City of Winter Springs CAFR 2015

 

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Comprehensive Annual Financial Report Sept 30 2015

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  City of Winter Springs, Florida                       Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2015  

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City of Winter Springs, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended September 30, 2015 Prepared by: Finance and Administrative Services Department

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INTRODUCTORY SECTION This section contains the following subsections:      Table of Contents Letter of Transmittal GFOA Certificate of Achievement List of Principal Officials Organizational Chart

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CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2015 Page I. Introductory Section: Table of Contents Letter of Transmittal GFOA Certificate of Achievement List of Principal Officials Organizational Chart Financial Section: Independent Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund Road Improvements Special Revenue Fund Solid Waste/Recycling Special Revenue Fund Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Position - Fiduciary Funds Statement of Changes in Fiduciary Net Position - Fiduciary Funds i-iii iv-vii viii ix x II. 1-2 3-17 18 19 20-21 22 23-24 25 26-27 28 29 30-31 32 33-34 35 36 i 

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CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2015 Page II. Financial Section - Continued: Notes to Financial Statements Required Supplementary Information Schedule of Funding Progress - Retiree Continuation Insurance Plan Schedule of Employer Contributions - Retiree Continuation Insurance Plan Schedule of Changes in Net Pension Liability and Related Ratios Schedule of Contributions Schedule of Investment Returns Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual: TLBD Debt Service Fund Nonmajor Governmental Funds: Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Revenue Funds Debt Service Funds Capital Projects Funds III. Statistical Section: Financial Trends Net Position by Component Changes in Net Position Governmental Activities Tax Revenues by Source Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates, Direct and Overlapping Governments Special Assessment Billings and Collections Principal Property Taxpayers Property Tax Levies and Collections 37-76 77 77 78 79 80 81 82-87 88-93 94-105 106-110 111-114 115 116-117 118 119 120-121 122 123 124 125 126 ii 

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CITY OF WINTER SPRINGS, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2015 Page III. Statistical Section - Continued: Debt Capacity Legal Debt Margin Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Ratio of Outstanding Debt by Type Direct and Overlapping Governmental Activities Debt Pledged-Revenue Coverage Demographic and Economic Information Demographic and Economic Statistics Principal Employers Operating Information Budgeted Full-time Equivalent City Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function Other Reports: Independent Auditor’s Report on Internal Control over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs - Federal Award Programs Management Letter Communication with Those Charged with Governance Independent Auditor’s Report on Compliance with the Requirements of Section 218.415, Florida Statutes Affidavit of Impact Fee Compliance 127 128 129 130 131-132 133 134 135 136-137 138 IV. 139-140 141-142 143 144 145 146-147 148-150 151 152 iii 

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CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 March 17, 2016 To the Honorable Mayor, City Commission and Citizens of the City of Winter Springs, Florida: It is with great pleasure that we present to you the City of Winter Springs, Florida Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2015. Florida Statutes, Chapter 166.241 and the rules of the Florida Auditor General, Chapter 10.550 require that all general-purpose local governments publish a complete set of financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP) and that they be audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Winter Springs has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Winter Springs’ financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the City of Winter Springs’ comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, to the best of our knowledge and belief, we assert that this financial report is complete and reliable in all material respects. The City of Winter Springs’ financial statements have been audited by McDirmit, Davis & Company, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Winter Springs for the fiscal year ended September 30, 2015 are free of material misstatement. The independent audit involved examination of evidence, on a test basis, supporting the amounts and disclosures in the financial statements; assessment of the accounting principles used and significant estimates made by management; and an evaluation of the overall financial statement presentation. Based upon the audit, the independent auditor concluded that reasonable basis existed to render an unmodified opinion that the City of Winter Springs’ financial statements for the fiscal year ended September 30, 2015 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. The City of Winter Springs’ Management’s Discussion and Analysis (MD&A) can be found immediately following the report of the independent auditors and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The City of Winter Springs, incorporated in 1959, is located in Seminole County, which is a part of the greater Orlando metropolitan area in East Central Florida. This area is one of the fastest growing areas in the country. The City currently has a land area of 14.81 square miles and a population of approximately 35,000. iv

