ML20108C712

City of Leesburg Conprehensive Annual Financial Rept FY95

ML20108C712
Person / Time
Site:	Crystal River
Issue date:	09/30/1995
From:	Williams J LEESBURG, FL
To:
Shared Package
ML20108C682	List: 3F0496-13, Forwards Annual Financial Rept for 1995 & Annual Financial Repts for Ten Participating Owners of Crystal River 3 ML20108C685 ML20108C689 ML20108C699 ML20108C712 ML20108C734 ML20108C739 ML20108C751 ML20108C752
References
NUDOCS 9605070112
Download: ML20108C712 (163)

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., CiTV OF LEESBURG COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30.1995 l 9605070112 960429 I 1

PDR ADOCK 05000302 l I PDR l

Comprehensive Annual Financial Report City of Leesburg, Florida For thefiscal year ended September 30,1995 with Report ofIndependent Auditors i

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i Prepared by:  ;

i James A. Williams,CPA Finance Director c

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Introductory Section l

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City of Leesburg, Florida i

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j Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 I i

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i f Mayor l C. J. Knowles  !

l Mayor- Pro - Tem l i

Sanna Henderson i.

City Commission David L. Connelly C. Robert Lovell William L. Polk City Manager Finance Director l l

Rex Taylor James A. Williams, CPA l

i City Attorney City Auditors R. Dewey Burnsed Ernst & Young LLP i

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City of Leesburg, Florida Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 Table of Contents Introductory Section .

Principal City O ffici als .... . ... .... .......... .. ... ... .. . ...... ........... . .......... .......... ................................ .. .. ........ i Table of Contents ...... . ...... ... . .... ... ....... .. . .. . . ...... . . .... ..... ... ... .... . ................. ... ......... . ....... .. ...... iii - vii Letter of Transmi t tal ... .. .. . . . ... . . ... ... .... ............ . .. .. . .. ..... ... .... .... ......... .... ... . . ........ . .... ....... ...... ...... 1 - 5 Org anization Ch art . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . .. . . . . .. . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . .

Certificate of Achie ve men t . . ............ . .......... .. . .... .. ................. .. ..... .......... .. ........... ... ..... ........... ...... . 9 Financial Section Report of Indepe ndent Auditors. ... ..... .. ...... ... ..... . .. ... .. ............ .. ........ .. ............. ..... .. ......... . ........ 13 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups...............................16 - 19 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types...................................................... 20 - 21 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- All Governmental FundTypes....................................................................................................................22 Combined Statement of Revenues, Expenses and Changes in Retained Earn.ngs/ Fund Balances - All Proprietary Fund Types and Pension T4ust Funds ...... .. ..... ........ ... ... ...... . ...... .......... ... .... .. .. .... ... . .. ............ . ....... ..... .... .. . 24 Combined Statement of Cash Flows - All Proprietary Fund Types..................................... 25 Notes to Financial Statements......... ............................................................................. 26 - 62 Required Supplementary Information Revenues by Source - Expenses by Type - Pension Trust Funds............................ 64 - 65 Pension Benefit Obligation Information - Pension Trust Funds...................................... 66 111

City of Leesburg, Florida Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 Table of Contents Combining and Individual Fund and Account Group Statements and Schedules  ;

General Fund B alance S heet . . . . .. . .. . .. . . . . . . .. . . .. . . .. . .. . . . . . .. . .... . . . ...............................................................68 Statement of Revenues, Expenditures and Changes in Fund B alance - B ud ge t and A c tu al . . . .... . .... . . . . .. ...... . . . . ... ........ ... . ... .. .... . .... .. .. . .. ... . .. .. . .. . .. . ... . . .. .. 69 Schedule of Revenues - Budget and Actual ........................................ ... ........................ 70  ;

Schedule of Expenditures - Budget and Actual - By Department................... .. ............ 71 Special Revenue Funds Co mbinin g B al anc e S heet .. ... . .. . .. .. . .. . .. .. . .. . ... .. . .. . . . . . .. . ... ... .. ... .. . ... . .. . . .. . ...... . .... . . .. . .... . .. .. .. . . 74 Combining Statement of Revenues, Expenditures and Ch an ge s in Fu nd B alances ... . . ... .. . . ... .. .. . .. . ........ . . . .... . .. . . .. . . . .. . ... . . . . ... ... . . . . . . .. ... . . .. .. . . . .. . . ... .. 75 Statements of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Commu nity Development Fund................................................... ........ . .... .............. 76 Housing As sistance Fu nd ... .. .... .. . .... . ....... . . ... ..... .... ... .. .. .. . .. ...... . ... . ...... ... . .. . . .. . . .. . .. ... 77 S tormw ate r Fu n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Afford able Hou sin g Fu nd . . . .... .. .. . . .. ... ... ... .... ........ .. . . .... . .. .. ... .. .. .. . .. . . . .. .... . . . . ... . .... ... . 79 Combining, Individual Fund and Account Group Statements and Schedules (continued)

Enterprise Funds Combining B alance S hee t . . . . .. . . ...... . ....... ... ... .... ........ .. ... .... .... . ... ... .... . . . . . .. . . .. .. .. .. 82 - 8 5 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ... . . .... .. . . . ...... .. .. .. ....... ... .. ... ..... . ..... ......... .... ...... .. . ..... .. .. . .. . ... .. . .. . .. . 86 - 87 iv

City of Leesburg, Florida Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 Table of Contents Combining Statement of Cash Flows..................................... .............. ......... ......... 88 - 89 Internal Service Funds Combini n g B alance S heet .... . .. . . .. . . . .. .. .. .. ..... . . . . . . ..... . ... . ..... . ....... ... .. . . .. . . .... . . .. . ..... . .... .. . . ... . .. 92 Combining Statement of Revenues, Expenses and Changes in Re tain e d E arnin g s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 9 3 Combining S tatement of Cash Flows................. ... ............................................................ 94 Fiduciary Fund Types Combinin g B alance S hee t . . . .. .. .. .... . .... .. .. . . ... . . . ... . . . . ... ..... . ... . ... . .. . .. . .. ... . . . ... .. .. ... ... . .. . ...% - 97 Combining Statement of Revenues, Expenses and Changes in Fund Balances - Pension Trust Funds .............................. ............................................... 98 Statement of Changes in Assets and Liabilities -

AgencyFund.................................................................................................................99 Account Groups Schedule of General Fixed Assets By Source............. .. .... ........ ............................... .102 Schedule of General Fixed Assets - By Function and Activity......................................103 Schedule of Changes in General Fixed Assets - By Fu nction and Acti vity.......... .. . . . ....... ......... .. . . .. . . .......... . .. ... . .... . ........ .. .. .... ........ .. ... . .. .. ....... 105 Schedule of General Long-Term Debt.................................. ......................... ............... 1 %

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City of Leesburg, Florida Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 Table of Contents Statistical Section

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Table l General Government ;xpenditures by Function and Other Uses..............I10 - 112 2 General Revenues by Source and Other Financing Sources......................I12 - 113 3 Property Tax Levies and Collections ......... ............................................... I 14 - 115 4 Assessed Value of Exempt and Taxable Property ............................................... I 16 5 Property Tax Rates - All Direct and Overlapping Governments ................ .. ...117 6 Computation of Overlapping General Obligation Debt..................... .............. .118 7 Ratio of Annual Debt Service Expenditures for General and Special Revenue Bonded Debt to Total General Expenditures ................ ............. ... ............ ... ... ............... ...... ... I 19 8 Combined Utility Funds - Schedule of Revenue B o n d Co ve ra ge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 - 121 9 De mographic S tatistic s . ... ... . . . . . . .. . . . .. . ... . . .. . . . . . . ... . ... .. . . . . . . .. . . . . . .. . ... .. . .. . . . . . . .. . . . . . . 12 2 l 10 Construction Permits and Values .. ............................. ...... ................................. 123 11 Principal Taxpayers.. ..... . .. . . . . ... ... . . . . . . . .... . .. ... . . . . . . . . .. .. . .. . . . . . . .. . .. .. .. . . . . . . .. .. . . . . . ... 124 l

12 Miscel l aneou s S tatis tics . .. . ... . .. . ... . . .. . . . .. .. .... . . . . . .. . . . . ... . . . . . .. .. ... . . . . . .... . .. . . .. .. . . . . . .. . 125 13 Corporate Limits and Annexations .............. ........... ... ........... ... . ................... 126 ,

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City of Leesburg, Florida l

Comprehensive Annual Financial Report For the fiscal year ended September 30,1995 Table of Contents Other Reports Section Report ofIndependent Auditors on Compliance Related to the General Purpose Financial Statements .. . ...... ................. . ........................129

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Report ofIndependent Auditors on Supplementary Information - Schedule of Federal Financial Assistance........................................... . ........131 Schedule of Federal Financial Assistance............................ ...... .. ............................................133 Repon ofIndependent Auditors on Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs.....................................135 - 136 Schedule of Findings and Questioned Costs....................... ........... .... ..... .............. .................137 i Report of Independent Auditors on Compliance with the General Requirements Applicable to Federal Financial Assistance Programs ... ..... .............. .........139 Report of Independent Auditors on Internal Control Structure Used in Administering Federal Financial Assistance Programs.... .................. .........141 - 143 Report ofIndependent Auditors on Supplementary Information -

S chedule of S tate Financial Assistance............. .......... .... .... ................. ............................ 145 Schedule of S tate Financial Assistance............. . ........ ... . ............................... ....... ..... .......... 147 Report of Indepent Auditors on Compliance with Requirements of State Financial Assistance Programs..... .................................... ..............149 vii

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LEESBURG l The Lake ont City l March 25, 1996 l

To the Citizens of the CITY OF LEESBURG:

l The comprehensive annual financial report of the CITY OF LEESBURG for the fiscal year ended September 30, 1995, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the l presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

The comprehensive annual financial report is presented in three sections:

introductory, financial, and statistical. The introductory section includes this l transmittal letter, the City's organizational chart and a list of principal l officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis.

This report includes all funds and account groups of the City of Leesburg.

The City provides a full range of services, which include police and fire protection; sanitation services; storm water drainage; the construction and maintenance of streets and infrastructure; recreational activities and cultural events. In addition to general government activities, the City provides a full range of utility services, including electric, natural gas, water and wastewater

! treatment.

post office box 490630 e leesburg, florido 34749M0 on equal opportunity / offirmative action employer phone (352) 728-9700 fox (352) 728-9734

To the Citizens of the City of Leesburg, Florida ECONOMIC CONDITION AND OUTLOOK The City of Leesburg is located in the central part of the state, and is part of the Greater Orlando Metropolitan Statistical Area (MSA). The economic l condition and outlook of the City has brightened with significant increases in industrial leasing, employment generating activity, and new commercial building activity. New construction continues to show economic growth over previous years. Commercial development provided over 485 full and part time jobs; industrial leasing / expansion created over 210 full time jobs in the past two years, effectively bringing the areas' industrial vacancy rate below one percent.

MAJOR INITIATIVES With the adoption of the 1995 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 have 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. f FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting 3 material is compiled to allow for preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that:

(1) the cost of controls should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Budgeting controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The resolution adopting the annual budget sets forth control of appropriations on a fund total level and prescribes methods for budget amendment.

As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. As with the financial section, all dollar amounts presented in the remainder of this letter are expressed in thousands.

General Government Functions. The following schedule presents a summary of general fund, special revenue funds, debt service fund, and capital projects fund revenues and operating transfers in for the years ended September 30, 1995, and 1994.

To the Citizens of the City of Leesburg, Florida Amount of Percent 1995 Percent 1994 Increase Increase Revenues and Transfers Amount of Total Amount (Decrease) [ Decrease)

Taxes 3,287 22.87 3,114 173 5.56 Licenses and Permits 251 1.75 218 33 15.14 Intergovernmental:

Shared Revenue 1,551 10.79 1,587 ( 36) ( 2.27)

Operating Grants 1,067 7.43 705 362 51.35 Capital Grants 133 0.93 29 104 358.62

, Charges for Services 571 3.97 453 118 26.05 Fines and Forfeitures 189 1.31 172 17 9.88 Other Revenues 816 5.68 490 326 66.53 Operating Transfers In 6,505 45.27 6,070 435 7.17 Total 14,370 100.00 12,838 1,532 11.93 The largest dollar-value increase in revenue came from intergovernmental revenues. This was due to increased operating grants in the Special Revenue Funds. The major portion of this increase came from a Community Development Block Grai.t used for the rehabilitation of owner occupied homes.

Another area of significant revenue increase was in the category of Other Revenues. Increased interest earnings on surplus cash, the sale of City property, and private contributions for special projects were the major reasons for the increase.

The following schedule presents a summary of general fund, special revenue funds, debt service fund, and capital projects fund expenditures and operating transfers out for the years ended September 30, 1995, and 1994.

Amount of Percent 1995 Percent 1994 Increase Increase Expenditures and Transfers Amount of Total Amount (Decrease) (Decrease)

General Government 1,053 6.99 924 129 13.96 Public Safety 4,722 31.35 4,446 276 6.21 Public Works 1,309 8.69 1,321 ( 12) ( .91)

Community Development 208 1.38 196 12 6.12 Human Services 1,071 7.11 675 396 58.67 Physical Environment 457 3.04 219 238 108.68 Culture and Recreation 2,225 14.77 2,085 140 6.71 Capital Projects Fund 2,059 13.67 714 1,345 188.38 Debt Service 539 3.58 569 ( 30) ( 5.27)

Operating Transfers Out 1,418 9.42 1,245 173 13.90 Total 15,061 100.00 12,394 2,667 21.52 The largest increase in expenditures occurred in the Capital Projects Fund.

Expenditures during this fiscal year for the construction of the new City marina totaled $1,535,000.

Human Services in the Special Revenue Funds also increased significantly due to the disbursement of the increased grants received this year.

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To the Citizens of the City of Leesburg, Florida General Fund Balance. The fund balance of the general fund increased by

$198,000 or 4.47 per cent of the fund balance at the beginning of the year.

Enterprise Operations. The City's enterprise operations are comprised of six separate and distinct activities: Electric utility, Gas utility, Water utility, Sanitary Sewer and Wastewater Treatment utility, Sanitation Services, and Communication Services.

The utilities are still experiencing steady growth. Operating revenues increased by 10.47 percent and operating expenses increased by 6.27 percent.

Operating income increased by 26.90 percent. Operating income is 23.37 percent of operating revenues.

Sanitation services experienced a 10.03 percent increase in operating revenues for the year. Operating expenses decreased by 34.43 percent. This resulted in operating income of $80,000 compared to an operating loss of

$1,325,000 for the previous fiscal year. The previous year's loss was due in part to recognition of previously disputed tipping fees and additional costs of the landfill closure. Operations should be more stable in the future.

Communication services is a fiber optics communication system. Operating revenues were $34,000 for this fiscal year. This is a 70.00 percent increase over the previous year. Operating income also increased by 53.85 percent.

Pension Trust Funds Operations. The City operates three defined benefit pension plans: the General Employees' Pension Fund, the Municipal Police  :

Retirement Trust Fund and the Municipal Firemen's Retirement Trust Fund. All  !

investments are managed by outside fund managers. The operations of the three pension plans improved significantly in 1995, due to substantial increases in the value of investments during the year.

i Debt Administration. In 1987, the City issued $6,145,000 in refunding and I capital improvement revenue bonds. Of this amount, $5,015,000 remained outstanding at September 30, 1995.

In 1989, the City issued $21,810,000 of Refunding Utilities Revenue Bonds, l Series 1989 to refund $18,140,000 of the $20,000,000 Refunding Utilities Revenue l Bonds, Series 1984. At year end, there was $20,350,000 outstanding on the 1989 series and $610,000 on the 1984 series, plus $1,348,000 in accrued interest on the 1984 Series Capital Appreciation Bonds. ]

The City had no general obligation bonds outstanding as of September 30, 1995.

During fiscal years 1992 and 1994, the City entered into equipment lease purchase agreements for $676,000. The total minimum lease payments remaining outstanding as of September 30, 1995 is $112,000.

Cash Management. Cash temporarily idle during the year was invested in obligations of the U.S. Treasury, the State Board of Administration Local Government Investment Pool, and repurchase agreements. Interest earned by the City this year, excluding pension trust funds, totaled $2,721,000, which is

$956,000 more than the previous year.

I To ths Citizens of the City of Leesburg, Florida Risk Management. The City maintains two risk management programs for l employee health insurance and workers' compensation. These two separate internal service funds are supported by employer contributions.

The employee health insurance program is also supported by employee contributions. Third party coverage is currently maintained for workers' compensation claims greater than

$400,000 and for employee health insurance claims greater than $45,000.

Independent Audit. The City charter and State statutes require an annual audit by independent certified public accountants. The City Commission selected Ernst & Young LLP. The auditor's report on the general purpose financial

! statements and combining and individual fund statements and schedules is included l in the financial section of this report.

Awards. The Government Finance Officers Association (GFOA) awarded a l Certificate of Achievement for Excellence in Financial Reporting to the' City for ,

l its comprehensive annual financial report for the fiscal year ended September 30,

! 1994. This was the fifth consecutive year that the City has received this

! prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the 1 GFOA to determine its eligibility for another certificate. j Acknowledgements. The preparation of the comprehensive annual financial I report on a timely basis was made possible by the dedicated service of the entire staff of the Finance department. Each member of the department has our sincere appreciation for the contribution made in the preparation of this report.

Also without the interest and support of the members of the City Commission, l preparation of this report would not have been possible.

Sincerely, q q % - /f h lb James A. Williams l

City Clerk / Finance Director i l l

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City of Leesburg, Florida Organization Chart September 30,1995 City Commission ,

City Clerk &

City Manager City Attorney Finance Director t

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• Finance Purchasmg  ;

Department Department Fire Police Parks &

Department Library Department Recreation Community &

Water & Gas Wastewater Engineering & Personnel Electric Economic Department Treatment Public Works Department Department Development

l The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Leesburg for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1994. The Certificate of Achievement is the highest form of recognition for excellence in state  ;

and local govemment financial reporting.

In order to be awarded a Certificate of Achievement, a govemmental 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.

