ML20108C739

City of Ocala,Fl Conprehensive Annual Financial Rept for Yr Ending 950930

ML20108C739
Person / Time
Site:	Crystal River
Issue date:	09/30/1995
From:	Baker G OCALA, 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 9605070121
Download: ML20108C739 (224)

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City of Ocata, rforida

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COMPREHENSIVE .

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FINANCIAL REPORT 1

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LINJON STATION (1917) OCALA, M ARION CO., FLORIDA f

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j CITY OF OCALA, FLORIDA i

i i COMPREHENSIVE ANNUAL FINANCIAL REPORT

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September 30,1995 i

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Prepared by:

Department of Finance

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l CITY OF OCALA. FLORIDA l

l COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30,1995 l

l City Council l

E. L. Foster, Mayor j Gerald K. Ergle, President Michael S. Amsden

! Lorenzo S. Edwards '

l Michael A. Finn

! Richard A. Kesselring l

l City Officials l

l l City Manager Scotty J. Andrews l l Assistant City Manager Richard K. Lewis i

Assistant City Manager .,

Janet Y. Tutt c l Assistant City Manager Oel G. Wingo Building Official Donald C. Noxon l City Attorney Patrick G. Gilligan l City Clerk M. Jane Milam l

City Engineer B. William Ten Broeck i Electric Utility Director Dean G. Shaw  ;

Finance Director Glen L. Baker i Fire Chief William E. Woods i Fleet Management Director Glenn A. Stephens i l GolfDirector Joseph Moses, Jr.

! Human Resources Director Carolyn V. Ingham l

Internal Auditor Eric J. Lewerenz Library Director Julia H. Sieg M.I.S. Director Chester K. Holloway l Planning Director Paul K. Nugent l Police Chief Morrell Deen Public Works Director Charles H. Amerman Purchasing Director James W. Crosby

. Recreation and Parks Director David J. Pritchard Risk Manager Leonard A. Baker, .h

Water and Sewer Director Henry K. Hicks i

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INTRODUCTORY SECTION ,

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.This Section'contains the following Subsections:

Table of Contents

. Letter of Transmittal Certificate of Achievement' l l

for Excellence in Financial Reporting )

i b City of Ocala Organization Charts ,

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CITY OF OCALA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT 5

Year Ended September 30,1995 CONTENTj Page INTRODUCTORY SECTION LETTER OF TRANSMITTAL . . ..... . . ... ......... .... .... .. ... . .. .... .. ...... ...... i CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING . . . . . . . . . xiii CITY OF OCALA ORGANIZATION CHARTS . . . ... ... . .. 7.".. . ... . . .. . . .. . . , xv FINANCIAL SECTION REPORT OF INDEPENDENT ACCOUNTANTS .. .. . .. . .. ...... .. . . .. .. .. .. . ..1 I

GENERAL PURPOSE FINANCIAL STATEMENTS l (COMBINED STATEMENTS - OVERVIEW)  ;-

Combined Balance Sheet - All Fund Types and Account Groups . . .. ..... .... ...... ..4 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental and Expendable Trust Fund Types . .. . ..... ... ........... .8 Combined Statement of Revenues and Expenditures - Budget and Actual - General, Special Revenue, Capital Project and Expendable Trust Fund Types . . . . ...... . .. .. . .. 10 Combined Statement of Revenues, Expenses and Changes in Retained Earnings / Fund Balance - All Proprietary Fund Types and Pension Trust Funds .... .. . .. . .. .. . . . . ... I8 Combined Statement of Cash Flows - All Proprietary Fund Types .. .. .. . .. .. . . ..... 19 Notes to Financial Statements .. .. . .. . ... ... . . . . .. . .... .. . .. 21

INDIVIDUAL FUND AND COMBINING STATEMENTS - BY FUND TYPE I l

Special Revenue Funds.

Combining Balance Sheet .... ... .... .. . .. . . . . ....... .... . . . . 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . . ............. 66 Combining Schedule of Revenues and Expenditures and Changes in Fund i Balance - Budget and Actual .. . .. . ... .... . .... ........ ... .. ... ... ...... . 68 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:

Occupational License Fund . . . . . .. . . . . ..... . ... ........ . .. ........... .. .... ... 73 Central Florida Regional Library Fund . . . . .... ... .. . . ... .. ........ .. . 74 Parking / Parks Enforcement Fund ... ... . ..... ..... . .. .... . ..................76 Downtown Development Fund .. .. . .. .... ........ . .. ... .... . ..... .... . 77 Local Gasoline Tax Fund . . . . . . . . . . .. .. . .. . .. . . . . .... ...... ... . 78 Stormwater Utility Fund . ............ .... ........ ... . . . . ... .. . ... .. 80 SHIP Local Housing Assistance Fund .... .. . .. . . ... ..... .. ...... ..... .. . . . . . . . 82 Debt Service Funds:

Combining Balance Sheet .. . . .. . . . .... .. .... .......... ... .. .... .. . . 84 I Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . ............85

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Capital Project Funds: J Combining Balance Sheet . . .. ..... ... . ... .. ... ...... . . .. . . . 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balance . . . . . . . . . . .. . 90 Combinmg Schedule of Revenues, Expenditures and Changes in Fund j Balance - Budget and Actual . . .. . ... . .. .... .. . . ..... ..... . . ... 92 i Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:  ;

Capital Improvement Constmetion Fund . . ..... .. .. ... . ... . .... . .. . 95 l

Optional Gas Tax Construction Fund . . . . .. ... . . .. ..... . .. . 96 j Capital Improvement Fund ..a... . . . . . . ... .. ... ..... . . 98 i

Enterprise Funds:

Combining Balance Sheet ...... ... . . . ..... ... .... .. .. ....... ...... 102 Combining Statement of Revenues, Expenses and Changes in Retained Eanungs . . . .. . ...... 106 Combining Statement of Cash Flows .. . . .. .. .... .... .. . . ....... ......... 108 Internal Service Funds: '

Combining Balance Sheet .... . . .. . .. . . . . . ... .. ... . . . . . 114 Combining Statement of Revenues, Expenses and Changes in Retained Earnings . . ..... ..... . I15 Combining Statement of Cash Flows . .. . . . ..... . ... . .. .. .... .... I16 ;

Trust and Agency Funds: i Combining Balance Sheet ...... .. . . ... . .. ... .. ..... ..... ... . . 120 Combining Statement of Revenues, Expenditures and Changes in Fund Balance -

Expendable Trust Funds . . ..... .... ... .. .... . ..... . ..... . ...... . .... 123 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - -Expendable Trust Funds . . .. ... ... .. .. ..... . .. 124 Combining Statement of Revenues, Expenses and Changes in Fund Balance - Pension Trust Funds ... .. ... ..... .. .. ... . . . .... . . ...... 126 Statement of Changes in Assets and Liabilities - Agency Fund . . . ... ... . . . . . . . . 127 General Fixed Asset Account Group:

Schedule of General Fixed Assets by Source .... . .... .. .. ... .. . .130 Schedule of General Fixed Assets by Function and Activity .... 131

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Schedule of Changes in General Fixed Assets by Function and Activity ... . . 132 l

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STATISTICAL SECTION Required Supplementary Information:

Historical Trend Information for Pension Trust Funds - Comparative Summary of Revenues by Source and Expenses by Type .. ..... .. . .. . .. ... . .. .. 134 Historical Trend Information for Pension Trust Funds - Analysis of Fundmg Progress . . . ....... 136 General Governmental Revenues and Other Financing Sources By Source - Last Ten Fiscal Years ... .. 138 General Governmental Expenditures and Other Uses By Function - Last Ten Fiscal Years .... . . . 140 Property Tax Levies, Tax Collections and Assessed Valuations - Last Ten Fiscal Years . . . . . ........ . . 142 Property Tax Rates and Levies - Direct and Overlapping Governments - Last Ten Fiscal Years . . . . . . . . . . 14 3 Special Assessment Collections - Last Ten Fiscal Years . . ... . ... ... . .. .. . . ..... 144 Computation of Legal Debt Margin . . . . . .. . .. .. . . . .. . .145 Schedules of Bond Coverage:

Schedule of Electric System Revenue and Revenue Refunding Bonds, Series 1977,1983,1988,1989A and 1989B Coverage - Last Ten Fiscal Years . . .. .... . 146 Schedule of Water and Sewer Revenue and Refunding Revenue Bonds, Series 1968,1983,1985A,1985B,1986 and 1988, and Anticipt *n Notes Coverage - Last Ten Fiscal Years ... .. .. . .. .. . . ... ..... ........... 148 Schedule of Utility Systems Subordinate Refunding Revenue Bonds, l I

Series 1992A and 1992B, Coverage - Last Ten Fiscal Years . . . ... . . .. . .... .. . 150, Schedule of Refunding and Improvement Excise Tax Bonds, Series 1965 and 1972, Coverage - Last Ten Fiscal Years . . . . ... .. . ... .. . . . . 151 Schedule of Capital Improvement Revenue and Refunding Revenue Bonds, Series 1982 and 1986, and Capi tal Improvement Revenue, Revenue Refunding and Refunding Revenue Certificates, Series 1986,1988 and 1993 Coverage - Last Ten Fiscal Years . . .. .. . .. 152 l Schedule of Optional Gas Tax Revenue Bonds, Series 1989, and Optional Gas Tax Refunding Revenue Bonds, Series 1992 Coverage - Last Ten Fiscal Years . .. .. .. . . .... 154 Computation of Direct and Overlapping General Obligation Debt . . .. .. .. . . ... .. .. . 155 Miscellaneous Statistical Data .. . .. . . ... .. . .. . . .. ... . .. 156 Demographic Statistics . . .. . . . . .. .. .. . . . .. 157 List of Ten Largest Taxpayers - 1994 Tax Roll .. .. . .. . . .. . . .. 158 Schedule ofInsurance in Force . . .. ... . . . ....... . ... . .. .159

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STATISTICAL SECTION - CONTINUED Property Value, Construction and Bank Deposits - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 List of Officers' Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... ... .... ...........................162 Summary of Debt Service Requirements to Maturity - All Bonded Debt .................................163 Statement of Bonded Debt and Interest:

Capital Improvement Revenue Refunding Certificates, Series 1988 .................................164 Capital Improvement Refunding Revenue Certificates, Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Electric System Revenue Refunding Bonds, Series 1989B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Water and Sewer Refunding Revenue Bonds, Series 1988 . . ..... .................................167 Optional Gas Tax Refunding Revenue Bonds, Series 199 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 8 Utility Systems Subordinate Refunding Revenue Bonds, Series 1992A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 -

Utility Systems Subordinate Refunding Revenue Bonds, Series 1992B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Analysis of Sewerage System Capital Improvement Fund Established for Florida Department of Environmental Regulation Grant #621080 . . . .u . . . . ................ . . ... . 171 l

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FINANCE DEPARTMENT P. O. BOX 1270, OCALA, FLORIDA 34478-1270 g 8 Je.uar 12, 1996 l

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l City Manager and Council City Hall Ocela, Florida 34478 )

Ladies and Gentlemen:

Th3 comprehensive annual financial report (CAFR) of the City of Ocala, Florida, for. the fiscal year ended _ September 30, 1995, is h~sreby submitted.

Tho presentation of the CAFR is controlled by and is the roeponsibility of the City. We believe that the report accurately and fairly presents the financial position, results of operetions of all fund types and cash flows of proprietary fund types of the l City in conformity with generally accepted accounting principles.

All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been.

included. The report is - structured to be of interest to the t j public, local government officials, state agencies and the 4 bsnking and financial community in general.

Tha CAFR is presented in three sections: introductory, financial and statistical. The introductory section contains the tcble of contents, this transmittal letter, the certificate of achievement for excellence in financial reporting for the 1994 CAFR and the City's organizational charts. The financial section includes the general purpose financial statements, combining, 1 individual fund and account group financial statements and  ;

ochedules by fund type, as well as the auditors' report on l the financial statements and schedules. The statistical esction includes selected financial and demographic information which is designed to enhance the reader's understanding of the '

City's past and of its future potential.

All funds and account groups of the City of Ocala are included in this report. The City provides a full range of general corvices, including police and fire protection; general government; culture and recreation; construction and maintenance of highways, streets and infrastructure and library services. The Library serves Marion and Levy Counties, with the Ocala branch

~ functioning as headquarters.

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In order to provide both financial support and a vested higher quality of service to its citizens, the City also owns and operates, for public service, nine enterprise funds as follows: two championship golf courses with a total of 45 holes and clubhouse facilities, garbage and trash pick-up service (both back door and curbside), water and sanitary sewer services, a membership tennis facility, electric utility service, an airport (Ocala Municipal Airport / Jim Taylor Field), an emergency training facility, an adult athletic complex, and a municipal trailer park. The financial activities of all municipal boards and commissions are included in the City's financial statements.

The Ocala Housing Authority has not met the established criteria for inclusion in the reporting entity, and accordingly, is excluded from this report. The Community Redevelopment Agency is included because of City Council's ability to significantly influence their operations.

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The City of Ocala is situated in north-central Florida, approximately equidistant from Jacksonville, Daytona, Orlando and Tampa. It is centrally located in Marion County and is the county seat. During the past decade, the City and surrounding areas have grown at a fast pace. Available land, independent water supply, relatively low taxes, moderate elsmate and proximity to larger cities and to popular tourist attractions continue to be the underlying causes of the growth. In the past few years, various reports and studies have shown Ocala to be one, of the fastest growing areas in-the nation.

Horse-breeding, dominated by thoroughbreds and Arabians, is a maj or industry in the Ocala area. The tourist industry is also very apparent. Disney World has constructed its first satellite information center in Ocala so that visitors can take care of all their needs before reaching Disney World.

Hotels, restaurants and shopping areas have sprung up near the information center. To the immediate east of Ocala is the Silver Springs Attraction which is visited by thousands each year and is renowned for many films such as Taraan and James Bond movies and the Sea Hunt television series. K-Mart has selected Ocala as the location for a new distribution center, which started its operations in 1991. Other industries in the Ocala area include service industries and some light manu/acturing.

The growth surge experienced in the 1980's has continued into the 1990's but at a slower pace. The growth potential of the City continues to be virtually limitless. The recession, which has affected the entire country, has also been felt in the City of Ocala, especially in the areas of construction and tourism; however, the City has still experienced growth. The growth is challenging to the City since it demands increased services, but places a financial strain on the revenues of the City. The recession, which has caused some shrinking revenues, has forced the City to reevaluate the needs and wants of its citizens, while at the same time providing consistent levels of service.

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M610B_INill6IlygS Est__1ba__Xant. In preparing the 1995 budget, the City's focus, at City Council's direction, was to maintain the lowest millage rate while continuing to provide quality service to the citizens of Ocala, to provide quality utility services at competitive rates and to provide a competitive benefit package to smployees. Other budget and management obj ect ives for 1995 included the promotion and support of downtown revitalization msssures and activities, the support of employee involvement in community activities, the continuation of the Public Information l Program to provide citizens with working knowledge of local l governments, the development of mechanisms and procedures to ensure l that departmental goals and objectives are met and the continuation l of the exploration of public and private cooperative efforts to batter service the citizens of Ocala..

In order to accomplish some of the obj ect ives, nineteen new positions were authorized in the budget. S.ix of the positions are in the City's General Fund, including a drug investigator and a school resource officer in the Police Department as well as positions in the Fire Department, Traffic Engineering, Recreation i

and Parks, and Budget. The remaining thirteen positions were added l in the areas of electric, water and sewer, purchasing, the employee clinic, the library, and the adult athletic complex. These positions were created due to increased workload such as additional facilities and maintenance properties and increased customer volume.

I During fiscal year 1990, the-City issued revenue bonds for massive I electric system improvements. Those improvements have continued j through 1995. The City also continued the water and sewer system l expansion and improvements, as well as the widening and improvements l of various roads. For the past nine years, the City has levied an I additional mill of ad valorem taxes of which three quarters have been for road improvements and the remaining one quarter has been for public safety capital outlay. For the past few years, the City and Marion County have shared the costs of improvements of

some maj or arterial streets, l

l Eer_1bs_Euiurs. The City will be continuing the electric system, l the . water and sewer system and the street improvement and expansion programs which have already been started and will strive to provide consistent levels of service for the citizens of Ocala.

Tha City is also continuing its program of renovating existing City buildings. A master plan of the Municipal Services Complex, which was built in 1984, addressed additions to the complex. The renovation and expansion or relocation of the Police Department is also being considered. The most significant and demanding task for the future is the l i 71ementation of the Comprehensive Plan of the City of Ocala, w.4ch is required by the 1985 Local Government Comprehensive Planning Act. The plan, which was submitted to the State of Florida growth management and by the May 1, 1991 deadline, is a tool for affects virtually all City departments.

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The plan has twelve required and two optional elements: future land use, traffic circulation, housing, sanitary sewer, solid waste, storm water management, potable water, groundwater recharge, conservation, parks and recreation, capital improvements, inter-governmental coordination, community redevelopment area and historical preservation. Fiscal year 1995 was the third year of  ;

the implementation of the Capital Improvements Element of the '

Comprehensive Plan, which covers the five-year period from 1993 through 1997.

1 Department __Eocus z Because the City of Ocala operates under the i Council-Manager system of government, maj or responsibility for the day-to-day of the City fal's to the City Manager's Office, which has a budgeted staff of 8.5 full-time employees.

The City Council appoints the City Manager, who is responsible for carrying out policy, administering City affairs and keeping the City Council informed of City governmental operations. He is also responsible for recommending the annual budge.t to City Council. The City Manager and the three Assistant City Managers collectively oversee all of the City's departments except for the City Clerk's office, the Internal Auditor and the City Attorney, who report directly to the City Council, and the Police Department, which is j under the direction of the Mayor. '

The City Manager's Office also takes on a number of its own proj ec ts . The most extensive current proj ect is the development of I the Florida Emergency Training Facility on 440 acres at the Ocala.

Regional Airport. Designed ~- to be a training magnet for t h e' Southeastern United States, the facility will be the home of an aircraft rescue and firefighting facility (ARFF), a driver's training course, a recreational sports complex, an industrial park, and a heavy equipment operator's course. The recreation complex and the first phase of the driving course are complete. The l'"

component will provide specialized training to firefighters ano rescue personnel in fighting fires associated with aircraft accidents. Site design, which is part of the proj ect's $4. 36 million second phase, currently is under way. Phase II also includes the design and manufacture of specialized burn equipment.

Phase III, to be undertaken in 1996, will entail the actual construction of the facility. When completed, the facility will include a pit for simulated fuel spills, a specialized aircraft mock-up, propane distribution system, control tower and administration buildings.

In another area, the City Manager's staff played a lead role in a successful community-wide effort to obtain an All-America City designation from the National Civic League. After a lengthy application and selection process, their efforts culminated in a ten-minute program presented by . the City officials, County officials, staff and volunteers from various local organizations to an audience consisting of a twelve member jury and finalists from other cities.

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l Another maj or project the City Manager's Office undertook during the I l

year was a " User Friendly City" campaign. Proposed by our City l Council President, the campaign was designed to focus attention on the City's philosophy that employees be professional, courteous and ,

helpful in their dealings with the public, other agencies arid each l l other. The campaign featured the creation of a "Who Should I Call?"

l information line and the creation of an awards program recognizing amployees who went out of their way to provide outstanding customer omrvice. Articles were published in the employee newsletter and i

" User Friendly" lapel pins were distributed to each employee to remind them of the City's philosophy.

EIN6N9166_INE9BM6I19N In developing, maintaining and evaluating the' City's accounting system, consideration is given to internal accounting controls designed to ensure that the City's assets are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to al.'ow for the 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 obj ect ives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and j udgments by management. The City's chart of accounts substantially complies with the Uniform Accounting System as prescribed by Chapter 3A-61 of the Florida Administrative Code.

Budsg1gry_Qggingis. Budgetary' control is maintained on an annual allotment basis, based upon prior working capital and on revenue proj ections for the current year. Both expenditures and encumbrances are recorded against budgeted appropriations. At mid-year, City department heads are required to reassess their appropriations for the remainder of the year, from which a full budget revision is prepared and submitted to City Council for approval. The entire budget process is coordinated by a full  ;

time budget manager. In addition, two separate reviews are made  !

by the Finance Department for final annual appropriations approval. After the end of the year, unliquidated purchase order balances, as of September 30, are reappropriated in the form of a supplemental appropriation resolution, which 4 is adopted by City Council. This resolution also includes a carry-forward for maj or proj ects not completed in the previous year which are not covered by purchase orders. All items in this resolution are subj ect to a working capital availability test.

Monthly reports are distributed to the various departments to keep them informed of their year to date expenditures, encumbrances and funds available.

92D9Eal__99VeEDmggigl__Eunc11ggs. The following schedule presents a summary of general fund, special revenue fund and debt service fund revenues and other financing sources for the fiscal year onded September 30, 1995 and the percer.tages of increases and

! decreases in relation to revenues and other financing sources for the fiscal year ended September 30, 1994.

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Increase Percent l  % of (Decrease) Increase

-_-- oms 901__--_I91al____frem_122d__LQssransel Revenues:

Property taxes $ 7,638,214 18.59% $ 62,938 .83%

Other taxes 1,508,766 3.67 6,689 .45 State revenue sharing 970,820 2.36 40,440 4.35 Other intergovernmental revenues 8,151,563 19.83 (132,259) (1.60)

Parking meters and l facilities 52,875 .13 (8,320) (13.60)

Licenses and permits 772,036 1.88 8,970 1.18 Fines and forfeitures 1,052,858 2.56 161,403 18.11 Charges for services 2,327,174 5.66 142,077 6.50 Interest 1,467,264 3.57 336,277 29.73 Gifts and other _____154tEQs_____z2R______[112tQ121 (43.10)

Total revenues 24,096,076 58.63. 501,203 l Other financing sources:

Proceeds from refunding bonds - - (11,749,269) (100.00) l Transfers from other funds __12tQQQtg57 __diz32 ___{94dtQ121 (5.26)

Total revenues and other l financing sources _$ditQ2stg22__190 1 00%_$112t1222Q221

, The increase of $161,403 (18.11%) in fines and forfeitures was, I

attributable to confiscations; During fiscal 1995, approximately' i $200,000 in confiscated drug money on closed cases was awarded t o' the City of Ocala for joint participation in cases with other agencies including the U.S. Department of Justice Drug Enforcement Agency. The $142,077 (6.50%) increase in charges for services was caused primarily by an increase in stormwater revenues. Interest income increased by $336,277 (29.73%) primarily because of higher interest rates in 1995 as compared to 1994 as well as the continuation of a short-term investment program.

The main reason for the $132,259 (1.60%) decrease in other intergovernmental revenues was the nonrecurring catch-up adj ustment during fiscal year 1994 in the distribution of the county ninth cent voted gas tax. This decrease offset the increases in grant revenues. The $117,012 (43.10%) decrease in gifts and other was caused primarily by nonrecurring surplus land sales during fiscal year 1994. Parking meters and' facilities revenues decreased by l

$8,320 (13.60%) which is reflective of an entire year of the 33% to i 50% reduction of reserve parking rates which were effective in June, 1994 in order to increase reserve parking activity.

l During 1994, the City issued the Capital Improvement Refunding

! Revenue Certificates, Series 1993. Since there were no bonds issued during 1995, there was a $11,749,269 (100%) decrease in proceeds

from refunded bonds. The primary cause of the $944,013 (5.26%)

decrease in transfers to other funds is also related to the transactions regarding the certificates issued during 1994.

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l Tha following schedule presents a summary of General Fund, Special Ravenue Fund and Debt Service Fund expenditures and other financing usos for the fiscal year ended September 30, 1995 and the porcentages of increases and decreases in relation to expenditures and other financing uses for the fiscal year ended September 30, 1994.

Increase Percent

% of (Decrease) Increase

___6mpunt __ Total from_1gg4___Lgecreasel Expenditures:

Current:

General government end administration $ 3,750,855 9.48% $ 180,161 5.05%

Public safety 14,812,271 37.45 1,516,113 11.40 Public works 4,531,891 11.46 289,384 6.82 Culture and recreation 3,939,075 9.96 112,949 2.95 Housing rehabilitation 298,703 .76 (95,763) (24.28)

Nondepartmental 87,932 .22 (63,951) (42.11) ,

Other 554,879 1.40 (69,084) (11.07)

Intergovernmental 141,818 .35 29,949 26.77 Copital outlay 3,160,173 7.99 1,221,051 62.97 Dsbt service:

Principal 1,575,000 3.98 (463,544) (22.74)

Interest and agents' fees __11226t225____4t02________21951______t22_

Total expenditures 34,779,532 87.92 2,664,316 Other financing uses: -

Payment to refunded bonds escrow agent - - (11,885,054) (100.00)

Trcnsfers to other funds __4 t 222taE2___12 t Qg_____[145t42El (2.96)

Total expenditures and other financing uses $22 TEE 2t3gE__1QQ2Q0%_$[2t21st2241 Public safety expenditures increased by $1,516,113 (11.40%), which io attributable partly to realized costs for an entire year on the eight police positions approved and filled during 1994, partly to the two police and one fire positions approved and filled during 1995 and the 5% cost of living increases in October 1994.

Approximately one third of the public safety expenditure increase was caused by the Weed & Seed Grant that the City has received through the U.S. Department of Justice.

The $180,161 (5.05%) increase in general government and l cdministration expenditures was caused primarily by the cost of l living increases, in October 1994 as well as by the one position

! cpproved and filled in early 1995 and by the cost of a wage and nelary study by a consultant. The primary reasons for the $289,384 (6.82%) increase in public works expenditures include the cost of living increases in October 1994, the one position approved and filled during 1995, and costs related to the Lake Tuscaw111a drainage proj ect.

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'The $95,763 (24.28%) decrease in housing rehabilitation was the result of fourteen structures being fully rehabilitated and nine partially rehabilitated during- 1995 as compared to twenty-two full ,

and no partial rehabilitations during 1994. Nondepartmental l expenditures decreased by $63,951 (42.11%), which was caused by the (

completion during 1994 of the clean-up of identified contaminated underground storage tanks. The $69,084 (11.07%) decrease in other current expenditures was due primarily to a decrease in Community ,

Development Block Grant expenditures. 1 Capital outlay expenditures increased by $1,221,051 (62.97%). More than half of this increase is attributable to a more aggressive street resurfacing program during 1995. Other causes for the increase in capital outlay include grant-funded programs and  !

proj ects such as _the Weed & Seed Grant, the hazardous materials ,

grant for the fire department, and the Lake Tuscawilla drainage ,

proj ect .

Principal payments decreased by $463,544 (22.74%). This change is ,

attributable to scheduled debt service payments and is specifically related to the principal payment on the Capital Improvement ,

Refunding Revenue Bonds, Series 1986, which were defeased in 1994.

The $11,885,054 (100%) decrease in payment to the refunded bonds escrow agent is also related to the above-mentioned defeasance.

There were no refunding bonds issued during 1995.

9tDRE21__EWDd__Etl20 ERA The fund balance of the general fund at September 30, 1995 is $8,259,063, a 7.66% increase from 1994. The ,

increase was caused primarily by increases in general fund'  !

intergovernmental revenues, fines and forfeitures, and interest ~ J income. The general fund balance is equivalent of 78 working days of expenditures.

EDitEEElit_QEREti1903 The City of Ocala operates nine distinct I enterprise funds: Electric System, Water and Sewer, Sanitation, l Municipal Golf Course, Fort King Tennis Court, Municipal Trailer '

Park, Ocala Municipal Airport, Florida Emergency Training Facility and Adult Athletic Complex . The Enterprise funds are well run and continue to be the backbone of financial support of general government operations.

The Electric System Revenue Fund is the combination of the formerly consolidated Electric Revenue and Bulk Power Supply Revenue Funds.

During fiscal 1990, Electric System Revenue Bonds, Series 1989A, were issued for the acquisition and construction of improvements to the electric system. The improvements are expected to be completed in j fiscal 1996. The electric system continues to be efficiently managed and operated, and had a debt service coverage of 11.78 for the year ended September 30, 1995. J viii j l

-. . ~ - - - .

The Water and Sewer Fund, which is the City's second largest anterprise fund, has been burdened with debt service payments and other bond-related restrictions for the past few years. For the year ended September 30, 1995, the Water and Sewer Fund had a debt eervice coverage ratio of 7.26. During 1990, the City's consulting engineers began working on a master plan, including a rate review, for the water and sewer system. Gradual rate increases starting in early fiscal 1991 have helped this fund.

The Sanitation Fund is responsible for trash and garbage pick-up in the City. During the year, sanitation rates had to be increased since there were increased landfill charges. The fund is financially sound although it had a net loss of $38,663 during fiscal 1995.

The Municipal Golf Course Fund had a net loss for the year ended September 30, 1995 of $34,119; however, this fund should improve in the future.

The Ocala Municipal Airport Fund had a net loss of $354,921 in 1995. There are expansion programs under way at the Airport, most of which are substantially funded by federal and state grants. Although the airport is not presently self-supporting, it is an important part of our community and should improve in the future.

1 The Fort King Tennis Court Fund experienced a net loss of $2,196 l during fiscal 1995. This fund, although small, is well-run and. '

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should continue to improve in the future.

The Municipal Trailer Park Fund continues to improve. During 1995 it had a net income of $24,774.

The Florida Emergency Training Facility Fund, which involves the construction, future operation and maintenance of an emergency facility adjacent to the City's airport, was started in fiscal 1993 During 1995, this fund had a net income of $132,962.

l The Adult Athletic Complex Fund includes the construction, l operations and maintenance of the Ocala Regional Sportsplex. The first phase of this complex was completed in June 1995. During 1995, this fund had a net income of $468,028.

EADEIOD__lEMal__EMD d __0gerg11ogs. The combined Pension Trust Funds improved during 1995. The combined funds had a net appreciation in the fair value of investments of $8,876,381 caused by the valuation of investments to market value as of September 30, 1995 as well as by realized gains and losses dur ing the year.

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l Qebt_ ___6dE ADIE1EA1190 At September 30, 1995, the City had

$120,940,000 in outstanding serial and term bonds and certificates. Of this amount, $86,080,000 are associated with enterprise funds and $34,860,000 are associated with governmental funds. All of the City's issues are insured. Although the City may issue general obligation debt in an amount up to 20% of the assessed valuation of the taxable real and personal property in the City according to article IX, section 9.02, of the City Charter, l

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there is no general obligation debt outstanding.

9Afh__ DADA 9Ame01 Cash temporarily idle during the year was  ;

invested in the State Board of Administration Local Government l Surplus Trust Fund, which is an investment pool administered by the State of Florida. Although the City is authorized by Florida Statutes to invest in obligations of U. S.

agencies and in interest-bearing time deposits and savings accounts in banks and in savings and loan associations, we have found that the State Board of Administration has historically had competitive rates and we can withdraw . funds on demand. At September 30, 1995, our investments with the State Board of Administration were earning 5.68% with a year to date return of 1 5.73%. During fiscal 1993, the City hired Barnett Banks Trust l Company, N.A. as its short-term investment manager in order to I maximize investment earnings.

The City's pension fund investments have been administered by the firm of Manning and Napier of Rochester, New York for several l years. In January 1991, because of the size of the combined funds,, '

the pension fund investments'were equally split for administration' by Manning and Napier and by Barnett Banks Trust Company, N.A. of Jacksonville, Florida. In April 1994, the investments of the Ocala Employees' Retirement Fund were separated from those of the Firefighters' and Police Officers' Supplemental Pension Plans; and Templeton Global Equity Management was added as the international fund equity manager in July 1994 for the General Plan. The pension fund investments consist of bonds, debentures, common stocks, U.S. Treasury obligations, mutual funds and short-term investments.

Bigk_ _dganggmani. The Risk Management Department was established through an interlocal agreement between the City of Ocala and Marion County for the purpose of the procurement of insurance, either through insurance companies or through self-insurance, and for the purpose of providing safety training programs. Information on the City's insurance coverage can be found in the Statistical Section of this report. The Risk Management Department is doing very well, both in insurance monitoring and procurement and in safety training.

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OIBEB_INE0Bd6IIQN IDd!99DdeD1_6udit. The City Charter and Florida Statutes require an j independent audit of the books, financial records and transactions of all administrative departments of the City by a Certified Public Accounting Firm selected by the City Council. The auditors' report on the general-purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report.

Awardg. 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 Ocala, Florida for its comprehensive annual financial report for tha fiscal year ended September 30, 1994. The Certificate of i Achievement is a prestigious national award recognizing conformance l with the highest standards for preparation of state and local ,

l government financial _ reports. _. l' l

f In order to be awarded a Certificate of Achievement, a l government unit must publish an easily readable and l efficiently organized comprehensive annual financial report, l whose contents conform to program standards. Such CAFR must l

satisfy both generally accepted accounting principles and applicable

legal requirements.

l A Certificate of Achievement is valid for a period of one year only.s The City of Ocala has received a Certificate of Achievement f o r' the last thirteen consecutive years (fiscal years ended 1982-1994.) We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are i submitting it'to GFOA.

The City was awarded the Distinguished Budget Presentation Award by the Government Finance Officers Association of the United States and Canada for its annual budgets for the fiscal years beginning l October 1, 1987 through 1994. In order to receive this award, which I

in valid for a period of one year only, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications medium.

During 1995, the City received the All-America City designation from the National Civic League. The award program annually recognizes ten communities for grass-roots activism and collaborative problem co1ving by the public, private and nonprofit sectors. A total of 145 communities from 39 states applied for the designation. The applications were narrowed to 30, and representatives from those communities participated in an awards competition in Cleveland in June. Ten award recipients were selected based on that competition.

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In addition to being named an All-America City, Ocala also was named fifth best place in the country to live by Money Magazine in 1995.

l l Aghggwigdggggnig. The preparation of this comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department. Sincere appreciation is extended to specific individuals who worked diligently throughout the audit: Diane M. Mcdonald, Deputy Finance Director; Wayne C. Hodge, Chief Accountant; Prudy L. Waite, Accountant and Robert D. Naugler, Financial Analyst / Grant Supervisor. Appreciation is also extended to Eric Lewerenz, the City's Internal Auditor; to Barbara Edwards Kays, Budget Manager and to Coopers & Lybrand L.L.P., our external auditors, for their assistance in this effort.

In closing, without the- leadership and support of the City Manager, Assistant City Managers and City Council, whose continued interest in good fiscal City government is an invaluable asset tn our community, preparation of this report _.would not have been possible.

Respectfully submitted, Glen . Baker \

Finance Director ,

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Certifica:e of Acnievement for Exce. .ence .

in Financia Repor:ing Presented to City 0: Ocala, F orida For its Comprehensive Annual Financial Report ,

for the Fiscal Year Ended c l September 30,1994  !

A Certificate of Achievement for Excellence in Financial j Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.

oG

. _ ,IR President I,c##.'

SEAL * ,

Executive Director

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ORGANIZATIONAL STRUCTURE OcalaMarion County All-Amence Cit t j f CITY COUNCIL MAYOR l CLERK l CITY ATTORNEY AUDITOR l l

CITY MAllAGER POUCE l ELECTRIC l l BUDGET l l FINANCE l e

DEPUTY l

ASSISTANT ASSISTANT CITY MANAGER CITY MANAGER WATER & g-SEWER RE ES DOWNTOWN AIRPORT i

l PUBUC WORKSj l PURCHASING l LIBRARY l l FIRE l l MANAGEMENT MANA EMENT SYSTEMS I

PLANNING RECREATION I

& PARKS I

BUILDING 4 OFs - O o

SUBSTANCE ABUSE G

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I paEvEnnON n G g'y ENGINEERING J- h

• 3 *

\l Couyzs "" "'/

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I OCALA BOARDS AND COMMISSIONS CITIZENS OF OCALA O

g CITY COUNCIL MAYOR n

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< _N HISTORIC WUN. CODE COWW. DEV. BOARD OF TENNIS NRPORT ZONING BD. DOWNTOWN DEV-PRES. BOARD ENF. BOARD ADV. BOARD OF ADJ. EXAMINERS BOARD y, MUNICIPAL PINE OAKS ~

- UBRARY AFF TREE WUNICIPAL a - PLANNING & PUBUC " " MMON GOLF BOARD COWWISSION ARTS ZON!NG SAFETY GOLF BOARD HOUSING

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FINANCIAL SECTION n.

- This Section 'contains tlne following Subsection:: z.

Report of Certified Public-Accountants J General Purpose Financial Statements j.

Individual Fund and Combining Statements - By Fund Type m

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l C3spers & Ly2r:nd L.L.P.

l &Lyaranc a professional services Orm l

l Report of Independent Accountants 1

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ne Honorable Members of City Council City of Ocala, Florida We have audited the accompanying general-purpose fmancial statements of the C ty of Ocala, Florida, as of ano for the year ended September 30,1995. Rese general-purpose fmar tial statements are the responsibility of the City of Ocala, Florida, management. Our responsibility is tu express an opinion on these general-purpose fmancial statements based on our audit.

We conducted our audit in accordance with gene. ally accepted auditing standards and Government  !

Auditing Standards issued by the Comptroller Generd of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general-purpose fmancial statements are free of material misstatement. An audit includes exammmg, on a test basis, evidence supporting the amounts and disclosures in the general-purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as l evaluating the overall gerieral-purpose fmancial statement presentation. We believe that our audit provides )

a reasonable basis for our opunon. ._ c l l

In our opinion, the general-purpose financial statements referred to above present fairly, in all material I respects, the financial position of the City of Ocala, Florida, as of September 30,1995, and the results of l its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles, hi accordance with Government Auditing Standards, we have also issued a report dated January 12,1996 l'

on our consideration of the City of Ocala's internal control structure and a report dated January 12,1996 on its compliance with laws and regulations.

Our audit was made for the purpose of forming an opinion on the general-purpose fmancial statements  ;

taken as a whole. The combining and individual fund and account group financial statements and '

supporting schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose fmancial statements of the Ci.y of Ocala, Florida. Such infonnation 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.

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Coopers & Lybrand LLP. is a member of Coopers & Lybrand international. a limited liabihty association incorporated in Switzerland.

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The information presented in the Statistical Section is presented for purposes of additional analysis and is ,

not a required part of the general-purpose financial stat ments. Such information has not been subjected to

, the auditing procedures applied ir. the audit of the financial statements and, accordingly, we express no-opinion on it.  ;

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Orlando, Flo da January 12,1996 I

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GENERAL PURPOSE FINANCIAL STATEMENTS (Combined Statements - Overview)

' These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detail- .

ed statements that are in the following subsections.

