement Totals 2002 2001 Contributions:
Employer Employee State of Florida Total Contributions 202,700 137,613 340,313 90,763 90,763 107,295 288,821 691,830 $
782,593 293,463 244,908 691,830 1,320,964 Investment Income (Loss):
Net Appreciation (Depreciation) in Fair Value of Investments Interest and Dividend Income Other Income (Loss)
Total Investment Income (Loss)
Total Additions (27,018)
(294,369)
(90,958)
(412,345)
(983,626)
Deductions Benefit Payments Administrative Expenses (Total Deductions)
Net Increase (Decrease) 88,116 67,472 198,014 353,602 1,520,040 371,901 884,520 1,043,313 2,299,734 345,417 (460,017)
(951,992)
(1,241,327)
(2,653,336)
(1,865,457)
(487,035)
(1,246,361)
(1,332,285)
(3,065,681)
(2,849,083)
Net Assets Held in Trust for Pension Benefits:
Beginning of Year End of Year 8,496,628 7,073,941 22,621,501 38,192,070 41,041,153 8,009,593 5,827,580 $
21,289,216 $ 35,126,389 $ 38,192,070 See accompanying notes.
38 718,391 250,517 214,617 1,183,525 (661,150) 293,794 25 (367,331)
(833,826) 250,422 214 (583,190)
(1,567,406) 776,834 7,784 (782,788)
(3,062,382) 1,321,050 8,023 (1,733,309)
(3,626,200) 1,454,356 4,693 (2,167,151)
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS Note 1 -
Summary of Significant Accounting Policies The City of Leesburg, Florida (the City) is a Florida municipality governed by an elected five-member City Commission. The City was established by the adoption of its Charter in the Laws of Florida, Chapter 9820, 1923. The City provides services to its citizens including fire and police protection, electric, gas, water, wastewater, solid waste, parks and recreation, streets, and other general governmental activities. The City Commission 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 Commission-appointed City Manager.
The accounting policies of the City conform to generally accepted accounting principles for governmental entities. The following is a summary of significant accounting policies.
Reporting Entity The accompanying general purpose financial statements present the financial position, results of operations and cash flows of the applicable fund types and account groups governed by the City Commission of the City in accordance with governmental accounting standards. The reporting entity for the City (the primary government) contains one separate legal entity (component unit) for which the City Commission has financial accountability.
Financial accountability is present if the City Commission appoints a voting majority of a component unit's governing body and has the ability to impose its will on that organization or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City.
The City established the Greater Leesburg Community Redevelopment Agency as a component unit of the City. The Greater Leesburg Community Redevelopment Agency's Governing Board is composed of the City Council plus two members appointed by the City Council, and is accounted for as a blended special revenue fund in the accompanying general purpose financial statements. Separate financial statements are not issued for the Greater Leesburg Community Redevelopment Agency.
Basis of Presentation The City and its component units maintain their accounting records in accordance with the principles and policies applicable to governmental units set forth by the Governmental Accounting Standards Board (GASB), as well as generally accepted accounting principles (GAAP) as promulgated by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board (FASB). The proprietary funds do not apply FASB statements and interpretations issued after November 30, 1989.
Fund Accounting The accounting system and financial reports of the City are organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts 39
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Fund Accounting (Concluded) recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
Fund and Account Group Categories The categories of funds and account groups of the City are summarized as follows:
Governmental fund types are those through which most government functions typically are financed. The acquisition, use, and balances of expendable financial resources and the related current liabilities (except those accounted for in the proprietary funds) are accounted for through governmental type funds. Governmental funds used by the City are as follows:
- General Fund - The general fund is used to account for all revenues and expenses of the City which are not properly accounted for in other funds.
- Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
- Debt Service Fund - The debt service fund accounts for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
- Capital Projects Funds - The capital projects funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).
Proprietary fund types are used to account for the City's ongoing activities which are similar to those found in the private sector.
- Enterprise Funds - Enterprise funds are used to account for operations that are similar to private business enterprises with the intent to recover costs to provide goods through user charges.
- Internal Service Funds - Internal service funds are used to account for the financing of goods and services provided by one department to other departments of the governmental unit on a cost-reimbursement basis.
Fiduciary fund types are used to account for assets held in a trustee capacity for others.
- Pension Trust Funds - Pension trust funds are used to account for assets held by the City in a trustee capacity for public employee retirement systems.
40
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Fund and Account Group Categories (Concluded)
Account groups record and control the City's general fixed assets and general long-term debt.
The account groups are not funds and do not reflect available financial resources and related liabilities. The following account groups are maintained by the City:
d General Fixed Assets - The general fixed assets account group is used to maintain control and cost information on City-owned property, plant and equipment, including construction in progress.
- General Long-Term Debt - The general long-term debt account group is used to account for all long-term debt (principal balances of debt, capital lease obligations, and obligations for compensated absences), which is backed by the full faith and credit of the City and other long-term debt for which special revenues are pledged.
Measurement Focus Governmental fund types (general, special revenue, debt service and capital projects funds) are accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets.
Reported fund balance (net current assets) is considered a measure of "available, spendable, or appropriable resources." Governmental fund type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Proprietary and pension trust fund types are accounted for on a "cost of services" or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with its activity are included on its balance sheet to provide an indication of the economic net worth of the funds. The reported fund equity (net total assets) is segregated into contributed capital and retained earnings components.
The proprietary fund types operating statement presents increases (revenues) and decreases (expenses) in net total assets.
Basis of Accounting Governmental fund type revenues and expenditures are recognized on the modified accrual basis. This method recognizes revenues in the accounting period in which they become available and measurable.
Expenditures are recognized in the period in which the fund liability is incurred (except unmatured interest on general long-term debt, which is recognized when due).
Governmental fund type revenues that are susceptible to accrual include property taxes, franchise fees, federal and state revenue sharing revenues, and reimbursements from grants for authorized expenditures through September 30.
41
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Basis of Accounting (Concluded)
Proprietary fund revenues and expenses are recognized on the accrual basis. Revenues are recorded when earned, and expenses are recorded when incurred.
Fiduciary funds of the City consist of pension trust funds which are accounted for on the accrual basis.
Transfers Transfers are recognized in the accounting period in which the interfund receivable and payable arise. Transfers are made from the utility funds to finance operations of the general fund, and the general fund makes transfers to the special revenue, debt service and capital projects funds.
Grants-Proprietary Funds Unrestricted grants, entitlements or shared revenues received are reported as nonoperating revenues.
Such resources externally restricted for capital acquisitions or construction are reported as contributed capital.
Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments held outside of the City's pooled cash system (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. All cash and investments held by the pooled cash system are considered cash equivalents for the cash flow statement.
Investments In all funds, investments are stated at fair value. During 1998, the City implemented GASB Statement No. 31, via a prior period adjustment to adjust the carrying value of all investments from amortized cost to fair value.
Receivables Utility operating revenues are generally recognized on the basis of cycle billings rendered monthly. The amount of services delivered after the last billing date and up to September 30 is estimated and accrued at year end.
Inventories Inventories held by the utility, solid waste and fleet maintenance funds are priced by the weighted average cost method at the lower of cost or market. Inventory shown in the fleet maintenance fund consists of fuel held for consumption, which are valued at cost as determined on the first-in, first-out (FIFO) method. Inventory is accounted for by use of the consumption method.
42
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Amortization Bond issue costs and discounts are amortized over the life of the bonds using the effective interest method.
Cost Reimbursements Certain personal services and operating expenses recorded in various funds and departments are a result of services performed and expenses/expenditures incurred for the benefit of other funds and departments.
Cost reimbursements are recorded as nonrevenue receipts in the receiving fund.
The funds and departments that benefit from the services and expenses/expenditures record a cost reimbursement as an increase in expenditures or expenses.
Proprietary Fund Fixed Assets Proprietary fund fixed assets are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date received.
Depreciation is computed by the straight-line method over the estimated useful lives of the assets as follows:
Description Useful Lives Buildings 10 to 50 Years Improvements Other Than Buildings 20 to 50 Years Vehicles and Equipment 5 to 10 Years General Fixed Assets General fixed assets purchased are recorded as expenditures in the governmental fund types at the time of purchase. Such assets are capitalized at cost in the general fixed assets account group. The City's policy is not to capitalize public domain fixed assets such as streets, right-of-ways, sidewalks, drainage systems and similar assets. Donated fixed assets are valued at their estimated fair market value at the time of acquisition. Depreciation is not provided on general fixed assets.
Compensated Absences The City accrues accumulated compensated absences for governmental and proprietary funds.
Compensated absences are recorded in the governmental fund types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the general long-term debt account group. The proprietary funds accrue compensated absences in the period they are earned. Personnel policies allow employees to accumulate a maximum of 90 days vacation leave and unlimited sick leave.
Upon termination, employees are paid for their accrued vacation leave and 25% of their accrued sick leave balance up to 200 hours0.00231 days <br />0.0556 hours <br />3.306878e-4 weeks <br />7.61e-5 months <br />. Upon retirement, employees are paid for their accrued vacation and 50% of their accrued sick leave balance up to 400 hours0.00463 days <br />0.111 hours <br />6.613757e-4 weeks <br />1.522e-4 months <br />.
43
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Encumbrances Encumbrances represent contractual commitments in the form of purchase orders and contracts.
Such encumbrances are not recorded as current year expenditures. They will become expenditures upon vendor performance and will be charged against the ensuing year's budget. Encumbrances outstanding at year end are deemed canceled and amounts sufficient to re-establish the commitment are included in the appropriations for the subsequent year.
Reserves Fund balances and retained earnings are reserved as follows:
General Fund Reserved for Notes Receivable - Employees Reserved for Police Education and Other Expenditures Computer Maintenance Reserved for Prepaid Expenses Reserved for Fire Expenditures Reserved for Operating Reserve Total General Fund Special Revenue Funds Reserved for Capital Improvements Reserved for Community Redevelopment Total Special Revenue Funds Debt Service Reserved for Debt Service Capital Projects Funds Reserved for Construction 167,312 184,566 53,781 28,026 2,797 4,499,562
$ 4,936,044 25,325 168,161 193,486 125,000
$ 6,425,106 Enterprise Funds Retained earnings are reserved as follows:
Current Year Contributed Capital - Impact Fees Operating Reserve Renewal and Replacement Total Enterprise Funds 475,959 19,904,642 5,140,475
$ 25,521,076 Internal Service Funds Retained earnings are reserved as follows:
Reserved for Self-Insured Employee Health Insurance Reserved for Self-Insured Workers' Compensation Insurance Total Internal Service Funds 313,745 1,103,830 1,417,575 44
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Continued)
Budgeting The City's procedures in preparing and adopting the annual budget are as follows:
- The City Manager is responsible for preparing a proposed operating budget for all governmental funds for the upcoming year prior to September 30, that includes estimated revenues, proposed expenditures, and other financing sources and uses.
- Public hearings are held to obtain taxpayer comments and suggestions.
The budget is enacted through passage of an ordinance.
- The City Manager is authorized to transfer budgeted amounts within any fund, but may not revise total fund expenditures without the approval of the City Commission. The budgetary data presented is in agreement with the originally adopted budget as amended by the City Commission.
- Formal budgetary integration is employed as a management control device during the year for substantially all funds.
Budgets are adopted on a basis consistent with generally accepted accounting principles. Total budgeted appropriations within a governmental fund type may not be exceeded legally. Appropriations lapse at the end of the year. Budget data, when presented in the general purpose financial statements, is prepared on the same basis of accounting as that prescribed for the fund.
During the year, the City made supplemental budget appropriations which increased or decreased the budgets as indicated below:
Original Final Increase Adopted Amended (Decrease)
General Fund
$ 19,780,064
$ 19,180,479 (599,585)
Special Revenue Funds 3,072,687 2,409,969 (662,718)
Debt Service Fund 624,005 499,005 (125,000)
Capital Projects Funds 15,628,047 6,104,963 (9,523,084)
Total Governmental Funds
$ 39,104,803
$ 28,194,416
$ (10,910,387)
Total Columns on Combined Statements Total columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. The data in these columns does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
45
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 1 -
Summary of Significant Accounting Policies (Concluded)
Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessment are also designed to assure a consistent property valuation method statewide. Florida Statutes permit municipalities to levy property taxes at a rate of up to 10 mills.
The tax levy of the City is established by the City Commission prior to October 1 of each year and the Lake County Property Appraiser incorporates the City millages into the total tax levy, which includes the County and the County School Board tax requirements.
Chapter 193, Florida Statutes, requires that all property shall be assessed at just or fair value as of January 1 of each year. Each assessment roll is submitted to the Executive Director of the Florida Department of Revenue for review to determine if it meets all of the appropriate requirements of the Florida Statutes.
All taxes are assessed, due and payable on November of each year or as soon thereafter as the assessment roll is certified and delivered to the County Tax Collector. Unpaid taxes become delinquent on April 1 of the subsequent year. Discounts are allowed at the rate of 4% in November, 3% in December, 2% in January, and 1 % in February. The taxes paid in March are without discount.
On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County.
Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of property or by the five-year statute of limitations.
The City does not accrue its portion of the County held tax sales certificates or personal property tax warrants because such amounts are not measurable and available as of the balance sheet date.
Note 2 -
Deposits and Investments Pooled Cash and Investments The City maintains a cash and investment pool which -carries substantially all cash and investments of the City, and is used by all funds except the pension trust funds. Each fund's portion of the pool is displayed in the accompanying general purpose financial statements as "Cash and Investments."
The cash and investments of the pension trust funds are held separately from those other funds of the City.
46
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2 -
Deposits and Investments (Continued)
Deposits All of the City's deposits are maintained in banks and financial institutions which are covered by the Florida Security for Public Deposits Act (the Act); Chapter 280 of the Florida Statutes.
The Act established a multiple financial institution collateral pool with the ability to assess member institutions to satisfy the claims of governmental entities if any member financial institution fails. This ability to assess provides protection which is similar to depository insurance.
At September 30, 2002, the carrying amount of the City's deposits was
$1,964,539 and the bank balance was $1,872,119.
Investments Florida Statutes, the City Charter and investment policies authorize the investment of funds in time deposits or savings accounts of financial institutions approved by the State Treasurer, and obligations of the U.S. Government and its agencies and mutual funds. Investments may also include repurchase agreements and deposits with the State Board of Administration pool.
Revenue bond covenants also restrict the type and maturities of investments in bond-related funds.
Investments of the municipal police officers' retirement trust fund may be held in bonds, stocks, or other evidence of indebtedness issued or guaranteed by a corporation under the laws of the United States provided the corporation meets certain rating and profitability criteria.
Investments of the municipal firemen's retirement trust fund and the general employees' pension fund may be invested in accordance with Florida Statutes as previously described.
A summary of the carrying amount and market value of all City investments classified by category of credit risk follows:
Category of Risk Fair 1
2 3
Value Pooled Investments SunTrust Repurchase Agreement 0 $
0
$ 16,035,000 $ 16,035,000 U.S. Treasury Bills, Notes and Bonds 0
0 25,450,944 25,450,944 Pension Trust and Agency Fund Investments Corporate Stocks 0
0 14,092,745 14,092,745 Corporate Bonds 0
0 11,774,018 11,774,018 U.S. Treasury Notes and Municipal Bonds 7,893,035 7,893,035 Subtotal 0 $
0
$ 75,245,742 75,245,742 47 I
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2 -
Deposits and Investments (Continued)
Investments (Continued)
Fair Value 2,553,129 FMPA Crystal River Decommissioning Trust State Board of Administration of Florida, Local Goverrunent Pooled Investment Account Mutual Fund Investments - Pension Investment Total Investments Carrying Amount of Deposits Carrying Amount of Investments (Above)
Total Carrying Amount 1,964,539 98,932,794
$ 100,897,333 Shown in the Accompanying Combined Balance Sheets as:
Equity in Pooled Cash and Investments Cash and Investinents at Market Value Restricted Assets:
Equity in Pooled Cash, Cash Equivalents and Investments Total
$ 53,330,829 35,004,913 12,561,591
$ 100,897,333 Levels of credit risk assigned to the above investments are based on an evaluation in accordance with GASB Statement No. 3 to give an indication of the level of risk assumed at year end. Category I includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments with securities held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent, but not in the City's name.
The State Board of Administration deposits in Tallahassee, Florida are maintained in an investment pool which invests primarily in commercial paper, repurchase agreements, bankers' acceptance notes and U.S. Government obligations. The carrying value of the investment pool approximates market value due to the short-term nature of the underlying investments of the pool. The pool receives regulatory oversight from the State of Florida.