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Certifica:e cd Acaievement  !

for Exce...ence in Financia i Reporting Presented to l

City of Leesburg, F orica For its Comprehensive Annual Financial Report i for the Fiscal Year Ended September 30,1994 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 repons (CAFRs) achieve the highest standards in government accounting and financial reporting.

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, SEAL N President Executive Director 9

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I j Financial Section 1

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l Report ofIndependent Auditors i j General Purpose Financial Statements l Required Supplementary Information Combining, Individual Fund and Account Group Statements and Schedules i

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!JERNST& YOUNG LLP s Cedied Public Accountants a Phone: 407 872 6600 Suite 1700 390 North Orange Avenue Orlando, Ilorida 32801-1671 Report ofIndependent Auditors Honorable City Commission City of 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 30,1995 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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, as of September 30,1995, and the results ofits operations and the cash flows ofits proprietary fund types for the year then ended, in conformity with generally accepted accounting principles.

In accordance with Govemment Auditing Standards, we have also issued a report dated December 27,1995 on our consideration of the City of Leesburg's internal control stmeture and a report dated December 27,1995 on its compliance with laws and regulations.

Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required pan 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 statistical section has not been audited and we express no opinion on it.

December 27,1995 p# LLP Frnst & Young u p is a member of Ernst & Young International, Ltd.

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General Purpose Financial Statements l

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City of Leesburg, Florida Combined Balance Sheet All Fund Types and Account Groups September 30,1995 Im thousands)

Governmental Fund Types Special Debt Capital General Revenue Service Projects Assets and other debits Equity in pooled cash and cash equivalents 5 5,591 5 404 5 891 5 1,115 Cash and investments with trustees - - - -

Receivables:

Customer accounts:

unbdled -

36 - -

billed -

50 - -

allowance for doubtful accounts - - - -

Accrued interest 181 - - -

Other 9 21 - -

Advances to other funds - - -

50 Due from other funds 19 - - -

Due from other governments 219 5 -

2 Inventory 8 - - -

Restricted assets:

Equity in pooled cash and cash equivalents - - - -

Investments - - - -

Property, plant and equipment - - - -

General fixed assets - - - -

Accumulated depreciation - - - -

Construction in progress - - - -

Estimated landfill closure cost, net - - - -

Unamortued bond issue costs - - - -

Rights to purchase power - - - -

Crystal River decomnussianing trust account - - - -

Amount available in debt service funds - - - -

Amount to be provided for retirement of enerallong-term F debt - - - -

Total assets and other debits 5 6.027 5 516 5 891 5 1.167 See accompanying notes.

Page I of 2 Fiduciary Totals Proprietary Fund Types Fund Type Accomet Groups (Mennorandums Only)

General General Internal Trust and Fixed Long Terms Eaterpsise Service Agency Asseta Debt 1995 1994

$ 25.752 5 2.931 - - -

$ 36,684 5 33.570

- - 5 27, % 3 -

27,% 3 23,353 2,793 - - -

2,829 2,067 3,460 - - -

2,859 3.510 (482) - - - -

(482) (461) 118 -

184 -

483 416 6 - - -

36 323 50 -

19 15 226 257 1,235 42 - - -

1.285 1,089 8,012 - - -

8,012 6.966 3,856 - - - - 3,856 3,864 86,326 164 - - 86,490 84,653

$ 22,316 - 22,316 22,469 (31,331) (118) - - - (31,449) (29,647) 2,828 - - - - 2,828 2,866

- - - - - 204 229 - - - -

229 262 51 - - - -

51 53 1.084 - - - - 1,084 957

- - - - $ 721 721 714 5.611 5.611 5.280 5 103.931 5 3.025 5 28.147 5 22.E 5 6.332 $ 172.352 $, 162.129 I

i Ci;y of Leesburg, Florida l Combined Balance Sheet All Fund Types and Account Groups Septen,ber 30,1995 l

(in shousandst Governmental Fund Types Special Debt Capital General Revenue Service Projects i

Liabilides I Accounts payable $ 680 $ 97 - - d Accrued expenses 568 - - -

j Customer advances for construction - - - -

j Due to other governments -

84 - - l Due to other funds -

19 - -

I Estimated arbitrage rebate payable - -

- $ 2 Deferred compensation psyable - - - -

Estimated land fill closure cost payable - )

Payable from restricted assets; I Customer deposits - - - '

Accrued interest on revenue bonds - - - -

Current portion - revenue bonds - - - -

Clauns payable - - - -

Notes payable - - - -

Capitallease payable

)

Matured inierest payable -

- 3 170 -

Revenue bonds payable-ir;; - - - - l Compensated absences - - - -

Unearned revenues 147 - -

23 Landfill post-closure costs payable - - - -

Decommissioning costs - - - -

Advance from other funds - - - -

Total Liabilities 1.395 200 170 25 Fund equity and other credits Contnbuted capital - - - -

. Investment in general fixed assets - - - -

Retained earnings:

Reserved - - - -

Unreserved - - - -

Fund balances:

2eserved 112 30 721 1,142 Unreserved 4.520 286 - -

Total fund equity and other credits 4.632 316 721 1.142 Total liabilities, fund equity and other credits $ 6.027 5 516 $ 891 $ I.167 1

1 See accompanymg notes.

1 18  !

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1 Page 2 of 2 Fiduciary Totals T. wi;-e i Fund Types Fund Type Account Groups (Mesmorandum Only) '

(,eeeral General l Internal True and Fined Imag Term i Enterprise Service Agency Assets Debt 1995 1994 l

5 2,340 - - -

- 5 3.117 5 2,459 1,625 5 25 - - - 2,218 1,779 100 - - - -

100 123

- - - - - 84 104 19 15

- - - - 2 2

- 5 1,748 - - 1,748 1,407

- - - - - - 467 1,460 - - - - 1,460 1,384 743 - - - -

743 781 955 - - - -

955 885

- 445 - - -

445 489 2,095 - - - - 2,095 2,365 105 - - - -

105 235

- - - - - 170 175 21.190 - -

- 5 5.015 26,205 27,122

- - - - 1,317 1,317 786

- - - - - 170 138 1,000 - - - - 1,000 1,503 1,745 - - - - 1,745 1,453

~~

50 - - - - 50 -

33.408 470 1,748 -

6.332 43,748 43,672 19.045 16 - - - 19,061 18,160

- 5 22,316 -

22.316 22,469 7,371 2,4I8 - - - 9,789 8,973 44,107 121 - - - 44,228 39,232

- - 26,399 - - 28,404 24.952

^

- - - 4.8% 4.671 70.523 2,555 26,399 22,316 - 128.604 118.457 5 103.931 5 3.025 5 28,147 5 22.316 5 6.332 5 172,352 5 162.129 1

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l 19-

City of Leesburg, Florida Combined Statement of Revenues, Expenditures and Changes in Fund Balances {

All Governmental Fund Types '

For the year ended September 30,1995 l l

(in thousands) i Governmental Fund Types Special Debt Capital General Reveaue Service Projects

_ ]

Revenues Taxes $ 3,287 - - -

Licenses and permits 251 - - -

Intergovernmental 1,551 $ 1,067 -

$ 133 Charges for services 172 399 - -

Fines and forfeitures 189 - - -

Miscellaneous:

Interest 321 20 $ 29 70 Other 276 - -

100 Total revenues 6.047 1,436 29 303 I

Expenditures Current:

General govemment 1,053 - - -

Public safety 4.722 - - -

Public works 1,309 - - -

Community development 208 - - -

Human services - 1,071 - -

Physical environment -

457 - - I Culture / recreation 2.225 - - -

l Capital projects - - - 2,059 I Debt service: 1 Principal -

17 180 -

Interest - -

342 -

Total expenditures 9,517 1,545 522 2,059 l l

Excess of revenues over (under) experditures (3.470) (59) (493) (1,756)

Other financing sources (uses)

Operating transfers in 5.0% -

500 919 Operating transfers out (1,418) - - -

Total other financing sources 3.668 -

500 919 Excess of revenues and other sources over (under) expenditures and other uses 198 (59) 7 /837)

Fund balances. beginning of year 4.434 375 714 1,979 Fund balances, end of year $ 4.632 $ 316 5 721 $ 1,142 i

See accompanying notes.

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,_._. . . _ . . . . _ . . = _ . . _ . . . ~ _ .m__ .-.__.__..._..-_..____._m_..._._____. ._m ..m__ . _ _ . . .

i-i i

1

)

t Totals (Memorandum Only) 1995 1994

$ 3,287 $ 3.114 251 218 2,75: 2,321 571 453

-189 172 440 298

376 192 7,865 6,768 l

! 1.053 924 l, 4.722 4,446

1,309 1,321 l- 208 1%

l 1,071 675 457 219 <

2,225 2,085 '

2,059 714 197 212 3

j 342 357 i I3,643 11,149 (5,778) (4,381) 6,505 6.070 (1.418) (1,245) 5.087 4.825 (691) 444 7,502 7.058 l $ 6.811 $ 7.502

! l i l 1

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i i

1 f

1 i 21-

. . , , - - . _.-_. , _.n e ,- - . , . , ,

Cit d!2esburg, Florida Combined Statement of Revenues Expenditures and Changes in Fund Balances

)

Budget and Actual All Governrnental Fund Types For the year ended September 30,1992 fm rhousands) l l

General Special Revenue j Vanance Vanance '

Favorable FeveraWe Budget Actual (Unfavorable) Budget Actual _ (Uafavorable) ,

Revenues Taxes $ 3,173 $ 3,287 $ 114 - - -

1.icenses and permits 235 251 16 - - -

Iniergovernmental 1,536 1,551 15 $ 1,536 $ l.067 $ (469) i Charges for services 185 172 (13) 362 399 37 j Fines and forfeitures 162 189 27 - - -

Miscellaneous:

Interest 308 321 13 17 20 3 Other 250 276 26 - - -

)

Totai revenues 5.849 6.047 198 1.915 t,486 (429) l r e res Current: >

General government 1.202 1,053 149 - - -

Public safety 4,715 4,722 l (7) - - -

Public works 1,363 1,309 54 - - -

Community development 218 208 10 - - -

Human services - - - 1,540 1,071 469 Phyiucalenvironment - - - 468 457 11 4 Culture /recreanon 2,340 2,225 115 - - -

l Capital projects - - - - - -

Debt service: i Principal - - -

17 17 - I Interest - - - - - ' -

Total expenditures 9.838 ,,

9.517 321 2.025 1,545 480 Exossa of revenues over (under) expenditures (3,989) (3.470) 519 (110) (59) 51 Other financing sources (uses)

Operating transfers in 5.291 5,086 (205) - - -

Operating transfers out (1,302) (1.418) (116) - - -

Tod other financing sources (uses) 3.989 3,668 (321) - - -

Excess of revenues and other sources over (under) expenditures and other uses -

198 198 (110) (59) 51 Fund balances, beginning of year 4.434 4.434 - 375 375 -

Fund balances, end of year 5 4.226 5 4 632 $ 198 5 265 5 316 5 51 See accompanytng notes.

22

--m.__m__.. - ._ _ _ - . - . . - . - . . . . . , .. . _ . . ~ . _ .m...._ _

i i

l Debt Service Casdud Projeco l Vertence Vertence l Feverable Favarable ,

Budget Actual (Uafavorable) Bedset Actual (thdevorable)

\

. - - _ _ 1

- - . $ 158 $ 133 $ (25)

. . - . . . j

$ 28 $ 29 5 I 55 70 15 i

- - - im im _

)

28 29 1 31T 303 (10) j 1

. - - 3,092 2,059 1lJ33 180 180 - - - -

343_ 342 I . - -

523 522 1 3.092 2,059 1.033 (495) (493) 2 (2.779) (1,756) 1.023 505 500 (5) 800 919 119 505 500 (5) 800 919  !!9 10 7 (3) (1.979) (837) 1,142 i

714 714 . 1,979 1.979 - l

$ 724 $ 721 $ (3) $ - $ 1,842 $ 1.142 i

l I

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23-s

City of Leesburg, Florida Combined Statement of Revenues, Expenses and Changes in Retained Earnings / Fund Balances All Proprietary Fund Types and Pension Trust Funds For the year ended September 30,1995 (in thousands)

Proprietary Fund Types Fiduciary Fund Type Totals laternal Pens 6on (Mesmorandum Only)

Enterprise Service Tnast 1995 1994 I

Operating revenues:

Charr:s for services 5 43,991 5 2.480 - 5 46,471 5 42.668 Other operating 790 - -

790 512 investment income -

- 5 1,214 1.214 867 Unrealized increase (decrease) in fair value ofinvestments - - 2,808 2.808 (664)

Con:ributions - -

1.047 1.047 979 Total operating revenues 44.781 2.480 5.069 52,330 44.362 Operating expenses:

Power generation and transmission 920 - -

920 1,028 Pur.harinergy 20,393 - - 20,393 18,693 Opsting and maintenance 7,682 576 - 8,258 8.364 Cyaal and administrative 2,404 67 216 2,687 2.637 -

Depreciation and amortization 3,874 10 - 3,884 4.129 Clainu expense - 1,302 - 1,302 1,018 Benefit payments - -

575 575 836 Chai.ge in post closure estimate (502) - - (502) -

1 Total operating expenses 34.771 1,955 E 37,517 36.705 Operatrig income 10.010 525 4.278 14.813 7.657 l l

Nonorerating revenues (expenses).

Interest earnings 2,135 146 -

2.281 1,473 Interest expense (1,857) - - (1,857) (1,901) i Other income and expenses (61) - -

(61) 55 Total nonoperating revenues (expenses) 217 146 -

363 (373)

Income before operating transfers 10,227 671 4,278 15,176 7.284 Operating transfers out (4.636) (450) -

(5.086) (4.825)

Net income 5,591 221 4,278 10,0s0_ 2,459 ,

Retained earnings / fund balances, begmning of year 45,887 2,315 22,121 70,326 69.370 Prior penod adjustment - - - - (1,503)

Retained eamings/ fund balances, end of year 5 51.478 5 2.539 5 26.399 5 80.416 5 70.326 i

See accompanying notes.

44 I

_ _ 1

- . = . -

- , ~_ . - - - - . . .-.

City of Leesburg, Florida Combined Staternent of Cash Ilows All Propnetary Fund Types For the year ended Septernber 30.1995 (m tt==da)

Proprietary Fund Tvpes Totals latermal (Memorandum Only)

, Esterprise Service 1995 1994 Net cash provided by operating activities $ 11.594 $ 758 $ 12,354 5 12.227 Cash flows used for nascapital financing activities Operaung transfers to other funds (4.636) (450) (5.086) (4 825)

Net cash used for noncapital financing activsues (4.6366 (4501 a 5.0861 (4.825 n Cash flows frorn (used for) espital and related financing activities laterest paid on capital leases f

i laterest paid on revenue bonds (9) -

(9) (18)

(1.636) -

(l.636) (1.687)

Acquissuon and construction of capeal assets (3.002) (18) (3.021) (3.504)

Pnncipal pad on capital lease (113) -

(113) (177) t Prmcipal paid on bond matunties (885) -

(885) (820)

! Pnncipal pad on note payable (270) -

(270) (255)

Capital contnbuted 855 -

885 1.262 Net cash used for capital and related financmg acuvsues (5.060) # si (5279) v s.1991

( Cash flows from (used for)lavesting activities j laterest on investments 2.142 146 2.287 1.478 Purchase of Crystal River decomnussion invesor.ents (127) (127)

(120)

Net cash flow frorn invesung twvines 2.015 146 2.160 1.358 Net increase m cash and cash equivalents 3.913 436 4.349 3,562 Cash and :: ash equivalents at beginning of year 29.851 2.495 32.346 28.785 Cash and cash equivalents at end of year $ 3l.76a $ 2.931 $ 36.695 $ 32.346 Reconciliation of operating income to net cash provided by operating activities Operaung mcome $ 102)l0 $ 525 $ 10.527 $ 7.4%

Adjustments to reconcile operaung mcome to ries cash provided by operaung acoviues:

Depreciauon and amoruzanon 3.8 74 10 3.885 4.129 Bad debt expense ite -

168 133 Nonoperaung mcome 2C1 - 201 144 Nonoperaung expense (263) -

s257) (89)

Change an post closure estimate (502) -

(502) -

Decrease (mcrease) se customer accounts (1.50 0 -

(1.505) 170 increase m advances from other funds 50 - 50 -

Decrease (mcrease)in due from other funds 15 -

15 (9)

Decrease (mcreaselin noventory (208) 12 (1%) (112)

Decrease (mcrease)in miscellaneous receivables - 243 243 (249)

Increase in accounts payable 237 - 237 516 increase (decrease)in due to other funds (15) -

(15) 9 Decrease m esumated landfill closure costs payable (785) -

(785) (629)

Increase (decrease)in claims payable -

(44) (44) 6I lacrease m accrued espenses 268 12 280 647 increase (decrease) in customer advances for construction (23) -

(23) 62 lacrease (decrease) in customer deposits 75 - 75 (52)

Net cash provided by operatsg acuvines $ 11.594 $ 758 $ t 2.354 5 12.227 Significant transmetions not affecting cash Water / sewer hoes contnbuted by developers $ 46 -$ 46 580 Contnbuuons from ocks funds - - - 123

$ 46 $' -5 a6 $ 7F See accomptmvMg nares.

23

l I

City of Leesburg, Florida 1

Notes to Financial Statements September 30,1995

1. Summary of Significant Accounting Policies The City of Leesburg is a Florida municipality govemed by an elected five-member City 1 Commission. The City was established by the adoption ofits 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, sanitation, parks and recreation, streets and other general govemmental activities. The City Commission is govemed by the City Charter and by state and local laws and regulations. The City Commission is responsible for the establishment and adoption of pol. icy. The execution of such policy is the responsibility of the Commission-appointed City Manager. i The accounting policies of the City of Leesburg, Florida, conform to generally accepted accounting  !

principles for govemmental entities. The following is a summary of significant accounting policies. I Reporting Entity l The accompanying 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 of Ieesburg, Florida in accordance with govemmental accounting standards. The reporting entity for the City (the primarv government) contains no component units 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 orgamzation or if there is a potential for the orgamzation to provide specific financial benefits to, or impose specific financial burdens on, the City.