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i GENERAL-PURPOSE FINANCIAL STATEMENTS i

R (Combined Statements - Overview)

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. , -- . . - - .-- - _- - - - =- - - .. . _ -

CITY OF OCALA, FLORIDA

! GMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30,1995 1

Governmental Fund Types Special Debt Capital Assets and Other Debits General Revenue Service Project l

Current Assets:

Cash and investments S 3,250 $ 183,607 $ - $ 3,514,720 Equity in pooled cash and investment fund 8,219,903 11,931,526 - 380,385 Accrued interest receivable 76,015 101,805 - 38,628 Accounts and notes receivable, net of allowance for doubtful accounts of $345,879 574,069 69 - -

Accrued unbilled revenues - - - -

Due from other funds 218,298 ,,, 82,417 - -

Interfund loans receivable 3,247 - - -

Inventories - - - -

Due from other governments 900,355 273,430 - 380,635 Other 33,196 - - -

Total current assets 10,028,333 12,572,854 - 4,314,368 Restricted Assets:

Cash and investments - - 567,356 -

Equity in pooled cash and investment fund - - 4,707,465 -

Accrued interest and dividends receF/aole - - 38,739 -

Due frora other governments .- - - - -E Other - - - -

Total restricted assets - - 5,313.560 -

Other Assets:

Interfund loans receivable after one year 43,276 - - -

Property, plant and equipment, net - - - -

Issuance costs on long-term debt - - - -

Total other assets 43,276 - - -

Other Debits:

Amount available in debt service funds - - - -

Amount to be provided for retirement of general long-term debt - - - -

Total other debits - - - -

Total Assets and Other Debits $ 10,071,609 $ 12,572.854 $ 5,313,560 $ 4.314,368 See accompanying notes to financial statements.

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i Fiduciary Proprietary Fund Types Fund Types Account Groups Trust General General Totals

/ Internal and Fixed Long Term (Memorandum Enterprise Service Agency Assets Debt Only)

$ 4,663 $ 500 $ - $ -

$ 3,706,740 9,645,990 11,220,783 - - - 41,398,587 73,856 86,901 - - - 377,205 6,995,352 9,497 - - - 7,578,987 4,599,419 - - - - 4,599,419 834,788 - - -

- 1,135,503 76,485 28,198 - - - 107,930 2,210,652 144,072 - - - 2,354,724 41,576 16,124 - - - 1,612.120 396,577 43,691 - - - 473,464 24,879,358 11,549,766 - - - 63,344,679 i

33,397,562 - 67,166,542 - - 101,131,460 20,598,744 - 104,770 - - 25,410,979 569,201 - 544,025 - - 1,151,965 332,136 -

- - 332,136 C.

1,303,941 - - - - 1,303,941 56,201,584 - 67,815,337 - - 129,330,481 596,167 - - - - 639,443 i 175,817,938 11,931,195 - 19,897,645 - 207,646,778 1 696,075 - - - - 696,075 )

177,110,180 11,931,195 -

j9,897,645 - 208,982,296 I

- - - - 5,313,560 5,313,560

- - - - 29,944,245 29,944,245

- - - - 35,257,805 35,257,805 S 258,191,122 $ 23,480,961 g $ 19,897,645 $ 35,257,805 5 436,915,261, 1

l Continued l i

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CITY OF OCALA, FLORIDA COMBINED BALANCE SHEET - CONTINUED ALL FUND TYPES AND ACCOUNT GROUPS September 30,1995 Governmental Fund Types Special Debt Capital Liabilities, Equity and Other Credits General Revenue Service Project Current Liabilities:

Accounts payable $ 1,099,433 $ 129,109 $ - S 586,946 Claims payable - - - -

Compensated absences payable 645,246 40,880 - -

Bonds and notes payable within one yetir - - - -

Accrued interest payable - - - -

Due to other funds - - - 9,448 Customer deposits - - - -

Deferred revenue 57,867 133,631 - -

Interfund loans payable 2,000 9.620 - -

Total current liabilities 1,804,546 - 313,240 - 596,394 Liabilities Payable from Restricted A. sets:

Accounts payable - - - -

Accrued interest payable - - - -

Deferred revenue - - - -

Bonds and capitallease payat',e within one year - - - - j Decommissioning costs - - - -

Deferred compensation - - - -

Totalliabilities payrole from restricted assets - - - -

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" 6 Interfund Loans Payable Aft <,r One Year 8,000 75,352 - -

Compensated Absences Pr yable - - - -

Bonds and Capital Lease Payable After One Year - - - -

Totalliabilitier 1,812,546 388,592 - 596,394 ]

Equity and Other Cret'.sts:

Investment in ger'aral fixed assets - - - -

Contributed equiry - . - -

Retained earn'ags:

Reserved ',or debt service - - - -

Reserve:1 for renewal and replacement - - - -

Total reserved retained earnings - - - -

Unrrserved -

Total retained earnings - - - -

Fund balances:

1 Reserved for debt service - - 5,313.560 -

l Reserved for retirement benefits - - - - '

Reserved for interfund loans receivable after one year 43,276 - - -

Reserved for encumbrances 436,664 492,261 - 3,186,822  ;

Reserved for specified projects 499,721 11,743,415 - -

l Reserved for capital projects 7,298 - - -

Total reserved fund balances 986,959 12,235,676 5,313,560 3,186,822 Unreserved and undesignated fund balances 7,272,104 (51,414) - 531,152 Total fund balances 8,259,063 12,184,262 5,313,560 3,717,974 l Total equity and other credits 8.259,063 12,184,262 5,313,560 3,717,974 Total Liabilities, Equity and Other Credits $ 10,071,609 $ 12,572,854 $ 5,313,560 $ 4,314,368  !

See accompanying notes to financial statements.

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Fiduciary i Proprietary Fund Types Fund Types Account Groups Trust General General Totals Internal and Fixed Long-Term (Memorandum ,

Enterprise Service Agency Assets Debt Only) 5 5,641,670 $ 389,023 $ -

$ 7,846,181

- 3,241,038 - - - 3,241,038 656,036 135,934 - - - 1,478,096 ,

- 11,142 - - 1,665,000 1,676,142 3,019 - - - - 3,019 1,126,055 - - - - 1.135,503 3,252,773 - - - - 3,252,773 '

72,945 - - - - 264,443 96,310 - - - - 107,930 10,848,808 3,777,137 - - 1,665,000 19,005,125 i

l 616,826 - 37,607 - - 654,433 2,706,454 - - - - 2,706,454 72,049 - - - - 72,049 5,205,000 - - - - 5,205,000 1,433,766 - - - - 1,433,766 l

- - 4,798,661 - - 4,798,661 i 10,034,095 - 4,836,268 - - 14,870,363 C

556,091 - - - - 639,443

- - - - 397,805 397,805 78,929,931 46,381 - - 33,195,000 112,171,312 100,368,925 3,823,518 4,836,268 - 35,257,805 147,084,048

- - - 19,897,645 - 19,897,645 37,384,345 3,660,044 - - - 41,044,389 8,648,959 - - - - 8,648,959 j 22,043,145 - - - - 22,043,145 i 30,692,104 - - - - 30,692,104 )

89,745,748 15.997,399 - - - 105,743,147 120,437,852 15,997,399 - - - 136,435,251

- - - - - 5,313,560

- - 62,875,223 - - 62,875,223

- - - - - 43,276 ,

- - - - - 4,115,747 l

- - 103,846 - - 12,346,982

- - - - - 7,298

- - 62,979,069 - - 84,702,086

- - - - - 7,751,842

- - 62,979,069 - - 92,453,928 157,822,197 19,657,443 62,979,069 19,897,645 - 289,831,213

$ 258,191,122 $ 23,480,961 $ 67,815,337 $ 19.897,645 $ 35,257,805 $ 436,915.261 7

CITY OF OCALA, FLORIDA CQMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL AND EXPENDABLE YRUST FUND TYPES Year Ended September 30,1995 Governmental Fund Types Special Debt Capital General Revenue Service Project Revenues:  !

Property taxes . S 7,595,038 $ 43,176 $ -

Other taxes 1,508,766 - - -

State revenue sharing 970,820 - - -

Other intergovernmental revenues 4,034,663 4,116,900 - 815,974 Parking meters and facilities - 52,875 - -

Licenses and permits 386,612 385,424 - -

Fines and forfeitures 1,015,819 37,039 - -

Charges for services 618,743 1,708,431 - -

Interest 572,623 642,558 252,083 219,320 Gifts 28,528 3;596 - -

Other 110,224 12,158 - -

Total revenues 16,841,836 7,002,157 252,083 1,035,294 Expenditures:

Current: j General government and administration 3,585,677 165,178 - -

l Public safety 14,812,271 - -

948 Public works 3,317,237 1,214,654 - 211,928 Culture and recreation 2,362,419 1,576,656 - -

Housing rehabilitation 298,703 - -

- g-Nondepartmental appropriations 87,932 - - 2,755 f i Other 488,298 66,581 - -

i Capital outlay 2,302,725 857,448 - 3,117,423 )

Intergovernmental 118,941 22,877 - -

)

Debt service:

Principal payments - - 1,575,000 -

Interest and paying agents' fees - 5,341 1,921,594 -

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Total expenditures 27,374,203 3,908,735 3,496,594 3,333,054 Excess (Deficiency) of Revenues Over Expenditures (10,532,367) 3,093,422 (3,244,511) (2,297,760)

Other Financing Sources (Uses):

Transfers from other funds 12,972,641 524,198 3,503,718 955,767 Transfers to other funds (1,852,660) (2,677,590) (247,603) -

lotal other financing sources (uses) 11,119,981 (2,153,392) 3,256,115 955,767 l Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses 587,614 940,030 11,604 (1,341,993)

Fund Balance at Beginning of Year 7,671,449 11,244,232 5,301,956 6,402,535 Equity Transfers to Other Funds - - - (1.342,568)

Fund Balance at End of Year S 8,259,063 $ 12,184,262 $ 5,313,560 $ 3,717,974 See accompanying notes to financial statements.

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1 Fiduciary Fund Type Totals Expendable (Memorandum Trust Only) j i

.$ 6,354 $ 7,644,568 1

- 1,508,766 )

- 970,820  :

- 8,967,537 4

- - 52,875

- 772,036

- 1,052,858 l

- 2,327,174 78,637 1,765,221

- 32,124 ~

77,716 200,098 162,707 25,294,077

'I 23,413 3,774,268 I

- 14,813,219 l

- 4,743,819

- 3,939,075

- 298,703 . g-~ ,

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- 90,687

- 554,879 l 490 6,278,086 1

- 141,818 I l

- 1,575,000 ,

- 1,926,935 23,903 38,136,489 138,804 (12,842,412) 6,111 17,962,435

- (4,777,853) 6.111 13,184,582 144,915 342,170 1,357,271. 31,977,443

-- (1,342,568)

$ 1,502,186 $ 30,977,045 9 j

CITY OF OCALA, FLORIDA COMBINED STATEMENT OF REVENUES AND EXPENDITURES -BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE, CAPITAL PROJECT AND EXPENDABLE TRUST FUND TYPES Year Ended September 30,1995 GENERAL Adjustments Actual to on a Budgetary Budgetary Actual Basis Basis Revenues:

Property taxes $ 7,595,038 $ -

S 7,595,038 Other taxes 1,508,766 - 1,508,766 State revenue sharing 970,820 -

970,820 Other intergovernmental revenues 4,034,663 (1,524,218) 2,510,445 Parking meters and facilities - - -

Licenses and permits 386,612 - 386,612 Fines and forfeitures 1,015,819 (6,800) 1,009,019 Charges for services - 618,743 - 618,743 Interest 572,623 (2,686) 569,937 Gifts 28,528 (17,180) 11,348 Other 110,224 (25,958) 84,266 Total revenues 16,841,836 (1,576,842) 15,264,994 Expenditures:

Current:

General government and administration 3,585,677 (110,624). 3,475,050 Public safety 14,812,271 (406,344) I 14,405,927 ,

Public works , 3.317,237 23,463 3,340,700 t Culture and recreation 2,362,419 (43,730) 2,318,689 )

Housing rehabilitation 298,i03 (298,703) -

Nondepartmental appropriations 87,932 47,680 135,612 Other 488,298 (408,318) 79,980 ,

Capital outlay 2,302,725 10,855 2,313,580 Intergovernmental 118,941 l (67,640) 51,301 '

Debt service:

Principal payments - - -

Interest and paying agents' fees - - -

r Total expenditures 27,374,203 (1,253,361) 26,120,842 Excess (Deficiency) of Revenues Over Expenditures (10.532,367) (323,481) (10,855,848)

Other Financing Sources (Uses):

Operating transfers from other funds 12,972,641 40,000 13,012,641 Operating transfers to other funds (1,852,660) (16,600) (1,869,260)

Total other financing sources (uses) 11,119,981 23,400 11,143,381 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund )

j Balance Allocation 587,614 (300,081) 287,533 Fund Balance Allocation - - -

I Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses S 587,614 $ (300,081) $ 287,533 i

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Variance Final Favorable Budget (Unfavorable)

$ 7,888,386 $ (293,348) 1,545,000 (36,234) 960,000 10,820 2,551,555 (41,110) 404,550 (17,938) 878,297 130,722 _,

662,509 (43,766) 689,400 (119,463) 13.570 (2,222) 123,680 (39,414) 15,716,947 (451,953) 3,728,493 253,440 15,099,520 693,593- ,

3,581,776 241,076 . . .

• ~

2,518,492 199,803 200,490 64,878 92,021 12,041 -

2,805,046 491,466 74,316 23,015 e e 28,100,154 1,979,312 (12,383,207) 1,527,359 13,015,064 (2,423)

(1,947,656) 78,396 11,067,408 75,973 (1,315,799) 1,603,332 1,315,799 (1,315,799)

$ . $ 287,533 1

l Continued 11

1 i

i CITY OF OCALA, FLORIDA COMBINED STATEMENT OF REVENUES AND EXPENDITURER - BUDGET AND ACTUAL - CONTINUED GENERAL, SPECIAL REVENUE, CAPITAL PROJECT AND EXPENDABLE TRUST FUND TYPES Year Ended September 30,1995 i

SPECIAL )

Adjustments Actual to on a Budgetary Budgetary ,

Actual Basis Basis l Revenues:

Property taxes $ 43,176 $ -

$ 43,176 I Other taxes - - -

State revenue sharing - - -

Other intergovernmental revenues 4,116,900 (128,947) 3,987,953 Parking meters and facilities 52,875 - 52,875 Licenses and permits 385,424 - 385,424 i Fines and forfeitures 37,039 -

37,039  ;

Charges for services 1,708,431 - 1,708,431 Interest 642,558 (1,232) 641,326 Gifts 3,596 -

3.596 Other 12,158 - 12,158 Total revenues 7,002,157 (130,179) 6,871,978 ,

l Expenditures:

Current:

General government and administration 165,178 (130,086) 35,092 Public safety - - - i Public works .. 1,214,654 83,644 1,298,298 E .

Culture and recreation 1,576,656 141,356 1,718,012 l Housing rehabilitation - - -

Nondepartmental appropriations - - -

l Other 66,581 - 66,581 Capital outlay E57,448 267,261 1,124,709 l Intergovernmental 22,877 - 22,877 '

Debt service: )

Principal payments - - -

Interest and paying agents' fees 5,341 - 5,341 }

Total expenditures 3,908,735 362,175 4,270,910 l Excess (Deficiency) of Revenues Over Expenditures 3,093,422 (492,354) 2,601,068 Other Financing Sources (Uses):

Operating transfers from other funds 524,198 - 524,198 Operating transfers to other funds (2,677,590) - (2,677,590)

Total other financing sources (uses) (2,153,392) - (2,153,392)

Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund

)

Balance Allocation 940,030 (492,354) 447,676 Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources l Over Expenditures and Other Uses S 940,030 $ (492,354) $ 447,676 )

See accompanying notes to 11nancial statements.

12

1 j

1 i

I I

REVENUE 1

Variance Final . Favorable Budget (Unfavorable)

$ 44,970 $ (1,794) i 4,506,2k1 (518,258) 47,500 5,375 387,500 (2,076)  ;

34,700 2,339 _,  !

1,701,380 7,051 j 696,400 (55,074) 1 4,000 (404) 12,975 (817) 7,435,636 (563,658) 67,255 32,163 1,513,4 4 215,116 c C.

1,787,057- 69,045 74,232 7,651 4,111,172 2,986,463 r 22,908 31 6,172 6,172 4,752 (589) 7,586,962 3,316,052 (151,326). 2,752,394 517,000 7,198 (3,115,479) 437,889 (2,598,479) 445,087

.(2,749,805) 3,197,481 2,749,805 (2,749,805)

$ 447,676 Continued 13

i l

CITY OF OCALA, FLORIDA COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - CONTl!4UEp l

GENERAL, SPECIAL REVENUE, CAPITAL PROJECT AND EXPENDABLE TRUST FUND TYPES Year Ended September 30,1995 CAPITAL Adjustments Actual to on a Budgetary Budgetary j Actual Basis Basis Revenues:

Property taxes $ - $ -

Other taxes - - -

State revenue sharing - - -

Other intergovernmental revenues 815,974 - 815,974 Parking meters and facilities - - -

Licenses and permits - - -

Fines and forfeitures .

Charges for services - - -

interest 219,320 (19,750) 199,570 Gifts - - -

Other - - -

Totai revenues 1,035,294 (19,750) 1,015,544 Expenditures:

Current: -

General government and administration - - -

Public safety 948 - 948 Public works .. 211,928 13,079 225,007 i Culture and recreation - - -

Housing rehabilitation - - -

Nondepartmental appropriations 2,755 - 2,755 Other - - -

Capital outlay 3,117,423 3,173,743 6,291,166 Intergovernmental Debt service:

Principal payments - - -

Interest and paying agents' fees - - -

Total expenditures 3,333,054 3,186,822 6,519,876 i Excess (Deficiency) of Revenues Over Expenditures (2,297,760) (3,206,572) (5,504,332)

Other Financing Sources (Uses):

Operating transfers from other funds 955,767 - 955,767 Operating transfers to other funds - - -

Total other financing sources (uses) 955,767 - 955,767 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation (1,341,993) (3,206,572) (4,548,565)

Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources  !

Over Expenditures and Other Uses $ (1,341,993) $ (3,206,572) $ (4,548,565)

See accompanying notes to financial statements.

14

i i

i PROJECT Variance

. Final Favorable Budget (Unfavorable) s .

$ . 1 1,715,480 (899,506) j 306.0 0 (106,4 0) 2,021,480 (1,005,936) l l

(948) .,

257,023 32,016 ...-

2,500 (255) 8,449,088 2,157,922 8,708,611 2,188,735 (6.687,131) 1,182,799 1,393,656 (437,889)

~

1,393,656 (437,889)

(5,293,475) 744,910 1 5,293,475 (5,293,475) ,

s .

$ (4,548,565) l l

Condnued 15

- . _- _ J ~-m CITY OF OCALA, FLORIDA COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - CONTINUED GENERAL, SPECIAL REVENUE, CAPITAL PROJECT AND EXPENDABLE TRUST FUND TYPES Year Ended September 30,1995 EXPENDABLE Adjustments Actual to on a Budgetary Budgetary ,

Actual Basis Basis Revenues:

Property taxes 5 6,354 $ -

$ 6,354 Other taxes - - -

State revenue sharing - - -

Other intergovernmental revenues - - -

Parking meters and facilities - - -

Licenses and permits - - -

Fines and forfeitures .

Charges for services - - -

Interest 78,637 (72,569) 6,068 Gifts - - -

Other 77,716 (77,716) -

Total revenues 162,707 (150,285) 12,422 i

\

Expenditures:

Current:

General government and administration 23,413 - 23,413 i Public safety - - -

l Public works . - - - '

Culture and recreation - - -

Housing rehabilitation - - -

Nondepartmental appropriations - - -

Other - - -

Capital outlay 490 - 490 Intergovernmental - - -

Debt service:

Principal payments - - -

Interest and paying agents' fees - - -

Total expenditures 23,903 - 23,903 )

Excess (Deficiency) of Revenues Over Expenditures 138,804 (150,285) (11,481) )

Other Financing Sources (Uses):

Operating transfers from other funds 6,111 - 6,111 i Operating transfers to other funds Total other financing sources (uses) 6,111 - 6,111 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation 144,915 (150,285) (5,370)

Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses $ 144,915 $ (150,285) $ (5,370)

See accompanying notes to financial statements.

16

TRUST Variance Final Favorable

= Budget (Unfavorable)

$ 6,354 $ -

7,700 (1,632) 14,054 - (1,632) 28,647 5,234

. . 4 96,100 95,610 124,747 100,844 (110.693) 99,212 6,111 -

6.111 .

(104,582) 99,212 104,582 (104,582)

$ . $ (5,370) 17  !

1

CITY OF OCALA, FLORIDA COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS / FUND BALANCE ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS Year Ended September 30,1995 Totals Internal Pension (Memorandum Enterprise Service Trust only)

Operating Revenues:

Sale of electricity $ 77,531,618 $ - $ -

$ T/,531,618 Sale of water 3,700,279 - - 3,700,279 Sewer and sanitation service charges 14,397,916 - - 14,397,916 Fees and rentals 2,121,572 8,632,842 - 10,754,414 Commissions 77,552 - - 77,552 City and state contributions - 3,297,511 2,122,612 5,420,123 Employee contrit:utions - 1,150,802 365,679 1,516,481 income on investments - - 2,303,979 2,303,979 Net appreciation in fair value of investments - - 8,876,381 8,876,381 Other 2.421,883 119,817 -

2.541.700 Total operating revenues 100.250.820 13.200.972 13.668.651 127.120,443 Operating Expenses:

Purchase of electricity 46,080.940 - - 46,080,940 Distribution 6,847,609 - - 6,847,809 Operation and rnaintenance 9,056,454 - - 9.056,454 Water and sewer treatment 2,371,836 - - 2,371,836 Sewer collection 829,459 - - 829,459 Fleet rnanagement - 2,782,878 - 2,782,878 Purchasing and warehousing - 729,552 - 729,552 Management information system and central services - 886,371 - 886,371 Building maintenance - 786,224 - 786,224 Pension payments - - 1,783,359 1,783,359 -

Insurance, administration and other - 3,725,717 5,653,881 170,242 9,549,840 1 Depreciation and amortization 7,086,506 785,233 - 7,871,739 I Economic improvement incentives 592,216 - - 592,216 i Other 1.880.150 181.753 -

2.061.903 l Total operating expenses 78.471,087_ 11.805.892 1.953.601 92.230.580 Operating income 21.779,733 1.395,080 l 11.715.050 34.889.863 -

Non-Operating Revenues (Expenses):

Interest income 3,013,687 560,596 - 3,574,283 Interest expense (4,517,957) (4,446) - (4,522,403)

Litigation settlement (net of $486,160 of related costs) 1,376,844 - - 1,376,844 Other non-operating revenue 211.054 976 -

212.030  !

Total non-operating revenues (expenses) 83,628 557,126 -

640.754 l Income Before Operating Transfers 21,863,361 1.952.206 11.715,050 35,530.617 Operating Transfers:

From other funds 1,080,681 11,775 - 1,092,456 To other funds (14.058.093) (218.945) -

(14.277.038)

Total operating transfers (12.977.412) (207.170) - (13,184,582)

Not income 8,885.949 1,745,036 11,715,050 22,346,035

' Retained Eamings/ Fund Balance at Beginning of Year 112,540,495 14,266,983 49,761,833 176,569,311 Equity Transfers to Other Funds (988.592) (14.620) - (1,003,212)

Retained Eamings/ Fund Balance at End of Year 5 120,437,852 $ 15 997,399 1 $ 61,476,883 $ 197,912,134 See accompanying notes to financial statements, 18

l i

CITY CF OCALA, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES I

Year Ended September 30,1995 I

Proprietary Fund Types Totals internal (Memorandum  ;

Enterprise Service Only) l increase in Cash and Cash Equivalents: l i

Cash Flows from Operating Activities:

Cash received from customers $ 98,289,603 $ - $ 98,289,603 Cash received from employees - 1,150,802 1,150,802 Cash paid to suppliers for goods and services (63,161,477) (5,959,846) (69,121,323)

Cash paid to employees for services (8,741,167) (2,620,773) (11,361,940)

Cash received from other funds - 12,064,944 12,064,944 Cash paid for insurance claims - (1,357,143) (1,357,143)  ;

Net cash provided by operating activities 26,386,959 3,277,984 29,664,943 j J

Cash Flows from Non-Capital Financing Activities:  ;

Operating transfers in 1,080,681 11,775 1,092,456 Operating transfers out (14,058,093) (213,945) (14,277,038)

Grant revenues 211,054 976 212,030 Net cash used in non-capital financing activities (12,766,358) (206,104) (12,972,552)

Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (17,816,791) (2,165,381) (19,982,172)

Principal paid on bonds, notes and capital lease payable (4,935,000) (99,046) (5,034,046)

Interest paid on bonds, notes and capitallease payable (5,539,780) (4,446) (5,544,226). j Principal paid on loans from other funds .

(93,590) - (93,590) i Interest paid on loans from other funds (32,815) -

(32,815) l Principal received on loans to other funds 70,927 26,560 97,487 Interest received on loans to other funds 33,181 2,324 35,505 Proceeds of capitallease payable - 62,785 62,785 Proceeds of loans from other funds 145,717 - 145,717 Loans to other funds (164,717) -

(164,717)

Contributions received from other governments, developers and customers 3,419,642 - 3,419,642 Litigation settlement 1,376,844 - 1,376,844 g

Net cash used in capital and related financing activities (23,536,382) (2,177,204) (25,713,586)

Cash Flows from Investing Activities:

Purchase of investments (107,700) - (107,700)

Proceeds from sales and maturities of investments 9,577,678 - 9,577,678 Interest received 3,269,765 533,544 3,803,309 Net cash provided by investing activities 12,739,743 533,544 13,273,287 Net increase in Cash and Cash Equivalents 2,823,962 1,428,130 4,252,092 C'sh and Cash Equivalents, beginning of year 42,315,057 9,793,153 52,108,210 Cash and Cash Equivalents, end of year S 45,139,019 $ 11,221,283 $ 56,360,302 See accompanying notes to financial statements.

Continued 19

I

, CITY OF OCALA, FLORIDA i l COMBINED STATEMENT OF CASH FLOWS - CONTINUED  ;

l i

l ALL PROPRIETARY FUND TYPES l

Year Ended September 30,1995 Proprietary Fund Types Totals 1 internal (Memorandum Enterprise Service Only)

Reconciliation of Cash and Cash Equivalents to Balance Sheet:

Total unrestricted cash and investments per the balance sheet $ 9,650,653 $ 11,221,283 $ 20,871,936 Total restricted cash and investments per the balance sheet 53,996,306 - 53,996,306 Total cash and investments 63,646,959 11,221,283 74,868,242 Less: Investments not meeting the definition of cash equivalents (18,507,940) - (18,507,940)

Cash and Cash Equivalents, end of year S 45,139,019 Reconciliation of Operating income to Net Cash Provided by Operating Activities:

Operating income $ 21,779,733 $ 1,395,080 $ 23,174,813 Adjustments to reconcile operating income to l net cash provided by operating activities:

Depreciation 6,861,742 785,233 7,646,975 Amortization 224,764 - 224,764 Loss on fixed asset disposal .c 325,285 10,492 335,777J.

(Increase) decrease in assets: 1 Accounts and notes receivable (898,553) 19,666 (878,887)

Accrued unbilled revenue (244,921) - (244,921)

Due from other funds (71,237) - (71,237)

Inventories (14,024) 1,077 (12,947) i Due from other governments 27,419 1,108 28,527 Other current assets (1,331,551) 52,505 (1,279,046).

Increase (decrease) in liabilities:

Accounts payable (825,400) 147,916 (677,484)

Claims payable - 861,384 861,384 Compensated absences payable (4,211) 3,523 (688)

Due to other funds 284,607 - 284,607 Customer deposits 218,915 - 218,915 Deferred revenue (161,079) -

(161,079)

Decommissioning costs 215,470 - 215,470 l'

Net Cash Provided by Operating Activities $ 26,388,959 $ 3,277,984 $ 29,664,943 Noncash Capital and Related Financing Activities:

Plant and equipment contributed from other funds $ - $ 2,345.780 Plant and equipment contributed to the Intemal Service Fund $ (988.592) $ (14,620) $ (1,003,212) l l See accompanying notes to financial statements.

l j

i 20 j

1 CITY OF OCALA, FLORIDA i

NOTES TO FINANCIAL STATEMENTS j Year Ended September 30,1995

1. Reporting Entity and Description of Funds:

A. Reporting Entity

The City of Ocala, Florida (the " City") operates under a council-manager form of government, 1

including a six-member City Council comprised of a Mayor (elected at large) and five district Councilmen and provides the following services as authorized by its charter: public safety, public works, public utilities, culture, recreation and community development.

In evaluating the City as a reporting entity, management has addressed all potential component units (traditionally separate reporting entities) for which the City may or may not be fmancially accountable and, as such, be includable within the City's financial statements. In accordance with Governmental

' Accounting Standards Board (GASB) Statement No.14, the City (the primary government) is I

financially accountable ifit appoints a voting r tajority of the organization's goveming board and (1) it is able to impose its will on the organization o- (2) there is a potential for the organization to provide specific financial benefit to or impose specific fmancial burden on the City. Additionally, the primary government is required to consider othsr orgar.izations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's fmancial statements to be misleading or incomplete. Management determined that the Community Redevelopment Agency is the only organization that should be included in the City's fmancial statements as a component unit.

1. Blended Comoonent Unit: ,

r Community Redevelopment Agency (CRA) - The City Council serves as the CRA Board.

Although legally separate, the CRA is appropriately blended as a governmental fund type  ;

component unit into the primary govermnent. Separate fmancial statements for the CRA are not presently developed.

The City includes advisory boards and commissions within the City in its financial statements in circumstances where the City selects the governing authority, designates management, has the ability to influence operations, and has accountability for fiscal matters of the advisory boards and commissions.

2. Rehted Oreanintion:

The City is responsible for appointing the Ocala Housing Authority's board. However, the City's accountability for this organization does not extend beyond makmg these appointments.

21

l CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

1. Reporting Entity and Description of Funds - Continued:

B. . Descriotion of Funds ,

The accounting records of the City are organized on the basis of funds and account groups. The operations of each fund are accounted for within a separate set of self-balancing accounts that ,

comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. i Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the accompanying financial statements into seven generic fund types and three broad fund categories: governmental funds, proprietary funds and fiduciary funds.

Homogeneous funds are consolidated for purposes of financial statement presentation. Interfund transactions and balances are elimmated in the consolidation.of homogeneous funds. Other funds i which are similar by type but not homogeneous are combined. Interfund transactions and balances are not climinated on funds which are combined rather than consolidated.

Governmental Amds - Governmental funds include the General, Special Revenue, Debt Service and r

Capital Project funds. The measurement focus of governmental funds is determination of financial position and sources and uses of resources rather than net income determination. The funds are maintained on the modified accrual basis of accounting. Generally, only current assets and current liabilities are included on their balance sheets. Their reported fund balances are considered a measure of available spendable resources. The following is a description of the governmental funds of the Cityp General Fund - The General Fund is the general operating fund of the City. It is used to account t for revenues and current, capital outlay, debt service and intergovernmental expenditures not specifically required by law or administrative action to be accounted for in another fund. All i general property taxes (except for those levied for the Downtown Development Commission and those required to be deposited to the Community Redevelopment Trust Fund), franchise taxes, licenses, fines and certain intergovernmental revenues are recorded in this fund. Current, capital outlay, debt service and intergovemmental expenditures of the administrative, public safety, public works and numerous other departments are paid for through this fund.

Soccial Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted to expenditure for specific purposes.

Debt Service Funds - Debt senice funds are used to account for the accumulation of resources for the payment of principal, interest and related costs of the City's general long-term debt.

Canital Project Funds 'The capital projects funds are used to account for resources earmarked for the acquisition and construction of major capital facilities and other project oriented activities other than those financed by proprietary funds.

22

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 l

1. Reporting Entity and Description of Funds - Continued:

B. Descriotion of Funds - Continued Proprietary Funds - Proprietary funds include enterprise and internal senice funds. The measurement focus of proprietary funds is determmation of net income, fmancial position and cash flows. He generally accepted accounting principles for proprietary funds are similar to those applicable to businesses in the private sector and thus, these funds are maintained on the accrual basis of accounting.

Accordingly, all assets and liabilities associated with their activity are included on their balance sheets.

Heir reported fund equity is segregated into contributed equity and retained earnings components.

Proprietary funds used by the City are as follows:

Fnternrise Funa - Enterprise funds are used to account for operations that are fmanced and operated in a manner similar to private businesses where.the intent of the goveridng body is that the costs (including depreciation) of providing certain goods and senices to the general public be fmanced or recovered primarily through user charges or where the governing body has deemed that periodic determination of net income is appropriate for purposes of monitoring capital maintenance, accountability or other purposes.

Internal Service Funds - The intemal service funds account for the operation of departments which exist solely to provide senices to other City departments. The revenues of the internal senice funds are derived from user fees and self insurance premiums charged to other City fun is. p Trint and Agency Funds - The trust and agency funds of the City are pension trust funds, expendable trust funds and the deferred compensation fund. The trust funds are used to account for assets held by the City in a trustee capacity, or as an agent for individuals, private organizations, other governments and/or funds. He measurement focus and basis of accounting of the pension trust funds are similar to proprietary funds and they are therefore maintained on the accrual basis of accounting. The pension trust funds are utilized to account for the fmancial transactions of the City-administered pension plans.

The measurement focus and basis of accounting of the expendable trust funds are similar to governmental funds and they are therefore maintained on the modified accrual basis of accounting.

The agency fund does not measure results of operations, but assets and liabilities are measured on the modified accrual basis of accounting.

Account Grouns - Fixed assets and long-term liabilities associated with governmental funds are accounted for in the General Fixed Asset and General Long-Term Debt Account Groups. He two account groups are not funds and are concerned only with the measurement of fmancial position.

General Fixed Asset Account Groun - Fixed assets used in governmental fund t3pe operations are accounted for in the General Fixed Asset Account Group. Public domain (infrastmeture) general fixed assets consisting of certain improvements other than buildings such as roads, sidewalks and drainage systems are not, however, capitalized as general fixed assets.

General Long-Term Debt Account Group - Long-term liabilities expected to be fmanced from governmental funds are accounted for in the General Long-Term Debt Account Group.

23

I l

CITY OF OCALA, FLORIDA I NOTES TO FINANCIAL STATEMENTS - CONTINUED l 1

Year Ended September 30,1995 l

1. Reporting Entity and Description of Funds - Continued:

C. G4SH Statement No. 20 E!ection Pursuant to the election option made available by GASB Staten-,t No. 20, pronouncements of the Financial Accounting Standards Board (FASB), issued after November 30,1989, are not applied in the preparation of the financial statements of the proprietary fund types.

2. Summary of Significant Accounting Policies:

He accounting principles and reporting practices of the City conform to gererally accepted accounting principles applicable to governmental units. He more significant of these policies and principles are summarized below: _.

A. Basis ofAccountiny Accrual Basis - His basis of accounting is utilized for the proprietary and pension trust funds. Under this basis, revenues are recognized in the period earned and expenses are recognized in the period incurred.

Modified Accrunt Basis - This basis of accounting is utilized by the governmental funds. Under this basis, revenues are recognized when they become susceptible to accrual, that is, when they become I both measurable and available to financ.e expenditures of the fiscal period. All material revenues of the governmental funds, such as other intergovernmental revenues and other taxes, are accrued or deferred, i as appropriate. Property taxes are not accrued since they are substantially collected du"ng the period l in which they are due.

I Under the modified accrual basis, expenditures are generally recognized when the liability is incurred, with the following exceptions:

Principal and interest on general long-tenn debt are recognized as expenditures in the debt l service funds when due.

Prepaid items are reported as current period expenditures rather than allocating the related expenditures to the periods benefited.

Inventory of governmental funds is reported as an expenditure in the period purchased.

Interest income on special assessments receivable is not accrued.

B. A nnual Rudeets An annual budget is prepared for all governmental and proprietary funds except for one special revenue fund (SHIP Local Housing Assistance), one capital project fund (Capital Improvement Construction l Fund), one expendable trust fund (Pension Medical Reserve Fund), the agency fund, and all debt l service funds. Some portions of the City's General Fund and special revenue funds which are related to l f, rants, financially non-measurable trial programs, special assessments and other similar activities are ,

not formally budgeted. Rese activities are monitored by the appropriate City personnel. He budget I l

amounts presented in the accompanying financial statements for the govemmental funds are as originally adopted, or as legally amended, by the City Council during the year ended September 30, i 1995.

24

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

2. Summary of Significant Accounting Policies -Continued:

B. Annual Rudeets - Continued The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any budget amendments that alter the total expenditures of any fund must be approved by the City Council. During 1995, the City Council approved various supplemental budget appropriations to provide for unanticipated requirements of the period. Budget appropriations may not be legally exceeded on a fund basis. Appropriations lapse at the end of each fiscal year. The budgets for the governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that encumbrances are treated as expenditures. Accordingly, budgetary comparisons presented for the governmental funds in the accompanying fmancial statements are on this non-GAAP budgetary basis. In addition, certain activities accounted for within the governmental funds are not formally budgeted by the City. Therefore, both revenues and expenditures associated with those l activities have also been treated as adjustments to convert actual revenues and expenditures of the l governmental funds to a budgetary basis in order that the budgetary comparisons reflect only those l activities for which legally adopted budgets are prepared. l C. Eauite in Pooled Cash and Investments The City maintains a pooled cash and investment fund which allows the various funds of the City to j pool monies for investment purposes. The City maintains records to identify the equity of each fund investing in the pool as well as amounts borrowed from the pool. Investment earnings of the pool ar,e recorded as camed and are allocated tithe participating funds based on the respective fund's equity in the pool at the end of each month.

D. . Cash Flows j For purposes of the statement of cash flows, cash and cash equivalents include cash on hand (including equity pooled cash), demand deposit accounts and highly liquid investments (including restricted assets) with a maturity of three months or less when purchased.

E. Investments investments, except those of the Pension Trust Funds, are stated at cost, which together with the accrued interest receivable approximates market. Investments of the Pension Trust and Agency Funds consisting of bonds, common stocks, debentures and short-term investments are stated at fair market value based on quoted market prices at the end of the fiscal year.

Income from other investments owned by the individual funds is recorded in the respective funds as earned.

F. Inventories Inventories held by the proprietary funds consist of golf retail merchandise, equipment and supplies held for maintenance use or for capital improvements and are stated at the lower of average cost or market. Obso2te and unusable items have been reduced to estimated salvage values.

25

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

, 2. Summary of Significant Accounting Policies - Continued:

l G. Pronerte. Plant and Faulnment Governmental Funds - General fixed asset additions are recorded as capital outlay expenditures in the respective governmental fund and are simultaneously capitalized at cost in the General Fixed Asset Account Group, except for infrastructure assets which are immovable and of value only to the City.

Donated fixed assets are recorded at their fair market value on the date donated. Unit costs of property and equipment recorded in the General Fixed Asset Account Group were established at historical cost or estinuted historical cost in a manner similar to fixed assets of proprietary funds. Depreciation is not provided on general fixed assets.