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The City operates according to a Council/Manager form of government, with an appointed City Manager, five elected City Commissioners and a separately elected Mayor. The Mayor and Commission are elected for four-year terms. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City’s Manager, Clerk and Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing body, for overseeing the day-to-day operations of the government and for hiring the directors of the various departments. The City of Winter Springs provides a full range of services, including police protection; the construction and maintenance of highways, streets and other infrastructure; and recreational facilities, activities and cultural events. The City maintains both a Water and Sewer Utility Fund, a Stormwater Utility Fund, and a Development Services Fund, which function, in essence, as departments of the City of Winter Springs and therefore have been included as an integral part of the City of Winter Springs’ financial statements. The annual budget serves as the foundation for the City of Winter Springs’ financial planning and control. All departments of the City of Winter Springs are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents the proposed budget to the City Commission for review on or before July 1. The City Commission is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund (e.g., General Fund), department (e.g., Police Department) and division (e.g., Criminal Investigation). The City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the City Commission. Original and final amended budget-to-actual comparisons are provided in this report for each individual governmental fund. The General Fund, the Road Improvements Fund and the Solid Waste/Recycling Fund, are presented on pages 26-29 as part of the basic financial statements for the governmental funds. The TLBD Debt Service Fund budget-to-actual comparison is presented on page 81. The non-major governmental funds budget comparisons are presented in the governmental fund subsection of this report which starts on page 94. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City of Winter Springs operates. Seminole County has adopted a one-cent local government infrastructure sales tax which will be in effect from January 1, 2015 through December 31, 2024. The intent of this legislation is to improve the infrastructure of the Seminole County public school system and other public infrastructure within the County and its municipalities. Per the interlocal agreement, 2.99% of net revenues are to be distributed to the City of Winter Springs. It is estimated that this distribution will be nearly $2M for the fiscal year 20152016. Approximately 89% of the City’s tax base is comprised of residential properties with a small amount of retail office and light industrial developments. Per the DR 422 (Certificate of Final Taxable Value) and relative to the 2014-2015 fiscal year (tax year 2014), the gross taxable value reflects an increase of 6.6% from the prior year and an increase of 5.3% since fiscal year 2006. During fiscal year 2014-2015 (tax year 2014), through prudent fiscal management, the City was able to maintain operating and voted debt millage rates at 2.43 and 0.1100 mills, respectively. At the local level, revenues such as review and permit fees, investment income and state sales tax revenues have rebounded and are showing signs of sustainable growth. New construction in Winter Springs is robust. The RiZe, an upscale apartment-living experience in the Town Center is nearly complete with leasing expected to begin in March of 2016. The Seven Oaks subdivision will add 138 new single-family homes. The Greens at Tuscawilla, Tuscany Place & Jesup’s Landing are adding beautiful townhomes which should be completed by the end of 2016. In 2015, the City v

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permitted 18,000 square feet of commercial sites. Those in active development include Lakeside Assisted Living Facility and Big City Catering, a 19,000+ square foot banquet facility on scenic Lake Jesup. New single-family residential projects include Northern Oaks, Southern Oaks and Pollack Shores in the Town Center (multi-family). Plans for the Cross Seminole Trail link between Layer Elementary and Old SanfordOviedo Road and the Magnolia Park Amphitheater are underway. In November of 2014, Meritage Homes and Operation Home Front gifted Army National Guard Sergeant Keith Hale, his wife Tianna and three children with a mortgage-free home. All this and more contribute to the economic and cultural growth of the City. Winter Springs boasts great neighborhood schools. For the 11th year in a row, Seminole County Public Schools remains an “A” –rated school district; for the 2013/14 school year, four out of five elementary and middle schools were “A” rated schools. Winter Springs is also home to Choices in Learning Charter School, Willow School, The Primrose School, and Irblich Holistic Preschool which provide diverse educational options. Nearby Seminole State College and University of Central Florida offer our community an affordable and excellent higher education choice. Winter Springs continues its partnership with the UCF Business Incubation Program to foster the development of early-stage businesses in Central Florida. We have also partnered with Seminole County in the Community Redevelopment Agency (CRA) to build out neighborhood improvements at Shepard Road as part of the 17-92 Corridor Redevelopment Plan. Funding for the CRA relies on the annual tax revenue that is generated from the appreciation of property values above the established base level (1997). Winter Springs continues to offer its citizens the highest quality services and community-minded events. Winter Springs has been host to the Central Florida Scottish Highland Games for the fourteenth consecutive year. The Oviedo-Winter Springs Chamber of Commerce offers a variety of art and music at the Town Center’s ARTtoberFEST event. The city partners with a number of sport leagues and clubs such as Babe Ruth & Pop Warner contributing a variety of sports activities. We host a spring break and summer camp program offering affordable day camp options and host a number of holiday events including Father-Daughter Dance, Spring Family Festival, the Celebration of Freedom, Hometown Harvest, a salute to our veterans in the Veteran’s Day Ceremony, and Winter Wonderland. Winter Springs’ finest have teamed up with the Oviedo Police Department to host events such as Cops & Kids and the Kids’ House of Seminole Kickball Tournament which helps abused children. During the holiday season needy children from Winter Springs’ families are invited to participate in our annual ‘Shop with a Cop’ festivities. Parks and Recreation has been busy with numerous park upgrades including new bleachers and shade structures at the Central Winds ball fields. Together with the Winter Springs Senior Association, a number of activities and outings are offered to our seniors such as yoga, ceramics and the very popular Touch of Class line dancing group. Highlighted here are some of what makes the City of Winter Springs a top choice for families. Long-term financial planning. The City Commission updated and adopted a 5-year Capital Improvements Plan (CIP) in September 2014 for fiscal years 2015 through 2019. The CIP is a multi-year prioritized schedule of improvements that lists each capital improvement with the year of intended purchase/ commencement; annual expenditure; and method of financing. Each year the CIP is reviewed to ensure that all necessary capital improvements are incorporated into the budget process. It should be noted; however, that the CIP is not a static document but a flexible and dynamic one that may change to reflect changing priorities, opportunities, costs, or financing approach. Relevant Financial Policies. In fiscal year 2014, the City had implemented GASB 67: Financial Reporting for Pension Plans, and in fiscal year 2015, GASB 68: Accounting and Financial Reporting for Pensions. Major Initiatives. During fiscal year 2015, the City completed the third phase of implementation of its new ERP system and continued improvements in customer service and information reporting. Also many of our vi

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