Basis of Presentation The City maintains its accounting records in accordance with the principles and policies applicable to govemmental 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 all FASB statements and interpretations issued after November 30, 1989.

City of Leesburg, Florida Notes to Financial Statements (continued) l

1. Summary of Significant Accounting Policies (continued)

Fund Accounting Tne accounting system and financial reports of the City are organized and operated on a fund basis.

A fund is defined as a fiscal and accountmg entity with a self-balancing set of accounts 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 summaized as follows:

(1) Governmental Fund Types are tho:;e through which most government functions typically are fm' anced. The acquisition, use, and balances of expendable financial resources and the related current liabilities (except those accounted for in proprietary funds) are accounted for through governmental type funds. Govemmental funds used by the City are as follows:

I General Fund -To account for all financial resources which are not required to be accounted for in another fund.

Special Revenue Funds - To account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Debt Service Fund - To account for the accumulation of resources for, and the payment of, principal and interest for general long-term debt.

l Capital Projects Funds - To account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Tmst Funds).

( (2) Proprietary Fund Types are used to account for the City's ongoing activities which are i similar to those found in the private sector.

Enterprise Funds - To account for activities that are operated in a manner similar to private businesses where the costs of providing goods and services are primarily recovered through user charges.

Intemal Service Funds - To account for the financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.

I l

City of Leesburg, Florida Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)

Fund and Account Group Categories (continued)

(3) Fiduciary Fund Types are used to account for assets held in a trustee capacity for others.

Pension Trust Funds - To account for the accumulation of resources to be used for retirement payments to employees.

Agency Fund -To account for assets held for the benefit of third parties.

(4) Account Groups record and control the City's general fixed assets and general long-term i 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: '

General Fixed Assets - To account for property and equipment not used in Proprietary Fund operations.

l General Long-Term Debt - To account for unmatured principal of long-term special l obligation indebtedness, notes and capital leases payable and compensated absences which are not a specific liability of a Proprietary Fund.

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.

The Proprietary Funds 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 eamings components. The Proprietary Fund Types operating statement presents increases (revenues) and decreases (expenses) in net total assets.

~

The Pension Trust Funds are accoanted for like proprietary funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve a measurement of results of operations.

City of Leesburg, Florida l Notes to Financial Statements (continued) l i

1. Summary of Significant Accounting Policies (continued)

Basis of Accounting  ;

Govemmental Fund Types revenues and expenditures are recogmzed on tie modified accmal 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.

, Proprietary Fund revenues and expenses are recognized on the accrual basis. Revenues are recorded when earned, and expenses are recorded when incurred.

l l Fiduciary Funds of the City consist of Pension Trust Funds which are accounted for on the accrual basis and a Deferred Compensation Agency Fund which is accounted for on the modified accrual l basis.

Transfers Transfers are recognized in the accounting period in which the interfund receivable and payable l arise. Transfers are ma 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 l

Unrestricted grants, entitlements or shared revenues received are reported as nonoperating revenues. Such resources extemally restricted for capital acquisitions or construction are reponed as contributed capital.

Cash Equivalents For purposes of the statements of cash flows, the City considers all highly liquid investments j- (including restricted assets) with a maturity of three months or less when purchased to be cash i equivalents.

i i

.~ __ _ . - _ - . _ _ __ - _ __.

City of Leesburg, Florida Notes to Financial Statements (continued) .

1. Summary of Significant Accounting Policies (continued)

Investments In all funds, except the Pension Trust Funds and the Deferred Compensation Agency Fund, investments are stated at amortized cost. The investments of the Pension Trust Funds and the Deferred Compensation Agency Fund are stated at market value.

Receivables Utility operating revenues are generally recognized on the basis of cycle billings r.3ndered 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, Sanitation Services and Motor Pool Funds are priced by the weighted average cost method at the lower of cost or market. Inventory shown in the General Fund consists of expendable supplies and Police Depanment gasohne held for consumption. General Fund inventories are valued at cost as determined on the first-in, first-out method. Inventory is accounted for by use of the consumption method. j Amortization j l

Bond issue costs and discounts are amonized over the life of the bonds using the effective interest method.

Cost Reimbursements Certain personal services and operating expenc,es recorded in various funds and departments are a result of services performed and expenses / expenditures incurred for the benefit of other funds and departments. In order to better reflect the various funds' and departments' actual costs, a cost j reimbursement is recorded as a reduction in expenditures or expenses. The funds and departments which benefit from the services and expenses / expenditures record a cost reimbursement as an increase in expenditures or expenses.

a

i i

City of Leesburg, Florida l

l Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued) 1 1

l Proprietary Funds Fixed Assets Proprietary Funds 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 nethod over the estimated usefullives of the assets as follows:

)

Useful Life i

Utility Funds:

Buildings 10 to 50 years Improvements other than buildings 20 to 50 years Machinery, equipment and vehicles 4 to 20 years i Nuclear fuel 5 years l Sanitation Services Fund: l l Equipment 5 to 10 years Vehicles 5 to 7 years Motor Pool Service Fund:

Equipment 3 to 10 years l

Vehicles / 6 years General Fixed Assets l

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 group of accounts. The City's policy is not to capitalize public domain fixed assets such as streets, right-of-l 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 l The City accrues accumulated compensated absences for Governmental and Proprietary Funds.

l Compensated absences are recorded in the Govemmental Fund Types as an expenditure for the l amount accrued during the year that would normally be liquidated with expendable available l 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 i

eamed. Personnel policies allow employees to accumulate a maximum of 90 days vacation leave and 90 days sick leave. Upon termination, employees are paid for their accrued vacation leave and 25% of their accrued sick leave balance.

?

4

1 City of Leesburg, Florida Notes to Financial Statements (continued)

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 cancelled and amounts sufficient to re-establish the commitment are included in the appropriations for the subsequent year.

Reserves Fund balances are reserved as follows:

General Fund:

Reserved for police education and other expenditures $ 110,000 Reserved for Citizens Utility Relief Effort (C.U.R.E.) 2,000 i Special Revenue Funds:

Reserved for capitalimprovements 12,000 Reserved for housing assistance 18,000 Debt Service Fund:

Reserved for retirement of debt 721,000 Capital Projects Fund:

Reserved for construction 1,142,000 Budgeting The City's procedures in preparing and adopting the annual budget are as follows:

(1) The City Manager is responsible for prepanng a proposed operating budget for the upcoming year prior to September 30, that includes estimated revenues, proposed expenditures, and other financing sources and uses.

l (2) Public hearings are held to obtain taxpayer comments and suggestions. The budget is enacted through passage of a resolution.

l I

City of Leesburg, Florida Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)

Budgeting (continued)

(3) 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.

(4) 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 financial statements, is prepared on the same basis of accounting as that prescribed for the fund.

I During the year the City made supplemental budget appropriations which increased or decreased the budgets as indicated below:

> Original Final Increase Funds Adopted Amended (Decrease)

(in thousands)

General $11,098 $11,140 $ 42 Special Revenue 1,385 2,025 640 Debt Service 533 523 (10)

Capital Projects 2,599 3,092 493 Combined Statements " Memorandum Only" Total Columns Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Dcta in these columns do 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 t en made in the aggregation of this data.

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i City of Leesburg, Florida ,

Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)  ;

Property Taxes Under Florida law, the assessment of all propenies and the collection of all county, municipal and school board propeny taxes are consolidated in the offices of the County Propeny Appraiser and j County Tax Collector. The laws of the state regulating tax assessment are also designed to assure a consistent propeny valuation method statewide. Florida Statutes permit municipalities to levy '

propeny 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 5 the Lake County Propeny Appraiser incorporates the City millages into the total tax levy, which  !

includes the County and the County School Board tax requirements. j l

All propeny is reassessed according to its fair market value January 1 of each year. Each ]

assessment roll is submitted to the Executive Director of the State Department of Revenue for  ;

review to determine ifit meets all of the appropriate requimments of the Florida Statutes. i Taxes are assessed on November 1 of each year or as soon thereafter as the assessment roll is l cenified and delivered to the County Tax Collector. Unpaid taxes become delinque'nt on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November,3% in the month of December,2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. l 1

On or prior to June 1 following the tax year, cenificates are sold for all delinquent taxes on real propeny. After sale, tax cenificates bear interest of 18% per year or any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax cenificates may be made by the cenificate holder after a period of two years. Unsold cenificates 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 the property or by the five-year statute of limitations.

The City does not accrue its portion of the County-held tax sale cenificates or personal propeny tax warrants because such amounts are not measurable and available as of the balance sheet date.

l 34

City of Leesburg, Florida Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)

Rounding All amounts in the financial section have been rounded to the nearest thousand dollars. Zeros are shown when amounts are stated in the narrative text but are not presented otherwise.

2. Deposits and Investments 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 30,1995, the carrying amount of the City's deposits was $394,000, and the bank balance was $403,000.

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, obligations of the United States Government and its agencies. Investments may also include repurchase agreements and deposits with the State Board of Adrainistration pool. Revenue bond covenants also restrict the type and maturities ofinvestments in bond-related funds.

Investments of the Municipal Police Officers' Retirement Trust Fund may be held in bonds, stocks, or other evidence ofindebtedness issued or guaranteed by a corporation under the laws of the United States provided the corporation meets certain rating and profitability criteria. During the year and at September 30,1993, the Fund owned investments with a canying value (at market) of

$86,000 which are not among the authorized investments described above.

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. During the year and at September 30,1995, the Municipal Firemen's Retirement Trust Fund owned investments with a carrying value (at market) of $133,000 which are not among the authorized investments described above.

1 City of Leesburg, Florida Notes to Financial Statements (continued)

2. Deposits and Investments (continued)

Investments (continued)

A summary of the carrying amount and market value of all City investments classified by category of credit risk follows:

Category of Risk Carrying Market i 2 3 Amount Value On thousands)

' Pooled Investmentr Sun Bank Repurchase Agreement $ -

$ - $ 11,901 $ 11,901 $ 11,901 U.S. Treasury Bills, Notes and Bonds - - 17,805 17,805 18.012 Pension Tiust and Agency Fund investments:

i Corporate Stocks - - 6.349 6,349 6,349 Corporate Bonds - - 6,648 6,648 6,648 U.S. Treasury Notes and Municipal Bonds - -

4.6')4 4,604 4,604 Total 5 - 5 -

$47.307 State Board of Administration of Florida, Local Government Pooled Investment Account 17,433 17,433 Money Market Fund - Pension investment 271 271 1 Mutual Fund Ir vestments 1,019 1,019 Mutual Fund Investments -Deferred Compensation 1,748 1,748 Mutual Fur.d Investments - Pension Investment 253 253 i Collective Trust Funds - Pension Investment 8.090 8.090 Tota.1 investments $76.121 576.328 Carrying Amount of Deposits 5 394 Decommissioning Trust Deposit 1,084 Carrying Amount of Investments (Above) 76.121 i Total $77.599 I Shown in the accompanying combined  !

balance sheets as: i Equity in Pooled Cash and Investments $ 36,684 Cash and Investments at Madet Value 27,963 Restricted Assets: l Equity in Pooled Cash, Cash Equivalents and investments 11,868 Crystal River Decommissioning Trust Account 1.084 Total 577.599

l l l City of Leesburg, Florida i

Notes to Financial Statements (continued)  !

1

2. Deposits and Investments (continued) l Investments (continued) '

l l 12vels of credit risk assigned to the above investments are based on an evaluation in accordance l with GASB Statement 3 to give an indication of the level of risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City I l

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 l includes uninsured and unregistered investments for which the securities are held by the counter .

party, or by its trust department or agent, but not in the City's name.

The State Board of Administration deposits in Tallahassee are maintained in an investment pool  !

which invests primarily in commercial paper, repurchase agreements, bankers, acceptance notes j and U.S. Government obligations. '

The following pension investments, excluding U.S. government and U.S. government guaranteed obligations, exceed 5% of the net assets available for pension benefits:

Percent of Net Assets Available for Market Benefits (in thousands)

Police:

NationsBank Public Employee Equity Fund $3,084 77.1 %

SunBank High Grade Bond Fund 1,699 42.5 %

l s

l 1

City of Leesburg, Florida  ;

Notes to Financial Statements (continued) i 2. Deposits and Investments (continued)

Investments (continued)

Percent of Net I Assets Available for Market Benefits f (in thousands) i NationsBank Public Employee Equity Fund $3,442 79.8 % I I

NationsBank Public Employee Fixed Income Fund 1,346 31.2 %

NationsBank Short-term Government Fund 253 5.9%

General Employees':

SunBank High Grade Bond Fund 1,114 8.1 %

Corporate Bonds held with NationsBank 3,835 27.8 %

Corporate Stock held with NationsBank 5,569 40.3 %

3. Fixed Assets A summary of changes in general fixed assets follows: -

Balance Balance October 1, September 30, 1994 Additions Deletions 1995 (in thousands)

Land $ 2,464 $ 847 $ 934 $ 2,377 Buildings 8,094 894 689 8,299 Improvements other than buildings 5,030 373 1,149 4,254 Squipment and vehicles 5,944 1,596 3,035 4,505 Construction in progress 937 1,944 - 2,881 Total $22,469 $5,654 $5,807 $22,316

City of Leesburg, Florida Notes to Financial Statements (continued) l l

3. Fixed Assets (continued)

A summary of proprietary fund type property, plant and equipment at September 30,1995, follows:

Internal Enterprise Service Funds Funds (in thousands)

Land S 4,147 -

Buildings 4,737 $ 28 Improvements other than buildings 67,227 -

Equipment 9,890 136 l Nuclear fuel 325 -

)

$86.326 $164

4. Interfund Account Individual fund interfund receivable and payable balances at year end are as follows:

Interfund Interfund Receivable Payable (in thousands)

General Fund $19 -

Capital Projects Fund 50 -

Special Revenue Funds:

Affordable housing -

$19 Enterprisc . unds:

Sanitation services -

50

$69 $69 l

l l City of Leesburg, Florida l

Notes to Financial Statements (continued) 5, Long-Term Liabilities The following is a summary of all long-term liabilities of the Proprietary Funds at September 30, l 1995:

1 (in thousands) \

! Utility Funds:

Refunding Utilities Revenue Bonds, Series 1984, dated September 1,1984, issued September 27,1984 $ 610 Accrued interest through September 30,1995 on Series 1984 Capital Appreciation Bonds 1,348

Refunding Utilities Revenue Bonds, Series 1989, dated l December 1,1988, issued January 11,1989 20,350 Total bonds payable 22,308 Less: Unamortized discount 163 J

Current maturities 955  ;

1 Total bonds payable -net 21,190 l l

l Plus: Initial Pooled Loan Project with Florida Municipal Power Agency 2,095 Total utility funds debt $23,285 The 1984 and 1989 bonds are fully registered bonds in denominations of $5,000 and are l collateralized by a pledge of the net revenues of the utilities system. Bond maturity dates and debt service requirements for the combined 1984 and 1989 issues are as follows:

Total Bond (Sinking Maturities Total Debt Fund and Debt Due Service Securities Service October 1 Principal Interest Bonds Income) Requirements (in thousands) l 1995 $ 955 5 1,487 $ 2,442 5 (314) $ 2,128 1996 1,020 1,424 2,444 (314) 2,130 1997 1,090 1,355 2,445 (314) 2,131 1998 1,160 1,280 2,440 (314) 2,126 l 1999 1,245 1,199 2,444 (314) 2,130 i Thereafter 20.525 6.453 26,978 (5.688) 21,290 Total $25.995 513,198 539,193 5(7.258) 531,935 d

, 40-I

City of Leesburg, Florida Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

(in thousands)

Total principal above $25,995 Less: Unearned interest (discount) on Capital Appmciation Bonds from October 1,1995 through October 1,2005 3.687 Total $22.308 l

Capital rpreciation Bonds '

The 1988 bond issue contains $610,000 of capital appreciation bonds that will mature on October 1,2005 at $5,645,000. The carrying value of the capital appreciation bonds as of September 30, 1995 is $1,958,000, which is composed of the maturity value of $5,645,000 less the unearned discount of $3,687,000. This is di: played in the accompanying general purpose financial l statements as follows: 1 (in thousands)

Bonds payable (Part of 1984 Series) $ 610 Accrued interest on Capital Appreciation Bonds 1.348 Total $ 1.958 Utilities Revenue Bonds The Refunding Utilities Revenue Bonds, Series 1984 and 1989, resoh:' ions prov':le for:

(1) Establishment and maintenance of various accounts within the ULL.ies Enterprise Fund -

(a) Constmetion Account records the cost of the project financed by the bonds; (b) General Revenue Account records all income or earnings derived from the system; (c) Operation and Maintenance Account records the cost of operation and maintenance; I (d) Debt Service Account and 2005 Term Bonds Debt Service Subaccount record all the ,

debt service requirernents of the issues, which includes the principal, interest and I reserve requirements; I l

City of Leesburg, Florida i Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

Utilities Revenue Bonds (continued)

(e) Reserve Account records the amounts needed to cure deficiencies in the Debt Service Account; and (f) Renewal and Replacement Account records the cost of extensions, improvements or additions to, or the replacement of capital assets.

(2) Restrictions on the use of cash from operations in order of priority -

(a) Deposits are made to the Operations and Maintenance Account monthly and equal one-twelfth (1/12) of the annual amount budgeted for the payment of such cost of operation and maintenance.

(b) Deposits to the Debt Service Account and the 2005 Term Bonds Debt Service Sub-accounts are to be made monthly and equal to one-sixth (1/6) of the interest coming due i on the next semiannual interest payment date, one-twelfth (1/12) or one-sixth (1/6) of the principal coming due on the next principal payment date for those bonds maturing annually or semi-annually, respectively, one-twelfth (1/12) of the amortization ,

installments and the unamortized principal balances of the Term Bonds coming due l

during the current bond year, and one-sixth (1/6) of the Sinking Fund Deposit due on j the next purchase date under the Securities Purchase Agreement. '

(c) Deposits to the Reserve Account are required each month until an amount equal to the maximum bond service requirement is accumulated.

i (d) Deposits to the Renewal and Replxement Account are required in each month equal to )

one-twelfth (1/12) of 5% of the gross revenues for the preceding fiscal year except that, for the electm and gas funds, energy supply costs may be deducted from gross revenues before the deposit requirement is calculated.