Emorietary Funds - Property, plant and equipment of the proprietary funds acquired subsequent to 1977 are carried at historical cost. Those acquired in 1977 ansi prior years are recorded at estimated historkal cost if historical cost is not available. Contributed assets are recorded at their estimated fair market value on the date donated. The City used appraisals and other estimation techniques (indices) to estimate, when necessary, the original historical cost of the units of property, plant and equipment. i Since the development of detail property records, all additions to property, plant and equipment of I proprietary funds have been recorded at cost with retirements recorded using the established actual or estimated historical cost (net of accumulated depreciation).

Depreciation is provided on all exhaustible assets of proprietary funds on the straight-line method over the following estimated useful lives: c l Buildings 30 years l Extensions and improvements other than buildings 30-60 years Fixtures, vehicles and equipment 5-15 years An annual depreciation rate of 3.6% is applied to the historical cost of Crystal River Unit No. 3 (CR-3). This annual depreciation rate was approved by the Florida Public Service Commission for use by Florida Power Corporation, the majority owner of the project. The City's share of nuclear fuel, which is included in the CR-3 investmem account, is amortized on a unit-of-production method at a rate based on actual BTU's of energy produced.  !

Expenditures for maintenance and repairs which do not add to the value of the assets or extend their useful lives are charged to operating expenses as incurred. Howeven, expenditures for repairs and improvements which add to the value or extend the useful life of an asset are capitalized.

26

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 4

2. Summary of Significant Accounting Policies - Continued: < .

G. Provertr. Plant and Eaulement - Continued Capitalization ofInterest - In accordance with F iSB Statement No. 62, the Electric System and Water and Sewer System enterprise funds capitr.lize net interest costs on funds borrowed to finance the construction of fixed assets. For the year ended September 30,1995, capitalization of net interest costs was as follows:

Electric Water and System Sewer System interest expense $ 606,180 $ 388,594 Amortization of bond issuance costs 59,666 8,488

~~

Interest income (173,871) (80,954)

Increase in construction in progress $ 491,975 $ 316,128 Canital Leases and Installment Purchase Contracts - Property and equipment and long-term liabilities associated with capital leases and installment purchase contracts of governmental funds are accounted -

for in the General Fixed Asset and General Long-Term Debt account groups, respectively.

The acquisition or construction of generi. fixed assets under a capital lease agreement or installment purchase contract is reccznized as an expenditure and other financing source and principal and interest expenditures in the governmental funds.

Property and equipment and liabilities associated with capital leases and installment purchase contracts of proprietary funds are accounted for and reponed in the financial statements of the respective proprietary fund.

Il. A ccrued Revenue Revenues of enterprise funds are accrued based on estimated unbilled senices provided to customers at the end of the fiscal year.

1. Properte Tares

\

Property taxes levied by the City are billed and collected by Marion County and normally attach as an enforceable lien on property as of January 1. Generally taxes are levied on November 1 and are payable on or before June 1. Substantially all property tax billings are collected during the fiscal period billed.

The City is permitted under its charter to levy tr.xes up to $10 per $1,000 of assessed valuation for general government senices other than the pay ment of principal and interest on general long-term debt and in unlimited amounts for the payment of principal and interest on long-term debt. Additional taxes assessed for the payment of general long-term debt issues of the City must be approved by the public.

Tne tax rate assessed by the City for the year ended September 30,1995 was $5.0264 per $1,000 of assessed property value.

27

CITY OF OCALA, FL@RIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

2. Summary of Significant Accounting Policies - Continued:

J. Interfund Parables and Receivables interfund payables and receivables are non-interest bearing and generally are liquidated monthly (Note 5). Interfund advances are liquidateo in accordance with the City Council's resolution and may bear interest (Note 6).

K. ConwensatedAbsences in governmental funds the amount of compensated absences associated with employee vacations that are recorded as expenditures represent the amounts accrued during the year that would normally be liquidated with available spendable resources. The amount of compensated absences associated with employee sick leave is based on the historical annual trend of adjusted sick leave payments made at retirement. Accordingly, the amount of the compensated absence liability that would normally be liquidated with expendable available resources in the next fiscal year is reflected in the financial statements of governmental funds. The remainder of the compensated absence liability of governmental funds is reported in the General Long-Term Debt Account Group. ,

In proprietary funds, the amount of compensated absences associated with employee vacations that are recorded as expenses represent the amounts accrued during the year and the amount of compensated absences associated with employee sick leave is based on the historical annual trend of adjusted sick leave payments made at retirement. The liability for compensated absences of these funds is reflected in the respective financial statements. --' '

The above accounting conforms to GASB Statement No.16.

L. Setf-Insurance Claims Liabilities for reported claims and incurred but not reported claims are estimated based on an actuarial review of claims pending and historical experience.

M. Pension Costs Pension plan contributions include provision for normal cost plus an amount sufficient to amortize the past service liability over a thirty-year period.

28

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

2. Summary of Significant Accounting Policies - Continued:

N. Reserves ofRetained Earnines and Fund Balance Reserves of retained earnings on the proprietary funds are created by increases in net assets restricted for debt service and renewal and replacement. There is no reservation of retained earnings for assets set aside for construction under bond indentures.

Fund balances of governmental funds are reserved for assets which have been legally segregated for specific future uses or which are not available for expenditure. Open encumbrances at year end are reported as reservations of fund balance to reserve that portion of the current year budget appropriation which has not beec mcognized as an expenditure or a liability.

O. Grants and Contributions

~

Program and capital grants received by governmental funds are recorded in the applicable governmental fund as receivables and revenues at the time reimbursable costs are incurred and all significant grant restrictions are satisfied. Grant revenues received in advance of meeting all major grant restrictions are deferred. Capital grants for general fixed asset additions prior to October 1,1977 are recorded in the general fixed asset account group as investments by the governmental fund which j expended the grant monies. Capital grants for general fixed asset additions subsequent to September 30,1977 are recorded in the general fixed asset account group as contributions from federal or state grants. ,

i l

Capital grants received by proprietar'y funds are also recorded as receivables when reimbursable  !

project costs are incurred or as deferred credits if the grant money is received in advance of project expenditures. Capital grants and other contributions for fixed asset additions to the proprietary funds prior to October 1,1977 are recorded as additions to retained earnings. Capital grants and other J contributions for fixed asset additions to the proprietary funds subsequent to September 30,1977 are recorded as additions to contributed equity. Depreciation on proprietary fund assets purchased with capital grants or other capital contributions is not closed to contributed capital.  !

Contributed assets, including property and equipment, are recorded in proprietary funds and in the general fixed asset account group at fair market value at the time received.

I I

l 29

CITY OF OCAL.A. FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED l l

Year Ended September 30,1995 i

1

2. Summary of Significant Accounting Policies - Continued:

P. Bond Discounts andIssuance Costs Bond discounts and issuance costs are deferred and amortized over the term of the bonds using the effective interest method. I Bond discounts are presented as a reduction of the face amount of the related bonds payable and issuance costs are recorded as other assets.

Q. Administrative Fees Certain administrative expenses are incurred by the City's Electric System Revenue Fund on behalf of the Water and Sewer and Sanitation funds. The Electric System Revenue Fund charges for these services based on the receiving fund's original budgeted appropriations. The reimbursement for these sersices is recorded as an operating expense of the Water and Sewer and Sanitation funds and as a reduction of administrative expense of the Electric Revenue Fund. i The City's General Fund also incurs cenain administrative expenditures on behalf of other funds of the i City. The General Fund is reimbursed for these expenditures based on actual cost allocations. The I amounts reimbursed are recorded as a reduction of expenditures of the General Fund. The related reimbursements are recorded as either an operating expense of the proprietary funds or as an '

expenditure of the govemmental funds. I R. Encumbrances *'

l 1

Encumbrance accounting, under which purchase orders, contracts and other commitments for the '

expenditure of monies are recorded in order to reserve a portion of the applicable budget appropriation, is utilized by the governmental funds of the City. Encumbrances outstanding at year end are reported l

as reserves of fund balance of governmental funds since they do not constitute expenditures or i liabilities. They are recognized as expenditures in the period in which the actual goods or services are received and a liability is incurred.

S. Total Columns on Combined Statements - Overview The columns entitled " Total (s) (Memorandum Only)" included in the General Purpose Financial Statements (Combined Statements - Overview) section of this report are presented only to facilitate financial analysis. These total columns are not comparable to consolidated fiaancial information as the basic reporting entity is by fund types which utilize differing bases of accountag. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. In addition, interfund cliannations have not been made in the aggregation of this data, l

)

30

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

- - - = - - .- .- ..-. -

CITY OF OCALA, FLORIDA l i

l NOTES TO FINANCIAL STATEMENTS - CONTINUED i

Year Ended September 30,1995  !

i

3. Budget Reconciliation: j A. Rudretarv Bacic ReconetH=* ion I Since the accounting principles applied for purposes of developing data on a budgetary basis differ i significantly from those used to present fmancial statements in conformity with generally accepted l accounting principles, a reconciliation of resultant basis, perspective, entity and timing differences in  !

the excess of revenues and other sources of financial resources over expenditures and other uses of  ;

financial resources for the year ended September 30,1995 is presented below:  ;

Governmental Fund Types i SpecM: Capital Expendable i General Revenue- Project Trust j i

Excess (deficiency) of revenues -- l and other sources of financial resources over expenditures i and other uses of financial i resources (budgetary basis) $ 287,533 $ 447,676 $ (4,548,565) $ (5,370) i Adjustments: j Encumbrances 436,664 492,261 3,186,822 -

Encumbrances of non-formally ,

budgeted activities (113,537) - - -

Non-formally budgeted s i

activities ~ (23,046) 93 19,750 150,285 -

Excess (deficiency) of revenues l l and other sources of financial '

1 resources over expenditures and other uses of financial j resources (GAAP basis) $ 587,614 $ 940,030 $ (1,341,993) $ 144,915 B. Excess ofExnenditures Over Annronriations For the year ended September 30,1995, no expenditures exceeded the budget at the fund level.

l- 4. Cash and Investments and Equity in Pooled Cash and Investments:

The City maintains a cash and investment pool that is available for use by all funds, except the pension trust funds and certain other funds required to have separate bank accounts. Each fund type's portion of this pool

! is displayed on the combined balance sheet as " Equity in pooled cash and investment fund". In addition, investments are held separately by several of the City's funds. The deposits and investments of the pension trust funds are held separately from those of other City funds.

i l

31

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

4. Cash and Investments and Equity in Pooled Cash and Investments - Continued:

A. Qth At September 30,1995, the carrying amount of the City's deposits was $7,998,982. These deposits  ;

consisted of interest bearing and non-interest bearing demand accounts and certificates of deposit, ,

which were entirely insured by federal depository insurance or by collateral held by the City's agent i pursuant to the Public Depository Security Act of the State of Florida. His Act requires that the City maintain deposits only in " qualified public depositories". All qualified public depositories must deposit l with the State Treasurer cligible collateral in such amounts as required by the Act. In addition,  !

qualified public depositories are required under the Act to assume mutual responsibility agamst loss ,

caused by the default or insolvency of other qualified public depositories of the same type. Should a >

default or insolvency occur, the State Treasurer will implement procedures for payment of losses according to the validated claims of the City.

Funds not prohibited by bond covenants have pooled their cash balances in order to maximize investmera earnings. The City's banking arrangement provides that the City will pay monthly direct service charges and will earn interest on collected balances at the effective federal funds rate less 50 basis points and adjusted for reserve requirement.

]

B. Investments Florida Statutes authorize the City to invest in the Local Government Surplus Funds Trust Fund, I obligations of the U.S. Govenunent, U;S. Government Instrumentalities, interest-bearing time deposik  !

and savings accounts in banks and savings and loans provided such deposits are collateralized as described above, mutual funds investing in U.S. Government securities and repurchase agreements fully collateralized by U.S. Government obligations. Effective October 1,1995, the City adopted its .

own investment policy which conforms to the provisions of Section 218.415, Florida Statutes. His investment policy also authorizes the City to invest in corporate bonds, bankers acceptances, prime commercial paper, repurchase agreements, collateralized mortgage obligations, yankee securities and eurodollar securities. Assets of the Ocala Firefighters' Supplemental Plan and the Ocala Police Officers' Supplemental Plan may also be invested, under state statute, in corporate bonds, corporate stocks, commercial paper and life insurance contracts.

Cash Management Funds are mutual funds admmistered by Barnett Banks Trust Company.

Investments held in these funds consist of U.S. Government and other short-term obligations. These short-term investments are stated at cost, which approximates market. Investment income is remgnimi as earned and is allocated to participants of the funds based on their equity participation.

The Local Government Surplus Funds Trust Fund is an investment pool admmistered by the Florida State Board of Admmistration. Investments held in the Fund consist of short-term federal agency obligations, treasury bills, repurchase agreements, and commercial paper. These short-term investments are stated at cost, which approximates market. Investment income is recognized as earned and is allocated to participants of the fund based on their equity participation.

32

CITY OF OCALA, FL@RIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

4. Cash and Investments and Equity in Pooled Cash and investments - Continued:

B. Investments - Continued Collateralized mortgage obligations (CMO's) are investments used by the City to maximize yields. He City's CMO's, consisting of planned amortization classes (PAC's) and adjustable rate mortgage pools (ARM's), are based on cash flows from principal and interest payments on underlying mortgages. He PAC's have fixed interest rates; therefore, as interest rates rise, they will decline in value. He ARM's have an adjustable interest rate based on an underlying index; therefore, they will normally retain their value as interest rates change. Although there is a slight market risk in connection with fluctuating interest rates, the City feels that the risk for these types of CMO's is minimal.

He City's investments are categorized by type to give an indication of the level of credit risk assumed by the City at year end. Category 1 includes investments that are insured or registered or for which.the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments, with securities held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the City's name.

Category Category Category Carrying Market 1 2 3 Value Value U.S. Government securities 5 - S.6,964,670 $ 62,249,082 $ 69,213,752 5 69,015,725 i Common stocks and debentures - - 55,180,061 55,180,061 55,357,613 Repurchase agreement - - 1,332,654 1,332,654 1,332,869

$ - S 6,964,670 $ 118,761,797 125,726,467 125,706.207 Cash Management Funds 11,689,634 11,689,634 Local Government Surplus Funds Trust Fund 21,434,022 21,434,022 Deferred Compensation Investments 4,798,661 4.798,661 l

Total Investments $ 163,648,784 { 163,628,524 he pension trust funds hold approximately 48% of the investments in Category 3.

He types ofinvestments and their levels of risk exposure as of September 30,1995 were typical of those items held during the fiscal year then ended. ,

l l

l 33

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 l

l

5. Due From (To) Other Funds: I The following summarizes the interfund receivables and payables of the various funds of the City at September 30,1995:

Interfund Interfund 4 Fund Receivable Payable i Current Unrestricted interfund Receivable / Payable:

General Fund $ 218,298 $ -

Special Revenue Funds:

Stormwater Utility 82,417 -

~'

Capital Project Funds:

1993 Improvement Certificates - 9,448 Enterprise Funds:

Electric System Revenue - 917,205 '

Water and Sewer 548,295 -

Sanitation 286,493 - 1 Florida Emergency Training Facility - 181,443 )

Adult Athletic Complex - 27,407 )

834,788 1,126,055 c Total interfund Receivable / Payable $ 1,135.503 $ 1,135,503 I

6. Interfund Transactions:

On November 10,1987, the City Council approved a loan from tha Electric System Revenue Fund to the Municipal Golf Course Fund for the cost of the Pine Oaks Clubbase in excess of $800,000. In September, 1988, the actual interfund loan was made for $555,000. This interfund loan bears interest at a fluctuating rate using the same rate the City receives on its investments with the State Board of Administration of Florida. The loan is to be repaid over a ten-year period. At September 30,1995, $166,500 of the balance is outstanding, with $111,000 classified as long-term. Interfund interest recognized on this loan in fiscal year 1995 was $12,236.

i 34 ,

1 I

CITY OF OCALA, FLORIDA l NOTES TO FINANCIAL STATEMENTS - CONTINUED Yer.r Ended September 30,1995

6. Interfund Transactions - Continued:

On February 14,1989, the City Council authorized a loan from the Electric System Revenue Fund to the Airport Fund of $345.,000 for the City's portion of the costs of the airport operations center. On March 14, 1989, the amount of this loan, which bears interest at a fluctuating rate based on the State Board of Administration interest rate, was reduced to $292,000. The loan, which was made in September,1989, is to be repaid over a fifteen-year period. At September 30,1995, $250,463 of the loan balance is outstanding, with $241,098 classified as long-term. Interfund interest recognized on this loan in fiscal year 1995 was

$ 14,777.

On July 18,1989, the City Council approved a loan of $60,000 from the General Fund to the Fort King Tennis Court Fund for the construction of a new clubhouse facility. In April,1990, the actual interfund loan was made. This interfund loan bears interest at a fluctuating rate using the same rate the City receives on its investments with the State Board of Administration of Florida and is to be repaid over a fifteen-year period.

At September 30,1995, $46,523 of the loan balance is outstanding, with $43,276 classified as long-term.

Interfund interest recognized on this loan in fiscal year 1995 was $2,651.

On April 20,1993, the City Council approved a loan of $79,775 from the Fleet Management Fund to the Municipal Golf Course Fund for the purchase of new gas golf carts. This interfund loan, which was actually made in September,1993, bears interest at a variable interest rate set by the City's Finance Director and is to be repaid over a three-year period beginning in fiscal year 1994. At September 30,1995, $28,198 of the loan is outstanding and is classified as current. Interfund interest recognized on this loan in fiscal year 1995 was

$2,324. ~

On June 29,1993, the City Council approved a loan from the Electric System Revenue Fund to the Airport l Fund to cover the Airport's portion of the debt service payments through 1998 for various improvements.

The first portion of the loan was made in fiscal year 1994 in the amount of $15,000. This interfund loan bears interest at a fluctuating rate using the same rate the City receives on its investments with the State Board of Administration and is to be repaid during fiscal years 1999 through 2007. At September 30,1995,

$52,036 of the loan is outstanding and is classified as long-term. Interfund interest recognized on this loan in fiscal year 1995 was $827.

On September 27,1994, the City Council approved a loan of $82,838 from the Electric System Revenue Fund to the Parking / Parks Enforcement Fund for the purchase of an additional parking lot. This loan, which bears interest at 6%, is to be repaid over a ten-year period. At September 30,1995, $76,603 of the loan balance is outstanding, with $69,983 classified as long-term. Interfund interest recognized on this loan in fiscal year 1995 was $4,801.

l 4

e

! 35 l

I CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED 1

Year Ended September 30,1995 1 l

6. Interfund Transactions - Continued:

On October 18,1994, the City Council approved a loan of $9,000 from the Electric System Revenue Fund to the Parking / Parks Enforcement Fund for improvements to the leased First Presbyterian Church parking lot.

This loan, which bears interest at 6%, is to be repaid in a minimum of 3 years, depending on the sufYiciency 1 of the revenues from the parking lot. At September 30,1995, $8,369 of the loan is outstanding, with $5,369 classified as long-term. Interfund interest recognized on this loan in fiscal year 1995 was $540.

On February 28,1995, the City Council approved a loan of $75,000 from the Electric System Revenue Fund to the Airport Fund for the City's match for the upgrading and reconstruction of an existing hangar at the )

Airport. This loan, which bears interest at 7%, will be payable over ten years commencing after the project is completed. The first portion of the loan, $12,605, was made in September,1995 and is classified as long-term. There was no interfund interest recognized on this loan in fiscal year 1995.

On June 20,1995, the City' Council approved a loan of $250,000 fro $n the Electric System Revenue Fund to the Airport Fund for the City's portion of the construction of 28 T-hangars. This loan, which bears interest at i 8%, will be payable over 15 years commencing after the project is completed. The first ponion of this loan, I

$14,866, was made in September,1995 and is classified as long-term. There was no interfund interest I recognized on this loan in fiscal year 1995.

On June 20,1995, the City Council approved a loan of $18,777 from the Electric System Revenue Fund to the Airport Fund for the remainder of the City's portion for the reconstruction of a hangar at the Airport.

This loan, which bears interest at 8%, will be payable over five years commencing after the project is

~

completed. At September 30,1995, no port}on of this loan had been drawn, and there was no interfund interest recognized in fiscal year 1995.

On June 27,1995, the City Council approved a loan from the Electric System Revenue Fund to the Airport ,

Fund to cover the Airport's portion of the debt senice payments through 1998 related to the land acquisition I in 1993. The first portion of the loan was made in September,1995 in the amount of $81,210. This interfund loan bears interest at a fluctuating rate using the same rate the City receives on its investments with the State Board of Administration and is to be repaid during fiscal years 1999 through 2007. At September 30,1995, $81,210 of the loan is outstanding and is classified as long-term. There was no interfund interest recognized on this loan in fiscal year 1995.

On July 27,1995, the City Couacil approved a loan of $10,000 from the Electric System Revenue Fund to the General Fund for the replacement oflights at the Brick City Park fomball field. This loan, which bears 1 interest at 8%, is to be repaid over a five-year period beginning in fiscal year 1996. At September 30,1995,

$10,000 of the loan is outstanding, with $8,000 classified as long-term. Since the loan was made during September,1995, no interfund interest was recognized on this loan in fiscal year 1995.

I 36

CITY CF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

6. Interfund Transactions - Continued:

He following summarizes the interfund loans receivable and payable of the various funds of the City at September 30,1995:

Loans Loans Fund Receivable Payable _

Current Unrestricted interfund Loans Receivable / Payable:

General Fund $ 3,247 $ 2,000 Special Revenue Funds:

Parking / Parks Enforcement - 9,620 Enterprise Funds:

Electric System Revenue " 76,485 -

Municipal Golf Course - 83,698 Fort King Tennis Court - 3,247  !

Ocala Municipal Airport - 9,365 )

76,485 96,310 Intemal Service Funds:

Fleet Management 28,198 -

Total current unrestricted Interfund I loans receivable / payable 107,930 107,930 Interfund Loans Receivable / Payable ^ iter One Year:

General Fund 43,276 8,000 Special Revenue Funds:

Parking / Parks Enforcement - 75,352 Enterprise Funds:

Electric System Revenue 596,167 -

Municipal Golf Course - 111,000 Fort King Tennis Court - 43,276 Ocala Municipal Airport - 401,815 596,167 556,091 Total interfund loans receivable / payable after one year 639,443 639,443 Total Interfund Loans Receivable / Payable S 747,373 5 747,373 37

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMEhlTS - CONTINUED Year Ended September 30,1995

7. Property, Plant and Equipment:

Property, plant and equipment of the proprietary fund types at September 30,1995 is summarized as follows:

Intemal Enterprise Service Funds Funds Buildings $ 5,452,422 $ 7,263,759 Extensions and improvements other than buildings 173,748,476 1,340,831 Crystal River Unit No. 3 ,

13,620,781 -

Fixtures, vehicles and equipment 8,907,352 5,826,046 201,729,031 14,430,636 Less accumulated depreciation (64,912,377) (4,707,103) 136,816,654 9,723,533 Land 14,483,650 630,710 Construction in progress 24,517,634 1,576,952

$ 175,817,938 $ 11,931,195 I

The cost of Crystal River Unit No. 3 (CR-3) represents the City's 1.3333% share of the ownership of a naclear power generating plant (bulk power supply system) acquired through a participation agreement with Florida Power Corporation (FPC). Under the participation agreement, FPC is acting as agent for the City in the maintenance and operation of the plant. .The City is committed to pay its ownership share of the  ;

operational costs of the plant as well as capital improvements, nuclear fuel procurements and plant '

decommissioning costs. For its investment, the City receives the ratio of its percentage ownership in the net energy output of the CR-3 plant, in 1976, the City Council adopted resolution 76-44 which authorized the construction of the Municipal Service Complex to house the operations of the electric, water and sewer and other public works activities of the City, The cost of the Complex has been partially financed by contributions from various City funds and is being accounted for within the internal service fund since operations of the Complex are funded by user charges to the respective funds utilizing the Complex.

During the fiscal year ended September 30,1995, the following changes in general fixed assets occurred:

Balance Balance September 30, Retirements & September 30, 1994 Additions Other Deletions 1995 Land $ 3,528,822 $ -

$ - $ 3,528,822 Buildings 5,796,608 29,603 - 5,826,211 Equipment 8,670,678 1,028,468 805,897 8,893,249 Construction in Progress 17,583 1,647,563 15,783 1,649,363 Total 5 18,013,691 $ 2,705,634 $ 821,680 $ 19,897,645 l

38

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

8. Pension Plans:

The City maintains a single-employer, defined benefit pension plan which covers substantially all of the City's full-time employees (General Plan), a single-cmployer defined benefit pension plan which covers all of its full-time certified law enforcement officers (Supplemental Police Officers' Plan) and a single-employer defined benefit pension plan which covers all ofits full-time certified firefighters (Supplemental Firefighters' Plan).

A. Plan Descrintions andProvisions 3

General Plan - The General Plan is a noncontributory defined benefit pension plan covering substantially all full-time employees of the City. The amount of the covered payroll for the year ended September 30,1995 was $25,905,581. The City's entire payroll was $26,941,967.

Employees are eligible to retire at age sixty-five (65) with ten-(10) years of credited service or may elect early retirement with twenty-five (25) years of credited service or at age fifty-five (55) with ten (10) years of credited senice. Employees beenme vested after ten (10) years of credited senice.

Employees hired after the age of fifty-five (55) 1.une vested at the later of attainment of the age of sixty-five (65) or completion of five (5) or more years or credited senice.

Suoplemental Police Officers' Plan - The Supplemental Police Officers' Plan is a contributory defined benefit pension plan covering any person employed full-time in @ Ocala Police Department who is certified as a law enforcement officer in compliance with the provs'is of Chapter 943.14 of the Florida Statutes. The Plan supplements the General Plan which covers ah calified employees of thb City. Florida Statutes Chapter 185 allows contributions to the Plan by the State of Florida. The amount of the covered payroll for the year ended September 30,1995 was $4,646,100.

A law enforcement officer is eligible to retire on the first day of the month following their sixtieth (60) l birthday or may elect to take early retirement upon the completion of twenty-five (25) years of senice i or at age fifty (50) and at least ten (10) years of senice and begin receiving a benefit from the Plan payable until age sixty-five (65). Law enforcement officers become vested in the Plan after ten (10) years of credited senice.

Pursuant to Florida Statutes Section 185.08, an excise tax amounting to 1% of the gross amount of receipts of premiums from policyholders on all premiums collected on casualty insurance policies covering property within the corporate limits of the City is collected by the Insurance Commissioner.

Such amounts collected by the Insurance Commissioner, less expenses, are contributed annually to the '

Plan. The City does not contribute to the Plan. The law enforcement officers contribute 2% of their salaries or wages to the Supplemental Police Officers' Plan.

39

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

8. Pension Plans - Continued:

A. Plan Descriotions andProvisions - Continued Supolemental Firefighters' Plan - The Supplemental Firefighters' Plan is a contributory defmed benefit pension plan covering any person employed full-time in the Ocala Fire Department who is certified as a firefighter as a condition of employment in accordance with the provisions of Section 633.35 of the Florida Statutes. The Plan supplements the General Plan which covers all qualified employees of the City. Florida Statutes Chapter 175 allows contributions to the Plan by the State of Florida. The amount of the covered payroll for the year ended September 30,1995 was $3,239,394.

On either the first day of the month following his fifty-fifth (55) binhday or the first day of the month following his thirtieth (30) year of credited service, a firefighter is eligible to retire and begin receiving a benefit from the Plan payable until age sixty-five (65). Firefighters become vested in the Plan after ten (10) years of credited service.

Pursuant to Florida Statutes Section 175.101, an excise tax amounting to 2% of the gross amotmt of receipts of premiums from policyholders on all premiums collected on casualty insurance policies covering propeny within the corporate limits of the City is collected by the Insurance Commissioner.

Such amounts collected by the Insurance Commissioner, less expenses, are contributed annually to the Plan. The City does not contribute to the Plan. 'Ihe firefighters contribute 8.42% of their salaries or wages to the Supplemental Firefighters' Plan. i 7

Participation - At September 30,1995, participation in the plans consisted of the following:  ;

General Police Fire l i

Retirees and beneficiaries currently 1 receiving benefits and terminated  !

employees entitled to benefits not l yet receiving them g g 22 Current employees:  ;

Vested 357 65 43

{

Nonvested 606 59 63 i Total 963 124 106 l

1 40 i

i

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

8. Pension Plans - Continued:

B. Investments l

The three aforementioned plans pooled their investments through March,1994. Interest and dividend )

income, gains and losses on sale of investments and appreciation or depreciation in fair market value of i investments were allocated among the three plans monthly based upon the fund balances of the respective funds at the beginning of each month. In April,1994, the investments of the General Plan were separated from those of the other two plans. The investments of the two Supplemental Plans are  ;

pooled. Interest and dividend income, gains and losses on sale ofinvestments and appreciation or depreciation in fair market value ofinvestments are allocated to the two Supplemental Plans monthly based upon the investment balances of the respective funds at the beginning of each month.

Investments of the three plans, consisting of bonds, common stocks, debentures and mutual funds, are stated at fair market value based on quoted market prices at the end of the fiscal year.

C. Fundine Status and Prorress The amounts shown below as " pension benefit obligation" are a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of employee service to date. The ,

measure is the actuarial present value of credited projected benefits and is intended to help users assess the Plans' funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and snake comparisons among defined benefit pension plans. The measure is independent of the actuarial funding method used to determine contributions to each Plan.

The pension benefit obligation was determined as part of an actuarial valuation at October 1,1995 for l the General, Police Officers' and Firefighters' Plans. Significant actuarial assumptions used include (a) a rate of retum on the investment of present and future assets of 8% per year compounded annually, (b) projected salary increases of 6% per year compounded annually, attributable to seniority increases and inflation, (c) no postretirement benefit increases and (d) no merit rate increases.

There were no current year changes in actuarial assumptions for the General, Police Officers' and Firefighters' Plans that would affect the pension benefit obligation.

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41 l

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMFNTS - CONTINUED 1

)

Year Ended September 30,1995

8. Pension Plans - Continued: '

l C. Fundine Status and Proeress - Continued Total assets in excess (unfunded) of the pension benefit obligation of each of the three Plans at October 1,1995 are summarized as follows:

October 1,1995 Police i General Officers' Firefighters' 1 Plan Plan Plan Total Pension Benefit Obligation:

Retirees and beneficiaries currently receiving --

benefits and terminated i employees not yet i receiving benefits $13,708,784 $ 1,169,126 $ 2,476,976 $ 17,354,886 Current employees:

Accumulated employee contributions including allocated investment )

eamings and state .

financed - vested - 455,485 404,533 1,515,492 2,375,510 ' l i

Employer-financed vested 19,564,042 - - 19,564,042  !

Employer-financed l nonvested 3,515,114 - - 3,515,114  !

Employee-financed vested - 5,362,042 2,290,992 7,653,034 l Employee-financed nonvested - 676,230 642,409 1,318,639 l

Total pension i benefit obligation 37,243,425 7,611,931 6,925,869 51,781,225 i

Net Assets Available for Benefits, at market 46,466,093 8,986,392 6,024,398 61,476,883 Assets in Excess of (Unfunded) Pension Benefit Obligation $ 9,222,668 $ 1,374,461 $ (901,471) $ 9,695,658 l

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42

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1

CITY CF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED l

Year Ended September 30,1995 l 8. Pension Plans - Continued:

D. Contributions Reautred and Contribution Made ne plans' funding policies provide that annual contributions at actuarially determined rates, expressed as percentages of annual covered payroll, be sufficient to accumulate sufficient assets to pay benefits when due. He contribution rate for the General Plan is determined using the frozen entry age actuarial funding method. Based upon the October 1,1995 actuarial valuation, the unfunded frozen actuarial accrued liability for the General Plan is $3,210,342. The funding period for the unfunded actuarial accrued liability is 30 to 40 years. For the Police OfYicers' Plan and Firefighters' Plan, the contribution rate for r,ormal cost is detennined using the aggregate actuarial funding method which does not produce a past service liability that is amortized over a fixed number of years. Instead, the value of all projected benefits in excess of current assets is paid off over the future working years of the covered employees. Therefore, this method automatically funds the remaining value of benefits while there are still active members.

The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used tu c.ompute pension benefit obligation as described above.

The contribution requirement for the General Plan for the 1995 fiscal year, determined through an actuarial valuation performed as of October 1,1994, was $1,692,393 (6.31% of current covered payroll). The pension contribution requirement represents funding for normal cost $1,201,284 (4.5%

of covered payroll), amortization of the,unfunded actuarial accrued liability $335,903 (1.3% of covered payroll), and administrative expenses $32,422. Actual employer contributions amounted to

$1,606,146 (6.2% of current covered payroll). Because of timing, there is a one-year lapse in the funding of the contribution requirements for the General Plan.

The contribution requirement for the Supplemental Police Officers' Plan for the 1995 fiscal year, determined through an actuarial valuation performed as of October 1,1993, was $351,994 (9.2% of current covered payroll). The pension contribution requirement represents funding for normal cost

$340,894 (8.9% of covered payroll), and administrative expenses $11,100. Actual employee contributions totalled $92,922 (2.0% of current covered payroll) and actual state contributions amounted to $314,904 (6.8% of current covered payroll).

The contribution requirement for the Supplemental Firefighters' Plan for the 1995 fiscal year, determined through an actuarial valuation performed as of October 1,1993, was $414,365 (13.6% of current covered payroll). The pension contribution requirement represents funding for normal cost

$404,723 (13.3% of covered payroll), and admmistrative expenses $9,642. Actual employee contributions totalled $272,757 (8.42% of current covered payroll) and actual state contributions amounted to $201,562 (6.2% of current covered payroll).

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, 43 l

l

CITY OF OCA1 A FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUER; Year Ended September 30,1995

8. Pension Plans - Continued:

E. Trendinformation The required three-year trend disclosure is as follows:

1995 1994 1993 Net assets available for benefits as a percentage of the pension benefit obligation:

General Plan 124.76 % 118.17 % 126.95 %

Supplemental Police Officers' Plan 118.06 % 108.73 % 117.13 %

Supplemental Firefighters' Plan 86.98 % 79.52 % 87.34 %

Employer contributions as a percentage of annual covered payroll:

General Plan 6.2 % 6.2 % 6.2 %

Assets in excess of (unfunded) pension I obligation as a percentage of the employer's annual covered payroll:

General Plan 35.60 % 23.63 % 32.72 %

Supplemental Police Officers' Plan 29.58 % 14.53 % 26.03 % '

Supplemental Firefighters' Plan -

(27.83)% (40.59)% (22.79)%

Historical Trend Information - Historical trend information is presented to help users assess the Plan's funding status on a going-concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employee retirement systems. Historical trend information is presented as required supplementary information in the Statistical Section of the l Comprehensive Annual Financial Report. '

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44  !

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CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

9. Proprietary Funds - Long Term Debt:

Entervrise Fandi- Following is a maturity schedule of outstanding debt of the enterprise funds:

Series 1988 Series 1989B Series 1992A Series 19928 Utility Utikty W ater Electric Systems Systems and Sewer System Subordinate Subordinate Fiscal Refunding Revenue Refunding Refunding Total Year Ended Revenue Refunding Revenue Revenue Principal .

September 30, Bonds Bonds Bonds Bonds Due 1996 $ 260,000 $ 1,530,000 $ 1,255,000 $ 2,160,000 $ 5,205,000 1997 280,000 1,630,000 1,305,000 2,270,000 5,485,000 1998 295,rOO 1,745,000 1,375,000 2,385,000 5,800,000 ,

1999 320,0L0 1,740,000 1,440,000 1,365,000 4,865,000 l 2000 335,000 - 1,525,000 - 1,860,000 l 2001-2016 10,670,000 - 41,960,000 10,235,000 62,865,000 l l

Totallong-term debt 12.160,000 6,645,000 48,860,000 18,415,000 86,080,000 Less:

Current portion 260,000 1,530,000 1,255,000 2,160,000 5,205,000 Unamortized discount 88,077 13.353 1,353,627 490,012 1,945,069 Totallong-term portion $ 11,811,923 $ - 5,101,647 $ 46,251,373 $ 15,764,988 $ 78,929,931 Interest rate 6.50-7.875 % 6.55-6.90 % 4.75-6.50 % 4.75-6.25 %

i Water and Sewer Rehmdine Revenue Bonds. Series 1988 - The Water and Sewer Refunding Revenue Bonds, Series 1988, were issued in July,1988, and consisted of $2,145,000 serial bonds maturing from October 1,1993 through 2000 and $10,305,000 term bonds of which $3,430,000 mature on October 1, 2007 and $6,875,000 mature on October 1,2015. The proceeds of this issue were used to advance refund the Water and Sewer Refunding Revenue Bonds, Series 1985B.

Major Debt Provisions - The major provisions of tl.e resolution authorizing the issuance of the Water and Sewer Refunding Revenue Bonds, Series 1988, are as follows:

1) The debt obligation and related interest are collateralized by a pledge of the net revenues of the Water and Sewer system.

2) The City will establish and maintain rates which will provide net revenues in each bond year sufficient to pay 100% of the debt service requirement and 100% of all resen'e or other payments, including the cost of operation and maintenance of the system.

45

CITY 0' OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 l

9. Proprietary Funds - Long Term Debt - Continued:

Entervrise Funds - Contimted

3) The City will deposit into the Operation and Maintenance Fund, on or before the 25th day of each month, an amount necessary to make the balance equal to one-fourth of the i budgeted cost of operation and maintenance expenses for the current fiscal year.

4) The City shall deposit into the Sinking Fund, on or before the 25th day of each month, an amount equal to one-sixth of the next semi-annual interest payment and one-twelfth of the next annual principal amount.

5) The City will deposit into the Water renewal and replacement fund, on or before the 25th day of each month, one-twelfth of an amount not less than five percent of the gross revenues of the system for the preceding fiscal year:

6) The City will allocate to the Sewer renewal and replacement fund on a monthly basis, an l

amount sufficient to pay at least one-twelfth of the annual amount required by the Florida i Administrative Code Section 17.50-17(2) to be on deposit. 1 Electric System Revenne Rehmdine Bonds. Series 1989B - The Electric System Revenue Refunding Bonds, Series 1989B, were issued in October,1989, and consisted of $13,000,000 serial bonds maturing from October 1,1990 through 1998. The proceeds of this issue were used to advance refund the Power System Revenue Bonds, Series 1977, and the Power Supply Revenue Refunding Bonds, Series 1988.

j Major Debt Provisions - The major provisions of the resolution authorizing the issuance of the Electric System Revenue Refunding Bonds, Series 1989B, are as followed:

j

1) The debt obligation and related interest are collateralized by a pledge of the net revenues of the Electric system.

2) The City will establish and maintain rates which will provide pledged revenues in each fiscal year equal to 100% of the costs of operation and maintenance of the Electric System, the required reserve amounts, debt senice on all outstanding obligations which are junior and subordinate to the bonds, and 125% of the debt senice requirement on the bonds and parity debt senice components.