The following pension investments, including U.S. Government and U.S. Government guaranteed obligations, exceed 5% of the net assets available for pension benefits:
48 19,594,608 1,539,315
$ 98,932,794
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 2 -
Deposits and Investments (Concluded)
Investments (Concluded)
Fair Value Municipal Police SEI Foreign Investments Fiduciary Government Securities Fiduciary Mortgages Fiduciary Corporate Fixed Income Fiduciary Corporate Stocks Total Municipal Police 418,082 1,608,963 978,392 714,496 3,501,004 7,220,937 Municipal Firemen Salem Trust Money Market Salem Trust Government Securities Salem Trust Corporate Fixed Income Salem Trust Mortgages Salem Trust Corporate Stocks Total Municipal Firemen 321,313 1,105,131 1,586,149 744,474 2,025,640 5,782,707 General Employees SunTrust Corporate Fixed Income SunTrust Corporate Stocks SunTrust Government Securities - Loomis SunTrust Corporate Fixed Income - Loomis SunTrust Corporate Stocks - Loomis Total General Employees 2,806,521 3,369,550 2,941,443 6,666,852 4,778,469
$ 20,562,835 Percentage of Plan Net Assets 5.24%
20.18%
12.27%
8.96%
43.92%
5.56%
19.11%
27.43%
12.87%
35.03%
13.21%
15.86%
13.85%
31.38%
22.49%
Note 3 -
Fixed Assets A summary of changes in general fixed assets follows:
Land Buildings Improvements Other Than Building Equipment and Vehicles Construction in Progress Total Balance October 1, 2001
$ 4,832,093 13,452,282 8,891,773 9,331,749 3,486,166
$ 39,994,063 Additions 1,523,964 2,055,148 157,175 1,475,960 1,851,496 7,063,743 Balance September 30, (Deletions) 2002 6,356,057 (2,554) 15,504,876 (1,452,937)
(434,691)
$ (1,890,182) 9,048,948 9,354,772 4,902,971 45,167,624
-J 49
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 3 -
Fixed Assets (Concluded)
A summary of proprietary fund type property, plant and equipment at September 30, 2002, follows:
Land Buildings Improvements Other Than Buildings Equipment Total Enterprise Funds 6,929,051 10,554,730 82,302,503 30,349,399 130,135,683 Note 4 -
Interfund Account Individual fund interfund receivable and payable balances at year end are as follows:
Enterprise Funds Electric Utility Communication Services Total Interfund Interfund Receivable Payable 1,152,860
$ 1,152,860 1,152,860 $ 1,152,860 Note 5 -
Long-Term Liabilities The following is a summary of all long-term liabilities of the proprietary funds at September 30, 2002:
Bonds Payable Utilities System Refunding Revenue Bonds, Series 1999A and 1999B; Dated June 15, 1999; Issued July 16, 1999; Final Maturity October 1, 2028; Interest Rates From 3.60% to 5.375%
(Unamortized Discount and Refunding Loss)
(Current Maturities)
Long-Term Portion
$26,895,000 (695,829)
(505,000)
$25,694,171 The 1999 bonds are fully registered bonds and are collateralized by a pledge of the net revenues of the utilities system. The bond ordinances provide for a current sinking fund, debt service reserve, term bond security purchase agreement, and a renewal and replacement account. The bonds are callable at various dates from 100% to 105% of face value. Bond maturity dates and debt service requirements for the combined 1999 issues are as follows:
50
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 5 -
Long-Term Liabilities (Continued)
Principal 505,000 525,000 550,000 570,000 595,000 24,150,000
$ 26,895,000 Interest 1,356,456 1,334,931 1,311,831 1,286,894 1,260,119 15,999,341
$ 22,549,572 Total Debt Service 1,861,456 1,859,931 1,861,831 1,856,894 1,855,119 40,149,341 49,444,572 Estimated Landfill Closure and Postclosure Care Costs The City closed its present landfill site on September 1, 1995, at a total cost of $3,326,000. The cost of the closure was financed by user fees over the useful life of the landfill. As required by state law, the City is now performing postclosure monitoring activities.
A summary of the activity in the postclosure cost liability account is as follows:
Balance, September 30, 2001 Adjustment of Estimate Total Annual Costs Paid Balance, September 30, 2002 (Current Maturities)
Total Long-Term Portion 752,341 228,675 (58,664) 922,352 (57,647) 864,705 In 1994, the City implemented GASB Statement No. 18 entitled Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs.
This statement requires accounting recognition be given to all estimated closure and postclosure care costs during the operating life of the landfill.
The $922,352 liability recorded represents the estimated costs of postclosure care for fourteen years after closure as required by state and federal laws and regulations.
This amount was calculated by the City's consulting engineer. The actual costs may be higher due to inflation, changes in technology, or changes in regulations.
The City is required to deposit adequate funds into an escrow account before year end to meet postclosure care costs for the following year. During the year ended September 30, 1992, the City established an escrow subaccount within the City's pooled cash system for this purpose. The following is a schedule of the transactions in this account during fiscal year 2002:
51 Fiscal Year 2002 2003 2004 2005 2006 Thereafter Total
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 5 -
Long-Term Liabilities (Continued)
Estimated Landfill Closure and Postclosure Care Costs (Concluded)
Transaction Date Balance, September 30, 2001 Investment Income Balance, September 30, 2002 Amount 73,048 2,410 75,458 The above schedule was prepared in accordance with the requirements of Rule 62-701.630 of the Florida Administrative Code.
General Long-Term Debt A summary of all general long-term debt of the City as of September 30, Refunding and Capital Improvement Revenue Bond Payable - Series 1999; Dated August 1, 1999; Issued September 16, 1999; Final Maturity October 1, 2029; Interest From 3.65% to 5.50%
Employee Compensated Absences Payable Suit Settlement Payable Note Payable; Dated June 3, 1999; Payable in Monthly Installments of $2,004 Through May 2014, Including Interest at 5.25%; Uncollateralized Total 2002, follows:
$ 7,170,000 1,385,834 390,000 209,455 9,155,289 The 1999 bonds are fully registered bonds and are collateralized by a pledge of the proceeds of the local government half-cent sales tax and the proceeds of the guaranteed entitlement portion of state revenue sharing funds.
The 1999 bonds are not general obligations or indebtedness of the City within the meaning of the Constitution of the State of Florida. The bond ordinances provide for a current sinking fund and debt service reserve. The bonds are callable at various dates from 100% to 101 % of face value.
The following is a summary of changes in general long-term debt for the year ended September 30, 2002:
52
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 5 -
Long-Term Liabilities (Continued)
General Long-Term Debt (Concluded)
Refunding and Capital Improvement Revenue Bonds - Series 1999 Employee Compensated Absences Payable Suit Settlement Payable Note Payable Totals Balance October 1, 2001
$ 7,290,000 1,265,521 450,000 222,142
$ 9,227,663 Additions (Deductions)
(120,000) 120,313 120,313 (60,000)
(12,687)
(192,687)
Balance September 30, 2002 7,170,000 1,385,834 390,000 209,455 9,155,289 Debt service requirements for general long-term debt bonds and note payable are as follows:
Bonds Payable Series 1999 Total Debt Principal Interest Service 125,000 373,880 498,880 130,000 368,420 498,420 135,000 362,615 497,615 140,000 356,315 496,315 145,000 349,645 494,645 6,495,000 4,709,301 11,204,301 7,170,000 6,520,176 13,690,176 Note Payable Principal 13,370 14,089 14,846 15,645 16,486 135,019 209,455 Interest 10,677 9,958 9,201 8,402 7,561 25,296 71,095 Total Debt Service 24,047 24,047 24,047 24,047 24,047 160,315 280,550 Suit Settlement Payable During 1998, the City settled a civil rights lawsuit in which it was a codefendant.
The settlement called for the City to pay the plaintiff $634,000, of which $100,000 was covered by insurance. Additional terms of the settlement call for the City to fund the budget of a local 53 Fiscal Year 2003 2004 2005 2006 2007 Thereafter Total Fiscal Year 2003 2004 2005 2006 2007 Thereafter Total
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 5 -
Long-Term Liabilities (Continued)
Suit Settlement Payable (Concluded) agency $30,000 per year for ten years until September 30, 2007. During fiscal year ended 2001, the settlement was amended to require the City to pay an additional $30,000 for ten years to the local agency until September 30, 2010. The remaining $390,000 obligation of the City is recorded in the general long-term debt account group.
Crystal River III Nuclear Decommission Costs Payable The City is responsible for its share of the future costs to decommission the Crystal River III Nuclear Generating Unit. The City is accruing this cost over the expected useful life of the plant. A summary of the activity in the liability account is as follows:
Balance, September 30, 2001 3,599,950 2001 Accrual 208,200 Balance, September 30, 2002 3,808,150 Crystal River III Decommissioning Trust Fund Federal law requires that an external trust fund be created to accumulate amounts to pay for the future plant decommissioning. The City contributes to a common trust fund, maintained by FMPA, for all its members that own a portion of the Crystal River III Nuclear Generating Unit. As of September 30, 2002, the City has a balance in the trust fund of $2,553,129.
Defeased Debt Defeased debt of the City that remains publicly traded is as follows:
Utilities Revenue Certificates, Series 1977 5,790,000 Note 6 -
Operating Leases The City is lessor on various leases of facilities located at the airport. The leased facilities are included in the $9,481,132 of airport assets recorded in the City's general fixed assets account group. The following is a schedule of minimum future lease income on noncancelable operating leases:
September 30, Amount 2003 196,845 2004 178,391 2005 169,682 2006 150,085 2007 133,471 Thereafter 932,194 Total Minimum Lease Payments
$ 1,760,668 54
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Conttinued)
Note 7 -
Electric Power Agreements Crystal River Unit No. 3 Participation Agreement The City is a participant in an agreement with Florida Power Corporation. Under terms of the agreement, the City acquired a 0.8244% ownership interest and generation entitlement share in the nuclear steam electric generating unit. Participants are entitled to energy output of the unit based upon their respective generation entitlement share.
Florida Power Corporation has been appointed by the participants to act as their agent and has sole authority to manage, control, maintain and operate the unit. Operating costs of the unit, in general, are shared in proportion to each generation entitlement share on a monthly basis.
Common and external facilities of the generating unit are solely owned by Florida Power Corporation, and participants share in the operating and maintenance expenses of such facilities.
The participation agreement provides for reversion of the ownership interest of the unit to Florida Power Corporation upon retirement from service. The book value of the investment included in utility plant in service on September 30, 2002, was $1,327,536.
Florida Municipal Power Agency The City is a member of FMPA. FMPA was created pursuant to Chapter 163, Parts I and II ("The Interlocal Act" and "The Joint Power Act") to, among other things, provide a means for the Florida municipal corporations to cooperate with each other to provide for their present and projected energy needs. The City has limited oversight authority over the operation of FMPA. This oversight is manifested in the appointment of one member to the 28-member Board of Directors of FMPA. Furthermore, the City, by agreement, has no equity interest in any of the assets owned by FMPA. The City participates in the following FMPA projects:
- St. Lucie No. 2 Power Purchase Agreement The City, through FMPA, has negotiated an agreement with Florida Power and Light Corporation guaranteeing the City the right to purchase up to 2.326 megawatts of generating capacity from the St. Lucie No. 2 nuclear generating plant. This plant became operational in 1984.
The cost of this agreement has been capitalized and is being amortized over the plant's expected useful life.
- All-Requirement Power Supply Agreement The City has an agreement with FMPA whereby the City is purchasing its electric power from FMPA on an all-requirement basis. The agreement will remain in effect until October 1, 2020, with two optional successive ten-year renewal periods. Power rates charged to the City by FMPA are subject to a majority vote of the Board of Directors of FMPA.
55
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 8 -
Segment Information for Enterprise Funds The City operates six enterprise funds. Segment information as of September 30, 2002, is as follows:
Electric Gas Water Utility Utility Utility Sanitation Sewer Wastewater Treatment Communi-Sanitation cation Services Services Operating Revenues $36,997,082 Depreciation and Amortization 2,438,825 Operating Income (Loss) 4,072,766 Operating Transfers (Out)
(4,446,783)
Operating Transfers In Net Income (Loss) 316,529 Capital Contributions:
Impact Fees Contribution in Aid of Construction 213,086 Cash and Cash Equivalents 19,372,136 Net Working Capital 21,903,653 Long-Term Liabili-ties Payable 12,449,664 Total Fund Equity 52,240,348 Total Assets 70,198,540 Fixed Asset Additions 3,519,191
$ 5,575,909 $ 3,804,857 3,815,141
$ 2,725,740 316,318 $ 53,235,047 294,816 567,662 1,346,504 140,326 189,159 777,497 933,136 (938,662)
(111,638)
(45,019)
(591,470)
(1,007,067)
(256,846)
(183,275)
(17,190) 106,951 282,352 448,678 (1,375,567)
(231,603) 83,203 110,141 365,818 2,000 96,869 4,897,724 4,928,097 1,057,930 11,188,379 12,649,690 10,091,039 10,127,454 2,528,175 18,322,265 21,453,675 9,122 2,996,397 3,211,545 13,466,552 20,616,664 34,975,615 4,977,292 4,688,080 (6,502,631) 106,951 (476,408) 475,959 321,077 806,546 6,196 38,170,038 828,010 (113,084) 864,705 1,065,718 2,230,619 1,016,564 891,173 2,057,143 869,331 1,550,925 4,007,870 500,390 875,843 40,885,675 31,383,590 104,324,547 143,565,282 11,323,550 Note 9 -
Derined Benefit Pension Plan Plan Descriptions and Contribution Information The City maintains three separate single-employer pension plans, one for police officers, one for firemen, and a general employees' retirement plan that covers substantially all other full-time City employees. These plans are maintained as pension trust funds and included as part of the City's reporting entity. City ordinance and state law requires contributions to be determined by actuarial studies. Stand-alone financial reports are not issued.
Membership of each plan consisted of the following:
56 Totals
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 9 -
Defined Benefit Pension Plan (Continued)
Plan Descriptions and Contribution Information(Concluded)
Date of Actuarial Valuation:
10/01/01 10/01/01 10/01/01 GERP MPRP IFRP Retirees and Beneficiaries Receiving Benefits 115 15 12 Terminated Plan Members Entitled to But Not Yet Receiving Benefits 103 1
1 Active Plan Members 296 57 33 Total 514 73 46
- Plan Description - The GERP provides retirement, disability and death benefits to plan members and their beneficiaries. Cost-of-living adjustments (COLA) are provided at the discretion of the City Commission. The City Commission has the authority to establish and amend the benefit provisions of the plan.
- Contributions - The City is required to contribute at an actuarially determined rate. Plan members are not allowed to contribute. Contribution requirements are established by City Code Section 17.121.
City Code Section 17.121 may be amended by the City Commission. Administrative costs of the GERP are financed through plan contributions and investment earnings.
Municipal Police Retirement Plan (MPRP)
- Plan Description - The MPRP provides retirement, disability and death benefits to plan members and their beneficiaries.
COLA's are provided at the discretion of the City Commission. The City Commission has the authority to establish and amend the benefit provisions of the plan.
- Contributions - Plan members are required to contribute 7.65% of their annual covered salary. The City is required to contribute at actuarially determined rates. Per City Code Section 17.91, the City Commission may amend established contribution requirements.
Administrative costs are financed through investment earnings, and city and state contributions.
Municipal Firemen's Retirement Plan (MFRP)
- Plan Description - The MFRP provides retirement, disability, and death benefits to plan members and their beneficiaries. Cost-of-living adjustments are provided at the discretion of the City Commission. The City Commission has the authority to establish and amend the benefit provisions of the plan.
57
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 9 -
Dermed Benefit Pension Plan (Continued)
Municipal Firemen's Retirement Plan (MFRP) (Concluded)
- Contributions - Plan members are required to contribute 6.5% of their annual covered salary. The City is required to contribute at actuarially determined rates. Per City Code Section 17.71, the City Commission may amend established contribution requirements.
Administrative costs are financed through investment earnings, and city and state contributions.
Annual Pension Costs and Net Pension Obligation The City's annual pension cost and net pension obligation to GERP, MPRP and MFRP for the current year were as follows:
GERP MIPRP MFRP Annual Required Contribution (ARC) 717,664 286,192 342,711 Interest on Net Pension Obligation (67,031)
(2,507)
(32,890)
Annual Pension Cost 650,633 283,685 309,821 Contributions Made (691,830)
(340,313)
(359,397)
Net Pension Obligation, Beginning of Year (837,885)
(31,338)
(411,128)
Net Pension Obligation, End of Year
$ (879,082)
(87,966)
$ (460,704)
Other Pension Plan Information The annual required contribution for the current year was determined as part of the October 1, 2001, actuarial valuation for the GERP and MPRP using the entry age actuarial cost method.
The MFRP annual required contributions were determined using the aggregate actuarial cost method. The actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. The actuarial assumptions include an 8.0% rate of return on investments for all plans. Projected salary increase for the GERP, MPRP and MFRP was 5.50%, 6.50% and 6.00%, respectively. The assumptions did not include postretirement benefit increases.
The actuarial value of assets was determined using market value for all plans. The excess of the actuarial value of assets over the actuarial accrued liabilities is being amortized using the level dollar, closed method for the GERP and MPRP. The remaining amortization period at October 1, 2001, was between 17 and 30 years for both plans. Because the NPO is negative, it has not been recorded in the accompanying financial statements.