(3) Early Redemption-The bond resolutions provide for early redemption of outstanding bonds at call rates varying from 100% to 105% of the instruments' face value, dependent upon the call date.

l

)

1 City of Leesburg, Florida Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

Utilities Revenue Bonds (continued)

} (4) 1:tvestment Restrictions -

l (a) Funds are required to be continuously secured in the same manner as sttte and I

municipal deposits of funds are required to be secured by the Laws of the State of Florida; and i

(b) All monies deposited shall be continuously invested in direct obligations of, or obligations which are guaranteed by, the United States of America, obligations ofits i

several agencies, the Local Government Surplus Funds 'I ist Fund, obligations gueteed by the Government National Mortgage Associdn, or time deposits in  !

bal ks, uust companies or savings and loan associations represented by Cenificates of Deposit.

Notes Payable In November 1990, the City entered into a loan agreement with Florida Municipal Power Agency (FMPA) as agent for the Initial Pooled lean Project to borrow $3,075,000 to purchase land for wastewater disposal and future expansion of wastewater facilities. Principal is being repaid annually commencing on November 1,1991 with the last installment due November 1,2000.

Interest is variable and is payable to FMPA on a monthly basis. The following is a schedule of principal payments:

Year (due November) Principal (in thousands) 1995 $ 290 1996 315 1997 335 1998 360 1999 385 Thereafter 410

$2.095 i

i

i City of Leesburg, Florida  ;

Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

General Long-Term Debt A summary of all general long-tenn debt of the City as of September 30,1995, follows:

(in thousands)

Refunding and Capital Improvement Revenue Bonds ~

payable, issued in April,1987, interest from 4% to 7% - $5,015 Employee Compensated Absences Payable 1.317 Total $6.332 Debt service requirements for general long-term debt other than compensated absences for years ending September 30, are as follows:

(in thousands) 1996 $ 520 1997 518 1998 515 1999 515 2000 515 Thereafter 5.504 8,087 Less interest 3,072 ,

Principal $5.015 k

l City of Leesburg, Florida Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

General Long-Term Debt (continued) l The following is a summary of changes in general long-term debt f5r the year ended September 30, 1995:

Balance Balance October 1,

• September 30, 1994 Additions Deductions 1995 (in thousands)

Refunding and Capital Improvement Bonds $5,195 -

$180 $5,015 Obligation under capitallease 17 -

17 -

Employee Compensated Absences Payable 782 $535 -

1.317 Totals $5,994 $535 $197 $6,332 Refunding and Capital Improvement Bonds

)

In 1987, the City issued $6,145,000 of Refunding and Capital Improvement Revenue Bonds to provide funds for certain improvement projects, and the refunding and payment of the City's Refunding and Capital Improvement Revenue Bonds, Series 1984, The 1987 Bonds are fully registered bonds without coupons in denominations of $5,000 each and are collateraliwd by a pledge of Local Govemment Half-Cent Sales Tax Revenue and income of certain investments.

The Refunding and Capital Improvement Revenue Bonds, Series 1987 resolution provides for:

(1) Establishment and maintenance of various accounts within the Refunding and Capital Improvement Revenue Bonds Improvement Fund -

(a) Construction Account records the cost of the project financed by the bonds; f

F City of Leesburg, Florida Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

• Refunding and Capital Improvement Bonds (continued)

(b) Revenue Account records all income or earnings derived from the local govemment half-cent sales tax; i

(c) Sinking Fund Account records all debt service requirements which include the interest '

account and principal account; (d) Reserve Account records the amounts needed to cure deficiencies, if any, in the Sinking Fund Account; and (e) Guaranteed Entitlement Account records all income or earnings derived from guaranteed state revenue sharing and the amounts needed to cure deficiencies, if any, in the Sinking Fund Account.

(2) Restrictions on the use of cash from operations in order or priority -

(a) Deposits to the Sinking Fund Account are to be made monthly and equal one-sixth (1/6) of the interest coming due on the next semiannual interest payment date, one-twelfth (1/12) or one-sixth (1/6) of the principal coming due on the next principal payment date for those bonds maturing annually or semi-annually, respectively, one-twelfth (1/12) of i the Sinking Fund Deposit and redemption premiums of one-sixth (1/6) of the amount i sufficient to pay the next fees of the paying agents, registrar and trustee attributable to the bonds.

(b) Deposits to the Reserve Account are required each month until an amount equal to the maximum bond service requirement has been accumulated.

(c) Thereafter, funds in the Revenue Account may be paid to the City and used for any ,

lawful purpose. The proceeds of the Guaranteed Entitlement shall be deposited in the  !

Guaranteed Entitlement Account and used as provided for in the resolution.

(3) Early Redemption- I 1

The bond resolutions provide for early redemption of outstanding bonds at call rates varying from 100% to 102% of the instmments' face value, dependent upon the call date.

l l

City of Leesburg, Florida Notes to Financial Statements (continued)

5. Long-Term Liabilities (continued)

Refunding and Capital Improvement Bonds (continued)

(4) Investment Restrictions -

(a) Funds are required to be continuously secured in the same manner as state and municipal deposits of funds are required to be secured by the Laws of the State of Florida; and  !

1 (b) All monies shall be continuously invested i' direct obligations of, or obligations which '

are guaranteed by, the United States of America, obligations of certain ofits agencies, time deposits in banks, trust companies or savings and loan associations represented by l Certificates of Deposit or commercial paper, money market funds, bankers acceptance l of commercial banks and investment agreements meeting cenain rating criteria.

A summary of all long-term debt previously defeased and no longer a liability of the City follows:

Balance September 30, 1995 (in thousands)

Proprietary Fund Types - Utility Funds:

Utilities Revenue Certificates, Series 1977 $10,740 Utilities Refunding Revenue Bonds, Series 1984 18,140 Total Proprietary Fund Types - Utility Funds 28,880 General Long-Term Debt Group of Accounts:

Refunding and Capital Improvement Bonds, Series 1984 1,600 Total Defeased Debt- All Funds and Account Groups $30,480

6. Operating Leases The City is lessor on various leases of facilities located at the Auport. The leased facilities are included in the $3,425,000 of Aupon assets recorded in the City's General Fixed Assets Account

! Group. The following is a schedule of minimum future lease income on noncancellable operating ,

l leases- 1 I i

! i 1

1

\

i

l City of Leesburg, Florida Notes to Financial Statements (continued)

6. Operating Leases (continued)

Year Total (in thousands) i 1996 $ 30 1997 31 1998 31 1999 31 f

2000 31 Thereafter 206 Total minimum lease payments $360

7. 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. An l asset and related liability had previously been recorded in the balance sheet of the City's Sanitation Fund to reflect this cost and related liability. The cost of the closure was financed by user fees. The i deferred closure cost was previously amortized over the useful life of the landfill except for any current year adjustments to the estimated cost which were amortized in fiscal year 1995. A summary of the activity in the closure cost asset and liability account is as follows:

Closure Cost Asset Liability (in thousands)

Balance, September 30,1994 $204 $467 Adjustment of Estimate 317 317 Accumulated Amortization (521) -

Total Annual Costs Paid -

(784)

Balance. September 30,1995 5- 5 -

In the prior year the City implemented Statement No.18 of the Govemmental Accounting Standards Board entitled Accountingfor Municipal Solid Waste Landfill Closure and Postclosure Care Costs. This statement requires accounting recognition be given to all closure and postclosure care costs during the operating life of the landfill.

The $1,000,000 liability recorded represents the estimated costs of postclosure care for 19 l remaining years after closure as required by state and federal laws and regulations. This amount was calculated based on costs in 1995. The actual costs may be higher due to inflation, changes in j technology, or changes in regulations.

1 l

1

City of Leesburg, Florida Notes to Financial Statements (continued)

7. Estimated Landfill Closure and Postclosure Care Costs (continued)

The City is required to deposit adequate funds into an escrow account before year-end to meet post-closure care costs for the following year. The City officially closed the landfill on September 1,1995, at which time post-closure care began.

During the year ended September 30,1992, the City established an escrow subaccount within the City's pooled cash system. The following is a schedule of the transactions in this account during fiscal year 1995:

I Transaction Date Description Amount (in thousands)

September 30,1994 Beginning balance $47 .

Fiscal year 1995 Interest camed 3 l Fiscal year 1995 Deposit 3 l September 30,1995 balance $53 I l

1 The above schedule was prepared in accordance with the requirements of Rule 17-701.630(5)(c) of l the Florida Administrative Code. l l

8. Electric Power Agreements Crystal River Unit #3 Participation Agreement The City is a participant in an agreement with Florida Power Co@ oration. 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 extemal facilities of the generating unit are solely owned by Florida Pcwer Corporation and panicipants share in the operating and maintenance expenses of such facilities. Nuclear fuel payments are required of participants in advance. In 2015 when the plant is decommissioned, costs i of decommissioning will be paid by the participants. The City is amortizing the expense and recognizing a liability for these costs on a straight line basis over the life of the plant. Florida l

l

1 City of Leesburg, Florida Notes to Financial Statements (continued)

8. Electric Power Agreements (continued)

+

Crystal River Unit #3 Participation Agreement (continued)

Municipal Power Agency maintains a tmst fund for the plant to which the City is required to contribute annually to pay the future decommissioning costs. At September 30,1995, the City's portion of the trust fund had a balance of $1,084,000 and the liability for decommissioning costs had a balance of r

$ 1,745,000. )

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 30,1995 was $3,403,000.

Florida Municipal Power Agency The City of Leesburg is a member of the Florida Municipal Power Agency (FMPA). FMPA wes 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 of Leesburg 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 1 assets owned by the agency. The City of Leesburg participates in the following FMPA projects:

St. Lucie No. 2 Power Purchase Agreement i 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. The plant became operational in 1984. The cost of this agreement has been capitalized and is being amortized over the plant's expected useful life. 1

)

All-Requirements Power Supply Agreement I The City has an agreement with FMPA whereby the City is purchasing its electric power from FMPA on an all-requirements 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 j vote of the Board of Directors of FMPA.

9. Segment Information for Enterprise Funds The City operates six enterprise funds. Segment information as of September 30,1995, is as follows:

I

City of Leesburg, Florida Notes to Financial Statements (continued)  !

9. Segment Information for Enterprise Funds (continued)

Sanitation Sewer Electric Water Wastewater Sanitation Communication Utility Gas Utility Utility Treatment Services Services Totals i

(in thousands)

Operating revenues $30,830 $5,751 $2,566 $ 3,252 $2,348 $ 34 $44,781 Depreciation and amortization 2,i14 188 456 400 704 12 3,875 Operating income (loss) 6,799 1,331 772 1,000 80 20 10,002 Operating transfers (3,565) (692) (239) (140) - -

(4,636)

Net income (loss) 3,199 693 525 974 180 20 5,59i Contributed capital 2,795 448 2,986 12,234 441 141 19,045 Cash and cash equivalents 13,580 2,934 2,934 5,952 345 7 25,752  ;

Property and equipment additions 1,555 781 460 232 100 11 3,139 Net working capital 15,953 3,250 3,268 6,379 (96) 7 28,761 Long-temiliabilities payable 14,805 1,599 3,821 4,805 1,105 -

26,135 Total fund equity (deficit) 39,016 6,571 8,183 17,350 70,523 (772) 175 Total assets 59,083 8,554 12,472 22,553 1,094 175 103,93I 51

City of Leesburg, Florida l ,

Notes to Financial Statements (continued) i

10. Pension Plans s

By ordinance, the City has established three single-employer defined benefit pension plans for City employees. The following is a brief description of the plans:

3 Municipal Police Retirement Plan Total payroll for employees covered by the plan for the year ended September 30,1995, was  ;

$1,491,000; the City's total payroll was $10,235,000. All full-time police officers are eligible to  ;

participate in the plan. As of October 1,1994, the date of the most recent actuarial report, the plan had the following number of participants: j Active vested 14 Active nonvested 30 I Retired, disabled, vested terminations and beneficiaries 8  ;

Total number of participants 52 Participants who have completed 10 years of credited service are 100% vested in their plan benefits f at age 45 or later, reduced 5% per year before normal retirement date. Participants whose service is i terminated prior to completing 10 years of credited service are entitled to the retum of their  ;

employee contributions without interest. Normal retirement benefits are payable to participants who have reached the earlier of age 50 and 25 years of credited service or age 60 and 10 years of credited service. Such benefits are payable at a rate of 2.75% of average final monthly compensation times the number of years of credited service. The benefits under this plan provide  !

an offset for benefits paid by the general employee retirement plan, under which the police officers are also covered. The plan also provides for early retirement, disability retirement and death benefits at rates defined in the plan document.  ;

Funding of the Police Pension Fund is provided from employee contributions (7.65% of their annual compensation) and a 1% excise tax. The excise tax is levied on gross premiums collected on casualty insurance policies covering property within the corporate limits of the City. The State collects and contributes the tax to the fund pursuant to Florida Statute 185. The City is not I obligated to contribute to the fund. Normally, employee contributions and excise tax monies are sufficient to fund the plan.

The actuarially required contribution for the year ended September 30,1995, consisted entirely of normal cost is $281,000, which represents 18.8% of covered payroll. Actual contributions to the plan for the year ended September 30,1995, are as follows: l

i City of Leesburg, Florida Notes to Financial Statements (continued)

10. Pension Plans (continued)

Municipal Police Retirement Plan (continued)

Percentage of Amount Covered Payroll (in thousands)

Employee $116 7.8%

State of Florida (Insurance Tax) 94 6.3%

Total actual contributions $210 14.1 % l 1

f The significant actuarial assumptions used to compute funding requirements are essentially the same as those used to compute the pension benefit obligation. The actuarial cost method used to compute the funding requirement is the frozen entry age method.

Municipal Firemen's Retirement Plan i 1

Total payroll for employees covered by the plan for the year ended September 30,1995, was

$896,000; the City's total payroll was $10.235,000. All firemen who have attained age eighteen i and completed one year of credited service are eligible to participate in the plan. As of October 1, 1994, the date of the most recent actuarial report, the plan had the following number of participants:

Active vested 14 Active nonvested 13 Retired and beneficiaries 11 Vested terminations 1 Total number of participants 1

Participants who have completed 10 years of credited service are 100% vested in their accrued retirement benefits. Participants whose service is terminated prior to completing 10 years of credited service are entitled to the retum of their employee contributions plus interest at the rate of 5% compounded annually. Normal retirement benefits are payable to participants who have attained age 55 years and completed 10 years of credited service. Such benefits are payable at a rate of 2.75% of average final monthly compensation times the number of years of credited service.

The plan also provides for early retirement, deferred retirement, disability retirement and death benefits at rates defined in the plan document.

! City of Leesburg, Florida Notes to Financial Statements (continued) 10, Pension Plans (continued)

Municipal Firemen's Retirement Plan (continued)

Firemen contribute 6.5% of their annual compensation to the plan. A 1% excise tax on fire ,

insurance premiums sold within the corporate limits is remitted to the fund by the State of Florida. ,

The City accrues and contributes an additional amount, as determined by an actuary, to fund annual normal cost and prior service cost amortized over forty years. The required City contribution for the year ended September 30,1995, is as follows:

Percentage of Amount Covered Payroll (in thousands)

Normal cost $171 19.1 %

Amonization of prior service cost 7 .8%

Total required contribution $178 19.9 %

Actual contributions to the plan for the year ended September 30,1995, are as follows:

Percentage of  !

Amount Covered Payroll i (in thousands)

Employee $ 58 6.50 %

Employer 67 7.50 %

State of Florida (Insurance Tax) 63 7.10 %

Total actual contributions $188 21.10 %

The significant actuarial assumptions used to compute the actual contribution requirements are essentially the same as those used to compute the pension benefit obligation. The actuarial cost method used to compute the funding requirement is the aggregate actuarial cost method. I l

l l City of Leesburg, Florida I

Notes to Financial Statements (continued)

10. Pension Plans (continued)

General Employees' Retirement Fund Total payroll for employees covered by the plan for the year ended September 30,1995, was

$7,796,000; the City's total payroll was $10,235,000. All employees of the City, excluding commissioners and firemen covered in another plan, are eligible to participate in the plan after reaching age eighteen and completing one year of credited service. As of C:tober 1,1994, the date of the most recent actuarial report, the plan had the following number of participants:

Active vested 237 I Active nonvested 61 Terminated - vested benefits 41 Retirees and beneficiaries 61 Total number of participants 400 Participants who have completed 5 years of credited service are 25% vested in their plan benefits with 5% increases per year until year 10 and then 10% increases per year until 15 years of service have been reached whereby the participant will be 100% vested. Normal retir ment benefits are paid to participants who have reached age 65. Such benefits are payable at a rate of 2% of final monthly compensation times the number of years of credited service. The plan also provides for early retirement, late retirement, disability retirement and death benefits at rates defined in the plan document.

The General Employees' Plan is noncontributory. The City accrues and contributes an amount, as determined by an actuary, to fund annual normal cost and prior service cost amortized over forty years. The required City contribution for the year ended September 30,1995, is as follows:

Percentage of l l Amount Covered Payroll (in thousands)

Normal cost $386 4.95 %

Amortization of prior service cost 177 2.28 %

Total required contribution $563 7.23 %

City of Leesburg, Florida Notes to Financial Statements (continued) i

10. Pension Plans (continued)

General Employees' Retirement I und (continued)

Actual contributions to the plan for the year ended September 30,1995, consisting exclusively of employer contributions is $650,000. This represents 8.3% of covered payroll.

The significant actuarial assumptions used to compute the actual contribution requirements are essentially the same as those used to compute the pension benefit obligation. The actuarial cost method used to compute the mquired funding is the frozen entry age actuarial cost method.

Pension Benefit Obligation The amount shown below as the " pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help financial statement users assess the funding status of the System on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measum is the actuarial present value of  ;

credited projected benefits and is independent of the funding method used to determine  ;

contributions to the System. 1 i

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, City of Leesburg, Florida Notes to Financial Statements (continued) l 10. Pension Plans (continued) l Pension Benefit Obligation (continued) l The pension benefit obligation was computed as part of actuarial valuations performed as of  !