3) The City will deposit into the Operation and Maintenance Fund, on or before the 25th day of each month, amounts necessary for the cost of operation and maintenance for the next ensuing month.

46

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED ,

I Year Ended September 30,1995

9. Proprietary Funds - Long-Term Debt - Continued:

Entervrise Famds - Continued

4) The City shall deposit into the Sinking Fund, on or before the 25th day of each month, an amount equal to one-sixth of the next semi-annual interest payment and one-tweln of the )

next annual principal amount.

5) The City will deposit into the Electric Renewal and Replacement Fund, on or before the  ;

25th day of each month, one-tweln of an amount not less than five percent of the gross revenues of the system for the preceding fiscal year.

Utilitv Systems Subordinate Refundine Revenue Bonds. Series 1992A and 1992B - %e Utility Systems Subordinate Refunding Revenue Bonds, Series 1992A and 1992B, were issued in March, 1992. The Series 1992A issue consisted of $23,415,000 in1erial bonds maturing from October 1, 1992 through 2006 and of $28,465,000 in term bor.ds maturing from October 1,2010 through 2015.

The Series 1992B issue consisted of $28,435,000 in serial bonds maturing from October 1,1992 through 2006. The proceeds of these issues were used to advance refund the . Water and Sewer Revenue Bonds, Series 1985A, the Water and Sewer Refunding Revenue Bonds, Series 1986, and the Electric System Revenue Bonds, Series 1989A.

Major Debt Provisions - The major debt provisions of the resolution authorizing issuance of the Utility Systems Subordinate Refunding Revenue Bonds, Series 1992A and 1992B, are as follows: a '

!) The debt obligation and related interest are collateralized by a pledge of the Water and Sewer Surplus Revenues and the Electric Surplus Revenues.

2) The City shall establish and maintain rates which will provide pledged revenues in each fiscal year sufficient to pay 125% of the maximum debt service requirement on the Series 1992 bonds and 100% of all other reserves and payments required.

3) The City will deposit into - Sinking Fund, on or before the 25th of each month, an amount equal to one-sixth he next semi-annual interest payment and one-sixth or one-twelh, as applicable,( =e next principal payment.

47

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

9. Proprietary Funds - Long-Term Debt - Continued:

Enterprise Funds - Continued - Following is a schedule of debt service requirements to maturity for all outstanding bonded debt of the City's enterprise funds as of September 30,1995:

Series 1988 Series 19898 Series 1992A Series 1992B Utility Utility Water Electric Systems Systems and Sewer System Subordinate Subordinate Total Fiscal Refunding Revenue Refunding Refunding Principal Year Ended Revenue Refunding Revenue Revenue and interest September 30, Bonds Bonds Bonds Bonds Due 1996 $ 1,181,658 $ 1,928,038 5 4,216,296 5 3,152,250 $ 10,478,242-1997 1,183,828 1,923,325 4,203,865 3,154,200 10,465,218 1998 1,179,418 1,924,390 4,205,490 3,150,440 10,459,738 )

1999 1,183,348 1,800,030 4,195,860 2,031,576 9,210,814 2000 1,175,583 - 4,199,280 629,720 6,004,583 2001 1,180,901 - 4,194,890 629,720 6,005,511 '

2002 1,173,265 - 4,192,903 629,720 5,995,888 2003 1,177,574 - 4,188,455 2,390,270 7,756,299 2004 1,174,406 - 4,176,202 2,382,260 7,732,868 <

2005 1,173,759 - 4,180,931 2,381,225 7,735,915 )

2006 1,175,253 - 4,168,888 2,376,094 7,720,235 7 2007 1,168,887 - 4,167,450 2,366,719 7,703,056 l 2008 1,169,471 - 4,161,750 - 5,331,221 l 2009 1,165,812 - 4,153,437 - 5,319,249 2010 1,162,656 - 4,154,400 - 5,317,056 2011 1,160,365 - 4,143,988 - 5,304,353 i 2012 1,158,546 - 4,140,625 - 5,299,171 2013 1,156,806 - 4,138,750 - 5,295,556 2014 1,154,750 - 4,124,375 - 5,279,125 2015 1,147,180 - 4,121,719 - 5,268,899 l 2016 1,148,509 - 4,114,687 - 5,263,196 l Total $ 24,551,975 $ 7,575,783 $ 87,544,241 $ 25,274,194 $ 144,946,193 l

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CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

9. Proprietary Funds - Long-Term Debt - Continued:

Internal Service Fund Cap /tal Lease - The City has entered into a lease-purchase agreement to purchase a copier. Information relative to the capital lease is as follows:

Asset capitalized $ 89,053 Less accumulated amortization (10,389)

Net book value of asset S 78,664 Amortization of assets under capital leases for the year amounted to $13,119 and is included in depreciation  :

expense.

The following is a schedule by years of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments, as of September 30,1995:

Year Ending j September 30, )

1996 $ 15,137 1997 15,136 1998 15,137 1999 15,136 2000 7,568 .

Total minimum lease payments 68,114 Less amount representing interest (10,591)

Present value of net minimum lease payments 57,523 Less: Current portion (11,142)

Totallong-term portion $ 46,381 49

CITY OF OCALA, FLORIDA

, NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

10. General Long-Term Debt:

The following is a summary of changes in the City's general long-term debt for the year ended September 30, 1995:

General General Debt Balance at Long-Term Long-Term Service Balance at October 1, Debt Debt Funds September 30, 1994 Additions Retired Operations 1995 Amounts Availabloin Debt Service Funds $ 5,301,956 $ -

$ 11,604 $ 5,313,560 Amount to be Provided:

Term borids 2,425,000 - - - 2,425,000 Serial bonds 9,232,208 -

(595,000) (9,924) 8,627,284 Term certificates 12,320,000 - - - 12,320,000 Serial certificates 7,155,836 -

(980,000) (1,680) 6,174,156 Compensated absences payable 402,788 - (4,983) - 397,805 31,535,832 - (1,579,983) (11,604) 29.944,245 Total Amount Available and to be Provided $ 36,837,788 $ - $ (1,579,983) $ - $ 35,257,805 General Long-Term Debt .. <

Payable:

Term bonds 5 2,425,000 $ -

$ - $ 2,425,000 l Serial bonds 11,295,000 -

(595,000) - 10,700,000 l Term certificates 12,320,000 - - - 12,320,000 Serial certificates 10,395,000 -

(980,000) - 9,415,000 l Compensated l absences payable 402,788 - (4,983) - 397,805 Total General Long-Term j Debt Payable $ 36,837,788 $ - $ (1,579,983) $ - $ 35,257,805 l

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50

CITY OF OCALA, FLORIDA b

NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 ,

l 1

10. General Long ierrn Debt - Continued: l General long-ter.a debt matures as follows:

i Capital Capital  !

Improvement Optional Gas improvement Revenue Tax Refunding Refunding i Fiscal Refunding Revenue Revenue Total l Year Ended Certificates Bonds Certificates Principal September 30, Series 1988 Series 1992 Series 1993 Due 1996 $ 1,050,000 $ 615,000 $ - $ 1,665,000 1997 1,120,000 635,000 - 1,755,000 1998 1,200,000 660,000 - 1,860,000

~

1999 - 690,000 - 690,000 2000 - 725,000 440,000 1,165,000 2001 2019 - 9,800,000 17,925,000 27,725,000

$ 3,370,000 $ 13,125,000 $ 18,365,000 $ 34,860,000 Interest rate 6.90-7.15 % 3.60-6.00 % 3.90-5.25%

The City's charter limits the aggregate amount of general obligation bonds outstanding to twenty percent (20%) of the assessed valuation of the taxablereal and personal property in the City. At September 30,1995',

there was no general obligation debt outstanding.

CanitalImprovement Revemie Re6mdine cert /6 cates - In August,1988, the City Council authorized the issuance of $7,505,000 Capital Improvement Revenue Refunding Certificates, Series 1988. The Certificates were issued in the authorized amount during August,1988. The proceeds of this issue were used to advance refund the Capital improvement Revenue Certificates, Series 1986, and to finance certain capital projects of I the City. The bonds are collateralized by a lien upon and pledge of certain non-ad valorem revenues of the City.

Opt /onal Gas Tar Rehmding Revemie Bonds - In December,1992, the City Council authorized the issuance of not exceeding $17,500,000 Optional Gas Tax Refunding Revenue Bonds, Series 1992. The bonds were issued in the amount of $14,340,000 during December,1992. The proceeds of this issue were used to refund the City's Optional Gas Tax Revenue Bonds, Series 1989. These bonds are collateralized by a lien upon and a pledge of the proceeds of the six cent optional gas tax.

51

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995 l

10. General Long-Term Debt - Continued: I Capita / Improvement Refundine Revenue Certi// cates - In December,1993, the City Council authorized the issuance of not exceeding $18,500,000 Capital Improvement Refunding Revenue Certificates, Series 1993.

The certificates were issued in the amount of $18,365,000 during December,1993. The proceeds of this l

issue were used to refund the $10,835,000 outstanding balance of the Capital Improvement Refunding l Revenue Bonds, Series 1986, and to finance certain capital improvements in the City. 'Ihese certificates are collateralized by a lien upon and a pledge of certain non-ad valorem revenues of the City.

Debt service requirements to maturity !.,r all outstanding general long-term debt are as follows: ,

Capital Capital Improvement Optional Gas improvement Revenue Tax Refunding _, Refunding Fiscal Refunding Revenue Revenue Total  !

Year Ended Certificates Bonds Certificates Principal September 30, Series 1988 Series 1992 Series 1993 Due 1996 $ 1,286,650 $ 1,309,578 $ 898,062 8 3,494,290  !

1997 1,284,200 1,305,489 898,062 3,487,751 1998 1,285,800 1,302,953 898,062 3,486,815 1999 - 1,302,476 898,062 2,200,538 2000 {

- 1,303,395 1,329,482 2,632,877 2001 - 1,296,018 1,331,702 2,627,720 J i

2002 - 1,300,565 1,327,765 2,628,330 '

2003 - 1,296,265 1,332,528 2,628,793 2004 - 1,298,245 1,330,848 2,629,093 2005 - 1,296,887 1,327,518 2,624,405 2006 - 1,291,988 1,332,258 2,624,246 2007 - 1,292,812 1,325,283 2,618,095 2008 - 1,288,800 1,326,538 2,615,338 2009 - 1,285,250 1,325,733 2,610,983 2010 - 1,287,500 1,323,148 2,610,648 2011 - - 1,322,719 1,322,719 2012 - - 1,324,131 1,324,131 2013 - - 1,844,400 1,844,400 2014 - - 1,837,869 1,837,869 2015 - - 1,839,500 1,839,500 l 2016 - - 1,839,125 1,839,125 l 2017 - -

1,835,000 1,835,000 2018 - - 1,832,000 1,832,000 2019 - - 1,834,750 1,834,750

$ 3,856,650 $ 19,458,221 $ 33,714,545 $ 57,029,416 1

l 52 l . _ l

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

10. General Long-Term Debt - Continued:

In April, 1983, $2,500,000 Industrial Development Revenue Bonds were issued. The proceeds of the bonds are being used by an independent real estate developer for the construction of a commercial project within an area of the City designated as blighted. The bonds, which mature in 1999, do not represent debt or an obligation of the City and are collateralized solely from the gross revenues of the completed project. The completed project and all revenues derived therefrom, subsequent to the payment of all debt senice requirements, belong exclusively to the developer.

In January, 1994, $3,500,000 Student Housing Revenue Bonds were issued. The proceeds of the bonds are i being used by the Central Florida Community College Foundation to acquire real property and to constmet student housing facilities. The bonds, which mature in 2014, do not represent debt or an obligation of the City and are collateralized solely from the gross revenues of the completed project. The completed project and all revenues derived therefrom, subsequent to the payment of all debt senice requirements, belong l exclusively to the Foundation.

In December, 1994, $1,920,000 Health Care Facilities Revenue Bonds were issued. The proceeds of the j bonds are being used by the Hospice of Marion County, Inc. to build an administrative office complex. The bonds, which mature in 2009, do not represent debt or an obligation of the City and are collateralized solely from the gross operating revenues. The completed project and all revenues derived therefrom, subsequent to the paymr.nt of all debt senice requirements, belong exclusively to Hospice.

11. Prior Ye?r Defeasance of Debt:

The Cia has defeased certain bonds by placing the proceeds of new bonds in an irrevocable trust to proside for all future debt senice payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's fmancial statements. At September 30,1995,

$151,070,000 of bonds outstanding are considered defeased, as follows:

, Govemmental Funds:

Capital Improvement Refunding Revenue Bonds, Series 1986 $ 10,305,000 Optional Gas Tax Revenue Bonds, Series 1989 12,100,000 22,405,000 Enterprise Funds:

Electric System Revenue:

Power Supply Revenue Bonds, Series 1977 7,535,000 Power Supply Refunding Revenue Bonds, Series 1988 6,270,000 Electric System Revenue Bonds, Series 1989A 24,320,000 Water and Sewer:

Water and Sewer Refunding Revenue Bonds, Series 1983 7,120,000 Water and Sewer Refunding Revenue Bonds, Series 1985A 34,395,000 Water and Sewer Refunding Revenue Bonds, Series 1985B 10,610,000 Water and Sewer Refunding Revenue Bonds, Series 1986 38,415,000 128,665,000

$ 151,070,000 53

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

l CITY OF OCALA, FLORIDA  !

NOTES TO FINANCIAL STATEMENTS - CONTINUED 1 I

l Year Fnded September 30,1995 l

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12. Financial Segment Information of Enterprise Funds:

Each of the City's enterprise operations is accounted for within a separate fund. Over 93% of the combined assets, revenues, and experses of the enterprise funds are attributable to utility funds used to account for the transactions of the City's electric and bulk power, water and sewer, and sanitation systems, Other enterprise I

funds are used to account for the operations of golf, tennis, trailer park and airport facilities provided for the benefit of the general public. Following is a summary of significant financial information of the enterprise funds:

1 Electric System Water and Revenue Sewer Sanitation Other Total i Current Assets $ 18.259,231 $ 5,426,797 $ 523,633 $ 669,697 $ 24,879,358 Current Liabilites 9,689.129 289.043 365.916 504.720 10.848.808 Working Capital g g g g $ 14.030,550 l l

Property, Plant and Equipment:

Additions $ 8,656,695 $ 6.226.612 $ 106,227 $ 2 759 426 $ 17,748,960 l

Deletions g$ 30.630 ggg Total Property, Plant and Equipment, not ggggg Restricted Assets $ 26.511949 $ 29.412,877 $ - $ 276,758 5 56.201,584 J Total Assets g8M g g g g Liabilities Payable from Restricted Assets $ SS16,329 $ 4 055.658 $ -

$ 62,108 $ 10.034,095 Bonds and Other Long-Term Liabilities g g296, $ -

S 556.091 g Total Fund Equity g $ 57,420,149 $ 1,205.963 $ 17,274.484 $ 157,822,197 Total Operating Revenues $ 79,322,684 $ 12,421,371 $ 6,109.722 $ 2,397,043 $ 100,250,820 i Operating Expenses (less depreciation and amortization) 58,087,774 5,322,954 5,769,618 2,204,235 71,384,581 Depreciation and amortization 3.625,232 2,632,092 246,935 582.247 7,086,506 Operating income (Loss) 17,609,678 4,466,325 93,169 (389,4 Sir) 21,779,733 l Operating Transfers From Other Funds 24,933 12,679 15,553 1,027,516 1,000,681 l Operating Transfers To Other Funds (13,035,880) (348,569) (230,201) (443,443) (14.058,093) j interest income 1,324,506 1,642,308 10,743 36,130 3,013,687 j interest Expense (952,525) (3,532,617) - (32,815) (4,517,957) ,

Other %WpWjng Revenue 92.223 1.387.023 72.073 36,579 1.587.898 {

Not W.ome (Loss) $ 5,062.935 $ 3.627,149 $ (38.663) $ 234.528 $ 8.885,949 l Equity Transfen;to Other Funds S (802,468) $ (166 977) $ (19,147) $ -

$ (988,592)  !

Capital Contribu'6ons S 310.464 g$ -

gg Inter'und loans payable and long-term debt ofindividual enterprise funds are presented in Notes 6 and 9.

i 54 )

1

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

13. Reserved Retained Earnings:

The following is a reconcilir. tion of the reserved retained earnings to the net restricted assets of enterprise e funds as of September 30,1995:

Total Restricted Assets $ 56,201,584 Less:

Restricted assets set aside for construction under bond indentures (16,098,771)

Liabilities payable from restricted assets (10.034,095)

Add:

Liabilities payable from restricted assets set aside for construction under bond indenture 623,386 Total reserved retained eamings $ 30,692,104 l

i

14. Operating Deficits and Fund Deficits:

A. Following is a summary of net losses ofindividual proprietary funds and deficiencies of revenues and  ;

! other sources over expenditures and other uses of individual governmental funds for the year ended l

, September 30,1995 which are included in the accompanying combined fmancial statements:  !

7 Proprietary Funds _ Net Loss Enterprise Funds:

Sanitation $ 38,663 Municipal Golf Course 34,119 Fort King Tennis Court 2,196 Ocala Municipal Airport 354,921 Intemal Service Funds:

Self-insurance 406,882 Govemmental Funds Deficiency SNclal Revenue Funds:

Occupational License $ 115 Capital Project Funds:

Capital improvement Fund 1,472,945 Ev.nendable Trust Funds:

( 3mmunity Redevelopment Trust 5,370 55

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CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1990

14. Operating Deficits and Fund Deficits - Continued: ,

B. The following fund has a deficit fund balance at September 30,1995:

Deficiency Parking / Parks Enforcement $ S1,414 The deficit is the result of obtaining an additional parking lot funded by an interfund loan. Future revenues from this lot will pay the debt service requirements as well as increase the fund balance of this fund.

15. Contributed Capital: -.

During the year ended September 30,1995, contributed equity increased as follows:

Contributed Contributed Capital Capital October 1, Other Other September 30, 1994 Govemments Developers Customers Funds 1995 Enterprise Funds:

Airport $ 8,913,073 $ 538,441 $ -

$ - $ 9,451,514 Golf 3,853,439 - - - - 3,853,439 8,515

~

Sanitation - - - - - 8,515 '

Water and Sewer 14,949,015 252,375 1,588,021 - - 16,789,411 Electric 5,442,867 - - 310,464 - 5,753,331 Flonda Emergency Training Facility 169.741 J 358,394 - - - 1,528.135 Total Enterprise Funds $ 33,336,650 $ 2,149,210 $ 1,588,021 $ 310 464 1 $ - $ 37,384.345 Internal Service Funds:

Internal Service $ 1,293,863 $ - $ -

$ - $ 2,345,780 $ 3,639,643 Self insurance 20,401 - - - - 20,401 Tota! Internal Service Funds 5 1,314.264 5 - 5 - $ - $ 2.345,780 $ 3.660,044

$6

l CITY OF OCALA, FLORIDA I

NOTES TO FINANCIAL STATEMENTS - CONTINUED '

Year Ended September 30,1995 l

1

16. Equity Transfers:

The following is a summary of equity transfers made during the fiscal year ended September 30,1995: )

Equity Transfers j To Other increase in  ;

Funds Contributions

' Capital Projects Funds:

Capitalimprovement $ (1,342,568) $ -

l Enterprise Funds E!ectric System Revenue (802,468) - i Ws'.er and Sewer (166,977) -

l Sanitation -- (19,147) -

)

Intemal Service Funds:

Intemal SerWce - 2,345,780 i Fleet Management (14,620) -

j

$ (2,345,780) g These equity tranfers resulted from additions made to the Municipal Services Complex being paid for by l other funds, as authorized by City Council. p

17. Deferred Compensation Plan:

1 The City has a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, in

. which all employees are eligible to participate. Deferred compensation amounts withheld from participating employees' pay are not taxable as current income until withdrawn from the plan. Annual contributions by a participant may not exceed the lesser of $7,500 or 33 1/3% ofincludable compensation.

As required under Internal Revenue Code Section 457, all amounts of compensa'. ion deferred, all property or rights to property purchased with amounts deferred, and any income earned or gains on property remain assets of the City subject to the claims ofits general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. 'Ihe City has the duty of due care that would be required of an ordinary prudent investor.

At September 30,1995, the market and carrying value of the deferred compensation investments in the City's Agency Fund was $4,798,661.

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CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS CONTIPJUED Year Ended September 30,1995

18. Risk Management:

ne City has established a self-insurance fund (an internal service fund) to account for programs. This fund is used to account for the City's workers' compensation, gene liability, disability income replacement, medical and dental programs. The City uses a self-insurance and private insurance to protect itself against risks which cannot be clinunated.

He City has general liability insurance with a $100,000 retention per claimant and $200,000 occurrence with limits of $1,000,000. The City has workers' compensation insurance with a $250,0 deductible per occurrence with limits of $5,000,000. The disability income replacement, denta ai.to liability programs are fully self-insured. The City's employee health insurance program wa f

self-insured through February,1994, after which it is fully insured except or the prescription program is fully self-insured. ~

All departments of the City participate in the program. Payments are made by various funds to th Insurance Fund based on past experience of the amounts needed to pay current year claims. For the year ended September 30,1995, the City obtained actuarially determined estimates of the total claims loss rese for all self-insurance risks. He claims liability of $3,241,038 reported in the Fund at September 30,1995 is based on the requirements of Governmental Accounting Standards Board Statement No.10 which requires

' that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be accrued when insured events occur. Changes in the Fund's claim liability amount during the past five fiscal years is as follows: '

i Current Year Claims and Balance Beginning-of- Changes in Claim at Fiscal Fiscal-Year-Llability Estimates Payments Year End 1990-1991 $ 1,006,663 $ 2,585,632 $ 2,337,168 $ 1,255,127 1991-1992 1,255,127 4,228,590 2,678,431 2,805,286 1992-1993 2,805,286 3,229,012 3,279,465 2,754,833 1993-1994 2,754,833 1,998,808 2,373,987 2,379,654 1994-1995 2,379,654 2,218,527 1,357,143 3,241,038

19. Commitments and Contingent Liabilities:

Economic Imnrovement Incentives - The City has designated a portion of the savings resulting from the decision to purchase power through the Florida Municipal Power Agency to be set aside for economic improvement incentives. The funds are utilized to encourage local businesses to remain in Ocala and to attract existing businesses to relocate to Ocala to create new employment opportunities and, thereby, increasing City revenues through electric utiilty usage and an expanded tax base.

During the year ended September 30,1995, the City entered into an agreement with a large manufacturer which provides for certain payments to be made on their behalf as a result of creation of newjobs. Payments under this agreement, as well as other economic incentive payments, amounted to $592,216 for the year ended September 30,1995. Furthermore, the City has agreed to pay $500,000 per year for the next four succeeding years on behalf of this large manufacturer provided that these new jobs are maintained in accordance with the

agreement.

58

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30,1995

19. Commitments and Contingent Liabilities - Continued:

Grants - The City receives significant fmancial assistance from federal agencies primarily in the form of capital grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies.

Disallowed claims, if any, resulting from such audits may become liabilities of the City. However, in the opinion of management, disallowed claims, if any, will not have a material effect on the City's fmancial statements.

Lit / cation - Various suits and claims arising in the ordinary course of City operations are pending against the City of Ocala While the ultimate effect of such litigation cannot be ascertained at this time, the City does not expect any of these routine items to have a material impact on the financial condition of the City.

Lit / cation Settlement - In 1982, the City hired a consulting engineer to design an upgrade to an existing sewage treatment plant which included an irrigation system for effluent disposal. The project, as designed and constructed, failed to operate properly. In 1990, the City sued the consulting engineer for faulty design.

During fiscal year 1995, this lawsuit was settled for $1,863,004. This amount, net of related costs of

$486,160, is treated as a nonoperating revenue in the Water and Sewer Enterprise Fund.

Other Commitments - Outstanding commitments of governmental funds are presented in the accompanying combined financial statements as reserves of fund balance. The outstanding commitments of the Internal Service and Enterprise Funds as of September 30,1995 were $759,738 and $1,619,961, respectively. These commitments, which are not recorded in the financial statements, are evidenced by signed purchase orders and contracts which were entered into prior to September 30,1995.

Purchased Power Contract - The City presently purchases power exclusively from Florida M%icipal Power Agency (FMPA) through the 230 kv State-wide bulk power system. Additionally, since 1977, the City has become the owner of an undivided 1.333% or 11 MW share of the 825 MW Crystal River Nuclear Plant No. 3 (CR-3).

The City has an All Requirements Power Supply Project Contract (" Requirements Contract") with FMPA which requires FMPA to sell and deliver to the City and the City to purchase from FMPA all electric power that the City requires in excess of the amount the City receives from its percentage ownership interest in CR-3. The Requirements Contract expires in 2025, but automatically extends for additional five-year terms unless either party notifies the other of its decision not to extend the Requirements Contract. The City pays for electric power under the Requirements Contract at the rates set forth in the applicable rate schedule of FMPA, which FMPA may revise from time to time.

59

CITY OF OCALA, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED  !

l Year Ended September 30,1995

20. Subsequent Events:

In October,1995, the City issued $5,000,000 Capital Improvement Revenue Certificates, Series 1995. The certificates were issued for the purchase of and renovations to an existing building to be utilized by the City's Police Department.

In October,1995, the City issued $5,000,000 Water and Sewer Revenue Bonds, Series 1995. The bonds were issued to finance the acquisition and construction of additions, improvements and extensions to the City's water and sewer system.

In October,1995, the City entered into a commitment to issue $12,170,000 Water and Sewer Refunding Revenue Bonds, Series 1996. The bonds, which will be issued in July,1996, will be used for the fonvard refunding of the City's Water and Sewer Refunding Revenue Bonds, Series 1988.

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l INDIVIDUAL FUND AND COMBINING STATEMENTS

- BY FUND TYPE These financial statements provide a more detailed view of the

" General Purpose Financial Statements" presented in the preceding subsection.

Combining statements are presented when there are more' than ]

one fund of a given fund type. j l

1

INDIVIDUAL FUND AND COMBINING STATEMENTS BY-FUND TYPE

61

OF o y~_,va . , ,

62

.__ _ _ _ _ . m_ . . . _ _ _ _ _ ._. _ _ _ . _ _ _ . . _ _ _ . _ . . ._. . . _ _ . _ _ _ . _ _ _ _ _ . .

CITY OF OCALA, FLORIDA SPECIAL REVENUE FUNDS Special Revenue Funa - Special revenue funds are used to account for the proceeds of specific revenue sources that are legally or administratively restricted to expenditure for specific purposes. Special revenue funds used by the City are:

Occupational License Fund - Busmess license and permit revenues are recorded in this fund.

Central Florida Regional Librarv Fund - This fund is used to account for federal, state and county contributions, and General Fund subsidies which are restricted for the operation of the regional library.

Parking / Parks Enforceni:nt Fund - This fund accounts for the proceeds from the City's parking system and for the enforcement of the City's parks ordinance for the implementation of fmes.

Downtown Development Fund - This fund accounts for property taxes levied agamst downtown property owners. .

P Local Gasoline Tax Fund - This fund accounts for street related maintenance and improvement projects financed by the City's share oflocal gasoline taxes. These taxes are required by law to be used to maintain  ;

streets. )

Stormwater Utility Fund - This fund accounts for resources collected which are to be used for additions to, improvements to and maintenance of the storm drainage system.  :

SHIP Local Housine Assistance Fund - This fund accounts for the receipt and uses of funds received from the Florida " local housing assistance trust fund" for the State Housing Initiative Partnership (low income housing).

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63

CITY OF OCALA, FLORIDA ,

COMBINING BALANCE SHEET l SPECIAL REVENUE FUNDS l September 30,1995 I

Central I

Occupa- Florida tional Regional Assets License Library Cash and investments $ 102,381 $ 81,176 j Equity in pooled cash and investment fund - 392,648  :

Accrued interest receivable - 2,434 Accounts and notes receivable - 44 Due from other funds - -

Due from other govemments - 16,994 Total Assets $ 102,381 $ 493,296  ;

I Liabilities and Fund Balances  !

Liabilities:

Accounts payable $ -

$ 32,830 Compensated absences payable - 22,271 Deferred revenue 19,653 g. ,

Interfund loans payable within one year - -

l Interfund loans payable after one year - -

j Totalliabilities 19,653 55,101 )

l Fund Balance: )

Reserved for encumbrances - 141,356 l Reserved for specified projects 82,728 296,839  ;

Total reserved fund balance 82,728 438,195 Unreserved and undesignated - -

Total fund balance 82,728 438,195 Total Liabilities and Fund Balances $ 102,381 $ 493,296 l

1

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I

Parking / Local SHIP Local Parks Downtown Gasoline Stormwater Housing Enforcement Development Tax Utility Assistance Total

$ 50 $ -

$ 183,607 37,498 54,316 7,033,837 4,411,379 1,848 11,931,526 104 447 63,607 35,207 6 101,805

- - 25 - - 69

- - - 82,417 - 82,417

- - 247,847 4,236 4,353 273,430

$ 37,602 $ 54,813 $ 7,345,316 $ 4,533,239 $ 6,207 $ 12,572,854

$ 1,292 $ 1,350 $ 73,018 $ 20,344 $ 275 $ 129,109 2,752 - - 15,857 - 40,880

- - 108,046 - 5,932 133,631 ,,-

~

9,620 - - - 9,620 75,352 - - - - 75,352  ;

89,016 1,350 181,064 36,201 6,207 388,592

- - 229,095 121,810 - 492,261 2

- 53,463 6,935,157 4,375,228 - 11,743,415 l

- 53,463 7,164,252 4,497,038 - 12,235,676 i (51,414)

(51,414) - - - -

(51,414) 55,463 7,164,252 4,497,038 - 12,184,262 l

$ 37,602 $ 54,813 $ 7,345,316 $ 4,533,239 $ 6,207 $ 12,572,854 l l

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65

CITY OF OCALA, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE ,

SPECIAL REVENUE FUNDS Year Ended September 30,1995 1

Central Florida Occupational Regional License Library Revenues:

Property taxes $ -

Otherintergovemmental revenues - 1,366,967 Parking meters and facilities - -

Licenses and permits 385,424 -

Fines and forfeitures - 30,803 Charges for services - -

Interest _. 13,715 11,168 Gifts - 3,596 Other 746 10,148 Total revenues 399,885 1,422,682 1 l

Expenditures:

Current:

General govemment and administration - -

Public works - -

Culture and recreation - 1,576,656 Other . - J l

Capital outlay - 119,624 ,

Intergovemmental - 21,820 i Debt service:

Principal payments - -

Interest - -

Total expenditures - 1,718,100 Excess (Deficiency) of Revenues Over Expenditures 399,885 (295,418) l Other Financing Sources (Uses):

Transfers from other funds - 400,000 Transfers to other funds (400,000) l Total other financing sources (uses) (400,000) 400,000 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation (115) 104,582 l l

Fund Balance Allocation - -

1 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (115) 104,582 Fund Balance (Deficit):

Beginning of year 82,843_ , 333,613 End of year $ 82,728 $ 438.195 l l

66

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Parking / Local SHIP Local Parks Downtown Gasoline Stormwater Housing Enforcement Development Tax Utility Assistance Total l

$ 43,176 $ -

$ 43,176

- -- 2,542,107 78,879 128,947 4,116,900 52,875 - - - - 52,875

- - - - - 385,424 6,236 - - - - 37,039

- - - 1,708,431 - 1,708,431 1,066 2,986 390,795 221,689 _. 1,139 642,558

- . - - - 3,596 776 388 100 - - 12,158 60,953 46,550 2,933,002 2,008,999 130,086 7,002,157

- 35,092 - - 130,086 165,178

- - 248,552 966,102 - 1,214,654

- - - - - 1,576,656 66,581 C 66,581 - - - -

- - 386,347 351,477 - 857,448

- - - 1,057 - 22,877 ,

5.341 - - - - 5,341 71,922 35,092 634,899 1,318,636 130,086 3,908,735 (10.969) 11,458 2,298,103 690,363 - 3,093,422 28,000 - 96,198 - - 524,198

- (1,137) (2,276,453) - - (2,677,590) 28,000 (1,137) (2,180,255) - - (2,153,392) 17,031 10,321 117,848 690,363 - 940,030 17,031 10,321 117,848 690,363 - 940,030 (68,445) 43,142 7,046,404 3,806,675 - 11,244,232

$ (51,414) $ 53,463 $ 7,164,252 $ 4,497,038 $ - $ 12,184,262 67

CITY OF OCALA, FLORIDA ,

COMBINING SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL REVENUE FUNDS Year Ended September 30,1995 Central Florida Parking /

Occupational Regional Parks License Library Enforcement Revenues:

Property taxes $ -

Other intergovemmental revenues - 1,366,967 -

Parking meters and facilities - -

52,875 Licenses and permits 385,424 - -

Fines and forfeitures - 30,803 6,236 Charges for services - - -

Interest 13,715 11,168 1,066 Gifts _,- 3,596 -

Other 746 10,148 776 Total revenues 399,885 1,422,682 60,953 Expenditures:

Current:

General govemment and administration - - -

Public works - - -

Culture and recreation - 1,576,656 -

Other - - 66,581 Capital outlay ,,

- 119,624 -c Intergovemmental - 21,820 -

Debt service:

Principal payments - - -

Interest - - 5,341 Total expenditures - 1,718,100 71,922 Excess (Deficiency) of Revenues Over Expenditures 399,885 (295,418) (10,969)

Other Financing Sources (Uses):

Transfers from other funds - 400,000 28,000 Transfers to other funds (400,000) - -

Total other financing sources (uses) (400,000) 400,000 28,000 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation (115) 104,582 17,031 Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (115) 104,582 17,031 Fund Balance (Deficit):

Beginning of year 82,843 333,613 (68,445)

End of year $ 82,728 $ 438,195 $ (51,414) 68

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Actual i Adjustments Total Actual Downtown Local SHIP Local to a on a Develop- Gasoline Stormwater Housing Budgetary Budgetary ment Tax Utility Assistance Total Basis Basis

$ 43,176 $ -

$ 43,176 $ - $ 43,176

- 2,542,107 78,879 128,947 4,116,900 (128,947) 3,987,953 52,875 52,875

- - - - 385,424 - 385,424

- - - - 37,039 - 37,039

- - 1,708,431 - 1,708,431 - 1,708,431 2,986 390,795 221,689 1,139 642,558 (1,232) 641,326

- - - - ;3,596 - 3,596 388 100 - - 12,158 - 12,158 46,550 2,933,002 2,008,999 130,086 7,002,157 (130,179) 6,871,978 1 35,092 - - 130,086 165,178 (130,086) 35,092

- 248,552 966,102 - 1,214,654 83,644 1,298,298

- - - - 1,576,656 141,356 1,718,012

[

- - - - 66,581 - 66,581

- 386,347 351,477 ..

- 857,448 267,261 1,124,709?

- - 1,057 - 22,877 - 22,877-

- - - - 5,341 - 5,341 35,092 634,899 1,318,636 130,086 3,908,735 362,175 4,270,910 11,458 2,298,103 690,363 - 3,093,422 (492,354) 2,601,068 I

- 96,198 - - 524,198 - 524,198 (1,137) (2,276,453) - - (2,677,590) - (2,677,590)

(1,137) (2,180,255) - -

, (2,153,392) - (2,153,392) i 10,321 117,848 690,363 - 940,030 (492,354) 447,676

~

10,321 117,848 690,363 - 940,030 $ (492,354) $ 447,676  ;

l 43,142 7,046,404 3,806,675 - 11,244,232

$ 53,463 $ 7,164,252 $ 4,497,038 $ -

$g Continued 69

CITY OF OCALA, FLORIDA )

COMBINING SCHEDULE OF REVENUES. EXOENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUED SPECIAL REVENUE FUNDS I Year Ended September 30,1995 Final l Total Central i Actual on a Florida  !

Budgetary Occupational Regional Basis License Library Revenues-Property taxes S 43,176 $ -

Other intergovemmental revenues 3,987,953 -

1,367,216 Parking meters and facilities 52,875 - -

)

Licenses and permits 385,424 387,500 -  !

Fines and forfeitures 37,039 - 27,000 Charges for services 1,708,431 - -

Interest 641,326 18,000 7,300 l Gifts 3,596 - 4,000 l Other 12,158 675 10,850  !

Total revenues 6,871,978 406,175 1,416,366 Expenditures:

Current:

General govemment and administration 35,092 -

Public works a 1,298,298 - -

Culture and recreation 1,718,012 - 1,787,057  !

Other 66,581 - - 1 Capital outlay 1,124,709 - 120,587 l Intergovemmental 22,877 - 21,820 l Debt service: l Principal payments - - -

Interest 5,341 - -

Total expenditures 4,270,910 - 1,929,464 Excess (Deficiency) of Revenues Over Expenditures 2,601,068 406,175 (513,098)

Other Financing Sources (Uses):

Transfers from other funds 524,198 - 400,000 Transfers to other funds (2,677,590) (400,000) -

Total other financing sources (uses) (2,153,392) (400,000) 400,000 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation 447,676 6,175 (113,098)

Fund Balance Allocation - (6,175) 113,098 Exce.s (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses S 447,676 $ -

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i Gudget l

Parking / Local Variance i Parks Downtown Gasoline Stormwater Favorable l Enforcement Development Tax Utility Total (Unfavorable) l 1

1

$ 44,970 $ -

$ 44,970 $ (1,794)

- - 3,118,558 20,437 4,506,211 (518,258) 47,500 - - - 47,500 5,375

- - - - 387,500 (2,076) 7,700 - - - -. 34,700 2,339

- - - 1,701,380 1,701,380 7,051 1,500 3,600 436,000 230,000 696,400 (55,074)

- - - - 4,000 (404) 1,000 450 - - 12,975 (817) 57,700 49,020 3,554,558 1,951,817 7,435,636 (563,658)

- 67,255 - - 67,255 32,163 ,

- - 425,067c 1,088,347 1,513,414 215,116

- - - - 1,787,057 69,045 74,232 - - - 74,232 7,651

- - 2,687,178 1,303,407 4,111,172 2,986,463

- - - 1,088 22,908 31 6,172 - - - 6,172 6,172 4,752 - - - 4,752 (589) 85,156 67,255 3,112,245 2,392,842 7,586,962 3,316,052 (27,456) (18,235) 442,313 (441,025) (151,326) 2,752,394 28,000 - 89,000 - 517,000 7,198

- (1,137) (2,714.342) - (3,115,479) 437,889 28,000 (1,137) (2,625,342) - (2,598,479) 445,087 544 (19,372) (2,183,029) (441,025) (2,749,805) 3,197,481 (544) 19,372 2,183,029 441,025 2,749,805 (2,749,805)

$ - $ - $ 447,676 l

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SW'O OF o g COUNTL l

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CITY OF OCALA, FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL SPECIAL REVENUE FUNDS Year Ended September 30,1995 OCCUPATIONAL LICENSE FUND Variance Final Favorable Actual Budget (Unfavorable)

Revenues:

Licenses and permits $ 385,424 $ 387,500 $ (2,076)

Interest 13,715 18,000 (4,285) i Other ,

746 675 71 Total revenues 399,885 406,175 (6,290) ,

Other Financing Uses:

Tr mfers to other funds (400,000) (400,000) -

Ex: a (Deficiency) of Revenues Over Other Uses )

Before Fund Balance Allocation (115) 6,175 (6,290)

Fund Balance Allocation - (6,175) 6,175 D ficiency of Revenues Over Other Uses (115) $ - S (115) ,

Fund Balance:

Beginning of year 82,843 i End of year S 82,728 l l

Continued 73

CITY OF OCALA, FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUED SPECIAL REVENUE FUNDS Year Ended September 30,1995 CENTRAL FLORIDA REGIONAL Adjustments Actual to on a '

Budgetary Budgetary Actual Basis Basis Revenues:

Intergovemmental revenues $ 1,366,967 $ - $ 1,366,967 Fines and forfeitures 30,803 - 30,803 Interest 11,168 (93) 11,075 Gifts 3,596 - 3,596 Other 10,148 - 10,148 i Total revenues 1,422,682 (93) 1,422,589  !