Three-Year Trend Information Fiscal Annual Percentage Net Year Pension of APC Pension Ended Cost (APC)
Contributed Obligation GERP 09/30/00 439,347 104%
(734,760) 09/30/01 533,119 107%
(837,885) 09/30/02 650,633 106%
(879,082) 58
J CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 9 -
Defined Benefit Pension Plan (Concluded)
Three-Year Trend Information (Concluded)
Fiscal Year Ended 0PRP 09/30/00 09/30/01 09/30/02 MTFRP 09/30/00 09/30/01 09/30/02 Annual Pension Cost (APC) 270,464 278,380 286,192 185,886 181,730 342,711 Percentage of APC Contributed 106%
105%
119%
128%
140%
105%
Net Pension Obligation
$ (15,686)
(31,338)
(87,966)
$ (338,355)
(411,128)
(460,704)
Note 10 - Self-Insurance Fund Employee Health Insurance Fund The City maintains a self-insurance program for the payment of employee health and medical claims. The program provides for the payment of City and employee contributions into a self-insurance fund, which is managed by the City and its administrative agent. Employee claims up to $75,000 per person are paid from the assets of the self-insurance fund; claims in excess of $75,000, up to a maximum of $1,925,000 per employee per year, are paid from a reinsurance policy purchased by the City.
Workers' Compensation Insurance Fund The City maintains a self-insurance program for the payment of employee workers' compensation claims. The program provides for City contributions into a self-insurance fund which is managed by the City and its administrative agent. Employee claims up to $400,000 per occurrence are paid from the assets of the self-insurance fund with amounts in excess of
$400,000 per occurrence being paid from a reinsurance policy purchased by the City.
Liabilities for known claims incurred but not reported are listed below:
Employee Health Insurance Fund Workers' Compensation Insurance Fund Total Balance October 1, 2001 Current Year Claims and Changes in Estimates (Claims Paid) 348,733 $
1,530,168 $ (1,511,485)
Balance September 30, 2002 367,416 501,579 421,040 (279,519) 643,100 850,312 $
1,951,208 $ (1,791,004) $
.1,010,516 59
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 10 - Self-Insurance Fund (Concluded)
Employee Health Insurance Fund Workers' Compensation Insurance Fund Total Balance October 1, 2000 Current Year Claims and Changes in Estimates Balance (Claims September 30, Paid) 2001 299,915 $
2,437,752 $ (2,388,934) $
286,184 586,099 490,027 2,927,779 348,733 (274,632) 501,579
$ (2,663,566) $
850,312 The liability for the health insurance and workers' compensation claims incurred, but not reported, was calculated based on an actuarial valuation using actual claims history data by month and weighted lives to estimate future projected claims.
Note 11 - Contributed Capital Contributed capital consists of the following amounts as of September 30, 2002:
Other Governmental Units Private Sources Other Funds Total Waste-Conunuri-Electric Gas Water water Solid cation Utility Utility Utility Utility Waste Services Total 17,987 $
6,512 $
77,284 $ 8,011,471
$ 8,113,254 3,783,346 524,560 4,488,991 6,718,760 15,515,657 14,450 $ 440,967 $
207,090 662,507
$3,801,333 $ 531,072 $4,566,275 $14,744,681 $ 440,967 $
207,090 $ 24,291,418 During the year, the City implemented GASB Statement No. 33, Accounting and Financial Reporting for Non-Exchange Transactions, requiring external capital contributions to be reported as revenues and closed to retained earnings.
Impact fees and capital in aid of construction amounts are reported as nonoperating revenues in the City's statement of revenues, expenses, and changes in retained earnings. During the year, contributed amounts were as follows:
Impact Fees Contribution in Aid
- of Construction -
Private Sources Total Vaste-Electric Gas Water water Utility Utility Utility Utility Total
$ 110,141 $
365,818 $
475,959
$ 213,086 $
2,000 96,869 9,122 321,077
$ 213,086 $
2,000 $ 207,010 $
374,940 $
797,036 60
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 12 - Deferred Compensation Fund The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation plan is not available to employees until termination, retirement, death, or unforeseeable emergency.
In October 1997, the GASB issued Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457Deferred Compensation Plans. This statement allows the employer to not report the assets and liabilities in their financial statements if the employer has met the new criteria of the Internal Revenue Code Section 457 and does not retain fiduciary accountability for the plan assets. During 1997, the City amended its deferred compensation plan to reflect the changes in the Internal Revenue Code and, in the opinion of management, does not retain fiduciary accountability for plan assets.
Accordingly, the City has implemented GASB Statement No. 32, and no longer includes the assets and liabilities of the deferred compensation fund in its financial statements. There is no effect on the City's overall fund balance or retained earnings, as the plan was an agency fund in which plan assets equals liabilities.
It is the opinion of the City that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
Note 13 - Contingencies and Commitments The City participates in a number of state and federal grant programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs as of and including the year ended September 30, 2002, have not yet been accepted/approved by the grantors.
Accordingly, the final determination of the City's compliance with applicable grant requirements will be established at a future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined, although the City expects such amounts, if any, to be immaterial.
The City is defending several claims and judgements arising from the normal course of business. The City expects to prevail in these matters; however, the final outcomes have not yet been determined. In addition, the City is involved in a claim related to the construction of a wastewater plant. The ultimate outcome of this matter should not have a material effect on the accompanying financial statements.
61
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued)
Note 14 - 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; and natural disasters for which the City carries commercial insurance. Insurance against losses are provided for the following types of risk:
- General and Automobile Liability
- Commercial Property Damage
- Contractors' Equipment
- Crime The City is self-insured for workers' compensation and employee health as explained in note 10. Amounts of settlements, if any, have not exceeded insurance coverage for each of the past three years.
Note 15 - Postemployment Benefits In addition to the pension benefits described in note 9, the City provides postretirement health care benefits, in accordance with City ordinance, to all employees who retire from the City.
Employees retiring between the age of 50 and 58 may remain in the City's plan and pay all premium costs. Employees retiring on or after attaining age 58 with at least 15 years of service remain in the plan with all employee premiums paid by the City. Retirees reaching the age of 65 with less than 15 years of service pay 50% of the premiums for a Medicare supplement. In all cases, the retiree is responsible to pay dependent care premiums.
Expenses for postretirement health care benefits are recognized as retirees report claims and include a provision of estimated claims incurred, but not reported. During the year, expenses of $372,188 were recognized for postretirement health care, which were offset by $159,961 of retiree premiums paid. Currently, there are 61 retirees that the City continues to pay health insurance premiums for and 46 who are responsible for all or one-half of their premiums as discussed above.
Note 16 - Commitments As of September 30, 2002, the City had the following commitments related to significant unfinished construction projects:
62
CITY OF LEESBURG, FLORIDA NOTES TO FINANCIAL STATEviENTS (Concluded)
Note 16 - Commitments (Concluded)
Aerial Mapping Services Hood Avenue Improvements Carson Marine Operating Permit Wastewater - Turnpike Construction Reuse System - Legacy Police Complex - Design SCADA System for Gas, Water and Wastewater Relocate Surface Observation System (ASOS)
Telecommunications Consulting Services Sleepy Hollow Engineering Replace AVGAS Fuel System Airport Install 12,000 Gallon Jet-A Fuel Storage Tank Sectionalizing Devices for Electric Department Engineering for Highland Lakes Water Distributors Mowing at Leesburg Regional Airport Realignment of Echo Drive - Airport Carver Heights Drainage Basin Obtain Wastewater Improvement Funding Kids Corner Parking Lot Additional Sidewalk Construction (Griffin Road)
Construction of the ESI Building Construction Management Airport Taxiway Consulting Services for Taxiway K - Airport Design Services for T-Hangars and Other Units Engineering for Airport Taxiways North Side of Airport Design Aircraft Rescue and Fire Fighting Station Design Six Hangars and Construction Management Airport Environment Assessment Expended as of September 30, 2002 6,272 10,665 49,856 2,608 88,708 107,391 1,058,091 12,097 92,708 94,148 9,710 20,881 Remaining Commitment 14,711 59,293 48,644 13,892 21,842 209,610 127,720 28,084 12,903 27,337 11,537 68,283 121,055 12,990 2,206 151,077 90,580 3,600 26,966 11,432 21,210 97,924 212,772 10,400 57,813 71,520 106,728 69,565 71,095 74,385 57,350 57,305 31,310 21,140 100,000 20,250 257,015 123,845 50,000 63
REQUIRED SUPPLEMENTARY INFORMATION The following supplemental schedules present trend information regarding the retirement plans for the City's general employees, municipal police and municipal firemen, and year 2001 disclosure.
This information is necessary for a fair presentation in conformity with generally accepted accounting principles.
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CITY OF LEESBURG, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF FUNDING PROGRESS General Employees' Retirement Plan (2)
Actuarial Value of Assets (AVA) 16,105,000 17,346,700 21,395,000 21,206,300 23,415,100 23,866,000 24,823,681 (3)
Entry Age Normal Actuarial Accrued Liability (AAL)
$ 17,414,500 18,401,700 22,249,400 21,561,900 24,013,600 24,190,400 22,587,237 (4)
Unfunded Actuarial Accrued Liability (UAAL) (3)-(2)
$ 1,309,500 1,055,000 854,400 355,600 598,500 324,400 (2,236,444)
(5)
Funded Ratio (2)1(3) 92.4%
94.2%
96.2%
98.4%
97.5%
98.7%
109.90%
(7)
(6)
UAAL as Annual Covered PayroU
$ 7,901,700 8,297,100 8,466,100 9,044,500 8,856,500 9,140,500 9,556,403 Percentage of Payrol (4)1(6) 16.5%
12.7%
10.1%
3.9%
6.8%
3.5%
0.0%
Municipal Police Retirement Plan (3)
Entry Age Normal Actuarial Accrued Liability (AAL)
$ 5,258,740 5,950,687 7,323,316 7,843,707 9,027,398 10,187,231 9,452,836 (4)
Unfunded Actuarial Accrued Liability (UAAL) (3)-(2)
$ 551,974 600,148 633,813 603,818 999,068 1,069,794 (68,379)
(5)
Funded Ratio (2)1(3) 89.5 %
89.9%
91.4%
92.3%
88.9%
89.5%
100.7%
(7)
(6)
UAAL as Annual Covered Payroll S
1,512,247 1,614,426 1,724,558 2,012,767 2,037,074 2,140,554 2,211,172 Percentage of Payroll (4)1(6) 37.1%
36.89%
30.0%
49.0%
50.0%
0.0%
Municipal Firemen's Retirement Plan Not required due to use of the aggregate actuarial cost method.
64 (1)
Valuation Date 10/01/95 10/01/96 10/01/97 10/01/98 10/01/99 10101/00 10/01101 (1)
Valuation Date 10101195 10/01/96 10/01/97 10/01/98 10/01199 10/01/00 10101/01 (2)
Actuarial Value of Assets (AVA)
S 4,706,766 5,350,539 6,689,503 7,239,889 8,028,330 9,117,437 9,521,215 i
CITY OF LEESBURG, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION (Continued)
SCHEDULES OF CONTRIBUTIONS FROM EMPLOYER AND OTHERS General Employees' Retirement Plan (GERP)
(1)
Annual Required Contribution Percentage (ARC)
Contributed 717,664 96%
591,900 107%
496,700 104%
539,300 108%
272,760 269%
542,806 130%
694,163 100%
650,146 100%
Alunicipal Police Retirement Plan (IPRP)
(2)
Annual Required Contribution Percentage (ARC)
Contributed 286,192 119%
278,380 105%
272,554 103%
270,695 103%
221,438 136%
264,219 93%
263,109 100%
209,514 100%
Mfunicipal Firemen's Retirement Plan (EFRP)
(2)
Annual Required Contribution (ARC) 342,711 208,798 208,798 163,325 123,459 169,358 197,811 188,732 Percentage Contributed 105%
122%
128%
156%
213%
123%
100%
100%
(1) Includes only required employer contributions.
(2) Includes required contributions by employer, employees and excise tax on certain insurance policies collected by the State of Florida. The City is required to contribute to the balance of the ARC, not provided by state excise taxes.
The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
GERP October 1, 2001 MEPRP October 1, 2001 1W1RP October 1, 2001 Actuarial Cost lethod Frozen Initial Liability Cost Frozen Entry Age Aggregate Actuarial Cost Method Amortization lethod Remaining Amortization Period Asset Valuation lethod Level Dollar Level Dollar, Closed 17 to 30 Years Asset Appreciation (Depreciation) Over 5 Years Actuarial Assumptions:
Investment Rate of Return 8.00%
8.00%
8.00%
Projected Salary Increases 5.50%
6.50%
6.00%
Cost-of-Living Adjustments None None None The actuarial cost method does not identify or separately amortize unfunded actuarial liabilities.
65 Year Ended 9/30 2002 2001 2000 1999 1998 1997 1996 1995 Valuation Date 28 Years Market Value N/A N/A Market Value
c - -
(
2 l
I,-
f -- --
I --
i"
( --
c -
a'
-)
I I --
I CITY OF LEESBURG, FLORIDA ANALYSIS OF SURPLUS - SECTION 8 PROGRAMS FOR THE YEAR ENDED SEPTEMBER 30, 2002 Housing Assistance Fund (A3320 E & V)
Balance (Deficit), September 30, 2001 HUD Annual Contributions Provision for Project Account HUD Recapture From Project Account Provision for Operating Reserve Net (Loss)
HUD Prior Year Adjustment Balance (Deficit), September 30, 2002 Unreserved Surplus Project Account Cumulative Total Operating HUD Cumulative Surplus Reserves Contributions Donations (Deficit)
$ (10,017,889) $
147,222 55,983 9,840,339 42,006 67,661 619,721 619,721 85,979 (85,979) 0 (105,624) 105,624 0
19,873 (19,873) 0 (639,595)
(639,595) 4,998 4,998
$ (10,657,256) $
166,867 41,108 10,460,060 42,006 52,785 66
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COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES
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GENERAL FUND The general fund is used to account for all revenues and expenses of the City which are not more properly accounted for in other funds. It receives a greater variety and number of taxes and other general revenues than any other fund.