October 1,1994.  !

Municipal General Police Municipal Employees'  !

Retirement Fireman's Retirement Trust Fund Trust Fund Fund Total l (in thousands)

Pension Benefit Obligation:

Retirees and Beneficiaries l

Currently Receiving Benefits and l Terminated Employees Not Yet

! Receiving Benefits $ 859 $ 1,167 $3,371 $ 5,397 l Current Employees:

l Accumulated Employee Contributions Including Allocated Investment Earnings 1,172 496 48 1,716 Employer - Financed Vested 531 2,151 3,772 6,454 Employer - Financed Nonvested 31 317 3,680 4.028 ,

Total Pension Benefit Obligation 2,593 4,131 10,871 17,595 Net Assets Available For Benefits, at Market 4,002 4.315 13,804 22,121 Assets in Excess of Pension Benefit Obligations $ 1,409 $ 184 $2,933 $ 4,526 City of Leesburg, Florida <

Notes to Financial Statements (continued)

10. Pension Plans (continued)

Pension Benefit Obligation (continued)

Three-year historical information about the plans is as follows:

Municipal General Police Municipal Employees' Retirement Fireman's Retirement Trust Fund Trust Fund Fund i

Net assets available for benefits as a percentage of the pension benefit obligation 1995 154.3 % 104.4 % 127.0 %

1994 131.3 120.4 136.4 1993 131.6 113.9 131.0 Assets in excess of the pension benefit obligation as a percentage of annual covered payroll 1995 94.5 20.5 37.6 1994 70.9 84.1 50.1 1993 66.0 54.5 39.1 Employer contributions as a percentage of annual covered payroll 1995

• 7.5 8.3 1994

• 7.5 8.3 1993

• 7.5 8.3 Employer contributions were made in accordance with actuarially determined requirements in each of the years presented above.

Significant Actuarial Assumptions Used:

Rate of Retum on Investment of Present and Future Assets 8.0% 8.0% 8.0%

Projected Salary Increases:

From inflation 3.0% 3.0% 4.5%

From merit and seniority 3.5% 4.0% l.0%

• = Not Applicable

City of Leesburg, Florida Notes to Financial Statements (continued)

10. Pension Plans (continued)

Pension Benetit Obligation (continued)

Ten-year historical trend information which can be used to evaluate the plans' progress in ,

accumulating assets to pay pension benefits as they become due, is included in the Required l Supplementary Information section of the City's comprehensive annual financial report.

The Plan was amended, effective March 10,1995, as follows:

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The aggregate actuarial cost method was changed to the frozen entry age method. j The early retirement reduction was changed from 5% per year to 3% per year.

The above amendment had no effect on the required contribution or pension benefit obligation for fiscal year 1995.

11. Self-Insurance Funds A. 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 $45,000 per person are paid from the assets of the self-insurance fund; claims in excess of $45,000, up to a maximum of $955,000 per employee per year, are paid from a reinsurance policy purchased by the City.

B. Workers' Compensation Insurance Fund:

The City maintains a self insurance program for the payment of employee Worker's 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.

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City of Leesburg, Florida Notes to Financial Statements (continued)

11. Self-Insurance Funds (continued)

C. Liabilities for known claims and incurred but not reported claims:

Current Year Balance Claims and Balance October 1, Changes in Claims September 30, 1994 Estimates Paid 1995 (in thousands) .

Employee Health Insurance Fund $195 $1,240 $1,212 $223 Workers' Compensation Insurance Fund 294 62 134 222

$489 $1,302 $1,346 $445

12. Contributed Capital The following is a summary of changes in contributed capital during the current year:

Balance Balance l October 1, -

September 30, l 1994 Additions Deletions 1995 )

(in thousands) l Enterprise funds: I Electric utility 5 2,726 $ 69 $ - $ 2,795 Gas utility 445 3 -

448 Water utility 2,708 278 -

2,986 Sanitary sewer and wastewater 11,683 551 -

12,234 Sanitation services 441 - -

441 Communication services 141 - -

141 Total enterprise funds $18,144 $901 $ -

$19.045 l'

Internal service funds:

Motor pool $ 16 $ - $ -

$ 16 I

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City of Leesburg, Florida Notes to Financial Statements (continued)

13. 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 is not available to employees until termination, retirement, death, or unforeseeable emergency.

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, propeny, or rights are (until paid or made ,

r,vailable to the employee or other beneficiary) solely the property and rights of the City (without  !

being restricted to the provision of benefits under the plan), subject only to the claims of the City's ]

general creditors. Participant's rights under the plan are equal to those of general creditors of the i City in an amount equal to the fair market value of the defenred amount for each pamcipant.  ;

i It is the opinion of the City that the City has no liability for losses under the plan but does have the l I

duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will v e the assets to satisfy the claims of general creditors in the future.

14. Contingencies and Commitments A. The City panicipates in a number of State and Federal grant programs, including the

! following: j

+

HUD Section 8 - Housing Assistance Payments Program ,

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 30,1995, 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.

B. The City has been identified by the NAACP of Lake County and various other plaintiffs as a co-defendant in a civil rights suit. Maximum aggregate claims for damages in this suit have been made in the amount of $5,975,000. The City currently carries general liability insurance of $1,500,000. At this time, the ultimate outcome of this matter nor a reasonable estimate of the City's exposure can be determined.

City of Leesburg, Florida Notes to Financial Staternents (continued) ,

15. Deficit Retained Earnings The Sanitation Enterprise Fund recorded a deficit in retained earnings at September 30,1995 of

$1,231,000. This was the result of the recording of estimated landfill postclosure care costs in accordance with Statement No.18 of the Governmental Accounting Standards Board entitled Accountingfor Municipal Solid Waste Landfill Closure and Postclosure Care Costs. (See Note 7 for further disclosure related to this liability.)

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1 Required Supplementary Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten-year trend information may be found on the following pages.

_ ~ _ _ . . . . ._ _ _ .

City of Leesburg, Florida l

Required Supplementary Information Revenues by Source - Expenses by Type i Pension Trust Funds Last Ten Fiscal Years (in thousands)

Revenues by Source Employer Employee State Investment Contributions Contributions Contributions Income i Municipal Police i Retirement 1995 $ - $ 115 $ 94 $ (3) J 1994 -

102 91 55 1993 -

119 84 137 1992 -

78 78 24 1991 -

73 87 26 1990 -

66 87 51 1989 -

46 87 295 1988 -

39 77 162 1987 -

35 72 53 1986 -

38 63 212

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Municipal Firemen's i Retirerntal 1995 $ 67 $ 58 $ 63 $ 15 i 1994 68 52 64 76 l 1993 69 46 57 125  !

1992 64 43 51 31 1991 64 43 52 40 1990 59 39 48 33 1989 53 35 48 341 l 1988 49 32 44 233 1987 67 32 40 84 1986 63 30 36 308 General Employees' Retirement 1995 $ 650 $ - $ - $ 688

-1994 602 - -

635 1993 585 - -

632 1992 592 - -

671 1991 646 - -

647 1990 565 - -

363 1989 529 - -

836 1988 583 - -

253 1987 512 - -

499 1986 477 - -

759 Employer Contribution as Expenses by Type a Percentage Benefit of Covered Payments Refunds Other Payroll

, $ 81 5 - $ 48- N/A l 101 -

30 N/A 68 -

32 N/A 19 -

40 N/A 9 -

4 N/A 14 - -

N/A 16 -

25 N/A

20 -

10 N/A

! 19 -

4 N/A j 11 26 3 N/A l

5 127 5 - $ 21 7.5%

379 -

24 7.5%

186 -

22 7.5%

100 -

24 7.5%

153 -

22 7.5%

83 -

22 7.5%

75 -

20 7.5%

62 -

12 7.5%

45 -

6 7.5%

43 14 7 8.7%

$ 367 $ - $ 147 8.3%

356 -

131 8.3%

277 -

116 8.3%

258 -

% 8.3%

179 -

98 10.1%

158 -

82 10.1 %

130 -

72 10.1 %

116 -

64 12.3 %

99 -

49 12.3 %

86 -

45 12.3 %

. _. - ~ - . - .. . ~ - - . . _-. - - - - . - _ - ~ .-- -. - --

i City of Leesburg, Florida Required Supplementary Information Pension Benefit Obligation Information Pension Trust Funds ,

All Available Years (in thousands)

Pension Assets in Net Aasets Benefit (1) As a Excess of (3) As a Available for Obligation Percentage (Unfunded) Covered Percentage Benefits (1) (PBO)(2) Of(2) PB O (3) Payroll (4) of(4)

Municipal  :

Police Retirement 1995 5 4,002 $ 2,593 154.3 % $ 1,409 $ 1,491 94.5 %

1994 3,900 2,969 131.3 % 931 1,312 70.9 % '

1993 3,395 2,580 131.6 % 805 1.234 66.0 %

1992 2,949 2,277 129.5 % 672 993 67.6 %

Municipal Finmen's Retirement ['

1995 5 4,315 $ 4,131 104.4 % $ 184 $ 8% 20.5 %

1994 4,509 3,744 120.4 % 765 910 84.1 %

1993 4,093 3,594 113.9 % 499 916 54.5 %

!992 3,630 3,122 117.2 % 509 855 59.5 %

General Employees' fansist 1995 $ 13,804 $ 10.871 127.0 % $ 2.933 $ 7.7% 37.6 %  :

1994 13.55I 9,933 136.4 % 3,6I8 7,217 50.1 % l 1993 11.566 8,826 131.0 % 2,739 7,012 39.1 % ,

1992 9,854 8,225 119.8 % 1,630 7.100 23.0 %  ;

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N/A = Not Available looking at the pension benefit obligation, or the unfunded portion (or assets in excess) of the pension benefit obligation, in isolation can be misleading. Expressing net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the extent to which a pension fund is funded. Analysis of this percentage over timeindicates whether the pension fund is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the pension fund.

Expressing the unfunded pension benefit obligation (or assets in excess of the pension benefit obligation) as a percentage of the i annual covered payroll approximately adjusts for the effects of inflation and aids analysis of funding progress. Generally, the smaller the unfunded percentage, the stronger the pension fund.

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General Fund The General Fund accounts for all revenues and expenditures of the City which are not required to be accounted for in other funds. It receives a greater variety and number of taxes and other 4 general revenues than any other fund.  ;

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City of Leesburg, Florida l General Fund Balance Sheet September 30,1995 (in thousands) 1995 1994 Assets Equity in pooled cash and cash equivalents $ 5,591 $ 4,863 Due from other governments 219 255 Due from other funds 19 -

Assessments receivable 4 3 Other accounts receivable (net of allowance for doubtful accounts of $4 for 195 and 1994) 5 12 Interest receivable 181 124 Inventories 8 8 Total assets $ 6,027 $ 5,265 Liibilities and fund balance Liabilities:

Accounts payable $ 680 $ 304 ,

Accrued wages and payroll tax 568 408' i Unearned license revenue 147 115 Compensated absences ,

4 i Totalliabilities 1,395 831 Fund balance:

Reserved:

For police education 7 4 For police expenditures 95 82 J For police communication tower 8 6 i For fire expenditures -

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For C.U.R.E program 2 1 Unreserved 4,520 4,340 Total fund balance 4.632 4,434 Totalliabilities and fund balances $ 6,027 $ 5.265 1

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j- City of Leesburg, Florida General Fund Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual For the year ended September 30,1995 1 I

(in thousands)

Variance Favorable 1994 '

Budget Actual (Unfavorable) Actual Revenues:

Taxes 5 3,173 $ 3,287 $ 114 $ 3.114 Licenses and permits 235 251 16 218 Intergovernmental 1,536 1,551 15 1,587 Charges for services 185 172 (13) 158 Fines and forfeitures 162 189 27 172 Miscellaneous:

. Interest 308 321 13 200 Other 250 276 26 185 Totd revenues 5.849 6.047 198 5.614 Expenditures Cunent:

General government 1,202 1,053 149 924 Public safety 4,715 4,722 (7) 4,446 Public works 1,363 1,309 54 1.321 Community development 218 208 10 1%

Culture / recreation 2,340 2.225 115 2,085 Debt service - - -

12 Total expenditures 9.838 9.517 321 8.984 Deficiency of revenues over (under) expenditures (3,989) (3.470) 519 (3.350)

Other financing sources (uses)

Operating transfers in 5,291 5,086 (205) 4,824 Operating transfers out (1,302) (1.418) (llg (1.245)

Total other financing sources 3.989 3.668 (321) 3.579 Excess (deficiency) of revenues and other sources over (under) expenditures and other uses -

198 198 229 Fund balance, beginning of year 4.434 4.434 -

4.205 l r

Fund balance, end of year $ 4.226 5 4.632 $ 198 5 4.434 I

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l-r City of Leesburg, Florida Genen! Fund Schedule of Revenues - Budget and Actual i i

For the year ended September 30,1995 (in rhousands) l l

Variance I Favorable 1994 Budget Actual (Unfavorable) Actual l

l Revenues: 3

! Taxes:

Ad Valorem $ 2.264 $ 2.301 $ 37 $ 2.216 Local option sales 797 897 100 790 l Franchise fees 112 89 (23) 108 Total taxes 3.173 3.287 114 3.114 Licenses and permits:

Licenses 143 147 4 137 Building permits 61 63 2 53 Other permits 31 41 10 28 Totd licenses and permits 235 251 16 218 l

Intergovernmental: I State grants 24 6 (18) 49 State shared revenues 938 %7 29 943 ]

County shared revenues 35 32 (3) 49 l

Fuel rebate 14 15 1 14 Local option taxes $25 531 6 532 Totalintergovernmental 1.536 1.551 15 1.587 Charges for services:

General government charges 10 14 4 14 i Other public safety charges 3 4 1 2 Other physical environment  ;

charges -

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Culture and recreation 172 153 (19) 142 Total charges for services 185 172 (13) 158 Fines and forfeitures:

Court fines 122 150 28 134 Libra.'y fines 15 16 1 16 Other fines and forfeitures 25 23 (2) 22 Totd fines and forfeitures 162 189 27 172 Miscellaneous:

Sales- forfeited propeny -

22 22 8 i Interest 308 321 13 200 )

Rents and royalties 78 79 1 115 Sale of city propeny and insurance compensation 112 112 - 25 Other 48 50 2 28 Contributions 12 13 1 9 Totd miscellaneous revenues 558 597 39 385 l

1 Totd revenues 5 5.849 $ 6.047 $ 198 5 5.634 a  ;

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City of Leesburg, Florida General Fun 3 Schedule of Expenditures - Budget and Actual- By Department For the year ended September 30,1995 (in thousands)

Variance Favorable 1994 Budget Actual (Unfavorable) Actual Expenditures:

General Government:

City Commission S 76 $ 64 5 12 $ 73 Executive offices -658 565 93 484 Finance department 319 269 50 245 Personnel service offices 115 108 7 91 Purchasing department 34 47 (13) 31 Total general government 1,202 1,053 149 924 Public safety:

Police department 3,048 3,063 (15) 2,835 Fire department 1,667 1,659 8 1,611 Total public safety 4.715 4.722 (7) 4.446 Public works 1,363 1,309 54 1,321 Community development 218 208 10 1%

Culture and recreation:

Library services 719 669 50 626 Recreation 1,621 1,556 65 1,459 Total culture and recreation 2.340 2,225 115 2,085 Debt service - - -

12 Total expenditures 5 9,838 $ 9,517 $ 321 $ 8,984 3

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nmie iy m sm uuuupumiyigyypyn Special Revenue Funds Community Development Fund - To account for the collection of housing assistance loans previously made. Proceeds accumulated from such collections may be reloaned to new program participants in the future.

Housing Assistance Fund - To account for federal monies designated for housing cost assistance to low and moderate income families and the related administrative costs of the program.

Stormwater Fund - To account for revenues and expenditures related to stormwater management -

(i.e., the collection, storage and dispersal of rainwater).

Affordable Housing Fund - To account for federal, state, and local monies designated for construction and rehabilitation of housing for low and moderate income families and the related administrative costs of the program.