Expenditures: )'

Current - Culture and recreation 1,576,656 141,356 1,718,012 Capital outlay 119,624 - 119,624 Intergovemmental 21,820 - 21,820 J

Total expenditures 1,718,100 141,356 1,bC9dF1 l Excess (Deficiency) of Revenues Over Expenditures (295,418) (141,449) (436,867)'

Other Financing Sources:

Transfers from other funds 400,000 - 400,000 Excess (Deficiency) of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 104,582 (141,449) (36,867)

Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures 104,582 $ (141,449) $ (36,867)

Fund Balance:

Beginning of year 333,613 End of year $ 438,195 74

. . . _ - . . - .- - , . _ = - - , _ .. .- . -.. .- . _ - ..

l l <

+

LIBRARY FUND Variance Final Favorable ,

Budget (Unfavorable)

$ 1,367,216 $ (249) 27,000 3,803 7,300 3,775 4,000 (404) j 10,850 (702) 1,416,366 6,223 1,787,057 69,045 120,587 963 21,820 -

_ 1,929,464 70,008

-(513,098) 76,231 400,000 - ,

l l

(113,098) 76,231 ]

113,098 (113,098)

$ - $ (36,867) l l

i Continued 75

1 CITY OF OCALA, FLORIDA SCHFnULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUgQ SPECIAL REVENUE FUNDS Year Ended September 30,1995 PARKING / PARKS ENFORCEMENT FUND Variance Final Favorable Actual Budget (Unfavorable)

Revenues:

Parking meters and facilities $ 52,875 $ 47,500 $ 5,375 Fines and forfeitures 6,236 7,700 (1,464)

Interest 1,066 1,500 (434)

Other 776 1,000 (224)

Total revenues 60,953 57,700 3,253 Expenditures:

Current - other 66,581 74,232 7,651 Debt service:

Principal - 6,172 6,172 Interest 5,341 4,752 (589)

Total expenditures 71,922 85,156 13.234 Excess (Deficiency) of Revenues Over Expenditures (10,969) (27,456) 16,487 Other Financing Sources:

Transfers from other funds 28,000 28,000 -

Excess of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 17,031 544 16,487 Fund Balance Allocation -

(544) 544 Excess of Revenues and Other Sources Over Expenditures 17,031 $ - $ 17,031 Fund Balance (Deficit):

Beginning of year (68,445) '

End of year S (51,414) '

Continued 76

f 1 l

CITY OF OCALA, FLORIDA l

SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUED I I

SPECIAL REVENUE FUNDS Year Ended September 30,1995 1

i DOWNTOWN DEVELOPMENT FUND I I Variance 1

! Final Favorable Actual Budget (Unfavorable)

! RGwenues- I

( Property taxes $ 43,176 $ 44,970 $ (1,794)

Interest 2,986 3,600 (614) l

Other 388 450 (62)

Total revenues 46,550 49,020 (2,470) l Expenditures.

l Current - General govemment and administration 35,092 67,255 32,163 Total expenditures 35,092 67,255 32,163 Excess (Deficiency) of Revenues Over Expenditures 11,458 (18,235) 29,693 I l

l Other Financing Uses-Transfers to other funds (1,137) (1,137) -

l

! l I Excess (Deficiency) of Revenues Over Expenditures I and Other Uses Befare Fund Balance Allocation 10,321 (19,372) 29,693 )

l Fund Balance Allocation - 19,372 (19,372) l Excess of Revenues Over Expenditures and  ;

Other Uses 10,321 $ -

$ 10,321

Fund Balance

Beginning of year 43,142 End of year S 53,463 l

l l

4 77

CITY OF OCAl.A FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN.

FUND DALANCE - BUDGET AND ACTUAL - CONTINUED SPECIAL REVENUE FUNDS Year Ended September 30,1995 LOCAL GASOLINE TAX ,

Adjustments Actual to on a Budgetary Budgetary Actual Basis Basis Revenues:

Intergovemmental revenues $ 2,542,107 $ - $ 2,542,107 Interest 390,795 --

390,795 Other 100 -

100 Total revenues 2,933,002 - 2,933,002 Expenditures:

Current - Public works 248,552 21,867 270,419 Capital outlay 386,347 207,228 593,575 Total expenditures 634,899 229,095 863,994 Excess (Deficiency) of Revenues Over Expenditures 2,298,103 (229,095) 2,069,008 Other Financing Sources (Uses):

Transfers from other funds 96,198 -

96,198 Transfers to other funds (2,276,453) - (2,276,453)

Total other financing sources (uses) (2,180,255) - (2,180,255)

Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Before Fund Balance Allocation 117,848 (229,095) (111,247)

Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Otht r Sources Over Expenditures and Other Uses 117,848 $ (229,095) $ (111,247)

Fund Balance:

Beginning of year 7,046,404 End of year S 7,164,252 78

)

i l

l i

I FUND  ;

I variance l Final Favorable l Budget _ (Unfavorable) I

$ 3,118,558 $ (576,451) -

436,000 (45,205)

- 100 s 3,554,558 (621,556) -

425,067 154,648  !

2,687,178 2,093.603 l 3,112,245 2,248,251

, 442 313_ 1,626,695  !

89,000 7,198 >

(2,714,342) 437,889  :

(2,625,342) 445,087 1

(2,183,029) 2,071,782 j i

. 2,183,029 (2,183,029) 1 I

$ - $ (111,247) i l

l l

l 1

l Continued 79 i

. _ J

i l

CITY OF OCALA, FLORIDA i SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN l FUND BALANCE - BUDGET AND ACTUAL - CONTINUED SPECIAL REVENUE FUNDS Year Ended September 30,1995 STORMWATER UTILITY Adjustments Actual l to on a Budgetary Budgetary ,

Actual Basis Basis I Revenues:

, Intergovemmental revenues $ 78,879 $ -

$ 78,879 1 i Charges for services 1,708,431 - 1,708,431 Interest 221,689 - 221,689 Total revenues 2,008,999 - 2,008,999 Expenditures:

Current - Public works 966,102 61,777 1,027,879 i l Capital outlay 351,47/ 60,033 411,510  !

l Intergovemmental 1,057 - 1,057 l Total expenditures 1,318,636 121,810 1,440,446 Excess (Deficiency) of Revenues Over Expenditures Before Fund Balance Allocation 690,363 (121,810) 568,553 Fund Balance Allocation - - -

l Excess (Deficiency) of Revenues Over Expenditures 690,363 $ (121,810) $ 568,053_ l l

Fund Balance:

Beginning of year 3,806,675 End of year $ 4,497,038 l

l 1

l l

80 l

l i

I 1

1 FUND Variance Final Favorable Budget (Unfavorable) l l

l

$ 20,437 8 58,442 1,701,380 7,051 l 230,000 (8,311) l 1,951,817 57,182 -

l 1,088,347 60,468 1,303,407 891,897 1,088 31 2,392,842 952,396 l 1

)

(441,025) 1,009,578 441,025 (441,025) i I

i Continued 81

CITY OF OCALA, FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUED SPECIAL REVENUE FUNDS 1

Year Ended September 30,1995 SHIP LOCAL HOUSING ASSISTANCE FUND Adjustments Actual i to on a Budgetary Budgetary Actual Basis Basis Revenues:

Intergovemmental revenues $ 128,947 $ (128,947) $' -

Interest 1,139 (1,139) -

Total revenues 130,086 (130,086) -

Expenditures:

Current - General govemment and administration 130,086 (130,086) -

Total expenditures 130,086 (130,086) -

l l Excess (Deficiency) of Revenues Over Expenditures Before Fund Balance Allocation Fund Balance Allocation - - -

Excess (Deficiency) of Revenues Over Expenditures - $ - $ -

I Fund Balance:

Beginning of year -

End of year $ -

1 1

1 82

I l CITY OF OCALA, FLORIDA i

! l

! DEBT SERVICE FUNDS Debt Service Funds - Debt service funds are used to account for the accumulation of resources for the payment of principal, interest and related costs of the City's general long-term debt. Debt service funds used by the City are:

1988 Improvement Certi4 cates Fund - This fund is used for the payment of principal, interest and related costs of the Capital Improvement Revenue Refunding Certificates, Series 1988.

]ff) Improvement CertiMcates Fund - This fund is used for the pc.yment of principal, interest and related costs of the Capital improvement Refunding Revenue Certificates, Series 1993, i

Optional Gas Tar Bonds Fund - This fund is used for the payment of principal, interest and related costs of the Optional Gas Tax Revenue Bonds, Series 1989, and of the Optional Gas Tax Refunding Revenue Bonds, Series 1992.

l l

I 1

l 83

. . . . . _ . _ _ _._ m -.- . . . - .

CITY OF OCALA, FLORIDA -

COMBINING BALANCE SHEET DEBT SERVICE FUNDS September 30,1995 1988 1993 Optional Improvement improvement Gas Tax Assets Certificates Certificates Bonds Total Restricted cash and investments $ 118,325 $ 449,031 $ -

$ 567,356 Restricted equity in pooled cash and investment fund 1,265,485 1,385,067 2,056,913 4,707,465 Restricted accrued interest receivable 10,015 12,921 15,803 38,739 Total Restricted Assets $ 1,393,825 $ 1,847,019 $ 2,072,716 $ 5,313,560 Fund Balances Fund Balance:

Reserved for debt service $ 1,393,825 $ 1,847,019 $ 2,072,716 $ 5,313,560 ,

Total Fund Balances $ 1,393,825 $ 1,847,019 $ 2,072,716 $ 5,313,560 i

l I

l l

! 4 I

84

CITY OF OCALA, FLORIDA COMBINING STATEMENT CF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE DEBT SERVICE FUNDS Year Ended September 30,1995 1988 1993 Optional improvement improvement Gas Tax Certificates Certificates Bonds Total Rsvenues:

Interest $ 66,839 $ 86,990 $ 98,254 $ 252,083 Expenditures:

Debt Service:

Bond principal payments 980,000 - 595,000 1,575,000 Bond interest and paying agents' fees 303,806 899,970 717,818 1,921,594 Total expenditures 1,283,806 899,970 1,312,818 3,496,594 D ficiency of Revenues Over Expenditures (1,216,967) (812,980) (1,214,564) (3,244,511)

Other Financing Sources (Uses):

l Transfers from other funds 1,284,970 898,062 1,320,686 3,503,718 Transfers to other funds (66,323) (85,082)_ (96,198) (247,603)

Total other financing sources f (uses) 1,218,647 812,980 1,224,488 3,256,115 I s Excess of Revenues and Other Sources Over Expenditores and Other Uses 1,680 - 9,924 11,604 Fund Balance:

Beginning of year 1,392,145 1,847,019 2,062,792 5,301,956 End of year $ 1,393,825 $ 1,847,019 $ 2,072,716 $ 5,313,560

)

85

s x. Am - + is A. -ww = 4 -- --- m ----x ,< .-, s 6Gs. b A , & a - ,,a.,

h l l l

l l

l 1

4 0F s Op 1

U >. l6

)*

g ,,* . e b ,/

N cougst. '

i 86

CITY OF OCALA, FLORIDA l

CAPITAL PROJECT FUNDS )

i l

i f;ipital Proicct Funds - The Capital Projects Funds are used to account for resources carmarked for the acquisition and construction of major capital facilities and other project oriented activities other than those financed by j proprietary funds. Capital project funds used by the City are:

CavitalImprovement Construction Mind - The Capital Improvement Constmetion Fund is used to account for the resources earmarked for the acquisition of right-of-way and the construction of and improvements to l N.E.14th Street, which is a major arterial street project. l l

Ontional Gas Tar Construction Fund - This fund is used to account for resources earmarked for construction of and improvements to several roadways exclusive of the N.E.14th Street project.

Cavitallmprovement Fund - This fund is used to account for the resources earmarked fer & acqcisition and constmetion of certain capital improvements funded by the new money portion of the Capital Improvement Refunding Revenue Certificates, Series 1993. ,

I I

l l

l l

l l l I l l

l l

l 87

CITY OF OCALA, FLCRIDA COMBINING BALANCE SHEET ,

CAPITAL PROJECT FUNDS September 30,1995 Capital Optional Improvement Gas Tax Assets Construction Construction Cash and investments $ -

Equity in pooled cash and investment fund 380,385 -

Accrued interest receivable 3,053 -

Due from other govemments - 380,635 Total Assets $ 383,438 $ 380,635 Liabilities and Fund Balances ,

Current Liabilities:

Accounts payable $ - $ 86,173 Due to other funds - -

Total liabilities - 86,173 Fund Balance:

Reserved for encumbrance - 1,192,305 Unreserved and undesignated (deficit) 383,438 (897,8431 Total fund balance 383,438 294,462 Total Liabilities and Fund Balances $ 383,438 $ 380,635 88

)

l Capital Improvement Total l

$ 3,514,720 $ 3,514,720

- 380,385 35,575 38,628

- 380,635

$ 3,550,295 $ 4,314,368

$ 500,773 $ 586,046 9,448 9,448 510,221 596,394 7 1,994,517 3,186,822 1,045,557 531,152 3,040,074 3,717,974

$ 3,550,295 $ 4,314,368 89

CITY OF OCALA, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUNDS '

Year Ended September 30,1995 Capital Optional improvement Gas Tax Capital Construction Construction Improvement Revenues:

Otherintergovemmental revenues S -

$ 815,974 $ -

Interest 19,750 -

199.570 Total revenues 19,750 815,974 199,570 Expenditures:

Current: -

Public safety - -

948 Public works - 211,928 -

Nondepartmental appropriations - - 2,755 Capital outlay - 1,448,611 1,668,812 Total expenditures - 1,660,539 1,672,515 Excess (Deficiency) of Revenues Over Expenditures 19,750 _ (844,565) (1,472,945)

Other Financing Sources:

Transfers from other funds - 955,767 -

i Total other financing sources - 955,767 -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 19,750 111,202 (1,472,945)  !

Fund Balance Allocation - - -

, Excess (Deficiency) of Revenues and Other Sources Over Expenditures 19,750 111,202 (1,472,945)

Fund Balance at Beginning of Year 363,688 183,260 5,855,587 Equity Transfers to Other Funds - - (1,342,568)

Fund Balance at End of Year $ 383,438__ $ 294,462 $ 3,040,074 l

l 90 l

)

i 3

i i

l l Total i

! I

$ 815,974 210,320 j 1,035,294 1 l

l l 1

~

l 948 )

1 211,928 2,755

, 3.117,423 3,333,054 (2,297,760) 955,767 955,767 l

-(1,341,993)

(1,341,993) i I 6,402,535 l

l l j (1,342,568) i

$ 3,717,974 I,

91

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

CITY OF OCALA0 FLORIDA COMBINING SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL i CAPITAL PROJECT FUNDS Year Ended September 30,1995 j

Capital Optional improvement Gas Tax Capital Construction Construction Improvement i

Revenues:

Other intergovemmental revenues $ -

$ 815,974 $ -

Interest 19,750 - 199,570 Total revenues 19,750 815,974 199,570 Expenditures. l Current: i Public safety - -

948 Public works - 211,928 - I Nondepartmental appropriations - - 2,755 Capital outlay - 1,448,611 1,668,812 l Total expenditures - 1,660,539 1,672,515 l Excess (Deficiency) of Revenues Over Expenditures 19,750 (844,565) (1,472,945).

1 Other Financing Sources: I Transfers from other funds - 955,767 -

Total other financing taurces - 955,767 -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 19,750 111,202 (1,472,945)

Fund Balance Allocation - . -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures 19,750 111,202 (1,472,945)

Fund Balance at Beginning of Year 363,688 183,260 5,855,587 Equity Transfers to Other Funds - - (1,342,568)

Fund Balance at End of Year $ 383,438 $ 294,462 $ 3,040,074 1

l 92 l

I ACTUAL I Adjustments Actual i to a on a Vadance Budgetary Budgetary Final Favorable Total Basis Basis Budget (Unfavorable)

$ 815,974 $ -

$ 815,974 $ 1,715,480 $ (899,506) 219,320 (19,750) 199,570 306,000 (106,430) I 1,035,294 (19,750) 1,015,544 2,021,480 (1,005,936) j l

948 -

948 -

(948) 211,928 13,079 225,007 257,023 32,016 2,755 - 2,755 2,500 (255) 3,117,423 3,173,743 6,291,166 8,449,088 2,157,922 1 3,333,054 3,186,822, 6,519,876 8,708,611 2,188,735 (2,297,760) (3,206,572) (5,504,332) (6,687,131) 1,182,799 955,767 - 955,767 1,393,656 (437,889) I l

955,767 - 955,767 1,393,656 (437,889)

(1,341,993) (3,206,572) (4,548,565) (5,293,475) 744,910

- - - 5,293,475 (5,293.475)

(1,341,993) $ (3,206,572) $ (4,548,565) $ - $ (4,548,565) 6,402,535 (1,342,568)

$ 3,717,974 l

l 1

i 93 .

l 1

ae .m sm.a .e E Au.- me r.m-h,- m 4 3,.w..- _._a.-.--m--u-i, .sm_a-_. e+-b---e.E -um m .m eaL.Au .- 4A@,adm- n.--A 4-. - - .A - .-

i l

OF o g y ,UNTL, CO 94

CITY OF OCALA, FLORIDA.

SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CAPITAL PROJECT FUNDS Year Ended September 30,1995 CAPITAL IMPROVEMENT CONSTRUCTION FUND Adjustments Actual to on a Budgetary Budgetary Actual Basis Basis Revenues:

Interest $ 19,750 $ (19,750) $ -

Total revenues 19,750 (19,750) -

Expenditures:

Current - Public works - - -

Total expenditures - - -

Excess of Revenues Over Expenditures Before Fund Balance Allocation 19,750 (19,750) -

Fund Salance Allocation - - -

Excess of Revenues Over Expenditures 19,750 $ (19,750) $ -

Fund Balance:

Be0 inning of year 363,688 End of year $ 383,438 i l

1 Continued 95

CITY OF OCALA, FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN EUND BALANCE - BUDGET AND ACTUAL - CONTINUED CAPITAL PROJECT FUNDS Year Ended September 30,1995 OPTIONAL GAS TAX CONSTRUCTION Adjustments Actual to on a i Budgetary Budgetary I Actual Basis Basis Revenues: 1 Otherintergovemmental revenues $ 815,974 $ -

$ 815,974 l Total revenues 815,974 -

815,974 Expenditures: -

Current - Public works 211,928 13,079 225,007 Capital outlay 1,448,611 1,179,226 2,627,837 Total expenditures 1,660,539 1,192,305 2,852,844 Deficiency of Revenues Over Expenditures (844,565) (1,192,305) (2,036,870) 1 Other Financing Sources:

Transfers from other funds 955,767 - 955,767 Excess (Deficiency) of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 111,202 (1,192,305) (1,081,103)

Fund Balance Allocation - - -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures 111,202 $ (1,192,305) $ (1,081,103)

Fund Balance:

Beginning of year 183,260 End of year $ 294,462 96

P

, FUND Variance Final Favorable Budget (Unfavorable)

$ 1,715,480 $ (899,506) 1,715,480 (899,506) 257,023 32,016 3,035,373 407,536 3,292,396 439,552 (1,576,916) (459,954) 1,393,656 (437,889) l (183,260) (897,843) 183,260 (183,260) 1

$ - $ (1,081,103)

Continued 97

- . ~ .

l CITY OF OCALA, FLORIDA SCHEDULES OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - CONTINUED CAPITAL PROJECT FUNDS l Year Ended September 30,1995 l

l l CAPITAL IMPROVEMENT Adjustments Actual to on a Budgetary Budgetary Actual Basis Basis Revenues:

Interest $ 199,570 $ - $ 199,570 Total revenues 199,570 - 199,570 Expenditures: -

Current:

Public safety 948 -

948 Nondepartmental appropriations 2,755 - 2,755 Capital outlay 1,668,812 1,994,517 3,663,329 Total expenditures 1,672,515 1,994,517 3,667,032 Excess (Deficiency) of Revenues Over Expenditures Before Fund Balance Allocation (1,472,945) (1.994,517) (3,467,462)

Fund Balance Allocation . . -

Deficiency of Revenues Over Expenditures (1,472,945) $ (1,994,517) $ (3,467,462) l Fund Balance at Beginning of Year 5,855,587 l

Equity Transfers to Other Funds (1,342,5681 Fund Balance at End of Year $ 3,040,074 l

l l

l 98

i FUND Variance Final Favorable Budget (Unfavorable) I

$ 306,000 $ (106,430) 306,000 (106,430)

(948) 2,500 (255) 5,413,715 1,750,386 5,416,215 1,749,183 (5,110,215) 1,642,753

(

5.110,215 (5.110.215)

$ - $ (3,467,462) 99

m _Ah_ W_a A-w4.--..- -.u.g 4_.da_. A.D t_hwa -w 4-d.-4Am _.-e.-..s A-Amm-4.- m...Jis- m-e- A*'m.h.-emem4 .e-a . + . +- -dA,,J 4s- -mem-+nah--s- - -4_ .-4...u.a_.m._,-,_

u8 OF o

5. :., COUNTL Y

100

CITY OF OCALA, FLORIDA ENTERPRISE FUNDS l

Entemrise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner i similar to private businesses where the intent of the governing body is that the costs (including depreciation) of providing certain goods and senices to the general public be financed or recovered primarily through user charges 1 or where the governing body has deemed that periodic determination of net income is appropriate for purposes of ,

l monitormg capital maintenance, accountability or other purposes, j

[ ]

Electric Svstem Revenue Fund - This fund is used to account for the construction, operation and ,

maintenance of the City-owned portion of CR-3 and the City-owned electric system as well as sales of electricity and other services to the general public. Electricity rates charged to customers are set by City l Council within the rate structure established by the Florida Public Senice Commission.

1 Water and Sewer Fund - This fund accounts for the construction, operation and maintenance of the l City-owned water and sewer system.

Sanitation Fund - This fund accounts for the operation and mairitenance of the City's refuse collection system.

Municloal Golf Course Fund - This fund accounts for the construction, operation and maintenance of the City's golf courses.

Fort King Tennis Court Fund - This fund accounts for the operation and maintenance of the Fort King l tennis courts.

l l Municinal Trailer Park Fund - This fund accounts for the operation and maintenance of the City-owned l trailer park.

Ocala Municipal Airport (Jim Tavior Field) Ftmd - This fund accounts for the construction, operatioa and maintenance of the City's airport.

l Florida Emercency Trainine Facility Fund - This fund accounts for the construction, operations and maintenance of an emergency training facility adjacent to the City airport.

Adult Athletic Comnler Fund- This fund accounts for the construction. operations and maintenance of the Ocala Regional Sportsplex. The first phase of this complex opened in h6 .1995.

101

l CITY @F OCALA, FLORIDA COMBINING BALANCE SHEET ENTERPRISE FUNDS l

( September 30,1995 l ,

t  !

l

Electric l System Water

( Assets Revenue and Sewer Sanitation l Current Assets:

l Cash and investments $ 2,125 $ 450 $ - j Equity in pooled cash and investment fund 4,270,003 4,600,928 193,766 l Accrued interest receivable 33,015 33,722 1,798 l Accounts and notes receivable 6,875,014 107,407 -

i Accrued unbilled revenues 4,599,419 - -

Due from other funds - 548,295 286,493 Interfund loans receivable 76,485 - -

(

Inventories 2,072,474 73,146 -

Due from other govemments - - 41,576 l Other current assets 330,696 62,849 -

Total current assets 18,259,231 5,426,797 523,633 l i Restricted Assets:

! Cash and investments 14,170,642 19,226,920 -

! Equity in pooled cash and investment fund 11,209,108 9,389,636 -

Accrued interest receivable 170,316 398,885 -

I Due from other govemments -

55,378 -  !

Other 961,883 342,058 -

l Total restricted assets 26,511,949 29,412,877 -

Interfund Loans Receivable After One Year 596,167 - -

Property, Plant and Equipment, net 72,814,906 84,503,838 1,048,246 l Issuance Costs on Long-Term Debt 211,441 484,634 -

Total Assets $ 118,393,694 $ 119,828,14S $ 1,571,879 i

l 1

e I

v 102

. .. _ =-

Florida Municipal Fort King Municipal Ocala Emergency Adult Golf Tennis Trailer Municipal Training Athletic Course Court Park Airport Facility Complex Total

$ 1,938 $ 50 $ 100 $ -

$ 4,663 465,556 9,806 82,496 23,435 - -

9,645,990 4,593 54 674 - - - 73,856 280 - - 12,651 - - 6,995,352

- - - - - - 4,599,419

- - - - - - 834,788

- - - - - - 76,485 65,032 - - - - - 2,210,652

- - - - - - 41,576 )

2,768 - 264 - - - 396,577 l 540,167 9,910 83,534 36,086 - - 24,879,358 )

1

- - - - - - 33,397,562 l

- - - - - - 20,598,744 I

- - . - - . 569,201'

- - - 63,727 213,031 - 332,136

- - - - - - 1,303,941

- - - 63,727 - 213,031 - 56,201,584

- - - - - - 596,167 5,061,589 89,910 47,772 9,935,974 1,815,636 500,067 176,817,938

_ 696,075

$ 5,601,756 $ 99,320 $ 131,306 $ 10,035,787 $ 2,028,667 $ 500,067 $ 258,191,i22 Continued 103

l CITY OF OCALA, FLORIDA COMBINING BALANCE SHEET - CONTINUED ENTERPRISE FUNDS September 30,1995 l

i l Electric l System Water Liabilities and Fund Equity Revenue and Sewer Sanitation Current Liabilities:

Accounts payable $ 5,179,724 $ 146,612 $ 240,374 Compensated absences payable 336,408 142,431 125,542 Accrued interest payable 3,019 - -

Due to other funds 917,205 - -

Customer deposits 3,252,773 - -

Deferred revenue - - -

Interfund loans payable _

Total current liabilities 9,689.129 269,043 365,916 l Llabilities Payable from Restricted Assets:

l Accounts payable 46,715 508,988 -

Accrued interest payable 745,848 1,960,606 -

i Deferred revenue - 71,064 -

[ Revenue bonds payable within one year 3,690,000 1,515,000 -

Decommissioning costs 1,433,766 - -

Total liabilities payable from restricted assets 5,916,329 4,055,658 -

Interfund Loans Payable After One Year - - -

l Revenue Bonds and Notes Payable After One Year 20,866,635 58.063,296_ -

Totalliabilities 36,472,093 62,407,997 365,916

! Fund Equity:

Contributed equity 5,753,331 16,789,411 8,515 Retained eamings:

Reserved for debt service - 8,648,959 -

Reserved for renewal and replacement 16,526,025 5,51't,120 -

Total reserved retained eamings 16,526,025 14,166,079 -

Unreserved 59,642,245 26,464,659 1,197,448

Total retained eamings 76,168,270 40,630,738 1,197,448 Total fund equity 81,921,601 57,420,149 1,205,963 Total Liabilities and Fund Equity $ 118,393,694 $ 119,828,146 $ 1,571,879 1

I l

104

r Florida Municipal Fort King Municipal Ocala Emergency Adult l Golf Tennis Trailer Municipal Training Athletic l

Course Court _ I%rk Airport Facility Complex Total

$ 53,109 $ 1,857 $ 1,889 $ 15,047 $ 446 $ 2,612 3 5,641,670 l 43,085 810 1,165 2,489 2,086 2,020 656,036 3,019

- - - - 181,443 27,407 1,126,055 l - - - - - - 3,252,773

! 70,045 - - 2,900 - - 72,945 l 83,698 3,247 - 9,365 - - 96,310 l 249,937 5,914 3,054 29,801 183,975 32,039 10,848,808 l

- - - - 61,123 - 616,826

- - - - - - 2,706,454 985 - - 72,049

- - - - - - 5,205,000

- - - - - - 1,433,766 985 61,123 - 10,034,095 l

l 111,000 43,276 - 401,815 - - 556,091 1

l l - - - - - - 73,929,931 300,937 40,100 3,054 432,601 245,098 32,039 J00,368,925 3,853,439 - - 9,451,514 1,528,135 - 37,384,345 l

l - - - - - - 8,648,959

- - - - - - 22,043,145

- - - - - - 30,692,104 l 1,387,380 50,630 128,252 151,672 255,434 468,028 89,745,748 1,387,380 50,630 128,252 151,672 255,434 468,028 120,437,852 5,240,819 50,630 128,252 9,603,186 1,783,569 468,028 157,822,197

$ 5,601,756 $ 99,820 $ 131,306 $ 10,035,787 $ 2,028,667 $ 500,067 $258,191,122 1

105 i

CITY OF OCALA, FLORIDA QQMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNING 3 ENTERPRISE FUNDS Year Ended September 30,1995 l

l Electric System Water Revenue and Sewer Sanitation i Operating Revenues:

Sale of electricity $ 77,531,618 $ -

Sale of water -

3,700,279 -

Sewer and sanitation service charges - 8,303,119 6,094,797 Fees and rentals - 9,800 -

Commissions - - -

Other 1,791,066 408,173 14,925 Total operating revenues 79,322,684 12,421,371 6,109.722 1

Operating Expenses:

Purchase of electricity 46,080,940 - -

Distribution 6,298,721 549,088 -

Operation and maintenance 1,787,084 - 5,377,084

, Water and sewer treatment - 2,371,836 -

Sewer collection - 829,459 -

Administration 1,982,201 1,283,914 338,747

! Depreciation and amortization 3,625,232 2,632,092 246,935 Economicimprovement incentives 592,216 - -

Other 1,346,612 288,657 53,787?

Total operating expenses 61,713,006 7,955,046 6,016,553 Operating income (Loss) 17,609,678 4,466,325 93,169 l Non-Operating Revenues (Expenses):

Interest income 1,324,506 1,642,308 10,743 Interest expense (952,525) (3,532,617) -

Litigation settlement (net of $486,160 of related costs) - 1,376,844 -

Other non-operating revenue 92,223 10,179 72,073 Total non-operating revenues (expenses) 464,204 (503,286) 82,816 income (Loss) Before Operating Transfers 18,073,882 3,963,039 175,985 Operating Transfers:

From other funds 24,933 12,679 15,553 To other funds _(13,035,880) (348,569) (230,201)

. Total operating transfers (13,010,947) (335,890), ,

(214,648)

{

Net income (Loss) 5,062,935 3,627,149 (38,663)

Retained Eamings, beginning of year 71,907,803 37,170,566 1,255,258 Equity Transfers to Other Funds (802,468) (166,977) (19,147)

Retained Eamings, end of year $ 76,168,270 $ 40,630,738 $ 1,197,448 106

i Florida Municipa! Fort King Municipal Ocala Emergency Adult Golf Tennis Trailer Municipal Training Athletic Course Court Park Airport Facility _

Complex Total l $ - $ - $ -

$ - $ 77,531,618

- - - - - - 3,700,279

! - - - - - - 14,397,916 l l 1,727,445 64,268 88,247 177,688 7,913 46,211 2,121,572 l

14,873 - - 62,679 - - 77,552 198,323 21 6,852 460 2,063 - 2,421,883

! 1,940,641 64,289 95,099 240,827 9,976 46,211 100,250,820 '

- - - - - - 46,080,940

- - - - - - 6,847,809 ,

1,561,589 59,595 68,530 140,458 - 62,114 9,056,454 j

- - - - - - 2,371,836 j

- - - - - - 829,459  :

75,556 - - - 45,299 - 3,725,717 256,844 5,068 1,873 293,957 23,649 856 7,086,506

- - - - - - 592,216 118,807 - - 72,287 - - 1,880,150-2,012,796 64,663 70,403 506,702 68,948 62,970 78,471,087 (72,155) (374) 24,696 (265,875) (58,972) (16,759) 21,779,733 29,816 829 4,099 - 1,386 - 3,013,687 (14,560) (2,651) - (15,604) - - (4,517,957)

- - - - - - 1,376,844 2,897 - - 33,682 - - 211,054 ,

18,153 (1,822) 4,099 18,078 1,386 - 83,628 l (54,002) (2,196) 28,795 (247,797) (57,586) (16,759) 21,863,361 209,802 - 219 142,160 190,548 484,787 1,080,681 I (189,919) -

(4,240), (249,284) - - (14,058,093)

(12,977,412) 19,883 - (4,021) (107,124) 190,548 484,787 (34,119) (2,196) 24,774 (354,921) 132,962 468,028 8,885,949 1,421,499 52,826 103,478 506,593 122,472 - 112.540,495

- - - - - - (988,592)

$ 2 2.L28L . L 2.E L L 2 L2,5,2,, t,,,,1,5j,6,It g,,,2gget 1.168st s(22dEEL 107

[

CITY OF OCAL.A, FL@RIDA COMBINING STATEMENT OF CASH FLOWS ,

ENTERPRISE FUNDS '

Year Ended September 30,1995 ,

i Electric  !

System Water ,

Revence and Sewer Sanitation  :

Cash Flows from Operating Activities: I Cash received from customers $ 77,599,700 $ 11,995,002 $ 6,072,938 ,

Cash paid to suppliers for goods and services (55,199,634) (2,982,836) (3,849,294)  :

Cash paid to employees for services (3,529,813)- (2,259,154) (1,886,830)

Net cash provided by operating activities 18,870,253 6,753,012 336,814 i Cash Flows from Non-Capitai Financing Activities: . 1 Operating transfers in 24,933 12,679 15,553 4 Operating transfers out (13,035,880) (348,569) (230,201) 7 Grant revenues 92,223 10,179 72,073 Net cash provided by (used in) non-capital i financing activities (12,918,724) (325,711) (142,575)

Cash Flows from Capital and Related Financing Activities:

Acquisition and construction of capital assets (8,907,947) (6,075,806) (106,227)

Principal paid on bonds (3,500,000) (1,435,000) -  !

interest paid on bonds (1,584,077) (3,955,703) - l Principal paid on loans from other funds - - -

interest paid on loans from other funds - - -

l Principal receiverf an loans to other funds 70,927 -- - I Interest received 61 loans to other funds 33,181 - -

Proceeds ofloans from other funds - - -

Loans to other funds (164,717) - -

Contributions received from other govemments and developers 310,464 1,853,691 -

Litigation setlement - 1,376,844 -

Net cash provided by (used in) capital and related financing activities (13,742,169) (8,235,974) (106,227) j Cash Flows from Investing Activities:

Purchat,e of investments (107,700) - -

l Proceeds fmm sales and maturities of investments 6,084,924 3,492,754 -

Interest received 1,501,585 1,721,111 10,034  ;

Net cash provided by investing activities 7,478,809 5,213,865 10,034 Net increase (Decrease) in Cash and Cash Equivalents (311,831) 3,405,192 98,046 ,

i Cash and Cash Equivalents, beginning of year 21,864,887 19,403,624 95,720 Cash and Cash Equivalents, end of year $ 21,553,056 g@

I i

108 i

l l

l l

Florida Municipal Fort King Municipal Ocala Emergency Adult i Golf Tennis Trailer Municipal Trainting Athletic l Course Court Park Airport Facility _ Complex Total

$ 1,969,720 $ 64,380 $ 94,787 $ 253,978 $ 192,887 $ 46,211 $ 98,289,603 (880,634) (24,189) (40,688) (166,504) (4,242) (13,456) (63,161,477)

(898,662) (35,282) (33,266) (43,418) (38,123) (16,619) (8,741,167) 190,424 4,909 20,833 44,056 150,522 16,136 26,386,959 209,802 - 219 142,160 190,548 484,787 1,080,681 (189,919) - (4,240) (249,284) - - (14,058,093) 2,897 - - 33,682 - - 211,054 22,780 - (4,021) (73,442) 190,548 484,787 (12,766,358)

(128,563) (400) (6,642) (601,482) (1,488,801) (500,923) (17,816,791)

- - - - - - (4,935,000)

- - - - - - (5,539,780)

(82,060) (2,969) - (8,561) - - (93,590)

(14,560) (2,651) - (1.5,604) - - (32,815)

- - - - - - 70,927

- - - - - - 33,181

- - - 145,717 - - 145,717

- - - - - - (164,717)

- - - 488,036 767,451 - 3,419,642

- - - - - - 1,376,844 (225,183) (6,020) (6,642) 8,106 (721,350) (500,923) (23,536,3821

- - - - - - (107,700)

- - - - - - 9,577,678 28,348 836 3,853 87 3,911 - 3,269,765 1 28,348 836 _

3,853 87 3,911 - 12,739,743 16,369 (275) 14,023 (21,193) (376,369) - 2,823,962  ;

1 451,125 10,131 68,573 44,628 376,369 - 42,315,057

$ 467,494 $ 9,856 $ 82,596 $ 23,435 $ -

$ - $ 45,139,019 Continued 109

I CITY OF OCALA, FLORIDA COMBINING STATEMENT OF CASH FLOWS - CONTINUED ENTERPRISE FUNDS Year Ended September 30,1995 Electric System Water Revenue and Sewer Sanitation Reconciliation of Cash and Cash Equivalents .

to Balance Sheet:

Total unrestricted cash and investments perthe balance sheet $ 4,272,128 $ 4,601,378 ;$ 193,766 Total restricted cash and investments perthe balance sheet 25,379,750 28,616,556 -

Total cash and investments 29,651,878 33,217,934 193,766 Less: Investments not meeting the definition of cash equivalents (8,098,822) (10,409,118) -

Cash and Cash Equivalents, end of year ggQ Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities:

Operating income (loss) $ 17,609,678 $ 4,466,325 $ 93,169 Adjustments to reconcile operating income (loss) to cash provided by operating activities: '

Depreciation 3,497,877 2,534,683 246,935 Amortization 127,355 97,409 -

(Gain) loss on fixed asset disposal 297,836 2,329 23,552 i (Increase) decrease in r ;ts:

Accounts and notes receivable (912,580) (2,127) 120 Accrued unbilled revenue (244,921) - -

Due from other funds -

(35,471) (35,766)

Inventories (14,021) 6,877 -

Due from other govemments 11,519 16,372 (1,138) l Other current assets (1,136,229) (198,018) -

I Increase (decrease) in liabilities: 1 Accounts payable (864,618) 51,476 4,309 j Compensated absences payable (12,317) 1,974 5,635 Due to other funds 76,289 - -

Customer deposits 218,915 - -

Deferred revenue -

(188,817) -

Decommissioning costs 215,470 - -

Net Cash Provided by Operating Activities ggg Noncash Capital and Related Financing Activities: i Plant and equipment contributed to the Intemal I Service Fund $ (802,468) $ (166,977) $ (19,147) {

l 110

-. . -. . . . - . . . _ - . . . - . - . . = . .