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CITY OF LEESBURG, FLORIDA BALANCE SHEET GENERAL FUND SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 2002 Assets Equity in Pooled Cash and Cash Equivalents Assessments Receivable Other Accounts Receivable Prepaid Items Due From Other Funds Due From Other Governments Inventories Notes Receivable - Employees Total Assets
$ 6,214,234 1,113 188,192 28,026 0
659,219 58,345 167,312 7,316,441 2001
$ 5,280,905 3,887 158,048 13,655 320,528 344,549 2,730 155,254 6,279,556 Liabilities and Fund Balance Liabilities Accounts Payable Accrued Wages and Payroll Tax Unearned License Revenue Total Liabilities 424,773 341,807 265,752 1,032,332 Fund Balance Reserved for:
Notes Receivable - Employees Computer Maintenance Police Education and Other Expenditures C.U.R.E. Program Prepaids Fire Expenditures Operating Expenditures Unreserved Total Fund Balance 167,312 53,781 184,566 0
28,026 2,797 4,499,562 1,348,065 6,284,109 Total Liabilities and Fund Balance
$ 7,316,441 121,780 264,102 301,167 687,049 155,254 0
152,600 434 13,655 2,442 3,956,013 1,312,109 5,592,507
$ 6,279,556 67
CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH CONPARATIVE ACTUAL AMOUNTS FOR SEPTENBER 30, 2001 2002 Revenues Taxes Licenses and Pernits Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous:
Interest Other Total Revenues Budget 6,402,122 377,000 1,058,735 258,000 286,000 Actual 244,262 5,262,999 13,889,118 6,345,324 432,905 1,295,581 207,956 260,586 2001 Variance Favorable (Unfavorable)
(56,798) $
55,905 236,846 (50,044)
(25,414)
Actual 5,394,644 379,376 1,086,681 228,978 283,690 212,148 (32,114) 366,121 5,125,688 (137,311) 4,882,771 13,880,188 (8,930) 12,622,261 Expenditures General Government Public Safety Physical Environment Transportation Economic Enviromnent Human Services Culture and Recreation (Total Expenditures)
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses)
Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under)
Expenditures and Other Financing Uses Fund Balance, Beginning of Year Fund Balance, End of Year 6,015,499 7,855,059 844,075 1,107,989 42,610 47,830 3,353,830 (19,266,892) 5,300,534 714,965 7,793,941 61,118 806,922 37,153 1,329,190 (221,201) 161,011 (118,401) 46,551 1,279 3,243,260 110,570 (18,681,409) 585,483 4,920,929 7,076,688 575,827 1,369,496 114,155 46,153 2,810,475 (16,913,723)
(5,377,774)
(4,801,221) 576,553 (4,291,462) 5,800,946 (86,413) 5,714,533 336,759 5,579,236 (221,710) 5,766,109 (86,413)
(309,313) 5,492,823 (221,710) 5,456,796 691,602 354,843 1,165,334 5,592,507 5,592,507 0
4,427,173 5,929,266 $
6,284,109 $
354,843 $
5,592,507 68
Budget Actual Revenues Taxes Ad Valorem Local Option Sales, Use and Fuel Taxes Franchise Fees Utility Service Taxes Communication Service Taxes Total Taxes
$ 2,859,077 702,071 21,000 2,238,400 581,574 6,402,122 Licenses and Permits Licenses Building Permits Other Permits Total Licenses and Permits 150,000 170,000 57,000 377,000 Intergovernmental Federal Grants State Grants Other Grants State-Shared Revenues County-Shared Revenues Fuel Rebate Total Intergovernmental 79,500 32,775 110,000 779,460 37,000 20,000 1,058,735 Charges for Services General Goverrunent Charges Other Public Safety Charges Culture and Recreation Total Charges for Services 31,000 41,000 186,000 258,000 Fines and Forfeitures Court Fines Library Fines Other Fines and Forfeitures Total Fines and Forfeitures 262,000 18,000 6,000 286,000 Mliscellaneous Interest Rents and Royalties Sale of City Property and Insurance Compensation Contributions Other Total Miscellaneous Total Revenues 244,262 533,700 16,500 23,000 4,689,799 5,507,261
$ 2,834,532 702,803 50,007 1,858,623 899,359 6,345,324 177,101 195,317 60,487 432,905 144,605 267,370 753,668 105,931 24,007 1,295,581 19,397 37,701 150,858 207,956 239,898 14,621 6,067 260,586 212,148 603,905 15,600 18,101 4,488,082 5,337,836
$ 13,889,118 $ 13,880,188 Variance 2001 Favorable (Unfavorable)
Actual (24,545) $ 2,789,242 732 668,357 29,007 123,115 (379,777) 1,813,930 317,785 0
(56,798) 5,394,644 27,101 182,343 25,317 144,814 3,487 52,219 55,905 379,376 65,105 236,858 (32,775) 8,139 157,370 98,671 (25,792) 684,627 68,931 37,123 4,007 21,263 236,846 1,086,681 (11,603) 29,973 (3,299) 36,385 (35,142) 162,620 (50,044) 228,978 (22,102) 259,958 (3,379) 17,028 67 6,704 (25,414) 283,690 (32,114) 366,121 70,205 499,706 (900) 368,653 (4,899) 45,608 (201,717) 3,968,804 (169,425) 5,248,892 (8,930) $ 12,622,261 69 CITY OF LEESBURG, FLORIDA SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTEMBER 30, 2001 2002
CITY OF LEESBURG, FLORIDA SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL -
BY DEPARTMENT GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTENBER 30, 2001 2002 Budget Actual General Government City Commission Executive Offices City Attorney Grants and Aids Nondepartmental Finance Human Resources Management Infonnation Systems Public Buildings Planning and Zoning Total General Government Public Safety Police Department Fire Department Protective Inspections Total Public Safety Physical Environment Engineering Public Works Administration Total Physical Environment Transportation Road and Street Facilities Airport Maintenance Total Transportation Economic Environment Human Services Animal Control Public Assistance Total Unman Services Culture and Recreation Library Services Recreation Total Culture and Recreation Total Expenditures 203,711 477,620 153,000 1,848 544,640 2,316,006 371,782 1,145,869 386,484 414,539 6,015,499 5,078,782 2,457,190 319,087 7,855,059 583,583 260,492 844,075 1,106,205 1,784 1,107,989 203,562 474,900 146,231 1,059 17,929 2,244,895 361,542 1,076,925 373,672 399,819 5,300,534 5,075,537 2,437,565 280,839 7,793,941 562,320 244,602 806,922 1,097,233 231,957 1,329,190 42,610 161,011 30,830 17,000 47,830 995,835 2,357,995 3,353,830 30,527 16,024 46,551 990,870 2,252,390 3,243,260 19,266,892 18,681,409 e
149 $
2,720 6,769 789 526,711 71,111 10,240 68,944 12,812 14,720 714,965 217,884 457,657 155,540 34,684 8,005 1,937,891 365,082 1,133,754 365,177 245,255 4,920,929 3,245 4,625,103 19,625 2,206,253 38,248 245,332 61,118 7,076,688 21,263 384,545 15,890 191,282 37,153 575,827 8,972 1,119,744 (230,173) 249,752 (221,201) 1,369,496 (118,401) 114,155 303 28,190 976 17,963 1,279 46,153 4,965 888,336 105,605 1,922,139 110,570 2,810,475 585,483 $ 16,913,723 70 Expenditures Variance Favorable (Unfavorable) 2001 Actual
SPECIAL REVENUE FUNDS Special revenue funds are used to account for proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes.
Community Development Fund - Used to account for grants received by the City as a subgrantee under the Small Cities Community Development Block Grant Program, which is administered by the State of Florida Department of Community Affairs. Grant proceeds are being utilized to improve substandard housing in Leesburg.
Housing Assistance Fund - Used to account for grants received by the City under the Section 8 Program, which is administered by the United States Department of Housing and Urban Development.
Grant proceeds are designated for housing assistance payments to low-and moderate-income families and related administrative costs.
Stormwater Fund - Used to account for revenues and expenditures related to stormwater management (i.e., the collection, storage and dispersal of rainwater).
Greater Leesburg Community Redevelopment Fund - This fund was created pursuant to Section 163, Florida Statutes, to account for income generated from tax increment revenues generated within the Community Redevelopment District. Revenues generated are divided between the Downtown and the Pine Street areas. Expenditures related to community redevelopment activities must be approved by the Greater Leesburg Community Redevelopment Agency, a component unit of the City, prior to disbursement.
CITY OF LEESBURG, FLORIDA COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Community Development Assets Equity in Pooled Cash and Cash Equivalents Accounts Receivable Due From Other Governments Total Assets 25,325 12,342 37,667 Liabilities and Fund Balances Liabilities Accounts Payable Due to Other Governments Due to Other Funds Total Liabilities 6,682 12,342 12,342 Fund Balances Reserved for:
Community Redevelopment Capital Improvements Unreserved Total Fund Balances Total Liabilities and Fund Balances 37,667 59,467 71 Housing Assistance 53,430 6,037 59,467 6,682 25,325 25,325 52,785 52,785
Stormwater 379,734 68,087 144,546 592,367 41,418 41,418 550,949 550,949 592,367 Greater Leesburg Community Redevelopment 168,173 168,173 12 12 168,161 168,161 168,173 Totals 2002 2001 626,662 80,429 150,583 857,674 48,112 12,342 0
60,454 168,161 25,325 603,734 797,220 543,951 80,052 864,249 1,488,252 544,503 24,717 48,712 617,932 61,050 23,503 785,767 870,320 857,674 $ 1,488,252 72
CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Community Development Revenues Intergovernmental Charges for Services Interest Miscellaneous Total Revenues 9,322 9,322 Housing Assistance 746,629 22 3,089 749,740 Expenditures Physical Environment Economic Environment (Total Expenditures)
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses)
Operating Transfers In Operating Transfers (Out)
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balances, Beginning of Year 23,503 Fund Balances, End of Year 25,325 67,661 52,785 73 7,500 (7,500) 1,822 764,616 (764,616)
(14,876) 0 (14,876) 0 1,822
-j
Stormwater 393,048 604,003 14,347 6,799 1,018,197 1,185,354 (1,185,354)
(167,157) 0 (167,157) 718,106 550,949 Greater Leesburg Community Redevelopment 118,018 5,033 123,051 24,272 (24,272) 98,779 86,412 (78,080) 8,332 107,111 61,050 168,161 Totals 2002 2001
$ 1,267,017 604,025 22,469 6,799 1,900,310 1,185,354 796,388 (1,981,742)
$ 3,144,804 597,941 62,396 0
3,805,141 2,547,171 1,626,138 (4,173,309)
(81,432)
(368,168) 86,412 (78,080) 8,332 161,818 (170,215)
(8,397)
(73,100)
(376,565) 870,320 1,246,885 797,220 $
870,320 74
CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL COMMUNITY DEVELOPIENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTEMBER 30, 2001 2002 2001 Variance Favorable Budget Actual (Unfavorable)
Actual Revenues Intergovernmental 7,500 $
9,322 $
1,822 $ 736,597 Expenditures Economic Environment Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses)
Operating Transfers In Operating Transfers (Out)
Total Other Financing Sources (Uses)
(7,500)
(7,500) 0 (873,433) 0 1,822 1,822 (136,836) 75,000 (10,000) 0 0
0 65,000 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balance, Beginning of Year 0
1,822 0
23,503 1,822 (71,836) 23,503 95,339 Fund Balance, End of Year 0 $
25,325 $
25,325 $
23,503 75
CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOUSING ASSISTANCE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTEMBER 30, 2001 Budget Revenues Intergovernmental:
HUD Contributions Charges for Services Interest Total Revenues
$ 757,788 3,888 761,676 Expenditures Economic Environment:
Housing Assistance:
Personal Services Operating Expenditures (Total Expenditures) 129,400 635,217 (764,617) 2002 Variance Favorable Actual (Unfavorable)
Actual
$ 746,629 22 3,089 749,740
$s (11,159) $ 719,547 22 171 (799) 6,418 (11,936) 726,136 129,400 635,216 1
(764,616) 1 108,927 619,535 (728,462)
Excess (Deficiency) of Revenues Over (Under) Expenditures (2,941)
(14,876)
(11,935)
(2,326)
Fund Balance, Beginning of Year Fund Balance, End of Year 2,941 67,661 64,720 69,987 0 $
52,785 $
52,785 $
67,661 76 2001
CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AN]) CHANGES IN FUND BALANCE BUDGET AND ACTUAL STORMWATER FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTEMBER 30, 2001 Budget 2002 Variance Favorable Actual (Unfavorable) 2001 Actual Revenues Intergovernmental Charges for Services:
Utility Fees Interest Miscellaneous Total Revenues
$ 374,760 606,000 19,849 1,000,609 Expenditures Physical Environment:
Stormwater:
Personal Services Operating Expenditures Capital Outlay (Total Expenditures) 200,158 429,629 737,032 (1,366,819)
$ 393,048 $
18,288 $1,569,681 604,003 (1,997) 597,770 14,347 (5,502) 51,394 6,799 6,799 0
1,018,197 17,588 2,218,845 152,075 48,083 159,013 346,710 82,919 382,021 686,569 50,463 2,006,137 (1,185,354) 181,465 (2,547,171)
Excess (Deficiency) of Revenues Over (Under) Expenditures (366,210)
(167,157) 199,053 (328,326)
Other Financing Sources Proceeds From Issuance of Debt 32,632 0
(32,632) 0 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures (333,578)
(167,157) 166,421 (328,326)
Fund Balance, Beginning of Year Fund Balance, End of Year 333,578 718,106 384,528 1,046,432 0 $ 550,949 $
550,949 $ 718,106 77 I
CITY OF LEESBURG, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GREATER LEESBURG COMMUNITY DEVELOPMENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE ACTUAL AMOUNTS FOR SEPTEMBER 30, 2001 2002 Budget Actual Revenues Intergovernmental Interest Total Revenues
$ 118,172 5,604 123,776 Expenditures Economic Enviromnent:
Operating Expenditures Debt Service (Total Expenditures) 276 24,048 (24,324) 118,018 $
5,033 _
123,051 225 24,047 (24,272)
Variance Favorable Unfavorable)
(154)
(571)
(725) 51 1
52 2001 Actual
$ 118,979 4,584 123,563 196 24,047 (24,243)
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses)
Operating Transfers In Operating Transfers (Out)
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balance, Beginning of Year Fund Balance, End of Year 99,452 98,779 (673) 99,320 86,413 (246,709)
(160,296) 86,412 (78,080) 8,332 (60,844) 107,111 (1) 168,629 168,628 167,955 86,818 (160,215)
(73,397) 25,923 60,844 61,050 206 35,127 0 $
168,161 $
168,161 $
61,050 78
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ENTERPRISE FUNDS Enterprise funds are used to account for operations that are similar to private business enterprises with the intent to recover costs to provide goods through user charges. Revenues are derived primarily from user charges imposed on residential and commercial customers. Expenses include, but are not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.
Electric Utility Fund - Used to account for the purchase and distribution of electric services within the City's service area.
Gas Utility Fund - Used to account for the purchase and distribution of gas services within the City's service area.
Water Utility Fund - Used to account for costs for collection, treatment and distribution of water services within the City's service area.
Wastewater Utility Fund - Used to account for costs to provide wastewater and sanitary sewer services within the City's service area.
Solid Waste Fund - Used to account for the collection, transportation, and disposal of solid waste within the City limits of Leesburg.
Communication Services Fund - Used to account for the provision of communication services; such as, internet, fiber optic connections and cellular tower rental.