City of Leesburg, Florida q Special Revenue Funds ,

Combining Balance Sheet i September 30,1995

[

(in thousands) ,

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Community Housing Affordable Totals Development Assistance Stormwater Housing 1995 1994 Assets Equiry in pooled cash and cash equivalents $ 110 $ 122 5 172 5 - $ 404 $ 384 i' Housing assistance loans 21 - -

21 59 Accounts receivable - - 65 21 86 36 Due from other governments 5 - - -

5 -

l Totd assets $ 136 $ 122 237 21 5 516 $ 479 f

Liabilities sad fund balances t Liibilities: l Accounts payable $ 97 $ - $ - $ - $ 97 $  :

Due to other governments 27 $7 - - 84 104 l Due to other funds - - - 19 19 - i Totd liabilities 124 57 -

19 200 104 '

Fund balances: 1 Reserved:

For capitalimprovements 12 - - -

12 11 j For housing assistance -

18 - -

18 33  :

Unreserved - 47 237 2 286 331 }

Total fund balances 12 65 237 2 316 375 '

Tottiliabilities and fund balances $ 136 $ 122 5 237 5 21 5 516 5 479 -

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City of l2esburg. Florida Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended September 30,1995 (m thousands}

Connanualty Housing Affordable Totals Developaneet Assistance Storamwater Housing 1995 1994 Revenues:

Intergovernrnental $ 330 $ 711 $ - $ 26 $ 1,%7 $ 705 Physical environment - -

?99 -

399 295 Interest -

5 15 -

20 9 Miscellaneous revenue - - - - -

7 Tot-J revenues 330 716 414 20 1,486 4.016 Expenditures:

Physical environrnent - -

457 -

457 219 Human semces 329 714 -

28 1,071 675 Debt service - -

17 17 34 Tot J cxpenditures 329 714 474 28 1.545 928 Excess of revenues over (under) expenditures 1 2 (60) (2) (59) 88 Fund balances, beginning of year 11 63 297 4 375 287 Fund balances, end of year $ 12 $ 65 $ 237 5 2 $ 316 5 375

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City of Leesburg, Florida Community Development Fund i Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual  :

For the year ended September 30,1995 I (in thousands) l Variance  :

Favorable 1994 i Budget Actual (Unfavorable) Actual  ;

i Revenues.  ;

Intergovernmental $ 650 $ 330 $ (320) $ 2 Total revenues 650 330 (320) 2 t l

Expenditures Human services 650 329 321 -

Total expenditures 650 329 321 -

Excess of revenues over expenditures -

1. I 2 .

Fund balance, beginning of year 11 11 -

9 Fund balance, end of year $ 11 $ 12 $ 1 $ 11 l

i City of Leesburg, Florida i Housing Assistance Fund l Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual For the year ended September 30,1995 l (in thousands)

Variance Favorable 1994 Budget Actual (Unfavorable) Actual Revenues:

l Intergovernmental:

HUD contributions $ 686 $ 711 $ 25 $ 696 Interest 4 5 1 1 Total revenues 690 716 26 697 Expenditures:

Human services:

Welfare:

Personal services 66 78 (; ) 49 Operating expenditures 624 636 (12) 616 Total expenditures 690 714 (24) 665 Excess of revenues over expenditures -

2 2 32 Fund balance, beginning of year 63 63 -

31 l Fund balance, end of year $ 63 $ 65 $ 2 $ 63 l

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City of Leesburg, Florida Stormwater Fund Statement of Revenues, Expenditures and Changes in Fund Balance - I Budget and Actual -

For the year ended September 30,1995 l (in thousands) ,

Variance ,

Favorable 1994 i' Budget Actual (Unfavorable) Actual Revenues:

Physical environment:  ;

Utility fees $ 362 $ '3M $ 37 $ 295 i Interest 13 15 2 8  ;

Total revenues 375 414 39 303 Expenditures:

Physical environment:

[

Stormwater:

Personal services 79 73 6 30 Operating expenditums 383 377 6 136 Capital outlay 6 7 (1) 53 Debt service - 17 17 -

34 Total expenditures 485 474 11 253 ,

Excess of revenues over (under) expenditures (110) (60) 50 50 l

Fund balance, beginning of year 297 297 -

247 Fund balance, end of year $ 187 $ 237 $ 50 $ 297 l l

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l City of Leesburg, Florida Affordable Housing Fund Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual For the year ended September 30,1995 (in thousands)

Variance Favorable 1994 Budget Actual (Unfavorable) Actual Revenues:

Intergovernmental $ 200 $ 26 $ (174) $ 7 Miscellaneous - - -

7 Total revenues 200 26 (174) 14 Expenditures:

Human services:

Operating expenditures 200 28 172 10 Total expenditures 200 28 172 10 Excess of revenues over (under) expenditures -

(2) (2) 4 Fund belance, beginning of year 4 4 - -

Fund balance, end of year $ 4 $ 2 $ (2) $

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Enterprise Funds Utility Funds - The Electric, Gas, Water, and Sanitary Sewer and Wastewater Treatment Funds account for the provision of these utility services to customers within the City's service area. All activities necessary to provide such services are accounted for in these funds, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

i Sanitation Services Fund - To account for the collection, transport and disposal of solid waste for residential and commercial customers in the City.

Communications Services Fund -To account for the provision of communications services to customers in the City.

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City of Leesburg, Florida Enterprise Funds  :

Combining Balance Sheet l

t September 30,1995 (in thousands)

\

Electric Gas Water ,

Utility Utility Utility Assets Current assets Equity in pooled cash and cash equivalents $ 13,580 $ 2,934 $ 2,934 ,

Receivables:

Customer accounts -unbilled 2,'0d8 154 193 ,

billed 2,356 367 210  !

Allowance for doubtful accounts (458) (16) ,

Accmed interest 73 9 21 l Due from other funds - - -

Inventory 1,233 - -

Total current assets 18,872 3,448 3,358  ;

Restricted assets ,

Equity in pooled cash and cash equivalents:

Debt service account 1,099 135 321 Renewal and replacement account 1,766 277 657 Impact fees account - -

577 Customer deposits account 1,2% 58 72 Investments:

Debt service account 2,377 291 695 Total restricted assets 6.538 761 2.322 Property, plant and equipmot Property, plant and equipment 47,265 6,500 11,660 Nuclear fuel 325 - -

47,590 6,500 11,660 Less: Accumulated depreciation and amortization (17,304) (2,274) (4,%2) 30,286 4,226 6,698 Construction in progress 2,131 104 60 32,417 4.330 6,758 Other assets Estimated landfill closure costs - net - - -

Unamonized bond issue costs 121 15 34 Rights to purchase power 51 - -

Crystal River decommissioning trust account 1,084 - -

1,256 15 34 Total assets $ 59,083 $ 8,554 $ 12,472

I Page 1 of 2 Other Sanitary Enterprise Sewer and Total Fund Wastewater Combined Sanitation Communication Totals Treatment Utility Services Services 1995 1994

$ 5,952 $ 25,400 $ 345 $ 7 $ 25,752 22,885 204 2,639 154 -

2,793 2,052 362 3.295 165 -

3,460 2,838 (8) (482) - -

(482) (461) 15 118 - -

118 117 15 2 1,235 - - 1,235 1,027 6,527 32.205 664 7 32,876 28,473 228 1,783 - - 1,783 1,745 728 3.428 - -

3,428 2,863 l 764 1,341 - -

1.341 974 j 33 1,459 1 - 1,460 1,384 l

493 3,856 - - 3,856 3,864 2,246 11,867 1 - 11,868 10,830 18,945 84,370 1,443 188 86,001 84,063 325 - -

325 458 18,945 84,695 1,443 188 86,326 84,521 (5,757) (30,297) (1,014) (20) (31,331) (29.553) 13,188 54,398 429 168 54,995 54,% 8 533 2,828 - - 2,828 2,866 13,721 57.226 429 168 57,823 57,834 204 59 229 - -

229 262 51 53 I 51

- 1,084 - - 1,084 957 59 1,364 - - 1,364 1,476

$~ 22,553 $ 102,662 $ 1,094 $ 175 $ 103,931 $ 98,613

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i City of Leesburg, Florida Enterprise Funds r Combining Balance Sheet r

September 30,1995 (in *housands) l Electric Gas Water Utility Utility Utility  ;

Liabilities and fund equity Current liabilities Accounts payable $ 1,552 $ 146 -

Accrued expenses 1,285 52 5 81 Customer advances for construction 82 -

9 Due to other funds - - -

Current portion of capital lease obligation - - -

Estimated landfill closure cost payable - - -

Total current liabilities 2,919 198 90 Current liabilities (payable from restricted assets)

Customer deposits 1,296 58 72 Accmed interest on revenue bonds 458 56 134 Current portion, bonds payable 589 72_ 172 Total current liabilities (payable from restricted assets) 2,343 186 378 1

Long-term liabilities Notes payable - - -

I Capital lease obligation - long-term portion - - -

Refunding revenue bonds payable 12.330 1,509 3,607 Accrued interest on capital appreciation revenue bonds 831 102 243 Less: Unamortized discount (101) (12) (29)

Landfill post-closure costs payable - - -

Decommissioning costs 1,745 - -

Advance from other fund - - -

Totallong-term liabilities ~

14.805 1.599 3,821 Totalliabilities 20.067 1,983 4.289 l

Fund equity i Contributed capital Other govemments 18 7 77 l Customers and developers 2,777 441 2,909 Other funds ~

Total contributed capital 2,795 448 2,986 l' Retained earnings:

Reserved:  :

Debt service 2,430 298 711 l Mnewal and replacement 1,766 277 657 Unreserved (deficit) 32,025 5.548 3,829 Total retained earnings (deficit) 36,221 6.123 5,197 Total fund equity (deficit) 39,016 6,571 8,183 Totalliabilities and fund equity $ 59,083 $ 8.554 $ 12,472 Page 2 of 2 Other Sanitary Enterprise Sewer and Total Fund Wastewater Combined Sanitation Communication Totals Treatment Utility Services Services 1995 1994 5 1,698 $ 642 -

$ 2,340 $ 2,103

$ 139 1,557 68 - 1,625 1,358 9 100 - -

100 123

- - - l 15 50 -

50 122 1 467  !

148 3,355 760 4,i15 4,188 l

33 1,459 1 - 1,460 1,384 l

95 743 - -

743 781 122 955 - -

955 885 250 3,157 1 - 3,158 3,050 2,095 2,095 - - 2,095 2,365 55 -

55 96 2.559 20,005 - - 20,005 20,959 172 1,348 - - 1,348 1,151 (21) (163) - -

(163) (183)

- - 1,000 - 1,000 1,503

- 1,745 - - 1,745 1,453 50 -

50 -

4,805 25.030 1,105 - 26,135 27.344 5,203 31,542 1,866 33,408 34,582 j 8,011 8,113 - - 8,113 8,113 4,209 10,336 - - 10,336 9,435 14 14 441 $ 141 5% 5%

12,234 18,463 441 141 19,045 18,144 504 3,943 - - 3,943 3,943 728 3,428 - - 3,428 2,863 3,884 45,286 (1,213) 34 44,107 39,081 5,i16 52,657 (1,213) 34 51,478 45,887 17,350 71,120 (772) 175 70,523 64,031

$ 22,553 $ 102,662 $ 1.094 $ 175 $ 103,931 $ 98,613 F

City of Leesburg  ;

Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings f

For the year ended September 30,1995  :

(in thousands) i Electric Gas Water Utility Utility Utility .

Operating revenues:

30,262 %J* ---R$18 User charges $ 5 5,669 ,

Other operating revenue 568 82 ' 48 ,

Total operating revenues 30,830 5,751 2,566 l

Operating expenses: ,

Power generation and transmission 920 - -

l Purchased energy . 17,077 3,316 -

t Supply and pumping - -

111 ]

Treatment - - -

375  !

Distribution and collection 1,819 261 264 Customer accounts 785 259 289 )

General and administrative 1,316 3% 295 Operating expenses - - -

Depreciation and amortization 2,114 188 456 )

Change in post closure estimate - - -

Total operating expenses 24,031 4,420 1,790  !

l Operating income 6,799 1,331 776 )

Nonoperating revenue (expense):

Interest income 1,172 202- 287' Other nonoperating income 84 3 18 Inten:st expense (1,070) (133) (312)

Other nonoperating expense (221) (18) (5)

Total nonoperating revenue (expense) (35) 54 (12)

Income before operating transfers 6,764 1,385 764 Operating transfers:

Transfers out (3,565) (692) (239) l Net income 3,199 693 525 Retained earnings (deficit), beginning of year 33,022 5,430 4,672 Prior period adjustment - - -

Retained earnings (deficit), end of year $ 36,221 $ 6.123 $ 5,197 I

)

Other Sanitary Enterprise l Sewer and Total Fund i Wastewater Combined Sanitation Communication Totals Treatment Utility Services Services 1995 1994

$ 3,160 $ 41,609 $ 2,348 $ 34 $ 43,991 $ 40,023 92 790 - -

790 512 3,252 42,399 2.348 34 44,781 40,535 920 - -

920 1,028

- 20,393 - -

20,393 18,693 204 '315 - -

315 301 837 1,212 - - 1,212 1,039 171 2,515 - - 2,515 2,490 241 1,574 - - 1,574 1,462

- 2,402 -

2 2,404 2,386 395 - 2,066 - 2,066 2.520 400 3,158 704 12 3,874 4,119 (502) -

(502) -

2,248 32,489 2,268 14 34,771 34,038 1,004 9,910 80 20 10.010 6,497 432 2,093 42 - 2,135 1,390 29 134 67 -

201 144 (333) (1,848) (9) - (1,857) (1,901)

(18) (262) - -

(262) (89) 110 117 100 -

217 (456) 1,114 10,027 180 20 10,227 6,041 (l40) (4,636) - - (4,636) (4,372) 974 5,391 180 20 5,591 1,669 4,142 47,266 (1,393) 14 45,887 45,721

- - - - - (1,503)

$ 5,116 $ 52,657 $ (1,213) $, 34 $ 51,478 $ 45,887 City of Leesburg, Florida Enterprise Funds -

Combining Statement of Cash Flows For the year ended September 30.1995 (in slwusands)

Electdc Gas Water Utility Utgity Utility Net cash provided by (used for) operating actidties 5 8.098 5 1,465 5 1.251 Cash flows used for noncapital financing activities Operaung transfers out to other funds (3.565) (692) (239)

Net cash used for noncapital financing acuvities t 3.565) (692) (239)

Cash flows from (used for) capital and related financing activities Interest paid on capital lease - - -

Interest paid on revenue bonds (943) (117) (276)

Acquisition and construction of capital assets (1,674) (424) (466) .

Pnncipal paid on capitallease - - -

Principal paid on bond matunties (545) (67) (160)

Pnneipal paid on note payable - - -

Capital contnbuted 69 3 278 ,

Net cash used for capital and related financing activities (3.093) a605) (624) l Cash flows froun investing actMties Interest on investments . 1,175 203 289 Purchase of Crystal River decommission investments (127) - -

Net cash flows from investing acuvines 1.048 203 289 Net increase (decrease)in cash and cash equivalents 2.488 371 677 l Cash and cash equivalents at beginning of year 15.253 3.033 3.884 '

Cash and cash equivalents at end of year 5 17.741 5 3.404 5 4.561 l Reconciliation of operating income to net cash provided by (used for) operating activities Operaung income -

5 6,799 5 1.331 5 776 Adjustments to reconcile operating income to net cash provided by (used for) operaung acuvines:

Depreciauon and amortization 2,114 188 456 Bad debt expense 134 5 6 Nonoperating income 84 3 18 1 Nonoperaung expense (221) (18) (5) l Change in post closure estimate - - -  !

Decrease (increase)in customer accounts (930) (145) (160) l Increase in advances from other funds - - -

Decrease (increase)in due from other funds - - -

Decrease (increase)in inventory (425) 80 131 increase (decrease) in accounts payable 339 3 -

Increase (decrease) in due to other funds - - -

Decrease in esumated landfill closure costs payable - - -

Increase in accrued expenses 147 19 36 Increase (decrease) in customer advances for construccon (23) - -

Increase (decrease) in customer deposits 80 (1) (7)

Net cash provided by (used for) operating activines 5 8.098 5 1.465 5 1.251 Significant transactions not affecting cash Water / sewer lines contnbuted by developers 5 - 5 - 5 -

Contributions from other funds - - -

5 -

5 -

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l Other Sanitary Enterprise 4 Sewer and Total Fund j wastewater Combined Sanitation Comunuaication Totals  !

Treatment Utility Services Services 1995 1994 1

$ 1,278 $ 12.092 $ (515) $ 17 $ 11.594 $ 11,416 (140) (4.636) - -

(4.636) (4.372)

(l40) a 4.636) - -- (4.636) 44.372) l (9) -

(9) (18) l (300) (1,636) - - (1,636) (1,687)

(339) (2,903) (89) (10) (3,002) (3.501)

(113) -

(113) (177)

(113) (885) - -

(885) (820)

(270) (270) - -

(270) (255) 505 855 - -

855 1.262 (511I t 4.839) (21I) (10) 15.060) (5.1%)

433 2,100 42 - 2,142 1.395 (127) - -

(127) (120) 433 1.973 42 - 2.015 1.275 1,054 4.590 (684) 7 3,913 3,123 6.651 28.821 1.030 - 29.851 26.728

$ 7.705 $ 33.411 $ 346 $ 7 $ 33.764 5 29.851 5 1,004 5 9,910 $ 80 $ 20 $ 10,010 $ 6,497 400 3,158 704 12 3.874 4,119 10 155 13 - 168 133 29 134 67 -

201 144 (lB) (262) - -

(262) (89)

(502) -

(502) -

(208) (I,443) (66) -

(l.509) 170 50 -

50 -

15 - 15 (9) 6 (208) - -

(208) (100) 342 (105) -

237 516 (15) (15) 9 (785) -

(785) (629) 52 254 14 -

268 645 (23) - -

(23) 62 3 75 - - 75 (52)

$ l.278 $ 12.092 $ 4515) $ 17 $ 11.594 $ 11.416 5 46 $ 46 $ -

$ 46 $ 580

- - - - - 123

$ 46 $ 46 $ -

$ 46 5 703 1

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Internal Service Funds Motor Pool Service Fund -To account for the costs of operating a maintenance facility for automotive equipment used by other City departments.

General Employees' Health Insurance Fund - To account for the costs of providing health  ;

I insurance to all covered City employees.

Workers' Compensation Insurance Fund -To account for the costs of providing workers' compensation insurance to all covered City employees.

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i City of Leesburg, Florida Internal Service Funds Combining Balance Sheet September 30.1995 (in thousandt)

General Employees' Workers' Motor Pool Health Compensation Totals Service Insurance Insurance 1995 1994 Assets Current assets:

Equity in pooled cash and cash equivalents $ 74 $ 1,089 $ 1,768 $ 2.931 $ 2.495 Miscellaneous accounts receivable -

6 -

6 249 inventory 42 - -

42 54-Total current as<ets i16 1.095 1.768 2.979 2.798 Property, plant and equipment Buildings 28 - -

28 28 Machinery and equipment 136 - -

136 104 Less accumulated depreciation (118) - -

(118) (94) 46 - -

46 38 Total assets $ 162 $ 1.095 $ 1.768 $ 3.025 $ 2.836 Liabilities Accrued expenses $ 25 $ - $ - $ 25 $ 13 Claims payable -

223 222 445 489 Totalliabilities 25 223 222 470 502 Ftnd equity Contributed capital- General Fund 16 - -

16 16 Retained earnings:

Reserved for insurance -

872 1,546 2.418 2,167 Unreserved 121 - -

121 151 Total retained eamings 121 872 1.546 2.539 2.318 Total fund equity 137 872 1.546 2.555 2.334 Totalliabilities and fund equity $ 162 $ 1.095 $ 1.768 $ 3.025 5 2.836 l

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l City ofleesburg, Florida .

Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings Year ended September 30,1995 l

(in thousands)

General Employees' Workers' Motor Pool Health Compensation Totals Service lasurance lasurance 1995 1994 Opening re,tnues:

Charges tor services 1 257 $ 1,576 - $ 647 $ 2,480 2,645 Opereing expenses:

Personal services 148 - -

148' 139 Other services and charges 22 - -

22 16 Materials and supplies 107 - -

107

' 81

' Depreciation 10 - -

10 10 Claims expense - 1,240 62 1,302 1,018 Administrative expenses -

43 24 67 66 Insurance premiums -

224 75 299 316 l . Total operating expenses 287 1,507 161 1,955 1,646 l

Operating income (loss) (30) 69 486 525 999 Nonoperating income:

Investment income -

51 95 146 83 Income (loss) before operating transfers (30) 120 581 671 1,082 Operating transfers out - -

(450) (450) (453)

Net income (loss) (30) 120 131 221 629 Retained earnings, beginning of year 151 752 1,415 2,318 1,689 Retained camings, end of year $ 121 5 872 $ 1,546 5 2,539 $ 2,318 l

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City of Leesburg, Florida Internal Service Funds Combining Statement of Cash Flows  ;

Year ending September 30,1995 1

Un thousands) l 1

General Employees' Workers' Motor Pool Health Compensation Totals Service lasurance lasurance 1995 1994 Net cash provided by operating activities $ 4 5 340 $ 414 $ 758 $ 811 ,

1 Cash flows used by capital and related financing activities Acquisition and construction of capital assets (18) - - (Ig) (3)

Cash flows ic4 by noncapital and related i financing actMt'es Operating tran.fers to other funds - -

(450) (450) (453)

Net cash used by ni scapital and related financing activities

]

(450) (450) (453) l I

Cash flows from investing activities l Intenst on investments -

51 95 146 83  ;

Net increase (decrease) in cash and cash equivalents (14) 391 59 436 438 Ccsh and cash equivalents at beginning of year 88 698 1,709 2.495 2.057 l Cash and cash equivalents at end of year $ 74 $ 1.089 $ l768 $ 2.931 $ 2.495 j 1

Reconciliation of operating income (loss) to l net cash provided by operating activities Operating income (loss) $ (30) $ 69 $ 486 5 525 $ 999 Adj.astments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation 10 - -

10 10 Decrease (increase) in miscellaneous receivables - 243 -

243 (249)

Decrease (increase)in inventory 12 - -

12 (12)

Increase (decrease) in claims payable - 28 (72) (44) 61 increase in accrued expertes 12 - -

12 2 Net cash provided by operating activities $ 4 $ 340 $ 414 5 758 $ 811

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Fiduciary Fund Types Pension Trust Funds - To account for the accumulation of resources to be used for retirement payments to employees. Resources are contributed by the City, participating employees and the State.

i Agency Fund - To account for the assets and liabilities of the Deferred Compensation Plan.

Assets represent amounts earned by employees who have elected to defer a portion of their compensation to a later date.

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City of Leesburg, Florida Fiduciary Fund Types Combining Balance Sheet September 30,1995 (in thousands)

Pension Trust Funds Municipal Municipal Police Firemen's General Retirement Retirement Employees' Trust Trust Retirement Assets Cash and investments with trustees $ 4,986 $ 5,306 $ 15,923 Accrued interest receivable -

2 182 Total assets S 4,986 $ 5.308 $ 16,105 Liabilities and fund equity Liabilities:

Deferred compensation payable $ -

Total liabilities - - -

Fund equity:

Fund balances reserved for employee benefits 4,986 5,308 16.105 Totalliabilities and fund equity $ 4,986 $ 5,308 $ 16,105 i

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Fund Deferred Total Compensation 1995 1994 l

$ 1,748 $ 27,963 $ 23,353 l -

184 175

$ 1,748 $ 28,147 $ 23,528 i

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$ 1,748 $ 1,748 $ 1,407 1,748 1,748 1,407 l - 26,399 22,121 l $_ 1,748 $ 28,147 $ 23,528 l l

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1 City of Leesburg, Florida Pension Trust Funds i Combining Statement of Revenues, Expenses and Changes in Fund Balances i For the year ended September 30.1995 i (in thousands)

Pension Trust Funds r Municipal Municipal ,

Police firenwn's General i Retirement Retirement Employees' Totals I Trust Trust Retirement 1995 1994 ,

Revenues:

Investment income: i Unrealized increase (decrease)in i fair value ofinvestments $ 907 $ 938 $ %3 $ 2.808 $ (664)

Interest and dividend income (3) 15 688 700 766 I Gain (loss) on sale of i investments-net - -

514 514 -101 .

Totalinvestment income -

904 953 2.165 4.022 203 Contributions:

Emples ser - 67 650 717 670 .

Empoyee 115 58 -

173 154 State of Florida 94 63 -

157 155  :

Total contributions 209 188 650 1.047 979 Totai revenues 1.113 1.141 2.815 5.069 1.182 Expenses:  !

Benefit payments 81 .127 367 575 836 Administrative expenses 48 21 147 216 185 j Total expenses 129 148 514 791 1.021 1 Net income (loss) 984 993 2.301 4.278 161 ,

Fund balances beginning of year 4.002 4.315 13.804 22.121 21.960 {

Fund balances, end of year $ 4.986 5 5.308 $ 16.105 $ 26.399 $ 22.121 r

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City of Leesburg, Florida Fiduciary Fund Types Agency Fund Statement of Changes in Assets and Liabilities

.)

For the year ended September 30,1995 (in thousands)

Balance Balance October 1, Septeinber 30, 1994 Additions Deductions 1995 Assets Investments $ 1.407 $ 381 $ 40 $ 1,748 Total assets $ 1.407 $ 381 $ 40 $ 1.748 Liabilities Defstmd compensation payable $ 1.407 $ 381 $ 40 $ 1,748 Totalliabilities $ 1.407 $ 381

$_ 40 $ 1,7W l

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Account Groups  ;

Account Groups are used to establish accounting control and accountability for the City's general fixed assets and the unmatured principal of its general long - term debt. These account i groups are not funds; they do not reflect available financial resources and related liabilities. '

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I City of Leesburg, Florida I

l Schedule of General Fixed Assets by Source t iI (in thousands)

September 30 ]

1995 1994 General fixed assets Land S 2,377 $ 2,4M Building 8,299 8,094 Improvements other than buildings 4,254 5,030 Equipment and vehicles 4,505 5,944 -

Construction work in progress 2,881, 937 Total general fixed assets $ 22.316 $ 22,469 i Investments in general fixed assets j General obligation bonds and revenue '

certificates $ 4,211 $ 5,854 j Capitalized bond interest 722 29 Capital projects funds: j Economic development adminstration grants 430 430 Specialimprovement fund -

63 i Hospital construction fund 1,894 2,174 Federal, state and local grants 3,084 4,105 General fund revenues 10,401 8,305 Special revenue fund revenues 838 824 Utility revenue fund revenues 30 70

. Gifts and other 706 615 Total investment in general fixed assets $ 22,316 $ 22,469

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City of Leesburg, Florida Schedule of General Fixed Assets- By Function and Activity September 30,1995 (m thousands)

Improvements Equipseent Other Than and Function and Activity Total Land Buildings Buildings vehicles General and government Legislauve 5 158 5 113 5 33 5 -

5 12 Execuuve 37 - - -

37 Financial and administranve 512 - 4 102 406 Other general government 2.301 15 2.024 69 193 Totd general government 3.008 128 2.061 171 648 Public safety Law enfe : ement 1,251 til 421 81 638 Fire c ontrol 1,073 39 285 9 740 Detenuon and correction - - - - -

Protective inspecuon 41 - - -

41 Total public safety 2.365 150 706 90 1.4 I9 Physical environment 886 55 74 228 529 Transportation l Roads and streets 655 57 5  !!2 481 l Airport 3,425 537 60 2,783 45 Parking facilities 298 298 - - -

Total transportauon 4.380 892 65 2.895 526 Economic environament 245 245 - - -

i Human services 1.904 31 1.862 -

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Criture and recreation l Community building 690 - 690 - -

Librams 1.972 60 899 217 7%

Parks and recreation 2,693 705 867 626 495 Culturtl services 298 -

275 23 -

Speciti recreational facilities 449 -

443 2 4 Mote-Moms house 478 II1 357 -

1I Other culture and recreation 68 - -

2 66 Totz) culture and recreation 6.649 876 3.531 870 1372 Total by funcuon and activity 5 2.377 5 8.299 5 4.254 5 4.505 Construction work la progress 2.881 Total gineral fixed assets 5 22.316

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- - - - _ . - . ~ . . - . . . . .

City of Leesburg, Florida ,

t Schedule of Changes in General Fixed Assets- By Function and Activity >

For the year ended September 30,1995 (in thousands)

General General i Fiaed Assets Flaed Assets October 1, September 30, Function and Activity 1994 Additions Deductions 1995 General and govermoent l Legislative 5 801 5 21 5 664 5 158 Executive 178 8 149 37 Financial and administrative 505 208 1% 512 Other general govemment 2.262 359 320 2.301 l Total general government 3.746 591 1.329 3.008 {

Public safety Low enforcement 1,516 305 570 1,251 i Fire control 1,137 435 490 1,073 Detention and correction 5 -

5 - t Protective inspection 37 41 37 41 ,

Total public safety 2.695 781 1.11I 2.365  :

Physical Environment 936 204 254 886 Transportation Roads and streets ft92 159 3% 655 Airport 3,552 202 329 3,425 Parking facilities 37 261 - 298 Total transportauon 4.481 622 725 4,378 Economic environment 305 I85 245 245 Human services 2,182 8 286 1,904 Cuhure and recreation Commonity building 418 272 -

690 Libranes 2,200 351 579 1.972 Parks and recreation 3,098 334 739 2,693 Cultural services 319 53 74 2(8 Special recreational facihties 641 217 409 449  !

Mote Moms house 397 i2 -

478 l Other culture and recreation 114 10 56 68 i Total culture and recreation 7.187 1,319 1.857 6.649 Construction work in proeress 937 1.944 - 2,881 Total general fixed assets 5 22.469 5 5.654 5 5.807 5 22.316

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City of Leesburg, Florida l

Schedule of General Long-Term Debt (in thousands) l September 30 1995 1994

Amount available and to be provided for the

, payment of general long-term debt l l Serial and term bonds - Public improvement l

revenue bonds and certificates:

Amount available in debt service fund $ 721 $ 714 l Amount to be provided 4,294 4,481 Total serial and term bonds 5,015 5,195 Other long-term liabilities Amount to be provided 1,317 799 Total available and to be provided $ 6,332 $ 5,994 Generallong-term debt payable l Refunding and capital improvement revenue bonds, Series 1987 $ 5,015 $ 5,195 t Employee compensation absences payable 1,317 782 l Capitallease payable -

17 l Total generallong-term debt payable $ 6,332 $ 5,994 j l

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Statistical Data  ;

i l Statistical data are presented to provide greater detailed information than reported in the j preceding 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.

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i City of Leesburg, Florida General Governmental Expenditures by Function and Other Uses (1)  ;

Last Ten Fiscal Years (in thousands)

Fiscal General Public Physical Community ,

Year Government Safety Environment , Public Works Development ,

1986 $ 641 5 2,491 $ 336 5 710 $ 56 1987 681 2,616 280 561 323 1988 923 2,794 322 731 28 1989 806 2.932 303 918 85 1990 600 3,392 441 887 131 1991 679 3,725 105 1,528 169 1992 708 4,102 281 1,403 174 1993 756 4,187 241 1,519 180 1994 924 4,446 219 1,321 1%

1995 1,053 4,722 457 1,309 208 (1) Includes General, Special Revenue and Debt Service Funds.

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l Human Culture and Debt Miscellaneous l Services Recreation Service and Other I

Total 1

i $ 222 5 1,300 $ 316 5 346 6,418 t

5 258 1,390 776 385 7.370 l 332 1,383 447 924 7,884 l 428 1,538 557 1,222 8,789 441 1,688 524 1,770 9,874 r.

531 1,821- 533 1,228 10,319 l

620 1,877 542 1,168 10,875 l

619 1,947 562 1,227 11,238

! 675 2,085 569 1,245 11,680 1,071 2,225 539 1,418 13,002 l

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City of Leesburg, Florida l

General Revenues by Source and Other Financing Sources (1)

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Last Ten Fiscal Years l

l (in thousands) i Licenses Charges Fiscal and for Year Taxes Permits Intergovernmental Services 1986 $ 1,176 $ 127 $ 1,572 $ 142 1987 1,309 128 1,973 158 l 1988 1,937 134 1,893 141 l

1989 2,132 181 1,591 157 1990 2,635 175 1,917 152 1 1991 2,503 149 2,014 311 1992 2,930 168 2,121 466 1993 2,924 197 2,129 487 1994 3,114 218 2,292 453 1995 3,287 251 2,618 571 (1) Includes General, Special Revenue and Debt Service Funds.

(2) In 1985, the Ambulance Services and Refuse and Garbage revenues are shown in Enterprise Fund.

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Fines and Miscellaneous Forfeitures and Other Transfers Total

$ 157 5 379 $ 3,164 5 6,717 l

160 408 2,917 7,053 158 604 3,366 8,233 166 668 4,014 8,909  ;

s 214 717 3,994 9,804 207 800 4,386 10,370 I

187 753 4,857 11,482 '

i 146 653 4,8 % 11,432 l

172 420 5,341 12,010 189 646 5,586 13,148 l

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City of Leesburg, Florida Property Tax Levies and Collections Last Ten Fiscal Years .

Percent of Delinquent Fiscal Total Current Tax Levy Tax Year Tax Levy

• Collections

• Collected Collections

• 1986 5 1,183 $ 1,142 $ 96.5 % $ 2 1987 1,318 1,268  %.2% 4 1988 1,453 1,402  %.5% 3 1989 1,514 1,461  %.5% 3 1990 1,883 1,802 95.7 % -

1991 1,890 1,776 93.9 % 14 1 1992 2,175 2,029 93.3 % 87 1993 2,177 2,077 95.4 % 56 1994 2,292 2,150 93.8 % 65 1995 2,368 2,274  %.0% 26 (1) Property tax assessments and collections are performed for the City by Lake County. This information was not available from Lake County.

(2) Section 197.012, Florida Statutes, allows a discount for early payment of 4% in November, 3% in December,2% in January and 1% in February.

• In thousands

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Tabla 3 Percent of Total Tax Outstanding Total Tax Collections Delinquent Collections

• To Tax Levy Taxes (1)

$ 1,144  %.7% -

1,272  %.5% -

1,405  %.7% -

1,464  %.7% -

1,802 95.7 % -

1,790 94.7 % -

2,116 97.3 % -

2,133 98.0 % -

2,215 96.6 % -

2,301 97.1 % -

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. _ _ . _ __ _ _ _ _ _._ . _ _ . . _ . _. .- _ _ __m , _ _ . _ _ _ _ _ _ _

City of Leesburg, Florida Ttble 4 Assessed Value of Exempt and Taxable Property Last Ten Fiscal Years (in thousands)

Eaesept Fiscal Assessed Centrally Taxable Assessed Year Valuation Real Personal Assessed Total Valuation 1986 118.761 224,234 73,561 433 398,228 416,989 1987 118,421 247,101 84,595 652 332,348 450,769 1988 121,598 271,482 94,174 716 366,372 487,970 j

1 1989 124,250 282,164 98,959 408 381,531 505,781 1990 137,851 301,844 115,838 652 418.334 556,185 I991 140,970 307,735 111,582 675 419,992 560,% 2 1992 146,940 355,401 127,311 674 483,386 630.326 i

)

1993 171,067 352,537 130,832 298 483,667 654,734 l

1994 174,959 358.898 150,270 199 509,367 684,326 1 1995 181,575 370,400 155,590 251 526,241 707,816 l

Notes (1) Chapter 193, Florida Statutes, requires that all property shall be assessed at just or fair market value as of January I cf each year.

All taxes are due and payable on November 1 and become delinquent on April 1 of the subsequent year. Discounts are allowed at the rate of 4% in the month of November,3% in December,2% in January and 1% in February, Chapter 193, Florida Statutes, provides that all items of inventory (in personal property) shall be assessed at 10% of just valuation, except goods-in-process and raw materials, which shall be assessed at 1%. Furthermore, agricultural properties are assessed at agricultural value as opposed to fair market value for non-agricultural property (2) Estimated actual value is not available.

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i City of Leesburg, Florida Tcble5 Property Tax Rates - All Direct and Overlapping Governments (Per $1,000 of Assessed Value)

Last Ten Fiscal Years l

Northwest Water Water l Fiscal School Ambulance Hospital Conservation Management i Year City District County District District Authority District ' Total 1986 3.967 6.415 3.492 0.226 0.706 0.040 0.318 15.164 1987 3.967 6.608 3.400 0.190 1.000 0.300 0.319 15.784 1988 3.967 7.477 3.400 0.188 1.000 0.350 0.517 16.899 1989 3.%7 7.742 3.800 0.223 0.964 0.838 0.281 17.815 1990 4.500 8.451 4.938 0.223 0.887 0.621 0.346 19.966 1991 4.500 8.749 4.938 0.223 1.000 0.771 0.358 20.539 1992 4.500 8.880 4.938 0.223 1.000 0.751 0.358 20.650 1993 4.500 9.005 4.864 0.222 1.000 0.740 0.358 20.689 1994 4.500 8.938 5.135 0.222 1.000 0.517 0.470 20.782 1995 4.500 B.515 5.135 0.222 1.000 0.400 0.482 20.254 I

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City of Leesburg, Florida Tcbis 6 Computation of Overlapping General Obligation Debt (1)

September 30,1995 (in thousands) i Applicable to the City of Leesburg >

Government Unit Outstanding Percent (2) Amount Lake County School District I Education Bonds $ 6,195 10.03 % $ 621 Lake County School District Certificates of -

Participation 25,810 10.03 % 2,589 1

(1) The City of Leesburg did not have any general obligation debt outstanding during the fiscal year  !

ended September 30,1995.  ;

(2) Represents the fraction of assessed valuation of taxable property in the City of Leesburg over I assessed valuation of taxable property in Lake County.