Florida Municipal Fort King Municipal Ocala Emergency Adult Golf Tennis Trailer Municipal Training Athletic Course Court Park Airport Facility Complex Total

$ 467,494 $ 9,856 $- 82,596 $ 23,435 $ -

$ 9,650,653

- - - - - - 53,996,306 467,494 9,856 82,596 23,435- - - 63,646,959

- - - - - - (18,507,940)

$ 467,494 $ 9,856 $ 82,596 Q$ - $ -

g

$ (72,155) $ (374) $ 24,696 $ (265,875) $ (58,972) $ (16,759) $ 21,779,733 256,844 5,068 1,873 293,957 23,649 856 6,861,742

- - - - - - 224,764 1,595 -

(312) (117) 402 - 325,285 660 91 - 13,283 2,000 - (898,553)

- - - - - - (244,921)

- - - - - - (71,237)

(6,880) - - - - - (14,024) 362 - - 304 - - 27,419 (60) -

(264) 3,020 - - (1,331,551)

(13,521) 138 (5,351) (891) 446 2,612 (825,400)

(4,478) (14) 191 694 2,086 2,020 (4,211)

- - - - 180,911 27,407 284,607

- - - - - - 218,915 28,057 - -

(319) - - (161,079)

- - - - - - 215,470 gQ@ @ @ @ $ 26,386,959

$ - $ (988,592) 111

_aa . m.sJ. J. - - .a -- a_-m.-2.___ aA..a m4.-_A a - s. a ._.Aw___a_,__.a2._ __m.-,--A. a.,._a., a m, am .r.,.A.d .1 se- 6 , -

i

. i l

i OF s - oO 44 -- 1 i l$7 3

COUNTL l

112

CITY OF OCALA, FLORIDA INTERNAL SERVICE FUNDS Internal Service Funds - The Intenni Senice Funds account for the operation of departments which exist solely to provide services to other City departments. The revenues of the internal Senice Funds are derived fron user fees and selfinsurance premiums charged to other City funds. The Internal Senice Funds used by the City are:

Internal Service Frmd - This fund accounts for the operation of management information system, central services, building maintenance, clinic and purchasing and warehousing departments.

Fleet Management Frmd- This fund accounts for the operation of the fleet management department, which is responsible for replacing, specifying, acquiring, maintaining and disposing of approximately 930 units of gas driven equipment.

Self-Insurance Frmd - This fund accounts for the operation of the risk management department and for the costs of the City's self-insurance plans.

I13

CITY OF OCALA, FLORIDA COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS  ;

i September 30,1995 l

Internal Fleet Self.

Assets Service Management insurance Total Current Assets:

Cash and investments $ 150 $ 200 $ 150 $ 500 Equity in pooled cash and investment fund 941,336 6,803,126 3,476,321 11,220,783 I i Accrued interest receivable 9,697 51,704 25,500 86,901 l

! Accounts receivable 8,083 1,079 335 9,497 l

Interfund loans receivable - 28,198 - 28,198 inventories 72,783 71,289 .- 144,072 Due from other govemments 1,861 14,263 - 16,124 Other current assets 155 1,495 42,041 43,691 Total current assets 1,034,065 6,971,354 3,544,347 11,549,766 Property, Plant and Equipment, not 9,106,382 2,781,382 43,431 11,931,195 Total Assets gggg ,

1 Liabilities and Fund Equity Current Liabilities: )

Accounts payable $ 91,297 $ 88,870 $ 208,856 $ 389,023 I Claims payable - - 3,241,038 3,241,038 ,

! . Compensated absences payable 89,412 46,522 - 135,934 l Capital lease payable within one year 11,142 - - 11,142 '

Total current liabilities 101,851 135,392 3,449,894 3,777,137 i 1

' Capital Lease Payable After One Year 46,381 - - 46,381 Total liabilities 238,232 135,392 3,449,894 3,823,518 Fund Equity:

Contributed equity 3,639,643 - 20,401 3,660,044 Unreserved retained eamings 6,262,572 9,617,344 117.483 15,997,399 Total fund equity 9,902,215 9,617,344 137,884 19,657,443 Total Liabilities and Fund Equity gggg i

W 114

. . . . _ _._. - ._. _ _ _ _ _ _ ____m_-

CITY OF OCALA, FLORIDA COMRINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINurt EARNINGS  !

INTERNAL SERVICE FUNDS Year Ended September 30,1995 l

l l

I internal Fleet Self-  !

Service Management insurance Total )

Operating Revenues:

Fees and rentals $ 3,665,257 $ 4,321,118 $ 646,467 $ 8,632,842 Employerinsurance contributions - - 3,297,511 3,297,511 Employee insurance contributions - - 1,150,802 1,150,802 Other 19,997 92,137 7,683 119,817 Total operating revenues 3,685,254 4.413,255 5,102,463 13,200,972 ]

Operating Expenses.

Fleet management - 2,782,878 - 2,782,878 Purchasing and warehousing 729,552 - - 729,552 .

Management Information cystem I and central services 886,371 - - 886,371 Building maintenance 786,224 - - 786,224 Insurance, administration and other - - 5,653,881 5,653,881 Depreciation 489,033 286,247 9,953 785,233 Other 181,753 - - 181,753 Total operating expenses 3,072,933 3,069,125 5,663,834 11,805,892 Operating income (Loss) 612,321 1,344,130 (561,371) 1.395,080' Non-Operating Revenues (Expenses):

Interest income 56,134 344,930 159,532 560,596 Interest expense . (4,446) - - (4,446)

Other non-operating revenue 614 362 - 976 Total non-operating revenues (expenses) 52,302 345,292 159,532 557,126 income (Loss) Before Og:srating Transfers 664,623 1,689,422 (401,839) 1,952,206 Operating Transfers:  ;

From other funds 11,523 252 - 11,775  !

To other funds (209,019) (4,883) (5,043) (218,945) i Total operating transfers (197,496) (4,631) (5,043) (207,170) l i

Net income (Loss) 467,127 1,684,791 (406,882) 1,745,036 l Retained Eamings, beginning of year 5,795,445 7,947,173 524,365 14,266,983-Equity Transfers to Other Funds - (14,620) - (14,620)

Retained Eamings, end of year $ 6,262,572 $ 9,617,344, $ 117,483 $ 15,997,399 l

l' 115 M "

W =T

CITY OF OCALA, FLORIDA F l COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS )

Year Ended September 30,1995 l

Internal Fleet Self- i f

Service M._nagement Insurance Total i l

Cash Flows from Operating Activities: J Cash received from employees $ -

$ - $ 1,150,802 $ 1,150,802 Cash paid to suppliers for goods and services (1,118,191) (1,877,176) (2,964,479) (5,959,846)

! Cash paid to employees for services (1,390,607) (882,731) (347,435) (2,620,773)

! Cash received from other funds 3,687,119 4,407,443 3,970,382. 12,064,944 Cash paid for insurance claims - - (1,357,143) (1,357,143) l Net cash provided by operating j activities 1,178,321 1,647,536 452,127 3,277,984 Cash Flows from Non-Capital Financing Activities: i Operating transfers in 11,523 252 - 11,775 l l Operating transfers out (209,019) (4,883) (5,043) (218,945) ,

. Other _

614 362 - 976 l l Net cash used in non-capital j financing activities (196,882) (4,269) (5,043)' (206,194) '

Cash Flows from Capital and Related  !

Financing Activities:

l' Acquisition and construction of capital assets (899,085) (1,253,395) (12,901) (2,165,381)

Proceeds of capitallease payable 62,785 - - 62,785 Pilncipal paid on notes and capital j lease payable (99,046) - -

(99,046)

! Interest paid on notes and capital lease payable (4,446) - -

(4,446) i Principal received on loans to other funds - 26,560 - 26,560 i

Interest received on loans to other funds - 2,324 - 2,324 Net cash used in capital and related financing activities (939,792) (1,224,511) (12,901) (2,177,204)

! Cash Flows from Investing Activities: l l Interest received 51,060 332,636 149,848 533,544 i Net cash provided by investing activities 51,060 332,636 149,848 533,544

. Net increase in Cash and Cash Equivalents 92,707 751,392 584,031 1,428,130 Cash and Cash Equivalents, beginning of year 848,779 6,051,934 2,892,440 9,793,153

, Cash and Cash Equivalents, end of year $ 941,486 $ 6,803,326 3 3,476,471 $ 11,221,283 L Continued 116 l

CITY OF OCALA, FLORIDA COMBINING STATEMENT OF CASH FLOWS - CONTINUED INTERNAL SERVICE FUNDS Year Ended September 30,1995 Internal Fleet Self-Service Management Insurance Total R: conciliation of Operating income (Loss) to Cash Provided by Operating Activities:

Operating ince" - (loss) $ 612,321 $ 1,344,130 $ (561,371) $ 1,395,080 Adjustment to acconcile operating income to cash flows provided by operating activities:

Depreciation 489,033 286,247 9,953 785,233 (Gain) loss on disposal of property, plant and equipment 16,422 (6,000) 70 10,432 (Increase) decrease in assets:

Accounts receivable 1,788 (843) 18,721 19,666  ;

inventories 783 294 - 1,077 I

Due from other govemments 77 1,031 - 1,108 Other current assets 6,488 (287) 46,304 52,505 ,

increase (decrease) in liabilities: 1 Accounts payable 42,215 28,635 77,066 147,916 Claims payable - - 861,384 861,384 Compensated absences payable 9,194 (5,671) - 3,523' Nit Cash Provided by Operating Activities $ 1,178,321 $ 1,647,536 $ 452,127 $ 3,277,984 Noncash Capital and Related Financing Activities:

Plant and equipment contributed from other funds $ 2,345,780 $ -

$ - $ 2,345,780 Plant and equipment contributed to Intemal Service Fund _$_

$ (14,620) $ -

$ (14,620) i l

117

_m_.2 _ um.- A m-2. _4 ~JL-4-A- -e-Ad d.---**.- we#---444 4--e-u...,E e J Aa l* , - - e4AGI h-em-I--*am-- - + - , -w ea-s- _e.- wmm-4 4.-- m_ -._

i I

f OF og 1 1

COUNT 4 l

l t

t i

1 118

CITY OF OCALA, FLORIDA TRUST AND AGENCY FUNDS Tmst Funds - The Trust Funds of the City are Pension Trust Funds and Expendable Trust Funds. The Trust Funds are used to account for assets held by the City in a trustee capacity. The measurement focus and basis of accounting of the Pension Trust Funds are similar to Proprietary Funds and they are therefore maintained on the accrual basis of accounting. The Pension Trust Funds are utilized to account for the financial transactions of the City-administered pension plans. The measurement focus and basis of accounting of the Expendable Trust Funds are similar to governmental funds and they are therefore maintained on the modified accrual basis of accounting.

Expendable Trust Funds Pension Medical Reserve Fund -This fund is used to accumulate funds for future retiree benefits. It is being treated as an expendable trust fund until the start of the related benefits.

Community Redevelopment Trust Fund - The Community Redevelopment Trust Fund is used to account for receipts and transfers of the tax increment fees collected for improving and redeveloping the downtown area.

Pension Trust Funds The Ocala Emolovees' Retirement Fund - This fund provides regular benefits to all active and inactive participants of the fonner system.

The Ocala Police OfYicers' Suoolemental Pension Fund - This fund provides supplemental benefits to qualifying police officers.

The Ocala Firefinhters' Suonlemental Pension Fund - This fund provides supplemental benefits to qualifying firefighters.

Agency Fund Employees' Deferred Comnensation Fund - Accounts for an IRC Section 457 deferred compensation program open to all City employees and officials.

119

1 CITY OF OCALA, FLORIDA COMBINING BAl.ANCE SHEET TRUST AND AGENCY FUNDS September 30,1995 l

l Expendable Trust Funds Pension Community )

Medical Redevelopment Assets Reserve Trust Restricted Assets:

Cash and investments $ 1,398,340 $ -

Equity in poo'ed cash and investment fund -

104,770 Accrued interest and dividends receivable -

- 886 Total Restricted Assets $ 1,398,340 $ 105,656 i

l Liabilities and Fund Balances Liabilities Payable from Restricted Assets: j Accounts payable $ -

$ 1,810 Deferred compensation - -

Total liabilities - 1,810 I 1

' Fund Balance- l Reserved for retirement benefits 1,398,340 - l Reserved for specified projects - 103,846 i

Total fund balance 1,398,340 103,846 l i

Total Liabilities and Fund Balances $ 1,398,340 $ 105,656 l

i

^

l 1

120

I

Pension Trust Funds Agency Fund Police Firefighters' Officers' Employees' Supplemental Supplemental Deferred Retirement Pension Pension Compensation Total

$ 46,098,566 $ 5,968,285 $ 8,902,690 $ 4,798,661 $ 67,166,542

- - - - 104,770 393,639 60,000 89,500 -

544,025

$ 46,492,205 $ 6,028,285 $ 8,992,190 $ 4,798,661 $ 67,815,337

$ 26,112 $ 3,887 $ 5,798 $ -

$ 37,607

- - - 4.798,661 4,798,661 26,112 3,887 5,798 4,798,661 4,836,268 46,466,093 6,024,398 8,986,392 - 62,875,223

- - - - 103,846 46,466,093 6,024,398 8,986,392 - 62,979,069

$ 46,492,205 $_ 6,028,285 $ 8,992,190 $ 4,798,661 $ 67,815,337 121

- J1s. v.m.. m*-M a -A-' x,A. .em= - 2 .,- , - s..- -- n-n-,Aam. x s - -gm----m,.a-4ea-4-ea,4-.m.a .y A r.m - , 4_

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I CITY OF OCALA, FLCRIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDABLE TRUST FUNDS j Year Ended September 30,1995 l

Pension Community Medical Redevelopment Reserve Trust Total  ;

l R: venues: j Property taxes $ -

$ 6,354 $ 6,354 '

Interest 72,569 6,068 78,637 Other 77,716 - 77,716 Total revenues 150,285 12,422 162,707 Expenditures:

Current: -

General govemment and administrative - 23,413 23,413 Capital outlay -

490 490 Total expenditures - 23,903 23,903 Excess (Deficiency) of Revenues Over Expenditures 150,285 (11,481) 138,804 Other Financing Sources:

Transfers from other funds - 6,111 6,111 Excess (Deficiency) of Revenues and Other Sources  !

Over Expenditures Before Fund Balance Allocation 150,285 (5,370) 144,915 Fund Balance Allocation - - -  !

Excess (Deficiency) of Revenues and Other Sources Over Expenditures 150,285 (5,370) 144,915 ;

Fund Balance, beginning of year 1,248,055 109,216 1,357,271 Fund balance, end of year $ 1,398,340 $ 103,846 $ 1,502,186 I 123

CITY OF OCALA, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXPENDABLE TRUST FUNDS Year Ended September 30,1995 Pension Community Medical Redevelopment Reserve Trust Revenues:

Property taxes $ -

$ 6,354 Interest 72,569 6,068 Other 77,716 -

Total revenues 150,285 12,422 Expenditures:

Current:

General govemment and administrative -

23,413 Capital outlay -

490 Total expenditures - 23,903 Excess (Deficiency) of Revenues Over Expenditures 150,285 (11,481)

Other Financing Sources:

Transfers from other funds - 6,111 Excess (Deficiency) of Revenues and Other Sources Over Expenditures Before Fund Balance Allocation 150,285 (5,370)

Fund Balance Allocation - -

Excess (Deficiency) of Revenues and Other Sources Over Expenditures 150,285 (5,370)

Fund Balance, beginning of year 1,248,055 109,216

. Fund Balance, end of year $ 1,398,340 $ 103,848 124

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Adjustments Actual to a on a Variance Total Budgetary Budgetary Final Favorable Actual Basis Basis Budget (Unfavorable) )

l

$ 6,354 $ -

$ 6,354 $ 6,354 $ -

78,637 (72,569) 6,068 7,700 (1,632) 1 77,716 (77,716) - - -

162,707 (150,285) 12,422 14,054 (1,632) l l

23,413 - 23,413 28,647 5,234 490 - 490 96,100 95,610 23,903 - 23,903 124,747 100,844 138,804 (150,285) (11,481) (110,693) 99,212 I 6,111 - 6,111 6,111 -

1 144,915 (150,285) (5,370) (104,582) 99,212

- - - 104,582 (104,582) i 144,915 $ (150,285) $ (5,370) $ - $ (5,370) i 1,357,271

$ 1,502,186 i

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1 CITY OF OCALA, FLORIDA COMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCE PENSION TRUST FUNDS i Year Ended September 30,1995 l

Police 1 Firefighters' Officers' l Employees' Supplemental Supplemental l Retirement Pension Pension Total '

Operating Revenues:

City and state contributions $ 1,606.146 $ 201,562 $ 314,904 $ 2,122,612 Employee contributions -

272,757 92,922 365,679 income on investments 1,809,570 199,778 294,631 2,303,979 Net appreciation in fair value of investments 6,568,204 928,089 1,380,088 8,876,381 Total operating revenues 9,983,920 1,602,186 2,082,545 13,668,651 Operating Expenses:

Pension payments 1,261,442 383,639 138,278 1,783,359 Administration 44,109 103,423 22,710 170,242 Total operating expenses 1,305,551 487,062 160,988 1,953,601 Net income 8,678,369 1,115,124 1,921,557 11,715,050 Fund Balance, beginning of year 37,787,724 4,909,274 7,064,835 49,761,833 Fund Balance, end of year S 46,466,093 $ 6,024,398 $ 8,986,392 $ 61,476,883 I I

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CITY OF OCALA, FLORIDA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGE.NCY FUND Year Ended September 30,1995 Deferred Compensation Fund Investments $ 4,798,661 D:ferred Compensation Payable, beginning of year $ 3,932,667 Add: Employee contributions 614,264 income on investments 466,589 L+.ss: Withdrawals and terminations (206,698)

Administration fees -

(8.161)

Total Deferred Compensation Payable, end of year . $ 4,798,661 s

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l GENERAL FIXED ASSET ACCOUNT GROUP l

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l CITY OF OCALA, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE September 30,1995

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i General Fixed Assets:

Land $ 3,528,822 Buildings 5,826,211 .

Machinery and equipment 8,893,249 l Construction in progress 1,649,363 Total general fixed assets 5 19,897,645 l

Investment in General Fixed Assets by Source:

Bond proceeds $ 1,744,689 Federal and state grants 899,242 General fund 14,013,908 Special revenue funds -

1,426,200 Capital projects funds 1,696,951 Contributions 115,660 Other 995 l

Total investment in general fixed assets 5 19,897,645 i 1

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CITY OF OCALA, FL@RIDA SCHEDULE OF GENERAL FIXED ASSET 4 SY FUNCTION AND ACTIVITY September 30,1995 Machinery and Function and Activity Total Land Buildings Equipment General Govemment and Administration:

f Legislative $ 3,311 $ -

$ 3,311 Executive 123,821 16,025 8,360 99,436

} Finance 27,051 -

433 26,618

) Purchasing 1,465 - - 1,465 Personnel and safety 32,303 - 1,233 31,070 Planning . 659,249 165,236 321,473 172,540 Building inspection 171,989 171,989 f Total general govemment and administration 1,019,189 181,261 331,499 506,429 Public Safety:

Police protection 2,818,555 - 90,309 2,728,246 Fire protection 3,512,427 32,290 1,201,383 2,278,754 Other public safety 13,627 - - 13,627 Total public safety 6,344,609 32,290 1,291,692 5,020,627

} Public Works:

) Flood control 608,622 1,063 2,000 605,559 Engineering 1,031,002 458,746 197,604 374,652 Highway and street construction 1,162,735 - 9,100 1,153,635 Total public works 2,802,359 459,809 208,704 2,133,846 Culture and Recreation:

Library 606,166 - 117,055 489,111 Recreation 1,833,994 774 1,097,398 735,822 Total culture and recreation 2,440,160 774 1,214.453 1,224,933 Nondepartmental 5.641,965 2,854,688 2,779,863 7,414 Total General Fixed Assets Allocated to Functions 18,248,282 MMM Construction in Progress 1,649,363 Total General Fixed Assets g

(

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CITY OF OCALA, FLORIDA SCHEDULE OF CHANGES IN GENERAL FlXED ASSETS BY FUNCTION AND ACTIVITY Year Ended September 30,1995 General General Fixed Assets Fixed Assets September 30, September 30, Function and Activity 1994 Additions Deletions 1995 General Govemment and Administration:

Legislative $ 3,311 $ -

$ 3,311 Executive 118,997 9,178 4,354 123,821 (

Finance 15,854 12,882 1,685 27,051 Purchasing 1,465 - -

1,465 [

Personnel and safety 32,303 - - 32,303 Planning 652,248 7,000 y . 659,248 Building inspection 168,772 13,2503 '10,034 171,988 Total general govemment and -

administration 992,950 42,310 16,073 1,019,k __ .

Public Safety:

Police protection 2,801,301 304,921 287,667 2,818,555 Fire protection 3,574,774 248,312 310,659 3,512,427 Other public safety - 13,627 - 13,627

(

l Total public safety 6,376,075 566,860 598,326 6,344,609 Public Works:

Flood control 528,955 82,881 3,213 608,623 '

Engineering 1,037,871 50,689 57,559 1,031,001  ;

Highway and street construction 1,205,739 32,826 75,830 1,162,735 Total public works 2,772,565 166,396 136,602 2,802,359 Culture and Recreation:

Library 491,823 119,624 5,280 606,167 Recreation 1,707,340 159,062 32,407 1,833,905 Total culture and recreation 2,199,163 278,686 _

37,687 2,440,162 Nondepartmenta! 5,655,355 3,819 17,209 5,641,965 Construction in Progress 17,583 1,647,563 15,783 1,649,363 Total General Fixed Assets $ 18,013,691 $ 2,705,634 $ 821,680 $ 19,897,645 1

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1 STATISTICAL:SECTION' Statistical schedules differ from financial statements because

. they usually cover.more'.than one fiscal year and may' pre-sent nonaccounting' data. These schedules reflect social and -

economic _ data and. financial trends of the government.

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l CITY OF OCALA, FLORIDA '

l j REQUIRED SUPPLEMENTARY INFORMATION HISTORICAL TREND INFORMATION FOR PENSION TRUST FUNDS I COMPARATIVE

SUMMARY

OF REVENUES BY SOURCE AND EXPENSES BY TYPE Revenues By Source I (in thousands)

As a Fiscal Year City Percentage i Ended Employee Contn- of Covered State Investment September 30, Contributions butions Payroll Contributions income Total General Plan: l 1995 $ - $ 1,606 6.20 % $ -

$ 8,378 $ 9,984 l

1994 - 1,525 6.20 -

332 1,857 1993 - 1,501 6.20 - 4,148 5,649 1992 - 1,503 6.30 - 3,672 5,175 1991 - 1,157 5.20 - - 5,979 7,136 1990 - 1,073 5.20 -

1,329 2,402

'989 - 1,331 7.20 - 4,865 6,196 1988 - 1,191 7.20 - 2,124 3,315 1987 - 1,277 8.20 - 2,583 3,860 i 1986 - 1,101 7.84 - 3,071 4,172 l Supplemental Police Officers' Plan:

1995 $ 93 $ - -  % $ 315 $ 1,675 $ 2,083 1994 78 - -

288 30 396 l 1993 76 - -

286 757 1,119 '

l 1992 73 - -

271 660 1,004 l 1991 35 - -

280 1,048 1,363 1990 33 - -

280 226 539 1989 30 - -

258 825 1,113 l 1986 27 - -

243 345 615 l 1987 18 - -

222 408 648 l 1986 - - -

192 505 697

~

Supplemental Firefighters' Plan: l 1995 $ 273 $ - - % $ 201 $ 1,128 $ 1,602 1994 262 - -

191 22 475 l 1993 256 - -

172 530 958 l 1992 256 - -

172 458 886 4 1991 233 - -

163 712 1,108 l 1990 210 - -

141 151 502 l 1989 175 - -

120 542 837 l

1988 154 5 -

113 224 496 i l 19fa 108 - -

106 256 470 '

l 1986 - - -

100 306 406

Contributions were made in accordance with actuarial!y determined contribution requirements.

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134

Schedule 1 l

l Expenses By Type (in thousands)

Fiscal Year Ended Other Investment S ptember 30, Benefits Refunds Expense.s Losses Total

! 1995 $ 1,261 $ -

$ 45 $ -

$ 1,306 1994 1,186 - 231 246 1,663 1993 1,040 -

240 - 1,2110 l 1992 915 -

213 - 1,128 l 1991 812 1 207 - 1,020 l 1990 687 1 239 5,676 6,603 1989 584 6 231 -

821 1988 480 11 203 - 694

, 1987 397 8 190 -

. 595 l 1986 364 15 146 - 525 1995 $ 138 $ 9 $ 14 $ -

$ 161 l 1994 162 8 51 30 251 1993 163 5 50 - 218' 1992 146 1 41 - 190 1991 145 2 55 - 205 1990 '.16 5 45 995 1,161 1989 95 1 40 - 136 1988 78 - 50 - 128 1987 70 - 30 - 100 1986 86 - 39 - 125 1995 $ 384 $ 91 $ 12 $ -

$ 487 1994 301 44 41 21 407 1993 234 28 38 - 300 1992 204 16 31 - 251 1991 184 30 43 - 257 l 1990 176 7 33 664 880

! 1989 114 18 30 -

162 1988 83 2 39 - 124 1987 29 - 19 - 48 1986 29 - 21 - 50 1

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l CITY OF OCALA, FLORIDA REQUIRFt1 SUPPt FMENTARY INFORMATION HISTORICAL TREND INFORMATION FOR PENSION TRUST FUNDS ANALYSIS OF FUNDING PROGRESS l

l (in thousands of dollars) l (4)

Assets in Excess )

of Pension Benefit '

(1) (2) (3) Obligation Net Assets Pension Percentage (Unfunded Pension Fiscal Available Benefit Funded Benefit Obligation)

Year for Benefits Obligation (1)/(2) (1) -(2)

General Plan: l 1995 $ 46,466 $ 37,243 124.8 % $ 9,223 1994 37,788 31,977 118.2 5,811 1993 37,594 29,613 127.0 7,981 1992 33,225 27,984 118.7 5,241 1991 29,178 25,595 114.0 3,583 1990 23,063 23,011 100.2 52 1989 27,264 19,473 140.0 7,791 1988 21,889 16,013 136.7 5,876 i 1987 19,268 13,740 140.2 5,528 l 1986 16,002 10,658 150.1 5,344 '

Supplemental Police Officers' Plan:

1995 $ 8,S86 $ 7,612 118.1 % $ 1,374 l 1994 7,065 6,498 108.7 567 1993 6,920 5,908 117.0 1,012 l 1990 4,047 4,072 99.4 (25)  !

l 1987 3,205 2,324 137.9 881 l

l Supplemental Firefighters' Plan:

l 1995 $ 6,024 $ 6,926 87.0 % $ (902) l 1994 4,909 6,173 79.5 (1,264) 1993 4,841 5,543 87.3 (702) 1990 2,698 3,728 72.4 (1,030) 1987 2,031 1,869 108.7 162 i Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation and unfunded pension j benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of

! the pension benefit obligation provides one indication of Plan's funding status on a going-concern basis. Analysis j of this percentage over time indicates whether Plan is becoming fmancially stronger or weaker. Generally, the greater this percentage, the stwnger the system. Trends in unfunded pension benefit obliption and annual covered payroll are both affected by inflation. Expressing the assets in excess of the pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the System's progress in accumulating sufficient assets to pay benefits when due. Generally, the larger this p:rcentage, the stronger the system.

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136

Schedule 2 i

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Assets in Excess of Pension Benefit Obligation (Unfunded Pension l (5) Benefit Obligation) l Annual as a Percentage of Covered Covered Payrol' l Payroll (4) / (5) 1

$ 25,906 35.6 %

24,594 23.6 -

24,394 32.7 l 23,850 21.9 .

23,440 15.3 21,772 0.2 19,167 40.6 17,239 34.1 15,636 35.4 13,856 38.6

$ 4,646 29.6 %

3,903 14.5 3,888 26.0 3,329 (0.8) l 2,501 35.2 i

$ 3,239 (27.8)%

3,115 (40.6) 3,080 (22.8) 2,620 (39.3) 1,756 9.2 i

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CITY OF OCALA, FLORIDA l GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) l LAST TEN FISCAL YEARS

)

1986 1987 1988 1989 Property taxes $ 2,921,415 $ 4,413,746 $ 5,073,641 $ 6,161,242 Other taxes 717,980 710,945 763,823 786,021 Intergovemmental revenues 5,868,213 6,342,097 6,829,455 7,041,160 Licenses and permits 706,762 677,805 673,596 690,456 Fines and forfeitures 474,764 532,498 710,301 740,603 Charges for services and off-street parking 240,735 245,690 223,742 1,348,168 l Transfers from other funds 10,203,401 10,928,043 11,532,925 14,277,023 Bond and note proceeds 13,041,330 - 7,542,626 -

Interest income 522,787 756,439 889,965 1,567,581 Miscellaneous 1,064,125 1,571,289 1,067,093 112,908 Total $ 35,761,512 g $ 35,307,167 g I

(1) This schedule includes revenues and other fmancing sources of the General Fund, Special Revenue Funds and Debt Service Funds. Interfund revenues have not been eliminated between these funds, c

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1 1990 1991 1992 1993 1994- 1995

$ 6,505,843 $ 7,091,592 $ 7,149,471 $ 7,270,662 $ 7,575,276 $ 7,638,214 801,394 825,622 884,258 1,409,034 1,502,077 1,508,766 6,982,067 7,489,550 6,989,818 7,360,769 9,214,202 9,122,383 736,411 651,013 631,461 604,787 763,066 772,036 l 734,132 812,701 967,438 873,112 891,455 1,052,858 1,497,702 1,479,127 1,897,707 2,025,300 2,246,292 2,380,049 14,321,507 15,609,360 16,694,506 17.411,663 17,944,570 17,000,557

- - 42,922 14,143,855 11,749,269 - l 1,545,540 1,394,582 1.048,948 780,108 1,130,987 1,467,264 261,093 178,115 286,064 277,420 271,518 154,506 g $ 35,531,662 $ 36,592,593 $ 52,156,710 $ 53,288,712 g l l l

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CITY OF OCALA, FLORIDA GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1)

LAST TEN FISCAL YEARS l

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1986 1987 1988 1989 General govemment and administration $ 2,180,146 $ 2,398,717 $ 2,462,279 $ 2,872,897 Public safety 6,836,255 7,529,924 8,030,705 9,519,499 i

i Public works 2,470,282 2,690,444 2,707,074 3,435,091 l Culture and recreation 2,420,806 2,806,405 2,728,031 2,998,445 Nondepartmental 998,914 1,259,245 1,973,860 330,614 Debt service 8,546,374 2,153,331 6,011,761 2,485,187 Capital outlay 1,740,251 2,537,305 2,501,826 1,979,521 Transfers to other funds 4,803,525 3,865,642 4,176,731 3,477,913 i Miscellaneous 762,977 329,074 666,543 665,631 I l

Total $ 30,759,530 $ 25,570,087 $ 31,258,810 $ 27,764,798

)

I (1) This schedule includes expenditures and other financing uses of the General Fund, Special Revenue Funds and Debt Service Funds. Interfund expenditures have not been eliminated between these funds.

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1990 1991 1992 1993 1994 1995

$ 3,168,947 $ 3,469,028 $ 3,339,215 $ 3,388,158 $ 3,570,694 $ 3,750,855 10,759,495 11,677,768 12,438,951 12,021,517 13,296,158 14,812,271 3,466,758 3,655,998 3,915,990 3,933,610 4,242,507 4,531,891 3,376,898 3,508,653 3,740,232 3,771,641 3,826,126 3,939,075 389,988 474,371 381,785 428,063 151,883' 87,932 3,619,989 3,949,011 3,941,987 16,791,576 15,843,482 3,501,935 4,834,530 4,122,771 4,174,687 2,262,339 1,939,122 3,160,173 3,764,846 4,242,111 4,900,835 5,015,385 4,923,349 4,777,853 871.121 829,112 805,253 2,250,678 1,130,298 995,400

$ 34,252,572 $ 35,928,823 $ 37,638,965 5 50,462,967 $ 48,923,619 $ 39,557,385 I

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CITY CF OCALA, FLORIDA PROPERTY TAX LEVIES. TAX COLLECTIONS AND ASSESSED VALUATIONS (3)

LAST TEN FISCAL YEARS Ratio Assessed Current Total (2) of Total Fiscal Valuation Tax Rate in Total Tax Tax Tax Collections Uncollected Year (100% at Market) Mills (3) Levy (1) Collections Collections to Tax Levy Taxes 1986 $ 807,763,046 3.65 $ 2,962,022 $ 2,758,410 $ 2,881,597 97.3 $ 203,612 1987 971,04837

_ 4.65 4,527,718 4,199,267 4,373,759 96.6 328,451 1988 1,096,194,648 4.65 5,112,811 4,765,369 5,027,371 98.3 347,442 1989 1,235,655,356 5.08 6,287,092 5,662,203 6,114,815 97.3 624,889 1990 1,310,033,579 5.08 6,667,187 5,956,404 6,459,659 96.9 710,783 1991 1,399,122,711 5.17 7,244,086 6,592,981 7,043,228 97.2 651,105 1992 1,426,577,239 5.14 7,340,847 6,677,841 7,101,641 96.7 663,006 1993 1,501,855,447 4.92 7,402,331 6,837,706 7,223,752 97.6 564,625 1994 1,514,377,939 5.03 7,623,382 7,136,533 7,529,041 98.8 486,849 1995 1,556,395,804 5.03 7,836,849 7,289,707 7,595,038 96.9 547,142-Source: Mason County Tax Collector and City Finance Department.

(1) Includes penalties under Section 193.072 of the Florida Statutes.

(2) Tax collections include current and delinquent taxes, and tax certificates and payments to local governments for homestead exemptions.

(3) Excludes property tax levies of the Downtown Development Commission.

142

CITY OF OCALA, FLORIDA PROPERTY TAX RATES AND LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Millage Rates Water Management Fiscal Year City County School Districts Total 1986 3.65 3.21 7.10 0.32 14.28 1987 4.65 3.59 7.70 0.32 16.26 1988 4.65 3.83 7.70 0.33 16.51 1989 5.08 4.35 7.88 0.36 17.67 1990 5.08 4.98 7.93 0.35 18.34 1991 S.17 5.66 9.21 0.36 20.40 1992 5.14 6.04 9.29 -

0.36 20.83 1993 4.92 6.05 9.41 0.36 20.74 1994 5.03 6.10 9.58 0.47 21.18 1995 5.03 5.74 9.88 0.48 21.13 Tax Levies Fi7 cal Year City (1) County (2) School (2) Districts (2) Total 1986 $ 2,950,758 $ 2,592,919 $ 5,735,118 $ 258,484 $ 11,537,279 1987 4,518,262 3,486,044 7,477,030 310,734 15,792,070 1988 5,100,594 4,198,426 8,440,699 361,744 18,101,463 1989 6,277,129 5,375,101 9,736,964 444,836 21,834,030 1990 6,654,971 6,523,967 10,388,566 458,512 24,026,016 1991 7,233,464 7,919,035 12,885,920 503,684 28,542,103 1992 7,328,327 8,616,527 13,250,505 510,715 29,706,074 1993 7,389,129 9,086,225 14,132,460 540,668 31,148,482 1994 7,611,869 9,237,705 14,507,741 711,758 32,069,073 1995 7,823,068 8,933,712 15,377,191 747,070 32,881,041 (1) Does not include penalties under Section 193.072 of the Florida Statutes.

(2) The tax levies for overlapping governments reflect each government's millage applied to the total assessed valuation within the City's corporate boundaries.

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CITY OF OCALA, FLORIDA MM LAST TEN FISCAL YEARS Collections Total New Liens and Outstanding Fiscal Year Assessed Adjustments Assessments (1) 1986 $ 21,768 8 179,648 $ 939,839 1987 12,959 158,409 794,389 1988 28,300 175,308 647,381 1989 6,000 90,243 563,138 1990 106,229 159,966 509,401 1991 - 97,955 411,446 1992 -

164,554 246,902 1993 13,679 68,822 191,759 1994 - 59,140 - 132,619 1995 - 16,916 115,703 (1) Does not reflect reserves for uncollectible special assessment lesies.

144

CITY OF OCALA, FLORIDA COMPUTATION OF LEGAL DEBT MARGIN I

September 30,1995 l

, Assessed Value (100% at market as of January 1,1995) $ 1,556,395,804 l

l Debt Limit: 20% of Assessed Value $ 311,279,161 Am:unt of General Obligation D001 Outstanding -

Legal Debt Margin $ 311,279,161 In accordance with Article IX, Section 9.02, of the City of Ocala Charter, the " aggregate amount of general obligation bonds of the City outstanding at any one time shall not be greater than twenty percent (20%) of the assessed valuation of the taxable real and personal property in the City according to the latest assessment of such

! real and pessonal property" l

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CITY OF OCALA, FLORIDA SCHEDULE OF ELECTRIC SYSTEM REVENiiE AND REVENUE REFUNDING BONDS, 3ERjES 1977.1983.1988.19F9A AND 1989B COVERAGE LAST TEN FISCAL YEARS l l

1 i

Net Revenue Available for Debt Debt Service Requirements (2) (3) (4) (5) (6)

Year Service (1) Principal Interest Total Coverage 1986 $ 14,329,773 $ 1,010,000 $ 1,817,677 $ 2,82.7,677 5.07 1987 14,371,791 1,045,000 1,769,218 2,814,218 5.11 1988 14,891,027 1,105,000 1,160,385 2,265,385 6.57 1989 16,936,544 1,190,000 1,469,607 2,659,607 6.37 1990 20,319,802 1,435,000 1,698,359 3,133,359 6.48 l 1991 22,421,756 1,845,000 2,748,830 4,593,830 4.88 l 1992 21,664,962 1,965,000 2,633,056 4,598,056 4.71 l 1993 21,524,640 1,260,000 663,780 -1,923,780 11.19 1904 23,081,766 1,345,000 582,353 1,927,353 11.98 1995 22,733,287 1,435,000 494.065 1,929,065 11.78 (1) Represents gross operating revenues and interest income less gross operating expenses, excluding amortization and depreciation, of the electric system.