CITY OF LEESBURG, FLORIDA COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Electric Utility Gas Utility Current Assets Equity in Pooled Cash and Cash Equivalents Due From Other Funds Current Portion of Interfund Advance Due From Other Governments Receivables:
Customer Accounts - Unbilled Customer Accounts - Billed (Allowance for Doubtful Accounts)
Inventory Total Current Assets
$ 19,372,136 $ 4,897,724 $ 10,091,039 136,296 1,398,673 2,932,017 (401,878) 1,703,117 25,140,361 237,602 80,262 (54,320) 253,184 188,346 (45,787) 5,161,268 10,486,782 Restricted Assets Equity in Pooled Cash and Cash Equivalents:
Bond Construction Debt Service Account Renewal and Replacement Account lmpact Fees Account Depository Trust Account Customer Deposits Account Investments:
Crystal River Decommissioning Trust Account Total Restricted Assets 477,383 3,174,692 58,443 139,664 353,046 941,397 892,820 300,000 1,794,436 111,767 2,553,129 7,999,640 Property, Plant and Equipment Property, Plant and Equipment (Accumulated Depreciation and Amortization)
Construction in Progress Total Property, Plant and Equipment - Cost Less Depreciation and Amortization 60,462,715 (25,384,469) 828,346 104,243 823,256 2,078,124 9,458,423 (3,394,896) 585,062 16,317,145 (8,662,438) 1,194,454 35,906,592 6,648,589 8,849,161 Other Assets Unamortized Bond Issue Costs Long-Term Portion of Interfund Advance Total Other Assets Total Assets 135,383 1,016,564 1,151,947 16,577 39,608 16,577 39,608
$ 70,198,540 $ 12,649,690 $ 21,453,675 79 Assets Water Utility
(Page I of 2 Pages)
Wastewater Utility Total Combined Utility 2,996,397 37,357,296 3,704 237,741 358,538 (56,538) 4,137 3,543,979 518,090 671,340 424,279 41,875 136,296 3,704 2,127,200 3,559,163 (558,523) 1,707,254 44,332,390 1,193,580 5,140,475 1,317,099 300,000 2,052,321 Other Enterprise Funds Solid Communication Waste Services 806,546 6,196 1,508 193,738 17,443 174,885 8,811 (49,586) 1,127,091 32,450 1,115 3,872 Totals 2002
$ 38,170,038 0
136,296 5,212 2,338,381 3,742,859 (608,109) 1,707,254 45,491,931 0
1,193,580 5,140,475 1,317,099 300,000 2,057,308 2001 44,636,570 468,239 0
949 2,437,315 4,105,737 (544,453) 1,543,161 52,647,518 852,726 1,183,280 5,140,475 1,145,615 0
1,975,127 1,655,584 39,040,531 (12,343,572) 2,810,440 2,553,129 12,556,604 125,278,814 (49,785,375) 5,418,302 1,115 2,858,882 (1,756,469) 29,507,399 80,911,741 1,102,413 268,653 268,653 460,221 1,016,564 1,476,785 0
34,975,615 139,277,520 2,230,619 3,872 1,997,987 (523,237) 546,071 2,020,821 0
2,057,143 2,553,129 12,561,591 130,135,683 (52,065,081) 5,964,373 2,140,798 12,438,021 121,715,900 (48,584,414) 4,599,953 84,034,975 77,731,439 460,221 1,016,564 1,476,785
$ 143,565,282 489,026 0
489,026
$ 143,306,004 (Continued) 80
CITY OF LEESBURG, FLORIDA COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 (Concluded)
Electric Utility Liabilities and Fund Equity Gas Utility Current Liabilities Accounts and Retainage Payable Accrued Expenses Customer Advances for Construction Due to Other Funds Current Portion of Interfund Advance Estimated Landfill Closure Cost Payable Total Current Liabilities Current Liabilities Payable From Restricted Assets Customer Deposits Accrued Interest on Revenue Bonds Current Portion of Bonds Payable Total Current Liabilities Payable From Restricted Assets Long-Term Liabilities Refunding Revenue Bonds Payable (Unamortized Discount and Loss on Refunding)
Long-Term Portion of Interfund Advance Landfill Postclosure Costs Payable Decommissioning Costs Payable Total Long-Term Liabilities Total Liabilities
$ 2,569,783 $
645,935 20,990 119,296 $
241,449 113,875 117,879 3,236,708 233,171 359,328 1,794,436 230,860 246,524 2,271,820 111,767 28,263 30,180 170,210 104,243 67,541 72,123 243,907 8,967,282 1,097,812 2,623,481 (325,768)
(39,882)
(95,306) 3,808,150 12,449,664 17,958,192 1,057,930 1,461,311 2,528,175 3,131,410 Fund Equity Contributed Capital:
Other Governments Customers and Developers Other Funds Total Contributed Capital Retained Earnings:
Reserved:
Current Year Contributed Capital - Impact Fees Renewal and Replacement Operating Reserve Unreserved Total Retained Earnings Total Fund Equity Total Liabilities and Fund Equity 17,987 3,783,346 6,512 524,560 77,284 4,488,991 3,801,333 531,072 4,566,275 3,174,692 11,911,282 33,353,041 48,439,015 52,240,348
$ 70,198,540 353,046 1,648,139 8,656,122 10,657,307 11,188,379
$ 12,649,690 110,141 941,397 2,004,776 10,699,676 13,755,990 18,322,265
$ 21,453,675 81 Water Utility
(Page 2 of 2 Pages)
Wastevater Utility 182,049 141,485 8,900 332,434 41,875 361,917 156,173 559,965 13,701,425 (234,873) 13,466,552 14,358,951 8,011,471 6,718,760 14,450 14,744,661 365,818 671,340 3,211,403 1,623,422 5,871,983 20,616,664 34,975,615 Total Combined Utility 3,112,577 1,019,174 29,890 4,161,641 2,052,321 688,581 505,000 3,245,902 Other Enterprise Funds Solid Communication Waste Services 162,083 79,351 57,647 299,081 1,115 1,115 26,390,000 (695,829) 3,808,150 29,502,321 36,909,864 8,113,254 15,515,657 14,450 23,643,361 475,959 5,140,475 18,775,600 54,332,261 78,724,295 102,367,656 139,277,520 864,705 864,705 1,164,901 440,967 440,967 797,021 (172,270) 624,751 1,065,718 2,230,619 8,876 362 136,296 145,534 3,872 3,872 1,016,564 1,016,564 1,165,970 207,090 207,090 332,021 352,062 684,083 891,173
~
2,057,143 Totals 2002 2001 3,283,536 1,098,887 29,890 0
136,296 57,647 4,606,256 2,057,308 688,581 505,000 3,250,889 26,390,000 (695,829) 1,016,564 864,705 3,808,150 31,383,590 39,240,735 8,113,254 15,515,657 662,507 24,291,418 475,959 5,140,475 19,904,642 54,512,053 80,033,129 104,324,547
$ 143,565,282 3,406,027 978,609 11,945 468,239 0
49,787 4,914,607 1,975,127 698,282 485,000 3,158,409 26,895,000 (765,471) 0 702,554 3,599,950 30,432,033 38,505,049 8,113,254 15,515,657 662,507 24,291,418 0
5,140,475 20,530,140 54,838,922 80,509,537 104,800,955
$ 143,306,004 82
CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Electric Utility Operating Revenues User Charges Other Operating Revenue Total Operating Revenues
$ 36,442,513 554,569 36,997,082 Gas Utility
$ 5,510,062 65,847 5,575,909 Water Utility
$ 3,759,878 44,979 3,804,857 Operating Expenses Power Generation and Transmission Purchased Energy Supply and Pumping Treatment Distribution and Collection Customer Accounts General and Administrative Operating Expenses Depreciation and Amortization Change in Postclosure Estimate (Total Operating Expenses)
Operating Income (Loss) 1,322,803 23,599,737 2,775,782 972,198 1,814,971 2,438,825 2,864,100 508,056 397,572 733,868 294,816 783,564 407,262 546,569 566,664 567,662 (32,924,316)
(4,798,412)
(2,871,721) 4,072,766 Nonoperating Revenues (Expenses)
Investment Income Capital Contributions - Impact Fees Other Nonoperating Income Interest Expenses Other Nonoperating Expense Total Nonoperating Revenues (Expenses) 1,042,306 257,865 (503,704)
(105,921) 690,546 Income (Loss) Before Operating Transfers 777,497 177,349 (21,600)
(59,218)
(206) 96,325 933,136 400,920 110,141 149,496 (137,456)
(492) 522,609 4,763,312 873,822 1,455,745 Other Financing Sources (Uses)
Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses)
Net Income (Loss)
Retained Earnings, Beginning of Year Retained Earnings, End of Year
$ 48,439,015
$10,657,307
$ 13,755,990 83 (4,446,783)
(4,446,783) 316,529 (591,470)
(591,470) 282,352 10,374,955 48,122,486 (1,007,067)
(1,007,067) 448,678 13,307,312
Wastewater Utility 3,744,954 70,187 3,815,141 Total Combined Utility 49,457,407 735,582 50,192,989 Other Enterprise Funds Solid Communication WVaste Services 2,671,698 54,042 2,725,740 314,817 1,501 316,318 Totals 2002 2001
$ 52,443,922 791,125 53,235,047
$ 54,944,483 752,095 55,696,578 284,091 1,315,475 715,220 494,927 597,586 1,346,504 1,322,803 26,463,837 284,091 2,099,039 4,406,320 2,411,266 3,713,089 4,647,807 (4,753,803)
(45,348,252)
(938,662) 4,844,737 197,858 365,818 (18,100)
(724,807)
(828)
(180,059) 1,818,433 475,959 367,661 (1,425,185)
(107,447) 1,129,421 (1,118,721) 5,974,158 (256,846)
(256,846)
(6,302,166)
(6,302,166) 2,527,041 140,326 170,011 (2,837,378)
(111,638) 37,989 25,341 (20) 63,310 (48,328)
(183,275)
(183,275) 1,322,803 26,463,837 284,091 2,099,039 4,406,320 2,411,266 172,178 3,885,267 2,527,041 189,159 4,977,292 170,011 (361,337)
(48,546,967)
(45,019) 4,688,080 6,586,129 (17,901) 1,838,521 475,959 57,079 450,081 (717)
(1,425,922)
(107,447) 38,461 1,231,192 (6,558) 5,919,272 9,117,611 106,951 (17,190) 89,761 106,951 (6,502,631)
(6,395,680)
(476,408) 3,629,722 7,247,550 79,052,303 856,354 5,871,983 78,724,295 624,751 600,880 684,083 80,509,537 76,879,815
$ 80,033,129 $ 80,509,537 84 1,171,459 29,710,316 199,305 1,782,794 3,365,454 2,233,173 3,517,258 2,385,198 4,795,279 (49,787)
(49,110,449) 3,754,972 0
401,467 (1,516,818)
(108,139) 2,531,482 (1,375,567)
(328,008)
(231,603) 377,996
. (5,865,885)
(5,487,889) 83,203
-4j CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTENIBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Electric Gas Water Utility Utility Utility Net Cash Provided By (Used In) Operating Activities Cash Flows From Noncapital Financing Activities Operating Transfers (Out) to Other Funds Operating Transfers In Net Cash Provided By (Used In) Noncapital Financing Activities Cash Flows From Capital and Related Financing Activities Interest Paid on Capital Leases and Note Payable Interest Paid on Revenue Bonds and Customer Deposits Acquisition and Construction of Capital Assets Proceeds From Sales of Fixed Assets Principal Paid on Bond Maturities Principal Paid on Note Payable Capital Contributions Net Cash Provided By (Used In) Capital and Related Financing Activities
$ 6,397,696 $ 1,237,238 $ 1,655,269 (4,446,783)
(591,470)
(1,007,067)
(4,446,783)
(591,470)
(1,007,067)
(503,704)
(3,519,191) 2,904 (237,278)
(59,218)
(869,331) 57,755 (29,049)
(137,456)
(1,550,925) 48,875 (69,420) 213,086 2,000 207,010 (4,044,183)
(897,843)
(1,501,916)
Cash Flows From Investing Activities Investment Income Purchase of Crystal River Decommissioning Investments Net Cash Provided By (Used In) Investing Activities 1,042,306 (427,588) 614,718 177,349 400,920 177,349 400,920 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year (1,478,552) 26,297,199
$24,818,647 (74,726) 5,795,706
$ 5,720,980 (452,794) 12,621,957
$12,169,163 Reconciliation of Cash and Cash Equivalents (Above) to Combined Balance Sheet Current Assets Equity in Pooled Cash and Cash Equivalents Restricted Assets Equity in Pooled Cash and Cash Equivalents Total Cash and Cash Equivalents, End of Year
$19,372,136 $ 4,897,724 $10,091,039 5,446,511
$24,818,647 823,256 2,078,124
$ 5,720,980 $12,169,163 85
(Page 1 of 2 Pages)
Wastewater Utility Total Combined Utility (18,441) $
9,271,762 (256,846)
(6,302,166)
(256,846)
(6,302,166)
(724,807)
(4,007,870) 197,472 (149,254) 374,940 (1,425,185)
(9,947,317) 307,006 (485,001) 797,036 (4,309,519)
(10,753,461) 197,858 197,858 (4,386,948) 9,038,929 4,651,981 2,996,397 1,655,584 4,651,981 1,818,433 (427,588) 1,390,845 (6,393,020) 53,753,791 47,360,771 37,357,296 10,003,475 47,360,771 Other Enterprise Funds Solid Communication Waste Services 279,939 808,184 (183,275)
(17,190) 106,951 (183,275) 89,761 (20)
(717)
(500,390)
(875,843)
(500,410)
(876,560) 37,989 (17,901) 37,989 (17,901)
(365,757) 3,484 1,173,418 6,584 807,661 10,068 806,546 6,196 1,115 3,872 807,661 10,068 Totals 2002 2001
$ 10,359,885 $ 10,134,637 (6,502,631) 106,951 (5,865,885) 377,996 (6,395,680)
(5,487,889)
(1,425,922)
(11,323,550) 307,006 (485,001) 0 797,036 (1,486)
(1,523,791)
(5,647,236) 0 (4,019,912)
(410,000) 695,942 (12,130,431)
(10,906,483) 1,838,521 (427,588) 1,410,933 (6,755,293) 54,933,793
$ 48,178,500 3,796,866 (226,535) 3,570,331 (2,689,404) 57,623,197
$ 54,933,793 38,170,038 44,636,570 10,008,462
$ 48,178,500 10,297,223
$ 54,933,793 (Continued) 86
_J CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH CONPARATIVE TOTALS FOR SEPTEMBER 30, 2001 (Concluded)
Electric Gas Utility Utility Water Utility Reconciliation of Operating Income (Loss) to Net Cash Provided By Operating Activities Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Loss (Gain) on Sale of Fixed Assets Depreciation and Amortization Bad Debt Expense Nonoperating Income Nonoperating Expense Change in Postclosure Estimate Decrease (Increase) in Customer Accounts Decrease (Increase) in Due From Other Governments Decrease (Increase) in Due To/From Other Funds Decrease (Increase) in Advances To/From Other Funds Decrease (Increase) in Inventory Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Expenses Increase (Decrease) in Customer Advances for Construction Increase (Decrease) in Customer Deposits Net Cash Provided By (Used In) Operating Activities
$ 4,072,766 $
28,958 2,438,825 50,756 44,779 (105,921) 777,497 $
933,136 35,565 294,816 4,834 (23,600)
(206) 317,698 146,387 468,239 (1,152,860)
(161,632) 253,870 52,834 17,945 71,439
$ 6,397,696 (39,898) 567,662 (511) 52,627 (492) 178 (8,737) 116,784 10,161 18,512 521
$ 1,237,238 7,271
$ 1,655,269 87 I
(Page 2 of 2 Pages)
Other Enterprise Funds Solid Communication Waste Services Totals 2002 2001 (938,662) $
4,844,737 (111,638) $
(45,019) 4,688,080 $
32,996 1,346,504 489 (27,222)
(828) 23,410 3,704 (2,461)
(480,744) 22,003 2,370 (18,441) 57,621 4,647,807 55,568 46,584 (107,447) 487,673 3,704 468,239 (1,152,860)
(164,093)
(118,827) 103,510 17,945 81,601 9,271,762 140,326 8,088 25,341 170,011 (20,914)
(559) 61,162 7,722 400 279,939 189,159 57,079 (12,355)
(468,239) 1,152,860 (64,826)
(655) 180 808,184 57,621 4,977,292 63,656 129,004 (107,447) 170,011 454,404 3,145 0
0 (164,093)
(122,491) 110,577 17,945 82,181
$ 10,359,885 0
4,795,279 144,273 401,467 (108,139)
(49,787)
(1,531,753) 1,945 0
0 236,129 (130,859)
(226,548)
(19,349) 35,850
$ 10,134,637 88 Wastewater Utility Total Combined Utility 6,586,129
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INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department to other departments of the governmental unit on a cost-reimbursement basis.
Fleet Maintenance Fund - Used to account for the costs to operate a fleet maintenance facility for automotive equipment used by City departments.
Health Insurance Fund - Used to account for the costs of providing major medical coverage to all eligible City employees.
Workers' Compensation Insurance Fund - Used to account for the costs of providing workers' compensation coverage to all eligible City employees.
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CITY OF LEESBURG, FLORIDA COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 General Fleet Employees' Main-Health tenance Insurance Workers' Compensation Insurance Totals 2002 2001 Current Assets Equity in Pooled Cash and Cash Equivalents Miscellaneous Receivable Inventory Total Current Assets Property, Plant and Equipment Buildings Machinery and Equipment (Accumulated Depreciation)
Construction in Progress Total Property, Plant and Equipment - Cost Less Depreciation Total Assets 553,218 $
200,936 0
754,154 1,747,337 $ 2,300,555 11,614 212,550 0
1,758,951 2,513,105 0
0 0
0
$ 1,770,921 281,656 57,507 2,110,084 67,802 179,979 (150,827) 25,461 0
0 0
0 122,415 0
754,154 1,758,951 2,513,105 2,232,499 Liabilities and Fund Equity Liabilities Accounts Payable Accrued Expenses Due to Other Funds Claims Payable Total Liabilities Fund Equity Contributed Capital - General Fund Retained Earnings:
Reserved for Insurance Unreserved Total Retained Earnings Total Fund Equity Total Liabilities and Fund Equity 72,993 367,416 0
440,409 12,021 643,100 655,121 85,014 0
0 1,010,516 1,095,530 41,443 40,579 271,816 850,312 1,204,150 0
0 0
0 15,979 313,745 0
0 313,745 313,745 1,103,830 1,417,575 1,103,830 1,103,830 1,417,575 1,417,575 987,165 25,205 1,012,370 1,028,349 0 $
754,154 $
1,758,951 $ 2,513,105 $ 2,232,499 89 Assets
CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH CONIPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Operating Revenues Charges for Services Operating Expenses Personal Services Other Services and Charges Materials and Supplies Depreciation Claims Expense Administrative Expenses Insurance Premiums (Total Operating Expenses)
Operating Income (Loss)
Nonoperating Income (Loss)
Investment Income (Loss)
(1,186)
Other Nonoperating Income (Loss)
(83,833)
Total Nonoperating Income (Loss)
(85,019)
General Fleet Employees' Workers' To Main-Health Compensation tenance Insurance Insurance 2002 otals 2001
$ 591,698 $ 3,011,969 $
220,073 $ 3,823,740 $ 3,199,844 240,586 38,578 226,004 21,014 1,530,168 349,196 483,642 (526,182)
(2,363,006) 421,040 24,707 65,482 (511,229) 240,586 38,578 226,004 21,014 1,951,208 373,903 549,124 (3,400,417) 236,845 25,775 165,457 16,138 2,927,779 208,481 480,152 (4,060,627) 65,516 648,963 (291,156) 423,323 (860,783) 1,025 (33,414)
(32,389) 58,058 46,934 104,992 57,897 113,809 (70,313) 402,075 (12,416) 515,884 Income (Loss) Before Operating Transfers (19,503) 616,574 (186,164) 410,907 (344,899)
Operating Transfers (Out)
(5,702) 0 0
(5,702) 0 Net Income (Loss)
Retained Earnings, Beginning of Year Retained Earnings, End of Year (25,205) 616,574 (186,164) 405,205 (344,899) 25,205 (302,829) 1,289,994 1,012,370 1,357,269 0 $
313,745 $
1,103,830 $ 1,417,575 $ 1,012,370 90
CITY OF LEESBURG, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2001 Net Cash Provided By (Used In)
Operating Activities Cash Flows From Noncapital and Related Financing Activities Operating Transfers (to) Other Funds Cash Flows From Capital and Related Financing Activities Acquisition and Construction of Capital Assets Cash Flows From Investing Activities Investment Income Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year Fleet Main-tenance General Employees' Health Insurance Workers' Compensation Insurance (78,534) $
552,193 (81,642)
Totals 2002 392,017 (5,702) 0 0
(5,702) 85,422 0
0 85,422 (1,186) 1,025 58,058 57,897 0
553,218 (23,584) 529,634 0
0 1,770,921 0 $
553,218 $
1,747,337 1,770,921
$ 2,300,555 2001 (288,090) 0 (27,885) 113,809 (202,166) 1,973,087
$ 1,770,921 Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities:
Depreciation Nonoperating Income (Loss)
Decrease (Increase) in Miscellaneous Receivables Decrease (Increase) in Inventory Increase (Decrease) in Claims Payable Increase (Decrease) in Accounts Payable and Accrued Expenses Increase (Decrease) in Interfund Payables Net Cash Provided By (Used In)
Operating Activities 65,516 648,963 21,014 (83,833)
(33,414) 60,068 (291,156) $
423,323 (860,783) 46,934 9,038 57,507 21,014 (70,313) 69,106 57,507 18,683 141,521 (81,296)
(142,107) 12,021 (57,442)
(78,534) $
552,193 $
(81,642) 160,204 16,138 402,075 (132,762)
(18,242) 264,213 (211,382)
(159,387)
(57,442) 392,017 200,658 (288,090) 91
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FIDUCIARY FUND TYPES Pension trust funds are used to account for assets held by the City in a trustee capacity for public employee retirement systems.