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i City of Leesburg, Florida Teble7 Ratio of Annual Debt Service Expenditures For General and Special Revenue Bonded Debt to Total General Expenditures Last Ten Fiscal Years (in thousands)

Ratio of Debt Total Service to Fiscal Debt Total General Total General Year Principal (1) laterest (1) Service (1) Expenditures (2) Expenditures 1986 87 229 316 5,756 5.48 1987 476 300 776 6,208 12.50 1988 75 403 478 5,613 7.33 1989 159 398 557 7,009 7.95 1990 140 384 524 7,708 6.80 1991 145 378 523 8368 6.11 1992 150 371 521 9,707 5.36 1993 160 367 527 10,011 5.26 1994 170 353 523 10.435 5.01 1995 180 342 539 11.587 4.65 i

(1) Includes Refunding and Capital Improvement Revenue Bonds, Series 1987, which are Special Obligation Bonds.

(2) Excludes Operating Transfers Out.

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City of Leesburgc Florida Combined Utility Funds Schedule of Revenue Bond Coverage  !

i Last Ten Fiscal Years i

(in thousands)

Operation and Fiscal Gross Maintenance Net Year Revenues Costs (1) Revenue 1986 $ 28,960 $ 21,105 $ 7,855 1987 28,429 21,218 7,211 1988 31,677 20,712 10,965 1989 33,523 21,912 11,611 1990 35,524 22,420 13,104 1991 36,915 24,571 12,344 l 1992 36,530 24,851 , 11,679 1993 38,477 26,635 11,842 l

1994 39,722 27,399 12,323 1995 44,490 29,337 15,153 I

(1) Excludes interest expense and depreciation.

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Debt Service Requirements Sinking Principal Interest Fund Total Coverage i

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5 1,953 5 327 5 2,280 3.45 1,953 323 2,276 3.17 1,953 318 2,271 4.83 1,896 474 2.,790 4.16 185 1,664 511 2,360 5.55 l

195 1,653 553 2,401 5.14 205 1,641 595 2,441 4.79 820 1,628 -

2,448 4.84 i

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2,446 5.04 955 1,487 - 2,442 6.21 l

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City of Leesburg, Florida Tebis 9 Demographic Statistics Last Ten Years Per Fiscal Capita School Unemployment Year Population (1) Income (2) Enrollment (3) Rate (4) 1986 14,457 13,889 N/A 7.70 %

1987 14,659 14.297 N/A 6.40 %

1988 14,743 14,635 N/A 5.60 %

1989 14,939 15,975 4,763 6.20 %

1990 14,912 16,433 4,795 7.90 %

l 1991 15,174 16,576 4,932 8.90 %  !

1992 15,063 17,074 4,930 10.0 %

1993 14,963 N/A 4,975 6.90 %

1994 15,005 N/A 4,997 6.60 %

1995 15,014 N/A 5,157 N/A i N/A = Not Available.

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Data Sources j (1) U.S. Census Bureau, Bureau of Business and Economic Research.

(2) Data for Lake County was obtained from the U.S. Department of Commerce, Economic Analysis as published in the Florida Statistical Abstract.

(3) Annual school census by Board of Education. Figures represent elementary and secondary public schools. Students in community colleges are not included.

(4) U.S. Department of Labor - These estimated figures are based on the County as a whole. No ,

individual figures are available for the City of Leesburg.

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l City of Leesburg, Florida Tchle 10 l

Construction Permits and Values Last Ten Fiscal Years l

l Commercial Construction (1) Residential Construction (1)  !

Fisc 1 Number of Number of Ytr Permits Value Units Value l (in thousands) (in thousands) 1986 25 4,376 135 4,357 1987 34 11,742 119 4,801 1988 20 6,875 144 5,166 ,

1989 22 13,566 420 15,751 1990 8 3,461 65 2,324 1991 6 2,303 43 2,490 1992 14 4,267 22 1,934 1993 20 9,866 31 2,776 1994 13 7,741 56 3,007 1995 11 2,474 46 2,642 (1) Based on building permits issued by City Department of Building and Zoning Codes.

Property values are estimated construction costs. Commercial construction includes all non-residential construction.

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l City of Leesburg, Florida Tsble 11 Principal Taxpayers September 30,1995 Percentage of Assessed Total Assessed Taxpayers Type of Business Wluation Valuation (in thousands)

Coca-Cola - Foods Division Citrus processing $ 60,215,703 11.44 %

United Telephone of Florida Telephone 41,900,246 7.96 %

Lake Port Properties Retirement community 18,723,491 3.56 %

Citizens National Bank Banking 8,946,376 1.70 %

Wal-Mart Stores Department Store 6,677,343 1.27 %

Scripps Howard Cable Service Cable Television 5,090,654 .97 %

Leesburg Daily Commercial Newspaper Publisher 3,849,232 .73 %

Walling Enterprises Shopping Center 3,696,856 .70 %

SunBank, N.A. Banking 3,643,909 .69 %

Leesburg Marketplace, Inc. Shopping Center 3,551,191 .67 %

Smith Kline Beechum Laboratories Medical Laboratory 3,172,960 .60 %

Leesburg Associates Shopping Center 3,867,968 .54 %

Mid-Florida Freezer, Inc. Warehouse 2,782,706 .53 %

$ 159,467,961 30.29 %

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City of Leesburg, Florida Tebis 12 Miscellaneous Statistics September 30,1995 Miles of Paved Streets 80.1 Number of Street Lights 1,800 Fire Protection: l Number of Stations 2 Number of Firemen and Officers 30 Police Protection:

Number of Stations 2 Number of Policemen and Officers 51 Education (Elementary Only): (1)

Attendance Centers (Public Schools Only) 4 Number of Classrooms 104 Number of Teachers 139 Number of Students 2,162

- Municipal Water Department:

Number of Consumers - Residential 8,6%

Average Daily Consumption .298 Gallons Miles of Water Mains 332 Municipal Gas Department:

t Number of Consumers - Residential 6,992 Average Daily Consumption ' .770 therms Miles of Gas Mains 225 Municipal Electric Department:

Number of Consumers - Residential 14,219 Average Monthly Consumption 994 kwh Miles of Primary Electric Lines within the City 365 Wastewater and Sanitary Sewers:

Sanitary Sewers 146 Miles Storm Sewer 17.7 Miles Building Permits Issued 292 Recreation and Culture:

Number of Parks 9 with 225 Acres Number of Libraries 1 4 Number of Volumes 113,608 Total Employees for the City Overall:

Full-time Employees 361 Part-time Employees 16 l (1) Elementary includes grades K through 5.  ;

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City of Leesburg, Florida Tchle 13 Corporate Limits and Annexations Last Ten Fiscal Years l

i Fiscal Annexation Corporate Limits Year Acres Acres Square Miles 1986 288.43 6,949.78 10.94 1987 230.25 7,180.03 11.30 1988 62.00 7,242.03 11.32 1989 4.70 7,246.73 11.41 1990 310.42 7,557.15 11.89 1991 3,823.00 11,380.15 17.78 1992 522.02 11,902.17 18.60 1993 658.21 12,560.38 19.62 1994 13.86 12,574.24 19.65 1995 157.68 12,731.92 19.89 i

Source City of Leesburg; Department of Planning and Zoning Development i

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E8ERNST& YOUNG LLP e Certified Public Accountants a Phone: 407 872 6600 suite 1700 l 390 North Orange Avenue Orlando, Ilorida 32801-1671 l

l Report ofIndependent Auditors on Compliance Related to the General Purpose Financial Statements Honorable City Commissioners City of Leesburg, Rorida We have audited the general purpose financial statements of the City of Leesburg, Morida as of and for the year ended September 30,1995, and have issued our report thereon dated December 27, 1995.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.

Complience with laws, regulations, contracts, and grants applicable to the City of Leesburg, Rorida, is the responsibility of City of Leesburg, Borida's, management. As pan of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City of Leesburg, Morida's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.

This report is intended for the information of management, the City Commission, and agencies providing state and federal financial assistance. However, this repon is a matter of public record and its distribution is not limited.

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E3ERNST& YOUNG LLP wtwuma-unt. n-mma suite 1700 l 390 North Orange Avenue Orlanck4Flonda 32801-1671 l

l Report ofIndependent Auditors on Supplementary Information l

Schedule of Federal Financial Assistance Honorable City Commissioners City of Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida as of and for the year ended September 30,1995, and have issued our report thereon dated December 27, 1995. These general purpose financial statements are the responsibility of City of Leesburg, Florida's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

l We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general l purpose financial statements are free of material misstatement. An audit includes examining, on a l test basis, evidence supporting the amounts and disclosures in the general purpose financial i 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.

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 accompanying Schedule of l Federal Financial Assistance is presented for purposes of additional analysis and is not a required

! part of the general purpose financial statements. The information in that schedule has been subjected to the .uditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.

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l City of Leesburg, Florida Schedule of Federal Financial Assistance For the fiscal year ended September 30,1995 Federal CFDA Federal Federal Federal Grantor / Program Title Number Revenues Expenditures Major Program i Department of Housing and Urban ,

Development '

Section 8 Existing Housing Cenificate Program 14.156 $ 354,496 $ 354,496 Section 8 Housing Voucher Program 14.156 355,945 355,945 Conununity Development Block Grant 14.219 328.890 328,890 Total Depanment of Housing and Urban Development 1,039,331 1,039,331  ;

Non-major Programs Pass-through the Florida Department of State Division of Library Information Services 84.034 3,750 3,750 Depanment of Community Affairs Florida Housing and Finance Agency (HOME) - 26,664 24,436 Community Development Block Grant Loan Program - 1,821 -

Depanment of Management Services Bureau of Surplus Propeny * - 19,545 5.982 Total Federal Financial Assistance 51,091,020 $1.073,499 l

The Depanment of Management Services Bureau of Surplus Property requires revenues of 23.3% of the acquisition cost to be reponed on the Schedule of Federal Financial Assistance.

Reponed expenditures indicate the actual purchase price of the property. No cash was received by the City.

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?2ERNST& YOUNG UP naacd emanun,. u ne a ore n s6oo suite 17o0 390 North Orange Avenue Orlando, Florida 328ol-1671 Report ofIndependent Auditors on Compliance with the Specific Requirements Applicable to Major Federal Financial Assistance Programs Honorable City Commissioners City of Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida as of and for the year ended September 30.1995, and have issued our report thereon dated December 27, 1995.

We also have audited the City of Leesburg, Florida's compliance with the requirements goveming types of services allowed or unallowed; eligibility; reporting; special tests and provisions; and claims for advances and reimbursements that are arrlicable to its major federal financial assistance l

program, which is identified in the accompanying schedule of federal financial assistance, for the '

year ended September 30,1995. The management of the City of Leesburg, Florida is responsible for the City of Leesburg, Florida's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on om audit.

We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-128, Audits ofState and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred.

An audit includes examining, on a test basis, evidence about the City of Leesburg, Florida's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.

The results of our audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above, which are described in the accompanying schedule of findings and questioned costs. We considered these instances of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph.

In our opinion, the City of Leesburg, Florida complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; reporting; special tests and provisions; and claims for advances and reimbursements that are applicable to its major federal financial assistance program for the year ended September 30,1995.

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This repon is intended for the information of agencies providing federal financial assistance and -

management. However, this report is a matter of public record and its distribution is not limited.

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City of Leesburg Schedule of Findings and Questioned Costs $

Year ended September 30,1995 Compliance - Questioned Requirement Finding Cost Community During the year ended September 30,1995, we noted a time -

Development period in which the City had in excess of $5,000 of grant block Grant - money on hand for a period of greater than three days. The Three Day grant stipulates that the City may maintain a $5,000 cash Disbursement balance, however, all other funds must be expended within Rule three working days of their receipt. We noted an instance l

where the city received and deposited a draw of $157,668 on  ;

September 25,1995 and September 30,1995 the City still  ;

retained $109,583 in its CDBG account. These funds were i not returned to the Department of Community Affairs, but were disbursed at a later date.

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EIERNST& YOUNG LLP . certified Public Accountants a Phone: 407 872 6600 Suite 1700 390 North Orange Avenue Orlando, Florida 32801-1671 Report ofIndependent Auditors on Compliance with the General Requirements Applicable to Federal Financial Assistance Programs Honorable City Commissioners City of Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida as of and for the year ended September 30,1995, and have issued our repon thereon dated December 27, 1995. I We have applied procedures to test the City ofI2esburg, Florida's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the schedule of federal financial assistance, for the year ended September 30,1995: Political activity, civil rights, cash management, federal financial repons, drug-free workplace, allowable cost / cost principles, and administrative requirements.

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplementfor Single Audits ofState and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Leesburg, Florida's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Leesburg, Florida, had not complied, in all material respects, with those requirements.

i This report is intended for the information of agencies providing federal financial assistance, the l City Commission, and management. However, this repon is a matter of public record and its  ;

distribution is not limited.  !

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!!/ERNST& YOUNG LLP , cutmed Public Accountants a Phone: 407 872 66(K) I suite 1700 '

390 North Orange Avenue Orlando, Florida 32801-1671 1

Report ofIndependent Certified Public Accountants on Internal Control Structure Used in Administering

. Federal Financial Assistance Programs Honorable City Commissioners City of Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida as of and 4

for the year ended September 30,1995, and have issued our report thereon dated December 27, 1995. We have also audited the City ofIxesburg, Florida's compliance with requirements applicable to its major federal financial assistance program and have issued our report thereon dated December 27,1995.

We conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Govemments. Those standards and OMB Circular A-128 mquire that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Leesburg, Florida complied with laws and regulations, noncompliance with which would be material to its major federal financial assistance program.

In planning and performing our audits for the year ended September 30,1995, we considered the City of Leesburg, Florida's internal control structure in order to determine our auditing procedures j for the purpose of expressing our opinions on the general purpose financial statements of City of  !

Leesburg, Florida and on its compliance with requirements applicable to its major program and to report on the intemal control structure in accordance with OMB Circular A-128. This report ,

addresses our consideration of intemal control structure policies and procedures relevant to l compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated December 27,1995.

The management of the City ofleesburg, Florida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are requimd to assess the expected benefits and related costs ofinternal control stmeture policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in conformity with generally co:epted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations.

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Because of inherent limitations in any internal control stmeture, errors, irregularities, or instances I of noncompliance may nevertheless occur and not be detected. Also, prcjection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate i because of changes in conditions or that the effectiveness of the design and operation of policies I and procedures may deteriorate.

1 For the purpose of this report, we have classified the significant internal control stmeture policies and procedures used in administering federal financial assistance programs in the following categories:

Administrative Controls Internal Accounting Controls GeneralRequirements s

• Political activity

• Cash Receipts Civil rights

• Cash Disbursements Cash management

• Payroll Federal financial reports Dmg-fme Workplace Act l I

Allowable cost / cost principles Administrative requirements 1

Specific Requirements )

Types of services j Eligibility of panicipants  !

Reponing l Special tests and provisions

• Claims for advances and reimbursement For all the intemal control stmeture categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended September 30,1995, the City of Leesburg, Florida expended 97% ofits total federal financial assistance under one major federal financial assistance program.

We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation ofinternal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements and general requirements, that are applicable to the City of Leesburg, Florida's major federal financial assistance program, which is identified in the accompanying schedule of federal financial assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.

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Our consideration of the internal control structure policies and procedures used in cdministering ,

federal financial assistance programs would not necessarily disclose all matters in the internal i control structure that might be material weaknesses under standards established by the American  !

Institute of Certified Public Accountants. A material weakness is a reponable condition in which the design or operation of one or more of the specific intemal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be ,

material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no l matters involving the internal control stmeture and its operation that we consider to be material t weaknesses as defined above.

However, we noted other matters involving the internal control structure and its operation that we have reponed to the management of the City of Leesburg, Florida in a separate letter dated i December 27,1995.  ;

This mport is intended for the information of agencies providing federal financial assistance and management. However, this repon is a matter of public record and its distribution is not limited.

December 27,1995

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E3ERNST& YOUNG U.P ww.ed nwuntan,, n-a01ensa Suite 1700 390 North Orange Avenue Orlando, Norida 32801-1671 l

Report ofIndependent Auditors on Supplementary Information .

Schedule of State Financial Assistance I l

Honorable City Commissioners City of Leesburg, Florida We have audited the general purpose financial statements of the City of Leesburg, Florida as of and for the year ended September 30,1995, and have issued our report thereon dated December 27, 1995. These general purpose financial statements are the responsibility of City of Leesburg, Florida's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supponing the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis for our opinion.

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 accompanying Schedule of State Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.

December 27,1995

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City of Leesburg, Florida Schedule of State Financial Assistance f For the fiscal year ended Septembe: 30,1995 State State Grantor Grant Number Revenues Expenditures Florida Department of Community Affairs-Emergency Management 95-EO-4V-06-45-02-010 $ 24,707 $ 85,737 Recycling and Education Grant N/A 18,794 18,794 Florida Division of Historical Resources: -

Historic Preservation Grants:

Mote - Morris House Interior Restoration B1001 SC-53 108,000 93,102 Florida Depanment of Commerce, Division of Tourism N/A 2,500 5,000 TotalState Assistance $154,001 $202,633 N/A = Not Available 1

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1 EHERNST& YOUNG LLP a ceaed ruwaaountant. n,one a07 en ss00 su te 1700 390 North Orange Avenue Odando, florida 32801-1671

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Report ofIndependent Auditors on Compliance with Requirements of State Financial Assistance Programs Honorable Mayor and City Commissioners City of Leesburg, Rorida We have audited the general purpose financial statements of the City ofIxesburg, Borida, as of and for the year ended September 30,1995, and have issued our report thereon dated December 27,1995.

1 We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.

Compliance with laws and regulations related to state financial assistance programs of the City of Leesburg, Florida is the responsibility of City of Leesburg, Rorida's management. As part of l obtaining reasonable assurance about whether the financial statements are free of material i misstatement, we performed tests of City of Leesburg, Rorida's compliance with certain provisions oflaws and regulations, related to state financial assistance programs. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on  ;

overall compliance with such provisions. Accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance that are required to be reponed herein under Government Auditing Standards.

This repon is intended for the information of the City Commission, management and agencies providing state financial assistance. However, this report is a matter of public record and its distribution is not limited.

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