(2) In August,1977, the City issued the following refunding bonds:

Power Supply Revenue Bonds, Series 1977 $ 11,180,000 Electric Revenue Bonds, Series 1977 7,850,000 Special Ob'igation Bonds, Series 1977A 10,990,000

$ 30,020,000 The refunding bonds were issued to effect the advance refunding of the following issues:

Electric Revenue Certificates, Series 1959 $ 240,000 Electric Revenue Certificates, Series 1962 1,145,000 Electric Revenue Certificates, Series 1967 2,140,000 Electric Revenue Certificates, Series 1972 5,725,000 Power Supply Revenue Bonds, Series A1975 10,000,000

$ 19,250,000 The proceeds derived from the sale of the refunding bonds were placed in an irrevocable escrow account which, together with re'ated interest earnings, will provide sufficient arnounts to satisfy not only the remaining debt service requirements, in accordance with the original maturity schedules, on the refunded bonds, but the Special Obligation Bonds, Series 1977A as well. Accordingly, the refunded bonds and the Special Obligation Bonds, Series 1977A are not considered outstanding debt of the City in consideration of the escrow account created and, as such, all debt service requirements on the refunded bonds and the Speciel Obligation Bonds, Series 1977A have been excluded from the deteimination of revenue bonds coverage.

Continued 146

CITY OF OCALA, FLORIDA SCHEDULE OF ELECTRIC SYSTEM REVENUE AND REVENUE REFUNDING BONDS.

SERIES 1977.1983.1988.1989A AND 1989B COVERAGE - CONTINUED (3) In August,1983, the City issued the $13,480,000 Power Supply Revenue Bonds, Series 1983. The first principal payment occurred in October,1987. Proceeds from this issue are being used for the acquisition and construction of a new substation, supenised control data acquisition system and for other improvements to the bulk power system.

(4) In March,1988, the City issued the $14,350,000 Power Supply Revenue Refunding Bonds, Series 1988 for the purpose of advance refunding the outstanding Power Supply Revenue Bonds, Series 1983. The refunded bonds are no longer considered outstanding debt of the City since an escrow account was created for them; and, therefore, all debt service requirements subsequent to Ma :h,1988 for the refunded bonds have been excluded from the detemunation of debt senice coverage. The first principal and interest payments on the Series 1988 Bonds occurred in October,1988.

(5) In October,1989, the City issued Electric System Revenue Bohds, Series 1989A in the amount of

$28,425,000 and Electric System Revenue Refunding Bonds, Series 1989B in the amount of $13,000,000.

The 1989B Bonds were issued for the purpose of advance refunding the City's outstanding Power Supply Revenue Bonds, Series 1977 and the City's outstanding Power Supply Revenue Refunding Bonds, Series 1988. The refunding bonds are no longer considered outstanding debt of the City because an escrow account was created for them; and, therefore, all debt senice requirements subsequent to October,1989 for the refunded bonds have been excluded from the determmation of debt senice coverage. The proceeds of the 1989A Bonds are being used to fund the cost of the acquisition system and certain mfrastructure improvements related thereto. The first interest payments on the Series 1989A and 1989B Bonds occurred in April,1990; the first principal payments were made October 1,1990.

(6) In March,1992, the City issued the $28,435,000 Utility Systems Subordinate Refunding Revenue Bonds, Series 1992B, for the purpose of refunding the outstanding Electric System Revenue Bonds, Series 1989A.

'The refunded bonds are no longer considered outstanding debt of the City since an escrow account was created for them; and, therefore, all debt senice requirements subsequent to 1992 will be excluded from the determination of debt senice coverage. Since the Series 1992B Bonds, as well as the Utility Systems

! Subordinate Refunding Reve.iue Bonds, Series 1992A, are payable from a lien upon the surplus revenues of the City's Water and Sewer System and the City's Electric System, the debt senice coverage for those two issues is shown in a separate schedule for 1993 and subsequent years.

l 147

CITY OF OCALA, FLORIDA SCHEDULE OF WATER AND SEWER REVENUE AND REFUNDING BONDS. SERIES 1968.

1983.1985A.1985B.1986 AND 1988. AND ANTICIPATION NOTES COVERAGE LAST TEN FISCAL ARS Net Revenue Available for Debt Debt Service Requirements Year Service (1) Principal ;nterest Total Coverage 1986 $ 6,762,243 $ -

(3) $ 1,893,489 (3) $ 1,893,489 3.50 1987 5,690,844 245,000 (3) 4,129,150 (3) 4,374,150 1.30 ,

1988 8,047,236 165,000 (4) 4,118,735 (4) 4,283,735 1.88 )

1989 7,738,769 315,000 3,790,133 4,105,133 1.89 1990 6,778,281 425,000 4,004,180 4,429,180 1.53 1991 7,383,205 555,000 3,971,896 4,526,896 1.63 1992 8,076,099 640,000 3,930,831 4,570,831 1.77 1993 8,426,555 -

(5) 948,311 (5) 948,311 8.89 1994 8,177,122 45,000 946,928 991,928 8.24 1995 8,592,135 245,000 937,825 1,182,825 7.26 I

(1) Represents gross operating revenues less gross operating expenses, excluding amortization and depreciation, l of the water and sewer system. Additional pledge revenues are the collections, including interest and penalties, on the 11,000 series special assessment levy, which were also pledged to retire the refunded 1974 Pollution Control Bonds, Series C (this pledge does not pertain to the debt issued after 1978); 31,000 series of assessments (1979 and 1979-2 note issues only); unlevied public senice tax (all issues); interest earnings on investments and any income realized from such investments of the sinking, sinking resene, and renewal j and replacement funds (1983,1985A,1985B,1986 and 1988 issues); and water and sewer system i

development charges and interest earnings on development charges (1985A and 1986 issues for years prior to 1990), i (2) The 1979-2 Anticipation Notes matured on July 1,1983 and the related principal was secured by the

$11,200,000 Water and Sewer Refunding Revenue Bonds, Series 1983, which were issued in June,1983.

Proceeds from the sale of the 1983 Bonds were used to advance refund the 1968 Water and Sewer Revenue Bonds (remaining principal after July 1,1983 maturity is excluded from debt senice requirement above) and refund the 1979-2 Anticipation Notes, the principal of which is excluded from debt senice requirements above. Remaining proceeds are being used for the acquisition and constmetion of additions, extensions and improvements to the water and sewer system.

l Continued 148

CITY OF OCALA, FLORIDA SCHEDULE OF WATER AND SEWER REVENUE AND REFUNDING BONDS. SERIES 1968.

1983.1985A.1985B.1986 AND 1988. AND ANTICIPATION NOTES COVERAGE - CONTINUED LAST TEN FISCAL YEARS (3) In October,1985, the City issued the $37,080,000 Water and Sewer Revenue Bonds, Series 1985A for the purpose of financing a portion of the acquisition and construction of certain additions, expansions and improvements to the City's water and sewer system; and the 510,775,000 Water and Sewer Refunding Revenue Bonds, Series 1985B for the purpose of advance refunding the outstanding Water and Sewer Refunding Revenue Bonds, Series 1983. In April,1986, the City issued the $40,820,000 Water and Sewer Refunding Revenue Bonds, Series 1986 for the purpose of advance refunding the portion of the Water and Sewer Revenue Bonds, Series 1985A, stated to mature on and after October 1,1994. The refunded bonds are no longer considered outstanding debt of the City since escrow accounts were created for them; and, therefore, all debt service requirements for the refunded bonds have been excluded from the determmation of debt senice coverage. For fiscal 1986, the debt service requirements consist of the interest payments made for the Series 1985A and the Series 1985B Bonds (before the advance refunding of the portion of the Series 1985A Bonds), net of the accrued interest received at the time of bond closing. For fiscal 1987, the debt l senice requirements consist of the principal and interest for the 1985A,1985B and 1986 Bonds. I l

(4) In July,1988, the City issued the $12,450,000 Water and Sewer Refunding Revenue Bonds, Series 1988 for the purpose of advance refunding the outstanding Water and Sewer Refunding Revenue Bonds, Series )

1985B. The refunded bonds are no longer considered outstanding debt of the City since an escrow account was created for them; and, therefore, all debt senice requirements subsequent to 1988 will be excluded from the determination of debt senice coverage. The first interest payment on the Series 1988 Bonds occurred in i October,1988 and the first principal payment occurred in October,1993.

(5) In March,1992, the City issued the $51,880,000 Utility Systems Subordinate Refunding Revenue Bonds, Series 1992A, primarily for the purpose of refunding t'se outstanding Water and Sewer Revenue Bonds, Series 1985A and Water and Sewer Refunding Revenue Bonds, Series 1986. The refunded bonds are no longer considered outstanding debt of the City since an escrow account was created for them; and, therefore, all debt senice requirements subsequent to 1992 will be excluded from the determmation of debt service coverage. Since the Series 1992A Bonds, as well as the Utility Systems Subordinate Refunding Revenue Bonds, Series 1992B, are payable from a lien upon the surplus revenues of the City's Water arzd Sewer

! System and the City's Electric System, the debt senice coverage for these two issues is shown in a reparate schedule for 1993 and subsequent years.

149

CITY OF OCALA, FLORIDA SCHEDULE OF UTILITY SYSTEMS SUBORDINATE REFUNDING REVENUE BONDS.

SERIES 1992A AND 1992B. COVERAGE

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LAST TEN FISCAL YEARS Net Revenue Available for Debt Debt Service Requirements '

Year Service (1) Principal Interest Total Coverage 1993 $ 27,079,104 $ 1,785,000 $ 4,814,527 $ 6,599,527 4.10 1994 28,339,607 3,140,000 4,520,538 7,660,538 3.70 1995 28,213,532 3,255,000 4,107,890 7,362,890 3.83 (1) Represents the surplus revenues of the City's Electric System and of the City's Water and Sewer System available after the payment of the debt service requirements on the senior lien bonds.

150

i CITY OF OCALA, FLORIDA i I SCHEDULE OF REFUNDING AND IMPROVEMENT EXCISE TAX BONDS. j SERIES 1965 AND 1972. COVERAGE LAST TEN FISCAL YEARS Total Revenue Available Occupational Cigarette for Debt Year License Tax Service Principal Interest Total Coverage 1986 $ 340,013 $ 406,723 $ 746,736 $ 265,000 $ 115,300 $ 380,300 1.96 1987 362,960 388,381 751,341 275,000 103,150 378,150 1.99 1988 349,663 417,874 767,537 285,000 89,125 374,125 2.05 1989 376,590 419,394 795,984 300,000 74,590 374,590 2.12 1990 386,809 422,578 809,385 315,000 ' 58,990 373,990 2.16 1 1991 386,804 392,594 779,398 325,000 41,980 366,980 2.12 1992 380,567 383,621 764,188 330,000 24,430 354,430 2.16 1993 365,591 409,788 775,379 190,000 7,600 197,600 3.92

, 1994 - - - - - - -

1 1995 - - - - - - -

l 1

(1) The final maturity of the Refunding and Improv'ement Excise Tax Bonds, Series 1965 was in fiscal year 1986.

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(2) The final mat"rity of the Refunding and Improvement Excise Tax Bonds, Series 1972 was in fiscal year 1993.

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151 1

CITY OF OCALA, FLORIDA SCHEDULE OF CAPITAL IMPROVEMENT REVENUE AND REFUNDING REVENUE BONDS.

SERIES 1982 AND 1988. AND CAPITAL IMPROVEMENT REVENUE. REVENUE REFUNDING AND REFUNDING REVENUE CERTIFICATES. SERIES 1988.1988 AND 1993 COVERAGE LAST TEN FISCAL YEARS Pledged Revenues Total Local Revenue Government Occupational Guaranteed Mobile Court Available Half-cent Franchise License Entitlement Home Fines and Year for Debt Sales Tax Fees Tax (1) (2) Licenses Forfeitures Service 1986 $ 1,414,157 $ 275,654 $ 340,013 $ 643,622 $ 31,857 $ 388,082 $ 3,093,385 1987 1,539,964 292,968 362,960 643,622 28,696 427,981 3,296,191 1988 1,833,635 314,227 349,663 643,622 27,015 595,245 3,763,407 1989 1,858,812 333,517 376,590 643,622 '28,903 607,365 3,848,809 1990 1,875,964 344,210 386,809 643,622 26,375 612,535 3,889,515 1991 1,735,149 392,588 386,804 643,622 24,768 701,281 3,884,212 1992 1,662,566 458,619 380,567 643,622 25,231 -787,389 3,957,994 1993 1,764,593 488,574 365,591 643,622 16,025 732,964 4,011,369  ;

1994 1,997,084 542,026 367,467 643,622 15,457 735,266 4,300,922 1995 2,106,763 497,871 378,545 643,622 16,913 660,082 4,303,796 (1) Subject to a prior lien on 1965 and 1972 Refunding and Improvement Excise Tax Bonds through fiscal year 1993.

(2) The minimum amount of state revenue sharing funds to be received by the City in accordance with the provisions of the State of Florida Revenue Sharing Act.

(3) The Capital Improvement Revenue Bonds, Series 1982 were sold in Deember 1982; and the first principal payment occurred in October,1984. The outstanding portion of this issue was advance refunded in August, 1986 by the Capital Improvement Refunding Revenue Bonds. Since an escrow account was established for the redemption of this issue, the 1982 issue will not be included in the debt service requirements after 1986.

(4) The Capital Improvement Refunding Revenue Bonds, Series 1986 were sold in August,1986. The first interest payment for this issue was on October 1,1986, and the first principal payment was on October 1, 1987. This isme places a senior lien on the pledged revenues. The outstanding portion of this issue was refunded in December,1993 by the Capital Improvernent Refunding Revenue Certificates, Series 1993.

Since an escrow account was established for the redemption of this issue, the 1986 bonds will not be included in the debt service requirements for 1994.

152

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I Debt Service Requirements (3) (4) (6) (6) (7)

Principal Interest Total Coverage

$ 160,000 $ 669,430 $ 829,430 3.73 900,000 851,101 1,751,101 1.88 1,195,000 1,184,385 2,379,385 1.58 575,000 1,236,591 1,811,591 2.12

! 810,000 1,372,694 2,182,694 1.78 865,000 1,324,897 2,189,897 1.77 930,000 1,271,543 2,201,543 1.80 l 1,145,000 1,212,244 2,357,244 1.70 l 1,410,000 1,058,229 2,468,229 1.74 l 980,000 1,201,352 2,181,352 1.97 l

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l (5) The Capital Improvement Revenue Certificates, Series 1986 were sold in July,1986. The first interest payment was on October 1,1986, and the first principal payment was on April 1,1987. This issue constitutes a junior or subordinate lien on the pledged revenues. The outstandmg portion of this issue was advance refunded in August,1988 by the Capital Improvement Revenue Refunding Certificates, Series 1988.

Since an escrow account was established for the redemption of this issue, the 1986 certificater will not be l included in the debt service requirements after 1988.

.(6) The CapitalImprovement Revenue Refunding Certificates, Series 1988 were sold in August,1988. He first principal and interest payments were made on April 1,1989. This issue constitutes a junior or subordinate lien on the pledged revenues until the senior debt, the Capital Improvement Refunding Revenue Bonds, Series 1986, was refunded in December,1993.'

(7) He Capital Improvement Refunding Revenue Certificates, Series 1993 were sold in December,1993. The i

first interest payment was made on April 1,1994, and the first principal payment will be made on October 1, l

1999. His issue is on a parity with the Capital Improvement Revenue Refunding Certificates, Series 1988.-

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4 ll 153

l CITY OF OCALA, FLORIDA SCHEDULE OF OPTIONAL GAS TAX REVENUE BONDS. SERIES 1989. iWD OPTIONAL GAS TAX REFUNDING REVENUE BONDS. SERIES 1992 COVERAGE ,

LAST TEN FISCAL YEARS l

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1 l Pledged l Revenue -

l Six-Cent l Optional Debt Service Requirements (1) (2) l Year Gas Tax Principal Interest Total Coverage

! 1990 $ 1,745,142 $ - $ 1,005,255 $ 1,005,255 1.74 1991 1,829,804 350,000 994,405 1,344,405 1.36 1992 1,945,252 370,000 971,900 1,341,900 1.45 l 1993 2,060,097 395,000 851,586 1,246,586 1.65 1994 2,065,100 620,000 734,403 1,354,403 1.52 1995 2,077,200 595,000 715,763 -1,310,763 1.58 i ,

! (1) The Optional Gas Tax Revenue Bonds, Series 1989 were sold in February,1989. The first interest payment

' occurred in June,1989, and the first principal payment occurred in December,1990. The outstanding portion of this issue was advance refunded in December,1992 by the Optional Gas Tax Refunding Revenue Bonds, Series 1992. Since an escrow account was established for the redemption of this issue, the 1989 i

bonds will not be included in the debt service requirements after 1993.

(2) The Optional Gas Tax Refunding Revenue Bonds, Series 1992 were sold in December,1992. The first interest payment occurred in June,1993, and the first principal payment occurred in December,1993, i

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154 4

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CITY OF OCALA, FLORIDA 1

COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT f 21 l September 30,1995 Bonds Applicable to City of Ocala (tcvernmental Unit Outstanding Percent (1) Amount M:rion County Limited Ad Valorem Refunding Tax Bonds, Series 1994 $ 10,335,000 29.42 % $ 3,040,557 School District of Marion County General Obligation Bonds, Series 1990 9,625,000 General Obligation Refunding Bonds, Series 1992 19,845,000 General Obligation Partial Refunding Bonds, '

Series 1993 14,465,000 43,935,000 29.42 12,925,677 Total Overlapping Debt S 54,270,000 29.42 % $ 15,966,234 (1) Represents the fraction of assessed valuation of taxable property in the City of Ocala over the assessed valuation of taxable property in Marion County.

(2) The City of Ocala did not have any general obligation debt outstanding during the fiscal year ended September 30,1995, 155

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CITY OF OCALA, FLORIDA MISCFt I ANEOUS STATISTICAL DATA September 30,1995 i

l Date of Incorporation February 4,1869 City Charter Adopted January 28,1885 Form of Govemment Council / Manager Area of City 35.44 square miles Miles of Streets, Sidewalks and Bikepaths:

Streets - Paved 277.59 miles i Streets- Unpaved 40.-;0 miles Sidewalks (2) 71.77 miles Bikepaths 22.35 miles Miles of Sewers:

Storm . 62.54 miles Sanitary 281.21 miles Forre Main 57.63 miles Lift Stations I 88 I Building Permits (October 1994 - September 1995) (1):

Permits issued 4,387 Permit Value $80,922,082 Fire Protection:

Stations 57 Employees - Swom 106 Employees - Civilian 9 Fire and rescue response time (minutes) 3 Police Protection:

Stations 3 Employees- Swom 135 Employees - Reserve 13 Employees - Civilian 65 Vehicular Patrol Units - Marked Vehicles 82

- Motorcycles 6

- OtherVehicles 47 Recreation:

Activity areas 92 Land area (acres) 468 Activity centers 7 Pools 2 (1) Includes plumbing, gas, electrical, water, heating, air conditioning, refrigeration, ventilation and building permits, the latter of which is exclusive of moving and sign permits.

(2) Includes 11.66 miles of sidewalks installed by the Florida Department of Transportation but located inside the City limits.

156

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l CITY OF OCALA, FLORIDA l \

! DEMOGRAPHIC STATISTICS l POPULATION (1)

Year City of Ocala Marlon County 1986 41,946 166,606 1987 42,742 176,102 1988 43,538 186,605 1989 44,334 196,749 1990 42,045 194,833 l 1991 41,198 200,314 1992 41,863 206,642 1993 42,400 213,328 1994 42,920 217,862 1995 43,207 219,200 l

Sources: The Bureau of Business and Economic Research - University of Florida, Gainesville (years 1986 through 1990) and the City of Ocala Comprehensive Plan - Planning Department (years 1991 through 1995).

POPULATION PROJECTIONS

• Year Marion County State of Florida 2000 256,800 15,527,500 l 2005 286,300 16,761,500 l 2010 315,000 17,958,400 i 2015 344,300 19,158,200

! 2020 373,600 20,349,700 Source: -Bureau of Business and Economic Research - University of Florida, Gainesville. Figures for years

! subsequent to year 2020 are unavailable.

i I  % POPULATION BY AGE GROUP

• Year Marion County State of Florida 0-14 19.5 19.5 15-44 36.8 41.5 l 45-64 20.3 20.3 65 + 23.4 18.7 l

!, Source: 1994 Florida Statistical Abstract, Bureau of Business and Economic Research, University of Florida.

• Figures are not maintained for individual cities within Marion County.

1 (1) On April 1,1994, Ocala ranked 41st in population size among Florida cities; Marion County ranked 17th in

.' population among Florida counties; and Marion County ranked 30th in population density among Florida counties.

}

157

CITY OF OCALA, FLORIDA LIST OF TEN LARGEST TAXPAYERS 1994 TAX ROLL Percent of Total Assessed Assessed City Tax Taxpayer Type of Business Valuation Valuation Bill (1) (2)

1. K-Mart Corporation Distribution Center $ 47,109,629 3.03 % $ 237,000

2. United Telephone Telephone Communications 43,166,647 2.77 -

217,000 of Florida

3. Paddock Mall Regional Shopping Center 24,202,631 1.55 122,000 Associates -

4. Marion Community General Hospital Care 21,985,224 1.41 111,000 Hospital

5. Paddock Park Apartment Complex 13,507,592 0.87 68,000 Apartments 1

6. Clairson Manufacturing 12,390,977 0.80 62,000 Intemational Corporation

7. C.C. Ocala Local Shopping Center 9,798,106 0.63 49,000 Joint Venture i

8. Ocala Mall Local Shopping Center 8,392,312 0.54 42,000 1 Assoc., Ltd.

9. Wal-Mart Local Shopping Center 8,225,535 0.53 41,000

10. Sears, Roebuck Department Store 7,458,935 0.48 37,000  !

& Co. '

Total Adjusted Value 196,237,588 12.61 986,000 Other Taxpayers 1,360,158,216 87.39 6,837,068 Total Assessed Value $ 1,556,395,804 100.00 % $ 7,823,068 I

I (1) City of Ocala taxpayers pay City, County, School Board and certain water district levies. The City levy only I is shown here.

(2) Excludes property tax levies of the Downtown Development Commission. l 158 i

CITY OF OCALA, FLORIDA l

SCHEDULE OF INSURANCE IN FORCE September 30,1995 Deductible Self Limit of i Company Policy # Typc of Coverage Retention Coverage City of Ocala Self-insured Workers' Compensation - Statutory ITT t8sitford ETB-102113 Police and Firefighters accidental -

$ 25,000 death and dismemberment ITT Hartford ETB-102113 Fresh Pursuit -

$ 25,000 ITT Hartford ETB-102113 Police and Firefighters intentional -

$ 75,000 death and dismemberment Shenandoah i. i 07-0009629 Employee Life, AD and D -

Various as specified in ,

policy l City of Ocala Self-Insured Disability income Replacemein - 60% of income C:mmerce & Industry 6058013 All risk property $ 10,000 As specified in policy American Eagle Group 47984-02 Airport Liability - $5,000,000 per occurrence Florida League FML 116 General Liability $100,000 $1,000,000 per person per occurrence

$200,000 per occurrence Flirida League FML 116 Public Officials, EMT, Employer $100,000 $1,000,000 Practices Liability per person per occurrence

$200,000 pu occurrence Florida League FML 116 Fire legal $1ud,000 $1,000,000 per occurrence Florida League FML 116 Law Enforcement Liability $100,000 $1,100,000 per claim per person

$1,200,000 per occurrence City of Ocala Self-insured Auto Liability - -

Continued 159

CITY OF OCALA, FLORIDA SCHEDULE OF INSURANCE IN FORCE - CONTINUED September 30,1995 i

Deductible Self Limit of Company Policy # Type of Coverage Retention Coverage City of Ocala Self Insured Auto gysical Damage -

Actual cash value Florida Municipal FMIT 425 Auto Physical Damage, High $ 3,000 Replacement Liability Self- Cost Vehicles cost of vehicle ,

insurers Policy '

NorthBrook CA0493402 Leased Autos $ 500 $100/300/50 Blue Cross / Blue 15920 Employee Health Coverage Fully insured Various as Shield of Florida specified in policy City of Ocala Self-insured Prescription Program Fully self- -

insured i City of Ocala Self-insured Dental Fully self- $1,000 per insured person City of Ocala Self-insured Blanket Honesty Bond Fully self- -

insured Interstate Fire & LQA1000178 Legal Liquor Liability -

$300,000 Casualty Peerless Insurance #SM64908 Bond, Over-weight charge -

$10,000 (landfill)

Surety Bonds Required by Ordinance Amount City Manager- Scotty J. Andrews $95,000 State Automobile MutualInsurance Company - #78059 Finance Director- Glen L. Baker $95,000 State Automobile MutualInsurance Company- #78058 l

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CITY OF OCALA, FLORIDA PROPERTY VALUE. CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Residential Bank Deposits Construction (1) Construction (1) (in thousands)

Number Number Savings and Loan of Units _ Value of Units Value Bank (2)(4) Association (3)(4) 1986 168 $ 25,943,361 484 $ 13,682,001 $ 898,714 $ 569,115 1987 144 20,501,586 207 10,956,790 961,160 698,496 1988 125 22,273,533 199 12,073,501 1,099,243 694,452 1989 148 56,245,634 236 13,646,775 1,220,332 749,632 1990 179 42,657,459 204 11,441,739 1,330,496 768,062 1991 70 30,114,989 83 5,716,862 1,409,328 800,513 1992 65 24,020,610 68 5,366,231 1,418,489 723,894 1993 35 9,475,119 96 8,105,884 1,422,021 711,342 1994 70 38,309,231 112 10,159,393 2,074,371 85,726 1995 72 32,579,580 119 8,439,036 2,134,528 119,237 (1) Obtained from records maintained by the City of Ocala Building, Zoning and Licensing Department.

(2) Obtained by the Florida Bankers Association for 1986 through 1992, and Barnett Bank for 1993 through 1995. Figures shown are for Marion County and represent total bank deposits at September 30 for the years 1986 through 1995.

J (3) Obtained by the Federal Home Loan Bank for the years 1986 through 1991, the U.S. Savings and Loan League for 1992, and Barnett Bank for 1993 through 1995. Figures shown are for Marion County and represent total savings and loan association deposits at March 31 for 1986, at June 30 for 1987,1988 and 1992, and at September 30 for 1989 through 1991, and 1993 through 1995.

(4) The swing in deposits from savings and loan associations to banks represents the purchase / merger of Mid-State Federal Savings and Loan Association by AmSouth Bank and of California Federal Savings and i Loan Association by NationsBank during fiscal year 1994.

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CITY OF OCALA, FLORIDA LIST OF OFFICERS' SALARIES l l

September 30,1995 City Manager $ 83,033 Assistant City Manager 72,630 Assistant City Manager 55,000 Assistant City Manager 50,000 Building Official 59,783 City Clerk 38,387 City Engineer 62,759 Electric Utility Director 72,630  :

Finance Director 56,813 i i

Fire Chief 53,792 Fleet Management Director 37,408 Golf Director 42,749 Human Resource Director 49,209  !

Internal Auditor 44,280 M6aagement Information System Director 53,846 Planning Director 48,580 Police Chief 65,292 Public Works Director 53,206 Purchasing Director 50,268 Recreation and Parks Director 47,153 Regional Library Director 39,292 Risk Manager 49,511 Water and Sewer Director 53,405 162

CITY OF OCALA, FLORIDA

SUMMARY

OF DEBT SERVICE REQUIREMENTS TO MATURITY ALL BONDED DEBT 1996-2019 capital improvement Utility Utility Refunding Systems Systems Revenue Electric Water and Subordinate Subordinate Optional Certificates Systern Sewer Refunding Refunding Gas Tax Total and Revenue Revenue Refunding Revenue Revenue Refunding Principal Fiscal Refunding Refunding Revenue Bonds Bonds Revenue and Year Certificates Bonds Bonds Series 1992A Series 19928 Bonds _ interest 1996 $ 2,184,712 $ 1,928,038 $ 1,181,658 $ 4,216,296 $ 3,152,250 $ 1,309,578 $ 13,972,532 1997 2,182,262 1,923,325 1,183,828 4,203,865 3,154,200 1,305,489 13,952,969 1998 2,183,862 1,924,390 1,179.418 4,205,490 3,150,440 1,302,953 13,946,553 1999 898,062 1,800,030 1,183,348 4,195.860 2,031,576 1,302,476 11,411,352 2000 1,329,482 - 1,175,583 4,199,280 629,720 1,303,395 8,637,460 8001 1,331,702 - 1,180,901 4,194,890 629,720 1,296,018 8,633,231 2002 1,327,765 - 1,173,265 4,192,903 629,720 1,300,565 8,624,218 2003 1,332,528 - 1,177,574 4,188,455 2,390,270 1,296,265 10,385,092 2004 1,330.848 - 1,174,406 4,176,202 2,382,260 1,298,245 10,361,961 2005 1,327,518 - 1,173,759 4,180,931 2,381,225 1,296,887 10,360,320 2006 1,332,258 - 1,175,253 4,168,888 2,376,094 1,291,988 10,344,481 2007 1,325,283 - 1,168,887 4,167,450 2,366,719 1,292,812 10,321,151 2008 1,326,538 - 1,169,471 4,101,750 - 1,288,800 7,946,559 3009 1,325,733 - 1,165,812 4,153,437 - 1,285,250 7,930,232 2010 1,323,148 - 1,162,656 4,154,400 - 1,287,500 7,927,704 3011 1,322,719 - 1,160,365 4,143,988 - - 6.627,072 2012 1,324,*31 - 1,158,546 4,140,625 - - 6,623,302 }

2013 1,844,400 - 1,156,806 4,138,750 - - 7,139,958' 2014 1,837,869 - 1,154,750 4,124,375 - - 7,116,994 2015 1,839,500 - 1,147,180 4,121,719 - - 7,108,399 1 20$6 1,839,125 - 1,148,509 4,114,687 - - 7,102,321 2017 1,835,000 - - - - - 1,835,000 2018 1,832,000 - - - - - 1,832,000 2019 1.834,750 - - - - -

1.834.750 Total $ 37,571,195 $ 7,575,783 $ 24 551,975 $ 87f>44,241 $ 25.274,194 $ 19,458.221 $ 201,975,609 l

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CITY OF OCALA, FLORIDA STATEMENT OF BONDED DEBT AND INTEREST CAPITAL IMPROVEMENT REVENUE REFUNDING CERTIFICATES, SERIES 1988 September 30,1995 i

l This issue, which was sold in August,1988, consists of $7,505,000 in fully registered certificates in denominations of $5,000 and integral multiples thereof. The certificates mature from April 1,1989 through 1998 and are not  ;

subject to redemption prior to their stated maturities. As of September 30,1995, $4,135,000 of the certificates I have been retired. The outstanding certificates will mature as listed below. The paying agent and certificate q registrar is Citizens and Southern Trust Company (Georgia), National Association in Atlanta, Georgia.

Sales tax revenues, franchise fees, occupational license taxes, the guaranteed entitlement portion of sta'e revenue ,

sharing funds, mobile home licenses and court fines and forfeitures are pledged to retire these certificates; however, the lien and pledge for payment of the certifrates is junior and subordinate to the lien upon and the pledge of the l pledged revenues for the payment of the City's Capital Improvement Refunding Revenue Bonds, Series 1986.

The certificates were issued primarily to advance refund the outstanding portion of the Capital Improvement Revenue Certificates, Series 1986 and to pay the cost of various capital improvement projects of the City.

Fiscal Interest Principal Interest Interest Year Rate Due 4-1 Due 10-1 _ Due 4-1 Total 1996 6.90 % $ 1,050,000 $ 118,325 $ 118,325 $ 1,286,650 1997 7.00 1,120,000 82,100 82,100 1,284,200 ,

1998 7.15 1,200,000 42,900 42,900 1,285,800 '

Total $ 3,370,000 $ 243,325 $ 243,325 $ 3,856,650 Continued 154

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CITY CF OCALA, FLORIDA  !

STATEMENT OF BONDED DEBT AND INTEREST - CONTINUED CAPITAL IMPROVEMENT REFUNDING REVENUE CERTIFICATES, SERIES 1993 September 30,1998 i l The Capital Improvement Refunding Revenue Certificates, Series 1993, dated December 14,1993, bear interest at  ;

l 3.90-5.25%, payable semi-annually on April 1 and October 1. The cenificates, which are fully registered and were issued in denominations of $5,000 or any integral multiple thereof, consist of $6,045,000 of serial certificates and ,

$12,320,000 of term certificates. The principal of and premium, if any, are payable upon presentation and surrender to the paying agent, NationsBank of Georgia, National Association, Atlanta, Georgia. l l  !

The Series 1993 Certificates and the interest thereon are payable solely from and secured by a lien upon and pledge  !

( of sales tax revenues, franchise fees, occupational license taxes, the guaranteed entitlement portion of state revenue i sharing funds, mobile home licenses and court fmes and forfeitures. The Series 1993 Certificates are payable on a I parity with the City's outstanding Capital improvement Revenue Refunding Certificates, Series 1988.

Proceeds received from the sale of the Series 1993 Cenificates, were used pnmarily to refund the City's Capital Improvement Refunding Revenue Bonds, Series 1986, and to finance the costs of acquisition and construction of i certain capital improvements in the City.

l I Fiscal Interest Principal interest Interest  ;

Year Rate Due 10-1 Due 10-1 Due 4-1 Total 1996 - $ - $ 449,031 $ 449,031 $ 898,062 1997 - - 449,031 449,031 898,062-1998 - - 449,031 449,031 898,062 l 1999 - - 449,031 449,031 898,062 2000 3.90 % 440,000 449,031 440,451 1,329,482 2001 4.00 460,000 440,451 431,251 1,331,702 2002 4.10 475,000 431,251 421,514 1,327,765 2003 4.20 500,000 421,514 411,014 1,332,528 2004 4.30 520,000 411,014 399,834 1,330,848 l 2005 4.50 540,000 399,834 387,684 1,327,518 2006 4.60 570,000 387,684 374,574 1,332,258 2007 4.70 590,000 374,574 360,709 1,325,283 l

2008 4.80 620,000 360,709 345,829 1,326,538 2009 4.90 650,000 345,829 329,904 1,325,733 2010 4.90 680,000 329,904 313,244 1,323,148 2011 5.25 715,000 313,244 294,475 1,322,719 2012 5.25 755,000 294,475 274,656 1,324,131 2013 5.25 1,330,000 274,656 239,744 1,844,400 2014 5.25 1,395,000 239,744 203,125 1,837,869 2015 5.00 1,470,000 203,125 166,375 1,839,500 2016 5.00 1,545,000 166,375 127,750 1,839,125 2017 5.00 1,620,000 127,750 87,250 1,835,000 2018 5.00 1,700,000 87,250 d4,750 1,832,000 2019 5.00 1,790,000 44,750 - 1,834,750 l Total g g g g I l Continued 165  ;

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CITY OF OCALA, FLORIDA STATEMENT OF BONDED DEBT AND INTEREST - CONTINUED ELECTRIC SYSTEM REVENUE REFUNDING BONDS, SERIES 1989B September 30,1995 In October,1989, the $13,000,000 Electric System Revenue Refunding Bonds, Series 1989B were sold. This issue consists of $13,000,000 in serial bonds which mature on October 1,1990 through 1998. As of September 30, 1995. $6,355,000 o'these bonds have been retired. The schedule below shows the actual maturities and the debt senice requirements for the outstanding serial bonds. The bonds are fully registered and were issued in denorninations of $5,000 or any integral multiple thereof. The paying agent and bond registrar is Citizens and Southern Trust Company (Georgia), National Association in Atlanta, Georgia.

The payment of principal and interest oa the Series 1989B bonds is secured by a lien on the net revenues derived from the operation of the City's electric system.

The proceeds of this issue were used for the purpose of advance refunding the City's outstanding Power System Revenue Bonds, Series 1977, and the City's outstanding Power Supply Revenue Refunding Bonds, Series 1988.

Fiscal Interest Principal Interest Interest Year Rate Due 10-1 Due 10-1 Due 4-1 Total 1996 6.55 % $ 1,530,000 $ 224,073 $ 173,965 $ 1,928,038 1997 6.70 1,630,000 173,965 119,360 1,923,325 1998 6.80 1,745,000 119,360 60,030 1,924,300 1999 6.90 1,740,000 60,030 - 1,800,030 Total $ 6,645,000 $ 577,428 $ 353,355 $ 7,575,783 Continued 166

CITY OF OCALA, FLORIDA STATEMENT OF BONDED DEBT AND INTEREST - CONTINUED WATER AND SEWER REFUNDING REVENUE BONDS, SERIES 1988 September 30,1995 nis issue, which was sold in July,1988, consists of $2,145,000 serial bonds maturing from October 1,1993 through 2000 and of $10,305,000 term bonds of which $3,430,000 mature on October 1,2007 and $6,875,000 mature on October 1,2015. As of September 30,1995, $290,000 of these bonds have been retired. The schedule below shows the actual maturities for the serial bonds and the debt service requirements for the term bonds. The bonds are fully registered and were issued in denominations of $5,000 or any integral multiple thereof. The paying agent and registrar is Citize is and Southern Trust Company (Georgia), National Association in Atlanta, Georgia.

The payment of principal and interest on the Series 1988 bonds is secured by a lien on the net revenues derived from the operation of the water and sewer system; however, the lien on the pledged revenues for the Series 1988 bonds is junior and subordinate to the Series 1985A and Series 1986 bonds.

Proceeds of this issue were used primarily to advance refund the Water and Sewer Refunding Revenue Bonds, Series 1985B.

Fiscal Interest Principal Interest Interest Year _ Rate Due 10-1 Due 10-1 Due 4-1 Total 1996 6.500 % $ 260,000 $ 465,054 $ 456,604 $ 1,181,658 1997 6.700 280,000 456,604 447,224 1,183,828 1998 6.800 295,000 447,224 437,194 1,179,418 1999 6.900 320,000 437,194 426,154 1,183,348 2000 7.000 335,000 426,154 414,429 1,175,583 2001 7.100 365,000 414,429 401,472 1,180,901 2002 7.625 385,000 401,471 386,794 1,173,265 2003 7.625 420,000 386,793 370,781 1,177,574 2004 7.625 450,000 370,781 353,625 1,174,406 2005 7.625 485,000 353,625 335,134 1,173,759 2006 7.625 525,000 335,134 315,119 1,175,253 2007 7.625 360,000 315,118 293,769 1,168,837 2008 7.625 605,000 293,768 270,703 1,169,471 2009 7.875 650,000 270,703 245,109 1,165,812 2010 7.875 700,000 245,109 217,547 1,162,656 2011 7.875 755,000 217,546 187,819 1,160,365 2012 7.875 815,000 187,818 155,728 1,158,546 2013 7.875 880,000 155,728 121,078 1,156,806 2014 7.875 950,000 121,078 83,672 1,154,750 2015 7.875 1,020,000 83,671 43,509 1,147,180 2016 7.875 1,105,000 43,509 - 1,148,509 Total $ 12,160,000 $ 6,428,511 $ 5,963,464 $ 24,551,975 Continued 167 1

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I CITY OF OCALA, FLORIDA 1

STATEMENT OF BONDED DEBT AND INTEREST - CONTINUED I OPTIONAL GAS TAX REFUNDING REVENUE BONDS, SERIES 1992 September 30,1995  ;

The Optional Gas Tax Refunding Revenue Bonds, Series 1992, dated December 10,1992, bear interest at 2.75-6.0%, payable semi-annually on June 1 and December 1. The bonds, which are fully registered and were issued in denominations of $5,000 or any integral multiple thereof, consists of $11,915,000 of serial bonds and

$2,425,000 of term bonds. As of September 30,1995, $1,215,000 of these bonds have been retired. The principal of and premium, if any, are payable upon presentation and surrender to the paying agent, NationsBank of Georgia, National Association, Atlanta, Georgia.