Municipal Police Retirement Plan - Used to account for activities related to the Municipal Police Pension Trust, which provides pension benefits to eligible municipal police officers. The defined pension plan was created pursuant to the provisions of Chapter 185, Florida Statutes. Resources are contributed by the participating employees and the State of Florida. Members of the Municipal Police Pension Trust are also members of the General Employees Pension Trust.
Municipal Firemen's Retirement Plan - Used to account for activities related to the Municipal Firemen's Retirement Trust, which provides pension benefits to eligible fire fighters. The defined benefit plan was created pursuant to the provisions of Chapter 175, Florida Statutes. Resources are contributed by the City, participating employees and the State of Florida.
General Employees' Retirement Plan - Used to account for activities related to the City of Leesburg General Employees' Pension Plan, which provides pension benefits to eligible full-time employees, except commissioners and fire fighters. Resources are contributed by the City to this defined benefit plan.
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CITY OF LEESBURG, FLORIDA COMBINING BALANCE SHEET FIDUCIARY FUND TYPES SEPTEMBER 30, 2002, WITH COMPARATIVE TOTALS FOR SEPTENBER 30, 2001 Pension Trust Funds Assets Cash and Investments With Trustees Accrued Interest Receivable Total Assets Municipal Police Retirement Plan 7,971,880 37,713 8,009,593 Municipal Firemen's Retirement Plan 5,788,507 39,073 5,827,580 General Employees' Retirement Plan 21,244,526 44,690 21,289,216 Totals 2002 2001
$ 35,004,913 121,476 35,126,389
$ 38,059,588 132,482 38,192,070 Liabilities and Fund Equity Liabilities Due to Other Funds 0
0 0
0 0
Fund Equity Fund Balances Reserved for Employee Benefits Total Liabilities and Fund Equity 8,009,593 5,827,580 21,289,216 35,126,389 38,192,070 8,009,593 $
5,827,580 $
21,289,216 $ 35,126,389 $ 38,192,070 92
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ACCOUNT GROUPS Account groups are used to maintain accounting control and accountability for the City's general fixed assets and for all long-term debt (principal balances of debt, capital lease obligations, and obligations for compensated absences).
These account groups are not funds; they reflect measurement of financial position and not measurement of results of operations.
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CITY OF LEESBURG, FLORIDA SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30, 2002 AND 2001 2002 General Fixed Assets Land Buildings Improvement Other Than Buildings Equipment and Vehicles Construction Work in Progress Total General Fixed Assets 6,356,057 15,504,876 9,048,948 9,354,772 4,902,971 45,167,624 2001 4,832,093 13,452,282 8,891,773 9,331,749 3,486,166 39,994,063 Investments in General Fixed Assets General Obligation Bonds and Revenue Certificates Capital Projects Funds:
Economic Development Administration Grants Hospital Construction Fund Federal, State and Local Grants General Fund Revenues Special Revenue Fund Revenues Utility Revenue Fund Revenues Gifts and Other Total Investment in General Fixed Assets 5,367,421 4,949,737 430,079 1,893,857 9,808,021 20,696,955 4,845,483 1,179,192 946,616
$ 45,167,624 430,079 1,893,857 7,338,038 19,783,809 4,345,005 338,439 915,099
$ 39,994,063 93
CITY OF LEESBURG, FLORIDA SCIHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION SEITEMBER 30, 2002 AND ACTIVITY Function and Activity Land Buildings Improvements Other Than Buildings General and Government Legislative Executive Financial and Administrative Legal Counsel Other General Government Total General and Government 113,095 15,000 128,095
$ 1,977,071 55,209 444,675 149,203 67,144 2,693,302 63,158 $
41,236 40,700 176,247 1,615,975 19,874 18,762 3,660 235,939 262,939 1,952,612
$ 2,194,560 95,909 2,236,897 202,839 306,743 5,036,948 Public Safety Law Enforcement Fire Control Protective Inspection Total Public Safety 371,208 64,325 785,240 506,532 435,533 1,291,772 151,188 2,005,393 81,398 1,399,618 99,394 232,586 3,504,405 Physical Environment Transportation Roads and Streets Airport Parking Facilities Total Transportation 491,136 164,319 900,388 910,893 2,466,736 57,238 3,190,113 297,341 3,544,692 Economic Environment Housing and Urban Development Other Economic Environment Total Economic Environment Human Services 415,397 415,397 74,764 2,649,707 2,724,471 1,192,184 1,192,184 1,303,622 95,431 1,531,055 3,599,985 41,327 9,481,132 297,341 4,903,607 136,758 11,309,528 45,530 45,530 23,737 4,353 28,090 23,737 1,657,464 1,681,201 31,430 1,862,427 0
0 1,893,857 Culture and Recreation Libraries Parks and Recreation Cultural Services Special Recreational Facilities Mote-Morris House Other Culture and Recreation Total Culture and Recreation 331,183 1,157,180 868,023 1,078,976 343,382 452,179 110,568 592,174 1,952,510 1,309,774 5,576,401 Total By Function and Activity Construction Work in Progress Total General Fixed Assets
$ 6,356,057 $ 15,504,876 $
9,048,948 $9,354,772 40,264,653 4,902,971
$ 45,167,624 94 Equipment and Vehicles Total 3,313,029 2,051,873 99,394 5,464,296 220,245 1,394,125 25,826 6,015 110,974 946,713 2,703,898 1,598,603 988,075 0
5,817 10,000 219,519 2,822,014 3,307,211 4,329,199 369,208 464,011 823,716 3,118,742 12,412,087
CITY OF LEESBURG, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance October 1, Function and Activity 2001 Additions Balance September 30, (Deductions) 2002 General Government Legislative Executive Financial and Administrative Legal Counsel Other General Government Total General Government Public Safety Law Enforcement Fire Control Protective Inspection Total Public Safety 2,288,953 87,753 2,219,962 223,289 4,819,957 2,765,161 1,988,813 78,445 4,832,419 44,517 13,412 271,554 0
306,743 636,226 649,885 126,510 21,587 797,982 (138,910) $
2,194,560 (5,256) 95,909 (254,619) 2,236,897 (20,450) 202,839 306,743 (419,235) 5,036,948 (102,017) 3,313,029 (63,450) 2,051,873 (638) 99,394 (166,105) 5,464,296 2,305,756 366,334 (205,354) 2,466,736 Transportation Roads and Streets Airport Parking Facilities Total Transportation 2,068,552 6,583,432 297,341 8,949,325 Economic Environment Housing and Urban Development Other Economic Environment Total Economic Environment Human Services Culture and Recreation Libraries Parks and Recreation Cultural Services -
Special Recreational Facilities Mote-Morris House Other Culture and Recreation Total Culture and Recreation 23,351 2,917,790 2,941,141 25,575 1,656,222 1,681,797 1,242 1,242 (560,848) 1,531,055 (20,090) 9,481,132 297,341 (580,938) 11,309,528 (1,838) 23,737 1,657,464 (1,838) 1,681,201 1,893,857 0
0 1,893,857 3,179,408 4,055,133 369,208 460,834 824,215 3,135,988 12,024,786 137,650 328,495 3,177 469,322 (9,847) 3,307,211 (54,429) 4,329,199 369,208 464,011 (499) 823,716 (17,246) 3,118,742 (82,021) 12,412,087 Total By Function and Activity 36,507,897 5,212,247 (1,455,491) 40,264,653 Construction Work in Progress Total General Fixed Assets 3,486,166 1,851,496 (434,691) 4,902,971 39,994,063 $
7,063,743 $
(1,890,182) $
45,167,624 95 Physical Environment
I CITY OF LEESBURG, FLORIDA SCHEDULES OF GENERAL LONG-TERM DEBT SEPTEMBER 30, 2002 AND 2001 2002 2001 Amount Available and to Be Provided for the Payment of General Long-Term Debt Serial and Term Bonds - Public Improvement Revenue Bonds and Certificates:
Amount Available in Debt Service Fund Amount to Be Provided Total Serial and Term Bonds Other Long-Term Liabilities:
Amount to Be Provided Suit Settlement Payable Mortgages Payable Total Other Long-Term Liabilities 125,000 7,045,000 7,170,000 1,385,834 390,000 209,455 1,985,289 Total Amount Available and to Be Provided for the Payment of General Long-Term Debt General Long-Term Debt Payable Refunding and Capital Improvement Revenue Bonds, Series 1987 Employee Compensation Absences Payable Lawsuit Mortgages Payable 120,000 7,170,000 7,290,000 1,265,521 450,000 222,142 1,937,663 9,155,289 9,227,663 7,170,000 1,385,834 390,000 209,455 Total General Long-Term Debt Payable 7,290,000 1,265,521 450,000 222,142
$9,155,289 $9,227,663 96
STATISTICAL SECTION Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non-accounting data.
These schedules reflect social and economic data and financial trends of the City of Leesburg, Florida, and are designed to give the reader insights into the financial position of the City of Leesburg not readily apparent from the financial statements.
The schedule entitled "Computation of Legal Debt Margin," which is recommended for inclusion in the Comprehensive Annual Financial report by the Government Finance Officers Association of the United States and Canada, is not included within this report inasmuch as no legal debt margin has been established for the City of Leesburg pursuant to the Constitution of the State of Florida, Florida Statutes, City ordinances or other laws applicable to the City of Leesburg.
STATISTICAL SECTION (Unaudited)
Statistical data are presented to provide greater detailed information than reported in the preceding general purpose financial statements. This information in many cases has been spread throughout the report and is brought together here for greater clarity. Statistical data are not necessary for fair presentation in conformity with generally accepted accounting principles.
The City has had no general obligation debt outstanding during the past ten years.
CITY OF LEESBURG, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS Fiscal Year 1993 Percent of Total 1994 Percent of Total 1995 Percent of Total 1996 Percent of Total 1997 Percent of Total 1998 Percent of Total 1999 Percent of Total 2000 Percent of Total 2001 Percent of Total 2002 Percent of Total General Goverment 2,960,278 23.60%
3,131,964 23.17%
3,439,974 21.23%
3,581,053 22.69%
3,677,040 21.73%
4,446,495 23.52%
3,844,042 18.23%
3,852,844 20.00%
4,920,929 21.35%
5,300,534 20.48%
Public Safety
$ 4,314,965 34.41%
$ 4,587,398 33.94%
$ 4,883,377 30.14%
$ 5,200,748 32.95%
$ 5,772,211 34.11%
$ 6,096,292 32.25%
$ 6,093,036 28.89%
$ 6,336,134 32.88%
$ 7,076,688 30.71%
$ 7,793,941 30.11%
Physical Environment 857,912 6.84%
869,583 6.43%
1,064,938 6.57%
1,037,479 6.57%
946,842 5.59%
883,875 4.68%
1,113,690 5.28%
1,358,276 7.05%
3,122,998 13.55%
1,992,276 7.70%
Transportation 1,023,302 8.16%
804,917 5.95%
801,839 4.95%
968,573 6.14%
628,878 3.72%
595,606 3.15%
1,510,205 7.16%
1,710,323 8.88%
1,369,496 5.94%
1,329,190 5.14%
Notes: (1) Includes general, special revenue, debt service and capital projects funds.
97
Economic Environment Culture/
Recreation 666,844 5.32%
770,362 5.70%
1,175,585 7.26%
1,134,200 7.19%
768,703 4.54%
1,335,247 7.06%
27,944 0.22%
30,466 0.23%
30,803 0.19%
31,379 0.20%
49,723 0.29%
47,999 0.26%
1,638,637 32,578 7.77%
0.15%
1,718,148 8.92%
1,740,293 7.55%
957,399 3.70%
41,085 0.21%
46,153 0.20%
46,551 0.18%
1,947,503 15.53%
2,085,129 15.43%
2,225,365 13.73%
2,459,103 15.58%
2,758,648 16.30%
2,807,600 14.85%
2,567,542 12.18%
2,685,487 13.94%
2,810,475 12.19%
216,057 1.72%
714,251 5.28%
$ 2,059,078 12.71%
848,387 5.38%
$ 1,800,650 10.64%
$ 2,172,578 11.49%
$ 2,985,420 14.16%
$ 1,179,181 6.12%
$ 1,520,633 6.60%
3,243,260
$ 4,719,851 12.53%
18.23%
527,060 4.20%
523,380 3.87%
522,000 3.22%
520,980 3.30%
522,082 3.08%
515,960 2.74%
$ 1,302,531 6.18%
386,303 2.00%
439,255 1.91%
499,430 1.93%
$ 12,541,865 100.00%
$ 13,517,450 100.00%
$ 16,202,959 100.00%
$ 15,781,902 100.00%
$ 16,924,777 100.00%
18,901,652 100.00%
$ 21,087,681 100.00%
19,267,781 100.00%
$ 23,046,920 100.00%
$ 25,882,432 100%
98 Table 1 Human Services Capital Outlay Debt Service Total
J CITY OF LEESBURG, FLORIDA GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS Fiscal Year Taxes (2)
Licenses and Permits Intergovernmental 1993 Percent of Total 1994 Percent of Total 1995 Percent of Total 1996 Percent of Total 1997 Percent of Total 1998 Percent of Total 1999 Percent of Total 2000 Percent of Total 2001 Percent of Total 2002 Percent of Total 2,924,033 32.81%
3,112,968 34.07%
3,286,834 31.53%
3,380,526 30.70%
4,019,315 35.87%
4,138,872 33.33%
4,560,397 32.71%
5,572,966 37.56%
6,604,777 33.70%
7,612,203 37.50%
197,013 2.21%
218,210 2.39%
250,570 2.40%
264,121 2.40%
278,600 2.49%
273,436 2.20%
296,298 2.13%
323,608 2.18%
379,376 1.94%
432,905 2.13%
Notes:
(1)
(2)
(3)
Includes general, special revenue, debt service and capital projects funds.
Includes ad valorem, franchise, local option sales and gas taxes.
Includes interest income and reimbursements received from the enterprise funds for services provided by general fund departments.
99 2,142,918 24.05%
2,328,189 25.48%
2,751,793 26.40%
2,861,874 25.99%
2,217,082 19.79%
3,192,427 25.71%
4,195,239 30.09%
3,651,192 24.61%
5,045,255 25.74%
5,546,337 27.32%
Charges for Services Fines and Forfeitures Miscellaneous Revenues (3) 146,107 1.64%
172,733 1.89%
211,141 2.02%
242,709 2.20%
283,447 2.53%
298,233 2.40%
303,902 2.18%
3,015,583 33.84%
2,851,526 31.21%
3,353,670 32.17%
3,349,482 30.42%
3,455,912 30.84%
3,525,549 28.40%
3,760,922 26.98%
8,911,851 100.00%
9,136,937 100.00%
10,425,159 100.00%
11,011,387 100.00%
11,204,235 100.00%
12,416,504 100.00%
13,941,209 100.00%
14,838,478 100.00%
19,599,195 100.00%
20,301,379 100.00%
Table 2 486,197 5.45%
453,311 4.96%
Total 571,151 5.48%
912,675 8.29%
949,880 8.48%
987,987 7.96%
824,451 5.91%
807,146 5.44%
826,919 4.22%
c 4,188,804 28.22%
294,762 1.99%
283,690 1.45%
260,586 1.28%
811,981 4.00%
6,459,178 32.95%
5,637,367 27.77%
100
CITY OF LEESBURG, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Total Current Fiscal Tax Tax Year Levy (1)
Collections 1993 2,176,503 $
2,077,060 1994 2,292,151 $
2,149,997 1995 2,368,087 $
2,274,288 1996 2,422,689 $
2,305,607 1997 2,486,788 $
2,336,056 1998 2,543,785 $
2,328,419 1999 2,657,361 2,426,663 2000 2,697,639 $
2,605,488 2001 2,888,432 $
2,772,878 2002 3,009,591 2,791,790 Percent of Current Taxes Collected 95.43%
93.80%
96.04%
95.17%
93.94%
91.53%
91.32%
96.58%
96.00%
92.76%
Delinquent Tax Collections 56,464 65,087 26,188 16,415 29,880 68,795 232,817 7,935 16,364 42,742 Total Tax Collections 2,133,524 2,215,084 2,300,476 2,322,022 2,365,936 2,397,214 2,659,480 2,613,423 2,789,242 2,834,532 Ratio of Total Tax Collections to Total Tax Levy 98.03%
96.64%
97.14%
95.84%
95.14%
94.24%
100.08%
96.88%
96.57%
94.18%
Notes:
(1) Source: Lake County Property Appraiser 101 Table 3
CITY OF LEESBURG, FLORIDA PROPERTY TAX RATES ALL DIRECT AND OVERLAPPING GOVERNMENTS (1)(2)
LAST TEN FISCAL YEARS County 4.864 5.135 5.135 4.927 4.909 4.733 4.733 4.733 5.117 5.117 Ambulance District 0.222 0.222 0.222 0.222 0.158 0.158 0.268 0.316 0.550 0.529 Northwest Hospital District 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Water Conservation Authority 0.740 0.517 0.400 0.384 0.384 0.384 0.384 0.500 0.500 0.500 Water Management District Total 0.358 20.689 0.470 0.482 0.482 0.482 0.482 0.482 0.482 0.472 0.462 20.782 20.254 21.193 20.661 20.357 20.557 20.273 20.634 20.310 Notes: (1) Source: Lake County Property Appraiser.
(2) Rates are stated as an amount per $1,000 of assessed value.
102 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 City 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 4.500 School District 9.005 8.938 8.515 9.678 9.228 9.100 9.190 8.742 8.495 8.202 Table 4
CITY OF LEESBURG, FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Assessed Value (1)
$ 352,537,183
$ 358,897,370
$ 370,400,030
$ 383,701,275
$ 399,491,127
$ 412,304,589
$ 425,773,469
$ 444,148,201
$ 484,548,724
$ 508,568,311 Estimated Actual Value
$ 359,731,819
$ 384,258,426
$ 370,400,030
$ 383,701,275
$ 405,163,415
$ 417,312,337
$ 425,773,469
$ 444,148,201
$ 466,809,946
$ 508,568,311 Assessed Value (1)
$ 130,832,240
$ 150,270,237
$ 155,590,025
$ 154,389,802
$ 152,676,397
$ 152,562,892
$ 164,333,794
$ 155,005,102
$ 156,992,080
$ 159,860,605 Estimated Actual Value
$ 133,502,286 $
$ 160,888,905 $
$ 155,590,025 $
$ 154,389,802 $
$ 154,844,216 $
$ 154,415,883 $
$ 164,333,794 $
$ 155,005,102
$ 151,244,778 $
$ 159,860,605 Centrally Assessed Property (2)
Assessed Estimated Value (1)
Actual Value 297,964 199,314 251,544 284,266 452,036 418,085 417,391 321,959 332,879 369,119 304,045 213,398 251,544 284,266 458,454 423,163 417,391 321,959 320,693 369,119 Notes: (1) Source: Lake County Property Appraiser.
(2) Centrally assessed property consists of railroad by the State of Florida.
and telegraph systems which are assessed (3) Source:
State of Florida, Department of Revenue, Division of Ad Valorem Tax, (http://sun6.dms.state.fl.us/dor/property) Florida Property Valuations and Tax Data Book.
103 Real Property Personal Property Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Table 5 Exempt Assessed Value (1) 171,340,305 175,186,234 181,821,009 202,938,364 249,811,011 282,714,883 234,178,498 284,449,960 279,831,681 278,372,434 Estimated Actual Value 174,837,046 187,565,561 181,821,009 202,938,364 253,358,023 286,148,667 234,178,498 284,449,960 269,587,361 278,372,434 Assessed Value (1) 655,007,692 684,553,155 708,062,608 741,313,707 802,430,571 848,000,449 824,703,152 883,925,222 921,705,364 947,170,469 Total Estimated Actual Value 668,375,196 732,926,290 708,062,608 741,313,707 813,824,108 858,300,050 824,703,152 883,925,222 887,962,778 947,170,469 Ratio of Total Assessed Value to Total Estimated Actual Value (3) 98.00 93.40 100.00 100.00 98.60 98.80 100.00 100.00 103.80 100.00 104
CITY OF LEESBURG, FLORIDA COMPUTATION OF OVERLAPPING GENERAL OBLIGATION DEBT SEPTEMBER 30, 2002 Neither the City of Leesburg, Florida, nor any of its overlapping governments had any general obligation debt outstanding as of September 30, 2002.
105 Table 6
CITY OF LEESBURG, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION AND SPECIAL REVENUE BONDED DEBT TO TOTAL GENERAL GOVERNIENTAL EXPENDITURES (1)
LAST TEN FISCAL YEARS Fiscal Year Principal Debt Service (2)
Interest Other Total 1993 160,000 $
360,060 $
1994 170,000 $
350,880 $
1995 180,000 $
340,880 $
1996 190,000 $
329,780 $
1997 200,000 $
317,780 $
1998 210,000 $
304,760 $
1999 225,000 $
161,368 $
2000 385,813 $
2001 55,000 $
383,805 $
2002 120,000 $
379,005 $
7,010 $
527,070 2,500 $
523,380 1,120 $
522,000 1,200 $
520,980 4,302 $
522,082 1,200 $
515,960 386,368 490 $
440,813 450 $
438,805 425 $
499,005 Total General Governmental Expenditures (3) 12,541,865 13,517,450 16,202,959 15,781,902 16,924,777 18,901,652 21,087,681 19,267,781 23,046,920 25,882,431 Ratio of Debt Service to Total General Governmental Expenditures 4.20 3.87 3.22 3.30 3.08 2.73 1.83 2.29 1.90 1.93 Notes: (1) Includes Refunding and Capital Improvement Revenue Bonds, Series 1987, which are special obligation bonds.
(2) Source: City of Leesburg, Finance Department, Accounting Division.
(3) Includes general, special revenue, debt service, and capital projects funds.
Excludes operating transfers out.
106 Table 7
CITY OF LEESBURG, FLORIDA PUBLIC IIPROVEMENT REVENUE BONDS SERIES 1987 AND SERIES 1999 (REFUNDING)
REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Gross Fiscal Sales Tax Year Revenues (1)
Guaranteed Portion-State Revenue Sharing (2)
,Miscellaneous Revenues (3) 1993 495,787 309,234 1994 527,512 309,234 16,353 18,959 1995 544,695 309,234 29,236 1996 568,196 309,234 28,926 1997 586,849 309,234 34,508 1998 634,020 309,234 41,931 1999 687,104 309,234 32,759 2000 728,963 309,234 2001 737,543 309,234 2002 797,754 309,234 7,979 7,547 4,011 821,374 855,705 883,165 906,356 930,591 985,185 1,029,097 1,046,176 1,054,324 1,110,999 Notes: (1) Gross sales tax revenues are defined pursuant to Resolution 5729 as the proceeds of the local government half-cent sales tax as described in Part VI, Chapter 218, Florida Statutes.
(2) Guaranteed entitlement is the portion of state revenue sharing funds available to the City that are assigned, pledged, or set aside as a trust for the payment of principal or interest on the bonds pursuant to Part II of Chapter 218, Florida Statutes.
(3) Includes interest earnings and other miscellaneous revenues in the debt service fund.
107 Total Available Revenues Direct Operating Expenses
Table 8 Debt Service Requirements Net Revenue Available for Debt Service 821,374 855,705 883,165 906,356 930,591 985,185 1,029,097 1,046,176 1,054,324 1,110,999 Principal Interest 160,000 360,060 170,000 350,880 180,000 340,880 190,000 329,780 200,000 317,780 210,000 304,760 225,000 161,368 385,813 55,000 383,805 120,000 379,005 Other Debt Service Total 7,010 527,070 2,500 523,380 1,120 522,000 1,200 520,980 4,302 522,082 1,200 515,960 386,368 490 386,303 450 439,255 425 499,430 Debt Coverage 1.56 1.63 1.69 1.74 1.78 1.91 2.66 2.37 2.40 2.22 108
CITY OF LEESBURG, FLORIDA CONIBINED UTILITY FUNDS SERIES 1984 AND 1999 (REFUNDING)
REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Gross Revenues (1)
Less:
Operation and Maintenance Expenses (2)
Net Pledged Revenues Available for Debt Service (3) 38,817,205 39,727,736 44,364,812 47,215,501 47,672,195 49,884,307 47,858,976 49,259,516 56,841,768 52,747,595 26,635,527 27,399,337 29,331,332 30,950,655 33,418,639 34,950,378 31,621,046 33,179,030 41,905,296 40,670,598 12,181,678 12,328,399 15,033,480 16,264,846 14,253,556 14,933,929 16,237,930 16,080,486 14,936,472 12,076,997 Notes: (1) Gross revenues are defined pursuant to Ordinance 99-28, which authorized the issuance of the bonds as all income and earnings (excluding contributed capital) derived by the City from the ownership, operation, leasing or use of the system, and investment income, excluding capital expansion and system improvements.
(2) Operation and maintenance expenses are defined as the cost of operation and maintenance as defined pursuant to Ordinance 99-28, authorizing issuance of the bonds as current expenses, paid or accrued, less depreciation expense.
(3) Pledged revenues are defined as gross revenues less operating expenses.
109 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Principal 220,000 235,000 955,000 1,020,000 1,090,000 1,160,000 1,245,000 1,079,999 485,000 505,000 Debt Service Requirements Sinking Interest Fund 1,516,507 1,502,427 1,487,152 1,424,122 1,355,272 1,280,062 1,198,862 4,353,397
$ (3,805,000) 1,396,561 1,377,161 Total
$ 1,736,507
$ 1,737,427
$ 2,442,152
$ 2,444,122
$ 2,445,272
$ 2,440,062
$ 2,443,862
$ 1,628,396
$ 1,881,561
$ 1,882,161 110 Table 9 Debt Coverage 7.02 7.10 6.16 6.65 5.83 6.12 6.64 9.88 7.94 6.42
CITY OF LEESBURG, FLORIDA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Unemployment Rate (4)
Population (1)
Per Capita Income (2)
School Enrollment (3)
Lake County United Florida States 14,963 15,005 15,014 15,352 15,409 15,658 15,624 15,956 16,033 16,104 18,717 19,189 19,974 20,801 21,652 22,344 23,289 23,976 N/A (5)
N/A (5) 4,975 4,997 5,157 5,403 5,427 5,439 5,588 4,845 4,366 4,880 9.9%
6.0%
7.1%
4.4%
3.9%
3.2%
2.5%
2.5%
3.4%
4.7%
7.0%
6.6%
5.5%
5.1%
4.8%
4.3%
3.9%
3.6%
3.4%
5.5%
6.9%
6.1%
5.6%
5.4%
4.9%
4.5%
4.2%
4.0%
4.8%
5.4%
Notes:
(1) Source: University of Florida, Bureau of Economic and Business Research.
(2) Source: Lake County information from Florida Statistical Abstract, Table 5.10 - Personal Income.
(3) Source:
Lake County School Board, Board of Education.
Figures represent actual membership in grades pre-kindergarten through 12 on the 180th day of the 180-day school year which ended during the fiscal year.
(4) Source: State of Florida, Department of Labor and Employment Security, Bureau of Labor Market Information (http://lmi.floridajobs.org/laus/laus.htm), United States Bureau of Labor Statistics (http://www.bls.gov/cps/home.htm)
(5) Information is not available.
111 Fiscal Year Table 10 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
CITY OF LEESBURG, FLORIDA PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS LAST TEN FISCAL YEARS Real Property Value (1) 655,007,692 684,553,155 708,062,608 741,313,707 802,430,571 848,000,449 824,703,152 883,925,222 921,705,364 947,170,469 Construction (1) 3,416,633 13,696,939 5,298,985 34,419,242 13,692,566 8,891,404 14,319,390 19,164,956 17,114,388 23,480,364 Bank Deposits (2)
$ 1,632,882,000
$ 1,701,038,000
$ 1,735,416,000
$ 1,776,670,000
$ 2,032,242,000
$ 2,493,189,000
$ 2,578,694,000
$ 2,740,272,000
$ 3,018,316,000
$ 3,123,279,000 Notes:
(1) Source: Lake County Property Appraiser. Real property values represent just values of real property, including subsurface rights.
(2) Source: Florida Bankers Association. Figures shown represent total bank deposits in Lake County at September 30 of each year.
112 Table 11 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Table 12 CITY OF LEESBURG, FLORIDA CORPORATE LIMITS AND ANNEXATIONS LAST TEN FISCAL YEARS Annexation Acres 658.21 13.86 157.68 42.74 1,547.18 158.96 496.19 193.30 3,720.96 126.22 Corporate Limits Acres Square Miles 12,560.38 19.63 12,574.24 19.65 12,731.92 19.89 12,774.66 19.96 14,321.84 22.38 14,480.80 22.63 14,976.99 23.40 15,170.29 23.70 18,891.25 29.52 19,017.47 29.71 Notes:
(1) Source: City of Leesburg, Planning and Zoning Department, based annexations approved.
113 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Table 13 CITY OF LEESBURG, FLORIDA PRINCIPAL TAXPAYERS (1)
SEPTEMBER 30,.2002 Taxpayers Sprint Cutrale Citrus Juices, U.S.A., Inc.
Lake Port Properties Wal-Mart Stores, Inc.
Huntington Banks Lowe's Home Centers, Inc.
Publix Super Markets, Inc.
Bulldog Investments Rodgers Brothers Land Company SunTrust Banks of Central Florida First Federal Savings Bank of Lake County Home Properties, Inc.
Universal Beverages Holdings Corporation Type of Business Telecommunications Citrus Processing Retirement Community Department Store Banking Home Improvement Center Grocery Store Real Estate Development Real Estate Development Banking Banking Shopping Center Beverage Bottling Subtotal All Others Total 2001 Assessed Valuation (2) 45,428,482 36,482,498 26,024,836 8,557,440 7,759,416 7,450,471 6,175,913 4,912,398 4,487,588 4,205,389 4,152,862 4,007,326 3,974,990 163,619,609 505,178,426 668,798,035 Percentage of Total Assessed Valuation 6.79%
5.46%
3.89%
1.28%
1.16%
1.11%
0.92%
0.74%
0.67%
0.63%
0.62%
0.60%
0.59%
24.46%
75.54%
100.00%
Notes:
(1) Source: Lake County Property Appraiser.
(2) Taxable Values (Florida Statutes Section 193.01 1) are as of January 1, 2001, and represent total property values (including real property, personal property, and centrally assessed property) after exemptions.
114
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Table 14 CITY OF LEESBURG, FLORIDA PRINCIPAL EMPLOYERS (1)
(100 OR MORE EMPLOYEES)
SEPTEMBER 30, 2002 Name of Employer Leesburg Regional Medical Center Sprint-Florida Incorporated Lake County School Board Wal-Mart Stores, Inc.
City of Leesburg Lifestream Behavioral Center Lake Port Properties Dura-Stress, Inc.
Cutrale Citrus Juices, U.S.A., Inc.
Hewitt Contracting Avante Group, Inc.
Lake Sumter EMS, Inc.
Lake Sumter Comnunity College Leware Construction Company Home Depot USA, Inc.
First Baptist Church of Leesburg Sears, Roebuck and Company, Inc.
Pringle Development, Inc.
Leesburg Daily Commercial, Inc.
Number of Employees 1,902 719 524 465 461 400 400 384 275 250 190 182 151 150 140 120 118 106 105 Type of Business Hospital Telecommunications Educational institution Retail sales City governmental services Mental health services provider Retirement community Concrete fabrication Citrus processing General contractor Nursing rehabilitation Emergency medical transport Two-year state community college General contractor Retail sales Church ministry services Retail sales Residential communities builder Newspaper Notes:
(1) Source: Economic Development Commission of Mid Florida, Inc.
115
CITY OF LEESBURG, FLORIDA MISCELLANEOUS STATISTICS SEPTEMBER 30, 2002 Date Created July 12, 1875 Form of Government Commission/Manager Area of Government Miles of Streets (City Maintained):
Paved Unpaved 29.71 square miles 80.87 miles 3.23 miles Electric System:
Primary Electric Lines Within the City Daily Average Consumption Number of Residential Customers 371 5.1 15,809 Gas System:
Gas Mains Gate Stations Daily Average Consumption Number of Residential Customers 211 2
0.2 8,346 Water System:
Water Mains Daily Average Consumption Number of Residential Customers Maximum Plant Capacity Per Day Deep Wells 332 37 10,798 7,940,000 15 Sewer System:
Sewer Force Mains Sewer Gravity Lines Lift Stations Disposal Plants Number of Residential Customers Maximum Plant Capacity Per Day 103 70 100 2
9,439 6,500,000 Building Permits:
Perrnits Issued Within the City Constnuction Value of Permits Issued Recreation and Culture:
Parks Managed Total Recreation Acreage Libraries Maintained Volumes Maintained miles kwh miles miles therms miles gallons gallons miles giles gallons 311
$43,973,062 10 226 1
170,427 acres volumes 116 Table 15
CITY OF LEESBURG, FLORIDA Table 15 (Concluded)
MISCELLANEOUS STATISTICS SEPTEMBER 30, 2002 Fire Protection:
Stations 2
Employees 38 Police Protection:
Stations 1
Employees - Sworn 64 117
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OTHER REPORTS SECTION
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CITY OF LEESBURG, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2002 Federal Grantor/Pass-Through Grantor/Program Title Grant Number U.S. Department of Housing and Urban Development Direct Programs:
Section 8 Rental Voucher Indirect Programs:
Passed Through Florida Department of Community Affairs:
Community Development Block Grant Community Development Block Grant Total Department of Housing and Urban Development FLI 15VO 00-DB-6B-06-45-02-H09 00-DB-6M-06-45-02-G 11 14.857 14.228 14.228 788,936 750,000 2,169,000 741,631 7,500 333,600 1,082,731 U.S. Department of Justice Direct Programs:
Community-Oriented Policing Services (COPS FAST)
COPS MORE Indirect Programs:
Passed Through Florida Department of Law Enforcement:
DARE/SRO Local Law Enforcement Block Grant Local Law Enforcement Block Grant Local Law Enforcement Block Grant Total Department of Justice 95-CF-WX-0121 00-CM-WX-0063 02-C3-2H-06-45-02-031 99-LB-VX-7145 00-LB-BX-1315 01-LB-BX-3831 U.S. Department of Transportation Federal Aviation Administration Airport Improvement Program - Taxiway Extension 407621-1-94-01 20.106 38,402 11,769 32,775 12,816 27,524 19,021 142,307 55,305 13,094 Total Expenditures of Federal Awards 1,238,132 Note to the Schedule of Expenditures of Federal Awards Basis of Presentation The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements.