The Series 1992 Bonds and the interest thereon are payable solely from and secured by a lien and pledge of the proceeds of the six cent optional gas tax received by the City.

Proceeds received from the sale of the Series 1992 Bonds were used primarily to refund the City's Optional Gas Tax Revenue Bonds, Series 1989.

Fiscal Interest Principal Interest Interest Year Rate Due 12-1 Due 12-1 Due 6-1 Total 1996 3.600 % 4 615,000 $ 352,824 $ 341,754 $ 1,309,578 1997 4.100 635,000 341,753 328,736 1,305,489 1998 4.400 660,000 328,736 314,217 1,302,953 '

1999 4.625 690,000 314,216 298,260 1,302,476 2000 5.000 725,000 298,260 280,135 1,303,395 2001 5.100 755,000 280,135 260,883 1,296,018 2002 5.300 800,000 260,882 239,683 1,300,565 2003 5.500 840,000 239,682 216,583 1,296,265 2004 5.600 890,000 216,582 191,663 1,298,245 2005 5.625 940,000 191,662 165,225 1,296,887 2006 5.750 990,000 165,225 136,763 1,291,988 2007 5.850 1,050,000 136,762 106,050 1,292,812 2008 6.000 1,110,000 106,050 72,750 1,288,800 2009 6.000 1,175,000 72,750 37,500 1,285,250 2010 6.000 1,2502 00_ 37,500 - 1,287,500 Total $ 13,125,000 $ 3,343,019 $ 2,990,202 $ 19,458,221 Continued 168

CITY OF OCAl A, FLORIDA STATEMENT OF BONDED DEBT AND INTEREST - CONTINUED UTILITY SYSTEMS SUBORDINATE REFUNDING REVENUE BONDS, SERIES 1992A September 30,1995 nc Utility Systems Subordinate Refunding Revenue Bonds, Series 1992A, dated March 15,1992, bear interest at 3.25-6.50%, payable semi-annually on April 1 and October 1. He bonds are fully registered and were issued in denominations of $5,000 or any integral multiple thereof. As of September 30,1995, $3,020,000 of the total issue of $51,880,000 have been retired, ne principal of and premium, if any, are payable upon presentation and surrender to the paying agent, Natims Bank of Georgia, National Association, Atlanta, Georgia.

He Series 1992A Bonds and the interest are payable solely from and secured by a lien on the surplus revenues of the City's Water and Sew. r System and Electric System.

He proceeds received from the sale of the Series 1992A Bonds were used primarily to refund the City's Water and Sewer Revenue Bonds, Series 1985A and the Water and Sewer Refunding Revenue Bonds, Series 1986.

Fiscal Interest Principal Interest interest Year Rate Due 10-1 Due 10-1 Due 4-1 Total 1996 4.750 % $ 1,255,000 $ 1,495,551 $ 1,465,745 ,3 4,216,296 1997 5.000 1,305,000 1,465,745 1,433,120 4,203,865 1998 5.200 1,375,000 1,433,120 1,397,370 4,205,490 1999 5.400 1,440,000 1,397,370 1,358,490 4,195,860 2000 5.600 1,525,000 1,358,490 1,315,790 4,199,280 2001 5.800 1,610,000 1,315,790 1,269,100 4,194,890 2002 5.900 1,705,000 1,269,100 1,218,803 4,192,903 2003 6.000 1,805,000 1,218,802 1,164,653 4,188,455 2004 6.100 1,905,000 1,164,652 1,106,550 4,176,202 2005 6.125 2,030,000 1,106,550 1,044,381 4,180,931 2006 6.500 2,150,000 1,044,382 974,506 4,168,888 2007 6.250 2,290,000 974,506 902,944 4,167,450 2008 6.500 2,435,000 902,944 823,806 4,161,750 2009 6.500 2,590,000 823,806 739,631 4,153,437 2010 6.500 2,765,000 739,631 649,769 4,154,400 2011 6.500 2,940,000 649,769 554,219 4,143,988 2012 6.250 3,130,000 554,219 456,406 4,140,625 2013 6.250 3,330,000 456,406 352,344 4,138,750 2014 6.250 3,530,000 352,344 242,031 4,124,375 2015 6.250 3,755,000 242,032 124,687 4,121,719 2016 6.250 3,990,000 124,687 - 4,114,687 Total $ 48,860,000 $ 20,089,896 $ 18,594,345 $ 87,544,241 Continued 169

CITY OF OCALA, FLORIDA STATEMENT OF BC,NDED DEBT AND INTEREST - CONTINUED UTILITY SYSTEMS SUBORDINATE REFUNDING REVENUE BONDS, SERIES 19928 September 30,1995 The Utility Systems Subordinate Refunding Revenue Bonds, Series 1992B, dated March 15,1992, bear interest at 3.25-6.25%, payable semi-annually on April 1 and October 1. The bonds are fully registered and were issued in denominations of $5,000 or any integral multiple thereof. As of September 30,1995, $10,020,000 of the total issue of $28,435,000 have been retired. The principal of and premium, if any, are payable upon presentation and surrender to the paying agent, Nations Bank of Georgia, National Association, Atlanta, Georgia.

The Series 1992B Bonds and the interest are payable solely from and secured by a lien on the surplus revenues of the City's Water and Sewer System and Electric System.

Proceeds received from the sale of the Ser!'.:s 1992B Bonds were used primarily to refund the City's Electric System Revenue Bonds, Series 1989A. -

Fiscal Interest Principal Interest interest Year Rate Due 10-1 Due 10-1 Due 4-1 Total 1996 4.750 % $ 2,160,000 $ 521,774 $ 470,476 $ 3,152,250 1997 5.000 2,270,000 470,475 413,725 3,154,200 1998 5.200 2,385,000 413,725 351,715 3,150,440 1999 5.400 1,365,000 351,710 314,860 2,031,576 2000 - - 314,860 314,860 629,720 2001 - - 314,860 314,860 629,720 2002 - - 314,860 314,860 629,720 2003 6.000 1,815,000 314,860 260,410 2,390,270 2004 6.100 1,920,000 260,410 201,850 2,382,260 2005 6.125 2,040,000 201,850 139,375 2,381,225 2006 6.250 2,165,000 139,375 71,719 2,376,094 2007 6.250 2,295,000 71,719 - 2,366,719 Total $ 18,415,000 $ 3,690,484 S 3,168,710 $ 25,274,194 Continued 170

CITY OF OCALA, FLORIDA ANALYSIS OF SEWERAGE SYSTEM CAPITAL IMPROVEMENT FUND ESTABLISHED FOR FLORIDA DEPARTMENT OF ENVIRONMENTAL i

REGULATION GRANT #621080

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The City received grant number 621080 from the State of Florida Department of Erwironmental Regulation for a portion of the construction of Sewer Treatment Plant #1. One of the requirements of this grant is that the City provide for a sewerage system capital improvement account to accumulate the equivalent future value of the grant amount adjusted for inflationary cost increases upon completion of the grant-related project. In December,1985, the City adopted ordinance #1810 which addresses this subject in section 5. The amount to be accumulated by the City is $6,020,462.40. Grant condition number 23 requires annual certification that the sewerage system capital l

improvement account is maintained in accordance with Section 17-501.610 of the Florida Administrative Code.

l The construction of the grant-related project, Sewer Treatment Plant #1, was completed during fiscal year 1988.

Since prepayments to the capital improvement fund are allowed, the City started making deposits in fiscal year 1986. The following schedule shows all activity in the sewerage system capital improvernent fund since its inception:

Fiscal Interest Balance Year Deposits income September 30, 1986 $ 301,023.12 $ -

$ 301,023.12 1987 301,023.12 18,714.00 620,760.24 1988 301,023.12 50,909.96 972,693.32

[ 1989 301,023.12 91,647.90 1,365,364.34 t 1990 301,023.12 125,170.01 1,791,557.47 1991 301,023.12 142,728.85 2,235,309.44 1992 301,023.12 111,185.27 2,647,517.83 1993 301,023.00 116,575.01 3,065,115.84 1994 301,023.00 133,077.65 3,499,216.49 1995 301,023.00 178,917.78 3,979,157.27 l

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I l Seminole Electric Cooperative, Inc.

Consolidated Financial Statements December 31,1995 I

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Suite 2800 Telephone 813 223 7577 j 400 North Ashley Street P 0. Box 2640 Tampa, FL 336012640 i Price FMterliousextr &

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Iteport of Independent Certified Public Accountants February 21,1996 To the Board of Trustees Seminole Electric Cooperative, Inc.

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of reven" ad expenses and patronage capital and of cash flows present faidy, in all materia. .spects, the financial position of Seminole Electdc Cooperative, Inc. and its subsidiary (the Cooperative) at December 31,1995 and 1994, and the results of their operations and their cash flows for the years then ended in conformity with generelly accepted accounting principles. %ese financial statements are the responsibility of the Cooperative's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards and the financial audit requirements of the govemment auditing standanls issued by the Comptruller General of the United States. Dese standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial staternents are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and signjiicant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits pmvide a reasonable basis for the opinion expressed above.

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SEMINOLE ELFCTRIC COOPERATIVE. INC.

CONSOLIDATED BALANCE SHEETS December 31, 1995 1994 ASSETS Utility plant:

Plant in service $ 844,390,584 $ 842,146,085 Construction work in progress 4.825.231 7.371.516 849,215,815 849,517,601 Less accumulated depreciation and amortization (266.143.311) (243.332.961)

Utility plant, net 583.072.504 606.184.641 Investments:

Investments in associated organizations 16,026,492 16,627,688 Funds held by trustees 17.683.655 17.408.057 Total investments 33.710.147 34.035.745 Current assets:

Cash and cash equivalents 76,308,774 38,591,395 Receivables, principally for sales of electricity 23,081,075 17,571,700 Inventories, at average rost:

Materials and supplies 17,515,190 17,165,963 Fuel 22,013,046 24,695,032 Prepayments and other 2.314.034 3.821.754 Total current assets 141.232.119 101.845.844 Deferred charges 79.247.529 77.733.953

( $ 837.262.299 $ 819.800.182 r

The accompanying notes are an integral part of these financial statements.

SEMINOLE ELECTRIC COOPERATIVE. INC.

• CONSOLIDATED BALANCE SHEETS December 31, 1995 1994 EOUITY AND LIABILITIES Equity:

Memberships $ 1,100 $ 1,100 Patronage capital 63,120,859 57,804,334 Donated capital 31.615 31.615 Total equity 63.153.574 57.837.049 Long-term liabilities:

Long-term debt 621,301,089 629,135,446 Obligations under capital leases 26,688,718 28,086,248 Other 3.327.382 3.000.898 Total long-term liabilities 651.317.189 660.222.592 Current liabilities:

Current portion of:

Long-term debt 14,782,255 12,953,971 Obligations under capital leases 1,993,978 1,761,824 Accounts payable 25,211,874 13,789,882 Other accrued liabilities 47.498.796 40.046.489 Total current liabilities 89.486.903 68.552.166 Deferred gain on sale-leaseback of plant 19.761.773 21.177.542 Other deferred credits 13.542.860 12.010.833 Commitments and contingencies (Notes 10 and 11)

$ 837.262.299 $ 819.800.182 The accompanying notes are an integral part of these financial statements.

SEMINOLE ELECTRIC COOPERATIVE. INC.

CONSOLIDATED STATEMENTS OF REVENUE AND EXPENSES AND PATRONAGE CAPITAL For the years ended December 31, 1995 1994 Operating revenue $ 535.202,808 $ 3 81. 4 88, 94 9 Operating expenses:

Operation:

Fuel 169,157,667 166,109,945 Other production expenses 32,496,403 35,444,099 Purchased power 182,513,505 130,068,689 Transmission 19,280,492 20,376,832 Administrative and general 18,950,655 17,660,784 Depreciation and amortization 29,970,399 28,356,489 Lease of coal-fired plant 29,461,882 29,183,078 Taxes, primarily property 11.563.941 11.179.951 493.394.944 438.379.867 Operating margins before interest charges 41,807,864 43,109,082 Interest expense net of amounts capitalized 41,715.601 41.860.001 Operating margins 92,263 1,249,081 Patronage capital credits 214.027 86.708 c Net operating margins 306,290 1,335,789 Nonoperating income:

Interest income 4,545,377 3,318,736 Other income, net __1 410.222 1.442.740 Margins before cumulative effect of accounting change 6,261,889 6,097,265 Cumulative effect on prior years of change in accounting principle:

Postretirement and postemployment benefits other than pensions ---

( 2.315.808)

Net margins 6,261,889 3,781,457 Patronage capital, beginning of year 57,804,334 56,276,952 Patronage capital retirements ( 945.364) ( 2.254.075)

Patronage capital, end of year $ 63.120,859 $ 57.804.334 The accompanying notes are an integral part of these financial statements.

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SEMINOLE ELECTRIC COOPERATIVE. INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31.

1995 1994 Cash flows from operating activities:

Net margins $ 6.261.889 i $ 3.781.457 Adjustments to reconcile to cash:

Depreciation and amortization 34,265,785 31,242,125 Provision for postretirement benefits 453,596 2,702,200 i

Lease expense / lease payment difference 1,595,055 ( 3,210,336)

Change in assets and liabilities:

Receivables ( 5,510,000) 5,512,199 Inventories 2,332,759 2,525,352 Prepayments and other ( 159,080) ( 3,405,549)

Deferred charges ( 157,155) ( 1,701,273)

Other long-term liabilities ( 127,111) 175,113 Accounts payable 11,421,992 ( 9,139,776)

Other accrued liabilities 7.080.830 ( 4.542.717)

Total adjustments 51.196.672 20.157.338 Net cash provided by operating activities 57.458.561 23.938.795 Cash flows from investing activities:

Utility plant additions ( 4,235,895) (11,632,288)

Long-term liquidations /(investments) 228.850 ( 39.068)

Net cash used in investing activities ( 4.007.045) (11.671.356)

Cash flows from financing activities:

Payments of patronage capital credits ( 945,364) ( 2,254,075)

Payments of long-term debt (13,412,318) (10,507,810)

Payments of '7 pricing penalties ( 211,079) ( 8,179,123)

Payments of capital lease obligations ( 1.165.376) ( 1.308.498)

Net cash used in financing activities (15.734.137) (22.249.506)

Net increase /(decrease) in cash and cash equivalents 37,717,379 ( 9,982,067)

Cash and cash equivalents, beginning of year 38.591.395 48.573.462 Cash and cash equivalents, end of year $ 76.308.774 $ 38.591.395 Supplemental disclosures:

( Interest paid $ 37.867.328 $ 41.264.387 Noncash financing activities:

Seminole refinanced certain long-term debt on March 31, 1994 and

) January 3, 1995. As a result, related prepayment penalties were l deferred and long-term debt was increased in the amount of

$39,202,281 and $7,406,245, respectively.

The accompanying notes are an integral part y of thes'2 financial statements.

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SEMINOLE ELECTRIC COOPERATIVE. INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - THE COOPERATIVE:

Seminole Electric Cooperative, Inc. (Seminole) is a generation and transmission cooperative. It is responsible for meeting the electric power and energy needs of its eleven distribution cooperative members operating within the State of Florida. Seminole's rates are established by its Board of Trustees, which is composed of representatives from each member cooperative.

Seminole constructed and operates two coal-fired generating facilities (Seminole Unit No. 1 and Unit No. 2) near Palatka, Florida with approximately 625 megawatts of net output per unit. These units are connected to the Florida bulk power supply grid through Seminole's 230 kV transmission lines and associated facilities. Both units commenced commercial operation in 1984.

At year end 1995, 170 employees or approximately 40% of the total workforce were covered by a three year collective bargaining agreement with Utilities Workers Union of America expiring on June 30, 1996.

Seminole holds a 1.6994% undivided ownership interest in the Crystal River Unit No. 3 (CR3) nuclear power plant operated by Florida Power Corporation (FAC).

Seminole also owns various transmission facilities f

connecting Seminole to an Independent Power Producer (IPP) as well as individual members to the Florida bulk power grid, f NOTE 2 -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES:

Seminole complies with the Uniform System of Accounts as prescribed by the Rural Utilities Service (RUS), formerly the Rural Electrification Administration. The accounting policies and practices

) applied by Seminole in the determination of rates are also employed I for financial reporting purposes. These policies and practices require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and

( the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The consolidated financial statements include the results of operations and financial position of Seminole and Acuera Corp.

(Acuera), a wholly owned subsidiary. All intercompany transactions have been eliminated.

Utility Plant Utility plant owned by Seminole is stated at original cost. Such cost includes applicable supervisory and overhead cost, plus net interest charged during construction. The amounts of interest capitalized during 1995 and 1994 were $75,950 and $876,772, respectively. The cost of maintenance and repairs including renewals and replacements of minor items of property, is charged to operating expense. The cost of replacement of depreciable property units, as distinguished from minor items, is charged to utility plant. The cost of units replaced or retired, including cost of removal, net of any salvage value, is charged to accumulated depreciation. Certain leased transportation equipment is valued at the total net present value of minimum lease payments.

Operatine Revenue Seminole has wholesale power contracts with each of its members, whereby the members must purchase all electric power and energy which the member shall require for its system within the State of Florida from Seminole to the extent that Seminole shall have such power, energy and facilities available. The only exception relates to contracts between several members and the Southeastern Power Administration, which provides less than 2% of the total energy required by all members.

Operating revenue consists primarily of sales of electric power and energy by Seminole and a facilities use charge for Seminole's transmission lines serving a single member cooperative. Member revenues include amounts resulting from a fuel and purchased power adjustment clause which provides for billings to reflect increases or decreases in fuel and fuel related purchased power costs. The levelized adjustment factor is based on costs projected by Seminole for a twelve-month period. Any overrecovery or underrecovery of costs f plus an interest factor are to be refunded or billed to the members semi-annually. Overrecoveries of $10,574,697 and $12,314,032 at December 31, 1995 and 1994, respectively, are recorded as accrued liabilities until refunded.

Included in operating revenue are approximately $523 million and $469 million of revenue from members for the years ended December 31, 1995 and 1994, respectively, of which approximately $19 million and $15 million are included in receivables at December 31, 1995 and 1994,

, respectively.

Decreciation and Amortization Seminole provides for depreciation on owned utility plant using composite rates applied annually on a straight-line basis that will amortize the original cost of depreciable property over its estimated useful life. The rates for 1995 and 1994 were as follows:

1995 1994 Coal-fired production plant 3.10% 3.10%

Transmission plant 2.75% 2.75%

General plant 7.20% 7.13%

Nuclear production plant 4.52% 4.51%

Depreciation expense amounted to $23,999,980 and $23,606,778 for 1995 and 1994, respectively.

Improvements to the leased coal-fired plant are amortized over the remaining life of the base lease term. The related composite amortization rates were 5.76% and 5.65% for 1995 and 1994, respectively.

Amortization of leased assets under capital leases amounted to

$1,881,024 and $1,351,793 in 1995 and 1994, respectively.

Amortization of Deferred Gain Deferred gain on sale-leaseback of plant is being amortized on a straight-line basis over the base lease term of 25 yeers commencing in 1985 and is reflected as a reduction of operating expenses.

Deferred Charaes Deferred charges primarily consists of unamortized debt costs and related prepayment and repricing penalties, and costs associated with a load management incentive fee program. These costs will be recovered primarily through rates over various amortization periods ranging up to twenty-one years.

Deferred charges also includes depreciation and interest on certain common transmission lines and production facilities incurred prior to commercial operation of Seminole Unit No. 2. The unamortized amounts

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at December 31, 1995 and 1994 were approximately $5.5 million and $6.9 million, respectively. Such deferrals are being recovered in rates charged to members over a ten year period through a phase-in plan.

Amortization of these deferred charges included in depreciation and amortization expense, amounted to approximately $1.4 million for both years 1995 and 1994.

Lono-Lived Assets Seminole evaluates, on a regular basis, whether events and

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circumstances have occurred that indicate the carrying amounts of utility plant and deferred charges may warrant revision or may not be recoverable. Seminole measures impairment of these long-lived assets based on estimated future undiscounted cash flows from operations.

At December 31, 1995, the net utility plant and net unamortized deferred charges balances are not considered to be impaired.

Deferred credits At December 31, 1995 and 1994, deferred credits primarily includes deferred lease expense which represents the difference between cash payments and expense recognized on a straight-line basis related to the operating lease of certain generating facilities and a reserve for CR3 decommissioning costs.

Cash Equivalents Seminole considers all short-term, highly liquid investments with an original maturity of three months or less to be cash equivalents.

Reclassifications Certain reclassifications have been made to the 1994 statements to conform to current classifications. There were no changes in net margins as previously reported.

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NOTE 3 - UTILITY PLANT:

December 31.

1995 1994 Owned property:

Coal-fired plant $ 591,932,578 $ 592,162,389 Transmission plant 157,106,668 157,386,796 General plant 19,212,972 19,180,115 Nuclear plant, including fuel 19.578.701 18.355.464 787,830,919 787,084,764 Transportation equipment under capital leases 39,365,058 39,365,058 Leasehold improvements of coal-fired plant 17.194.607 15.696.263 844,390,584 842,146,085 Construction work in progress 4.825.231 7.371.516 849.215.815 849.517.601 Accumulated depreciation and amortization:

Owned property (251,263,652) (231,283,263)

Leased transportation equipment ( 11,593,599) ( 9,712,575)

Leasehold improvements 3.286.060)

( ( 2.337.123)

(266.143.311) (243.332.961)

$ 583.072.504 $ 606.184.640 NOTE 4 - INVESTMENTS:

December 31.

1995 1994 Investments in associated organizations:

National Rural Utilities Cooperative Finance Corporation (CFC) :

Membership $ 1,000 $ 1,000 Capital term certificates 1,976,712 1,834,027 Subordinated term certificateF 13,520,077 14,263,780 Patronage capital certificates 441,041 412,667 National Bank for Cooperatives 7,719 20,854 Other 79.943 95.360

$ 16.026.492 $ 16.627,688 Funds held by trustees:

Pollution control bond funds $ 15,165,061 $ 15,158,205 Nuclear decommissioning trust fund 2.518.594 2.249.852

$ 17.683.655 $ 17.408.057

Investments in capital and subordinated term

( certificates patronage capital certificates are considered to be held-to-maturity and due to their nature and are carried at cost determined by specific identification.

It is not practicable to estimate the fair value of CFC capital term certificates due to the nature and maturity of these investments. of these investments, $1,400,030 are required as a condition of membership and of loans provided to Seminole by CFC. Of the

$1,976,712 and $1,834,027 carrying amounts at December 31, 1995 and 1994, respectively, $63,307 matures in 2075 and $918,124 matures in 2080. Both of these amounts pay 5% annual interest. Additionally,

$364,283 matures in 2030 and pays 3% annual interest and $54,316 bearm no interest and amortizes through 2019. An additional non-interest bearing investment in these certificates maturing in 2005 totaling

$576,682 and $432,511 at December 31, 1995 and 1994, respectively, with investments of approximately $144,000 to be made semi-annually through July 2000, relates to an agreement between Seminole, CFC and the National Cooperative Services Corporation (NCSC, an affiliate of CFC) (see Note 11).

Investments in CFC subordinated term certificates are required as a condition of guarantees provided to others by CFC on behalf of Seminole and are generally priced at market rates at the time of issuance. These investr.ients bear interest at various rates with a combined average of approximately 9.69% and 9.54% in 1995 and 1994, respectively. At December 31, 1995 and 1994, the estimated fair values of these investments of approximately $18 million and $17 million, respectively, are based on the current rates offered by CFC for this type of required investment.

Funds held by trustees are recorded at amortized cost and are considered to be held-to-maturity. At December 31, 1995 and 1994, the estimated fair values of funds held by trustees of approximately $17 million and $16 million, respectively, is based on quoted market prices for the securities held by the trustees.

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NOTE 5 - LONG-TERM LIABILITIES:

Long-Term Debt December 31.

1995 1994 First mortgage notes payable to Federal Financing Bank (FFB),

p guaranteed by RUS, principal due L in various installments through 2020, interest at adjustable and fixed rates, currently 5.418% to 10.693% $ 476,801,681 $ 480,061,899 First mortgage notes payable to RUS, principal due in various installments through 2019, interest at 5% 4,802,589 4,943,731 Pollution control revenue bonds, payable to the Putnam County Development Authority, guaranteed by CFC, principal due in various installments through 2014, interest at adjustable rates, currently 4.65% and 3.75% 146,750,000 149,250,000 First mortgage notes payable to CFC, principal due in various installments through 2019, interest at adjustable rates, currently 6.20% and 9.50% 7.729.074 7.833.787 636,083,344 642,089,417 Less current portion ( 14.782.255) ( 12.953.971)

$ 621.301.089 $ 629.135.446 The estimated maturities and annual sinking fund requirements of all long-term debt, at current interest rates for the four years subsequent to December 31, 1996, are presented below:

Annual Maturities Year ending and Sinking Fund December 31. Recn.1irement s 1997 $ 15,693,192 1998 $ 16,685,501 1999 $ 17,793,534 2000 $ 18,841,901 r

On January 2, 1996, Seminole refinanced $53.3 million of its long-term debt at a fixed rate of interest of 5.828% in accordance with provisions of the related FFB note. Refinancing penalties of $3.9 million were incurred and were paid in cash. These refinancing penalties will be included in deferred charges along with the refinancing and repricing penalties and fees previously incurred and will be amortized over the remaining life of the refinanced debt.

Also on January 2, 1996, Seminole converted $39.1 million of its long-term debt previously in a quarterly interesc rate reset mode to a fixed rate of interest of 5.731% in accordance with the provisions of the related FFB note.

Substantially all owned assets and leasehold interests are pledged as collateral for the above mentioned debt to the United States of America (RUS and FFB) and CFC.

At December 31, 1995 and 1994, the estimated fair values of long-term debt including current portion, are approximately $663 million and

$623 million, respectively. For Seminole's long-term debt with interest rates substantially fixed to final maturity, excluding FFB debt refinanced on January 2, 1996, and for that portion that is subject to interest rate adjustment more than six months from year end, fair value is estimated based on the present value of the underlying cashflows. For FFB debt refinanced on January 2, 1996, the

[ fair value was determined to be the carrying amount of the debt at December 31, 1995 plus refinancing penalties incurred on said refinancing. For that portion of long-term debt that reprices to

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market rates at intervals of six months or less, the carrying amount has been used as a reasonable estimate of fair value.

, 1 Oblications Under Cacital Leases At December 31, 1995, Seminole waF obligated under certain capital leases of transportation equipment for which base lease terms expire on various dates through 2005. The following is a schedule of future f lease payments under these leases together with the present value of the net minimum lease payments as of December 31, 1995:

Year ending December 31.

1996 $ 4,640,640 1997 4,640,640 1998 4,640,640 1999 4,640,640 2000 4,640,640 Thereafter 20.726.964 Total minimum lease payments 43,930,164 Less amount representing interest (15.247.468)

Present value of minimum lease payments 28,682,696 Less current principal portion ( 1.993.978)

$ 26,688,718 These transportation equipment leases provide for renewals and options to purchase the equipment at fair market value at Jarious dates or upon expiration. Payments under these leases were included as a cost of fuel inventory and expensed based on the tons of coal burned throughout the year.

{ NOTE 6 - NET MARGINS AND EOUITY RESTRICTIONS:

Under provisions of the RUS mortgage, until total equity equals or f exceeds forty percent of total assets, the distribution of capital contributed by members is limited generally to twenty-five percent of patronage capital and margins of the next preceding year where, after

( giving effect to such distribution, the total equity will equal or exceed twenty percent of total assets. Distributions may be made, however, in such amounts as may be approved by RUS through waiver of the aforementioned restrictions. Such distributions to members totaled $945,364 and $2,254,075 in 1995 and 1994, representing amounts equal to 25% of 1994 and 1993 net margins, resynctively. The RUS

( mortgage requires Seminole to design its wholesale rates with a view r

towards maintaining, on a calendar year basis, a Times Interest Earned Ratio (as defined) of not less than 1.0 and a Debt Service Coverage Ratio (as defined) of not less than 1.0. An RUS stipulation arising from the sale of tax benefits requires Seminole to design its wholesale rates to provide an annual Times Interest Earned Ratio (as defined) of not less than 1.05.

In 1995 and 1994, Seminole achieved a Times Interest Earned Ratio (as defined) of 1.14 and 1.08, respectively, and a Debt Service Coverage Ratio (as defined) of 1.35 and 1.33, respectively.

NOTE 7 - LINES OF CREDIT:

Seminole has available uncommitted lines of credit totaling $100 million of which none were drawn at December 31, 1995. RUS policy governs use of thesa funds. On February 2, 1996, one line of credit in the amount of $50 million expired. Renewal has been offered by the financial institution and Seminole expects to renew it during the first quarter of 1996.

NOTE 8 - INCOME TAXES:

Seminole is a non-exempt cooperative subject to federal and state income taxes and files a consolidated return. As a cooperative,

[ Seminole is entitled to exclude from taxable income those margins t assigned to members as patronage credits.

Seminole's ratemaking methods provide that income taxes are recognized as expense and are recovered through rates when currently payable.

In addition, income tax credits are accounted for as a reduction of taxes currently payable in the period utilized. Temporary differences in certain items of income and expense for tax and financial reporting purposes result primarily from depreciation, amortization and sale-

[ leaseback of plant. In 1995 and 1994, income tax losses resulted after the application of net operating loss carryforwards. However, r due to the alternative minimum tax (AMT) provisions enacted by the Tax

[ Reform Act of 1986, Seminole was limited in 1995 and 1994 in using net operating loss carryforwards, which resulted in estimated payments of federal AMT liabilities of approximately $200,000 in both years.

AMT was charged to operations in 1995 and 1994. At December 31, 1995, net operating losses and income tax credits of approximately $190 million and $13 million are available to offset future taxable income and tax liabilities, respectively, from 1998 through 2006.

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Seminole has recorded the following noncurrent deferred tax asset, valuation allowance and liability in 1995 and 1994:

1995 1994 Noncurrent deferred tax asset $ 180,000,000 $ 187,000,000 Less: valuation allowance ( 13.000.000) ( 13.000.000)

Net noncurrent deferred tax asset 167,000,000 174,000,000 Noncurrent deferred tax liability 167.000.000 174.000.000 Net noncurrent deferred tax asset / liability $ $ __ The noncurrent deferred tax asset reflects deductible temporary differences and loss carryforwards at statutory rates plus investment tax credits and AMT credits. A valuation allowance has been recorded in each year to reduce total deferred tax assets relating to investment tax credits and AMT credits since their realizability does not appear likely.

The noncurrent deferred tax liability reflects taxable temporary differences at statutory rates.

NOTE 9 - EMPLOYEE BENEFITS:

Substantially all Seminole employees participate in the National Rural Electric Cooperative Association (NRECA) Retirement and Security Program (the Program), a defined benefit pension plan qualified under Section 401 and tax exempt under Section 501(a) of the Internal Revenue Code.

Seminole had accrued for pension expense amounts equal to the annual contributions to the Program until July 1, 1987, when a moratorium on contributions went into effect due to reaching full funding limitation.

This moratorium on employer contributions was discontinued in November 1994 and reinstated in May 1995. Employer contributions amounted to

$920,498 in 1995 and $460,757 in 1994. In this multi-employer plan, which is available to all member cooperatives of NRECA, the accumulated benefits and plan assets are not determined or allocated separately by individual employer.

( Employees retiring on or after age 55 receive the benefit of being allowed to continue, at their expense, health care coverage under Seminole's group plan. In addition, these retirees may use a portion of their accumulated unused sick pay to apply toward these medical insurance premiums. In 1994, Seminole adopted Statement of Financial Accounting Standards No. 106, " Employers' Accounting for Postretirement Benefits Other than Pensions". In accordance with the newly adopted standard,

Seminole elected to immediately recognize as a charge to income the

{ transition obligation determined as of January 1, 1994 of $2,270,214 including the effect of alternative minimum tax of $44,514 which is reported as the cumulative effect of a change in accounting principle.

.( The plan is funded as health care premiums are required to be paid.

The following sets forth the plan's funded status reconciled with amounts reported in Seminole's consolidated balance sheets at December 31, 1995 and 1994.

Accumulated postretirement benefit obligation (APBO):

1995 1994 Active plan participants not yet fully eligible $ 2,431,615 $ 2,284,485

{ Fully eligible active plan participants 285,559 262,007 Retirees and dependents 67,556 99,460 Other plan participants 13.806 8.348

( Total APBO $ 2,798,536 $ 2,654,300 Unrecognized gain from past experience 203.100 Accrued postretirement

( benefit liability $ 3.001.636 $ 2.654.300 Net periodic postretirement benefit cost included the following components:

Service cost $ 253,900 263,500 Interest cost on accumulated

[ benefit obligation 176,900 165,100 Amortization of unrecognized prior service cost

[ Net periodic postretirement benefit cost $ 430.800 $ 428.600 An 8.5% increase in the cost of covered health care benefits was

( assumed for 1995. This rate is assumed to decrease incrementally to 5.5% in 2001 and remain at that level thereafter. The health care cost trend rate assumption has a significant effect on the amounts

( reported. For example, a 1% increase in the health care trend rate would increwee the accumulated postretirement benefit obligation by

$232,170 or C.2% at year-end 1995 and net periodic cost by $38,332 or

[ 8.9% for the year. The weighted average discount rate and rate of compensation increase used in determining the accumulated post-retirement benefit obligation ihr 1995 were 7.5% and

[ respectively.

5.5%,

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NOTE 10 - OPERATING LEASES:

At December 31, 1995, Seminole was obligated under certain leases of generating facilities and transportation equipment for which base lease terms expire on various dates through 2009. The lease of the generating facilities contains a variable interest rate component that I could affect future lease payments. Base rental obligations under these leases are payable as follows:

Year ending December 31.

1996 $ 38,740,893 1997 $ 39,120,015 1998 $ 39,527,743 1 1999 $ 40,240,699 2000 $ 40,744,138 Thereafter $ 343,775,660 These leases provich for renewals and options to purchase at fair market value at various dates or upon expiration.

Rental payments for these transportation equipment leases totaled

$4,557,481 for 1995 and $4,570,517 for 1994.

I included as a cost of fuel inventory and expensed based on the tons These payments were of coal burned throughout the year.

NOTE 11 - COMMITMENTS AND CONTINGENCIES:

Seminole is purchasing most of the coal for the plant under a long-term contract expiring in 2010. Contract terms specify minimum annual purchase commitments, subject to force majeure conditions, and prices, which are subject to adjustment for changes in costs. In

{ addition, Seminole has long-term contracts expiring through 2010 for transportation of substantially all coal purchases. Contract terms include a minimum cost as determined by a base quantity of tons

[ shipped and prices, which are subject to adjustment for changes in costs. Total charges under these long-term contracts were approximately $102 million and $118 million in 1995 and 1994,

[ respectively.

p Seminole has established an external nuclear decommissioning trust L fund (NDTF) in compliance with regulations prescribed by the Nuclear Regulatory Commission. The trust fund balance of approximately $2.5 p million represents Seminole's cumulative share at December 31, 1995 L of the estimated sinking fund reserve required to decommission CR3. j Annual cash deposits will continue to be made t.o the NDTF representing (

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k Seminole's annual share of the projected sinking fund requirements.

[ These amounts will be recovered from members through rates annually.

Based upon a site specific study completed in 1994, Seminole's total share of the projected cost of decommissioning is approximately $6.9

( million stated in 1994 dollars, and decommissioning expenditures are expected to occur over a twenty-six year period ending in the year 2041.

In January 1993, Seminole began purchasing power from an IPP under a

p long-term agreement. This twenty year agreement requires the purchase l of 295 megawatts of capacity by Seminole from a generating station that was constructed and is being operated by the IPP on a site leased from Acuera. During the initial ten years of the agreement, Seminole

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is required to purchase an additional 145 megawatts of capacity to be supplied by the IPP from an existing coal-fired generating facility.

{ Under the terms of the agreement Seminole will receive this capacity on a first call basis, subject to certain restrictions as to its use.

Seminole is obligated to make annual "take or pay" capacity payments of approximately $34 million over the initial ten years and approximately $21 million over the final ten years of the agreement.

Total charges under this long-term contract were approximately $46 million and $43 million in 1995 and 1994, respectively.

In 1993, Seminole entered into an agreement with the Jacksonville Electric Authority (JEA) in which JEA provided Seminole with 15 megawatts of firm capacity in 1994. The initial term of the contract is through 2001, with the capacity commitment having increased to 52

[ megawatts in January 1995. This "take or pay" contract obligates Seminole to make capacity payments totaling approximately $16 million

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over the initial term. Total charges under this long-term contract were approximately $2.0 million and $.3 million in 1995 and 1994, respectively.

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During 1993, Seminole entered into an agreement with CFC and NCSC whereby, beginning in 1994, Seminole began receiving the periodic net

( proceeds and certain other rights related to the NCSC refinancing of its debt associated with certain transportation equipment leases with a variable rate financing by CFC. In exchange, Seminole is at risk b to make net payments to CFC in the event that the variable rate on the CFC internal funding, currently 6.2%, averages more than 10.5% over the eleven year life of the agreement. The periodic net proc rds or payments are credited or recovered through the fuel adjustment clause.

In January 1994, Seminole entered into an agreement with the Orlando Utilities Commission (OUC) in which OUC will provide Seminole with 75 megawatts of firm capacity beginning in January 1996 and continuing L

through May 31, 2004. Additionally, Seminole has exercised tne option with OUC for an additional 50 megawatts of firm capacity for the years 1997 through 2000. Seminole's minimum obligation over the term of this "take or pay" agreement is projected to be $44.8 million.

During 1995, Seminole completed the process of obtaining all certifications and permits necessary to construct a 440 MW combined cycle generating facility on a Seminole owned site in Hardee County, Florida. This project, once scheduled to go in service in 1999, was postponed for three years by Seminole's Board of Trustees as a result of a new agreement with FPC. Under this agreement, FPC will supply Seminole with additional electric power for three years beginning in 1999.

Seminole is a party to litigation involving various claims arising in the normal course of business. In the opinion of management, the ultimate resolution of these matters will not materially affect Seminole's financial statements.

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