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CFDA Number Program or Award Amount Expenses 16.710 16.710 16.579 16.592 16.592 16.592 373,163 25,907 32,775 50,778 58,616 67,183 I
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I-CITY OF LEESBURG, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2002 State Grantor/Program Title Florida Department of Environmental Protection Florida Recreation Development Assistance Programs:
Carver Heights Park Carver Heights Park Lakeshore Drive Total Florida Department of Environmental Protection Grant Number F02359 F0260 S0034 CSFA Number 37.017 37.017 37.017 Program or Award Amount 50,000 134,050 62,099 Expenses 50,000 16,524 939 67,463 Florida Department of Transportation Aviation Development Grants:
Land Acquisition Taxilane Construction T-Hangar Construction Air Traffic Control Tower Construction Fuel Farm County Road 470/Turnpike Interchange Lighting Total Florida Department of Transportation 404917-1-44-01 407609-1-94-01 247506-1-84-01 247556-1-84-01 413012-1-94-01 404214-1-52-01 55.004 55.004 55.004 55.004 55.004 55.009 2,625,000 160,000 39,223 400,000 480,000 634,250 Total Expenditures of State Awards 2,166,897 35,906 39,223 18,000 130,499 0
2,242,026
$ 2,309,489 Note to the Schedule of Expenditures of State Financial Assistance Basis of Presentation The accompanying schedule of expenditures of state financial assistance is presented on the accrual basis of accounting. The infornation in this schedule is presented in accordance with the requirements of Chapter 10.550, Rules of the Auditor General, Local Govenmental Entity Audits. Therefore, amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements.
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Purvis Gray &
Company INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable City Commission City of Leesburg Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida (the City), as of and for the year ended September 30, 2002, and have issued our report thereon dated January 24, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the intemal 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 City Commission in a separate letter dated January 24, 2003.
Certified Public Accountants
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- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITLfTES OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 120
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Honorable City Commission City of Leesburg Leesburg, Florida INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Concluded)
This report is intended solely for the information and use of the City Commission, management, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.
January 24, 2003 Ocala, Florida 121
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Purvis Gray &
Company INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER COMPLIANCE APPLICABLE TO EACH MAJOR FEDERAL AWARDS PROGRAM AND STATE FINANCIAL ASSISTANCE PROJECT Honorable City Conunission City of Leesburg Leesburg, Florida Compliance We have audited the compliance of the City of Leesburg, Florida (the City) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2002. The City's major federal programs and state financial assistance projects are identified in the summary of audit results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs and state financial assistance projects is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program and state financial assistance projects occurred. An audit includes exarnining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination on the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs and state financial assistance projects for the year ended September 30, 2002.
Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs.
Certified Public Accountants
- PO. 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 1727 2nd Street
- Sarasota, Florida 34236 * (941) 365-3774
- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 122
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Honorable City Commission City of Leesburg Leesburg, Florida INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER COMPLIANCE APPLICABLE TO EACH MAJOR FEDERAL AWARDS PROGRAM AND STATE FINANCIAL ASSISTANCE PROJECT (Concluded)
Internal Control Over Compliance (Concluded)
In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program or state financial assistance project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program or state financial assistance project being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the City Commission, management, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.
January 24, 2003 Ocala, FloridaI 123
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CITY OF LEESBURG, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS Summary of Audit Results I.
Type of Audit Report Issued on General Purpose Financial Statements Unqualified Opinion.
II.
Reportable Conditions and/or Material Weaknesses in Internal Control Audit disclosed no instances of reportable conditions in internal control or reportable conditions which were material weaknesses in internal control.
III.
Noncompliance Material to Auditee General Purpose Financial Statements Audit disclosed no material instances of noncompliance.
IV.
Reportable Conditions and/or Material Weaknesses in Internal Control Over the Major Programs Audit disclosed no instances of reportable conditions in internal control over the major programs or reportable conditions which were material weaknesses in internal control over the major programs.
V.
Type of Audit Report Issued on Compliance With Requirements Applicable to the Major Programs Unqualified Opinion.
VI.
Audit Findings Relative to Major Federal Award Programs and State Financial Assistance Projects The audit disclosed no findings required to be reported.
VII.
Programs/Projects Tested as Major Programs/Projects Federal Program U.S. Department of Housing and Urban Development:
Section 8 Rental Voucher (14.857)
State Project Florida Department of Transportation:
Aviation Development Grants (55.004) 124
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CITY OF LEESBURG, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS (Concluded)
- 1.
Summary of Audit Results (Concluded)
VIII. Dollar Threshold Used to Distinguish Between Type A and Type B Programs
$300,000 IX.
Auditee Qualification as Low-Risk Auditee The auditee qualifies as a low-risk auditee per criteria set forth in Section.530 of OMB Circular A-133.
- 2.
Findings Related to the General Purpose Financial Statements Required to be Reported Under GAGAS The audit disclosed no findings which are required to be reported under GAGAS.
- 3.
Findings and Questioned Costs for Federal Awards and State Financial Assistance Projects The audit disclosed no findings which are required to be reported.
125
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CITY OF LEESBURG, FLORIDA
SUMMARY
SCHEDULE OF PRIOR AUDIT FINDINGS IN ACCORDANCE WITH OMB CIRCULAR A-133 1.
Status of Prior Audit Findings There were no audit findings reported in our prior year's audit schedule of findings and questioned costs.
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CITY OF LEESBURG, FLORIDA CORRECTIVE ACTION PLAN IN ACCORDANCE WITH OMB CIRCULAR A-133 I.
Corrective Action Planned for Current Year Audit Findings There are no current year audit findings included in the current year's schedule of findings and questioned costs.
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Purvis Gray &
Company INDEPENDENT AUDITORS' REPORT ON EXAMINATION OF MANAGEMENT'S ASSERTION ABOUT COMPLIANCE WITH SPECIFIED REQUIREMENTS Honorable City Commission City of Leesburg Leesburg, Florida We have examined management's assertion included in its representation letter dated January 24, 2003, that the City of Leesburg, Florida (the City) complied with the allowable cost requirements of the grants and aids appropriations identified in the schedule of expenditures of federal awards and state financial assistance for the year ended September 30, 2002. Management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the City's compliance based on our examination.
Our examination was made in accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements.
In our opinion, management's assertion that the City complied with the allowable cost requirements of the grants and aids appropriations identified in the schedule of expenditures of federal awards and state financial assistance during the fiscal year ended September 30, 2002, is fairly stated, in all material respects.
This report is intended solely for the information and use of the City Commission, management, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.
January 24, 2003 Ocala, Florida a0d Certified Public Accountants
- PO. 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 1727 2nd Street
- Sarasota, Florida 34236 * (941) 365-3774
- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTtTUTES OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 128
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Purvis Gray &
Company MANAGEMENT LETTER Honorable City Commission City of Leesburg Leesburg, Florida We have audited the financial statements of the City of Leesburg, Florida, as of and for the fiscal year ended September 30, 2002, and have issued our report thereon dated January 24, 2003.
We have issued our independent auditors' report on compliance and on internal control dated January 24, 2003. Disclosures in that report, if any, should be considered in conjunction with this management letter.
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. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the state of Florida and require that certain items be addressed in this letter.
The Rules of the Auditor General [Section 10.554(1)(g)1.(a)] require that we comment as to whether or not inaccuracies, shortages, defalcations, fraud, and/or violations of laws, rules and regulations, and contract provisions reported in the preceding annual financial audit report have been corrected. There were no such matters disclosed in the preceding audit report.
The Rules of the Auditor General [Section 10.554(1)(g)1.(b)] require that we comment as to whether or not recommendations made in the preceding annual financial audit report have been followed. The recommendations made in the preceding annual financial audit report have been addressed by the City of Leesburg, Florida.
The Rules of the Auditor General [Section.10.554(1)(g)2.] require that we determine whether the City of Leesburg, Florida complied with Section 218.415, Florida Statutes, regarding investment of public funds.
Our audit disclosed no matters requiring comment as outlined in Section 218.415, Florida Statutes.
The Rules of the Auditor General [Sections 10.554(1)(g)3. and 4.(a), (b), and (c)] require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal control:
recommendations to improve financial management, accounting procedures, and internal controls; violations of laws, rules, and regulations which may or may not materially affect the financial statements; illegal or improper expenditures that may or may not materially -
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 1727 2nd Street
- Sarasota, Florida 34236 * (941) 365-3774
- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 129
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Honorable City Commission City of Leesburg Leesburg, Florida MANAGEMENT LETTER (Concluded) affect the financial statements; improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); failures to properly record financial transactions; and other inaccuracies, shortages, and defalcations and instances of fraud discovered by, or that come to the attention of, the auditor. Our audit disclosed the following matter required to be disclosed by Rules of the Auditor General [Sections 10.554(1)(g)3. and 4.].
The Rules of the Auditor General [Section 10.554(1)(g)5.] also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. Please see note 1 of the accompanying general purpose financial statements.
As required by the Rules of the Auditor General [Section 10.554(1)(g)6.(a)], the scope of our audit included a review of the provisions of Section 218.503(1), Florida Statutes, "Determination of Financial Emergency." In connection with our audit, we determined that the City of Leesburg, Florida, is not in a state of financial emergency as a consequence of the conditions described by Section 218.503(1),
Florida Statutes.
As required by the Rules of the Auditor General [Section 10.554(1)(g)6.(b)], we determined that the financial report for the City of Leesburg, Florida, for the fiscal year ended September 30, 2002, filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2002.
The Rules of the Auditor General [Section 10.554(1)(g)6.(c)] require that we disclose that we have applied financial condition assessment procedures pursuant to Rule 10.556(8).
This management letter is intended solely for the information and use of the City Commission, management, the State of Florida, and other governmental agencies, and is not intended to be and should not be used by anyone other than these specified parties.
January 24, 2003 Ocala, Florida o 1c A/
130
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Purvis Gray &
Company MANAGEMENT LETER COMMENTS Honorable City Commission City of Leesburg Leesburg, Florida During the course of our audit, the following item came to our attention. These items involve primarily operational matters which, if improved, will result in more efficient and effective operations:
Prior Year Recommendation Governmental Accounting Standards Board (GASB) Statement No. 34 The GASB has issued Statement No. 34, which becomes effective for the 2003 fiscal year end and will radically change the financial reporting process previously followed by the City of Leesburg, Florida (the City). The City has anticipated implementation and has addressed a number of critical issues; however, the most significant task remaining to be completed is the inventory and valuation of the previously unrecorded infrastructure of the City. We anticipate this will be a joint process involving the City's Engineering Department and an external consulting engineer. With the effective date of implementation fast approaching, we recommend that the City review its current timetable to ensure this important task is completed within the time frame necessary to ensure a smooth implementation of the new standard.
Current Year Recommendations Bulk Power Cost Adjustment The City's electric fund will be experiencing higher than normal purchased power costs during 2003, as a result of higher natural gas and oil prices being experienced by the electric generation plants that supply the City's power. As a result, the City will have to monitor its Bulk Power Cost Adjustment closely to ensure that all purchased power costs incurred are properly passed on to the City's customers. Because of unusual volatility of expected fuel costs, failure to recover all power costs incurred could have a severely negative impact on the working capital of the electric fund. We recommend that the City work closely with its purchased power supplier (FMPA) to forecast upcoming costs and adjust the monthly Bulk Power Cost Adjustment factor accordingly.
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 1727 2nd Street
- Sarasota, Florida 34236 * (941) 365-3774
- FAX (941) 365-0238 MEMBERS OF AMERICAN AND FLORIDA INSTITUTES OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES AND S.E.C. PRACTICE SECTIONS 131
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Honorable City Commission City of Leesburg Leesburg, Florida MANAGENENT LETTER COMMENTS (Concluded)
Current Year Recommendations (Concluded)
Pension Plans All three of the City's employee retirement plans have experienced significant depreciation in the fair value of their investment portfolio's over the past couple of years as a result of the poor performance of the financial markets. Because the funded status of all three plans was good prior to the decline, the plans remain relatively strong, with plan assets exceeding the actuarial accrued liability of each plan.
However, continued investment deterioration could reverse this relationship and require significant increases in future City contributions to the plans. Accordingly, we recommend that the City consult with an independent investment manager to determine if a more defensive investment posture is prudent under current market conditions.
Travel Reinbursement Rates A recent Attorney General Opinion (AGO) reversed a previously issued AGO that allowed municipalities, through the use of the Municipal Home Rule Powers Act, to enact travel and per diem rates separate from those found in Section 112.016, Florida Statutes, which regulates travel for other state public agencies.
The apparent effect of this new AGO is to require municipalities to follow the rates found in the statute, which may require amendment of existing travel policies. Accordingly, we recommend that the City consult with its legal counsel to determine the effect of the new AGO on the City's current travel policies.
Grants Administrator The City is the recipient of many different federal and state grants that have been of great benefit. To ensure the continued high level of compliance with grant requirements that the City has established to-date, we recommend that the City consider creation of a grants administrator position within the Finance and Accounting Department.
These management letter comnents are intended solely for the information and use of the City Commission, management, the State of Florida, and other governmental agencies, and is not intended to be and should not be used by anyone other than these specified parties.
We would like to take this opportunity to express our appreciation for the courtesies which have been extended to our staff. If you have any questions or comments about the contents of this letter, or the information accompanying this letter, please do not hesitate to contact us.
January 24, 2003 Ocala, Florida d,
),
aol1l 132
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March 17, 2003 Mr. William 0.Mo Auit-General State f Flo rida
-_Post Offic'e Box '
T~allahassee, Flori
Dear Mr. Monroe:
Thank you
-'Windependent audil
-~
~of Leesburg, Floril Current Year Rec
- nroe, CPA 735 da 32302 for the opportunity to respond to the recommendations made by our iors, Purvis Gray & Company, in connection with their audit of the City da for the fiscal year ending September 30, 2002.
commendations
- 1.
Bulk Power Cost Adjustment (BPCA)
As of September 30, 2002, the balance available in the deferred revenue accountgrewto$1,134,101. FloridaMunicipalPowerAgency(FMPA)has passed on to us projected rate increases for April and August 2003, which will be used to consider the BPCA rate in the coming months. This rate will be adjusted monthly as'necessary and will continue to be monitored throughout the year by staff.
- 2.
Pension Plans During the upcoming fiscal year, the'City will consider improvements in the
-_general employees pension plan-to protect current investments.- The Police and Fire Pension plans have their own boards, but will be advised of this comment.
3.--
Travel Reimbursement Rates-The City will contact the City Attorney to determine the effect of the AGO opinion on our current policy, established by Code of Ordinances Section 2-227, and any future amendments to that ordinance.
- 4.
Grants Administrator This position would only enhance the quality of reporting to grant agencies to ensure compliance and will be considered in the fiscal year 2003-04 budget process.- It is unlikely, however,'that the City will be able to add any additional positions in the near future in light of the general economy, the limitation on state and local revenues caused by reduced tourism, and the tight budget conditions currently being experienced.
- ~ :1EESBURG-
- he Lakefront City Post Off;ce Box 490630 Leeslrg, Flo.ida 34749-0630 352/728-9700
- Fax 352/728-9734
- TDD 352/728-4138
- AN EQUAL OPPORTUNITY/AFFIRALTIVE ACTION EMPLOYER -
_ V,
J I
~j I
I
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Mr. William 0. Monroe, CPA Auditor General March 17, 2003 Page 2 Prior Year Recommendations
- 1.
Governmental Accounting Standards Board (GASB) Statement No. 34 As noted by our auditors, the City agrees that the implementation of Governmental Accounting Standards Board (GASB) Statement Number 34, effective September 30, 2003 will dramatically affect the presentation of financial information, including, but not limited to, basic financial statements, both government-wide financial statements and fund financial statements, notes to the financial statements, the required supplementary information, and management's discussion and analysis.
The critical issue, "inventory and valuation of previously unrecorded infrastructure assets (i.e., roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems), is on schedule for completion by September 30, 2003.
The bid was let and the committee consisting of engineering and accounting met to select the consultant. Once the Commission approves the contract, the project should take 12 weeks to complete. The City will schedule the auditors to participate in the first strategy meeting with the consultant to determine the approach to this requirement.
As always, should you have any questions or require any additional information, please contact me.
cerel@('St D vid L Connelly, Mayor City of Leesburg, Florida 134
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