COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FY ENDED SEPTEMBER 30, 2009 - FY 2008-2009Clearwater
Interoffice Correspondence Sheet
TO: Mayor and City Council
FROM: Jay Ravins, Assistant Finance Director
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COPIES: Bill Horne, City Manager; Jill Silverboard, Assistant City Manager; Rod
Irwin, Assistant City Manager; Pam Akin, City Attorney; Cyndie
Goudeau, City Clerk; Margie Simmons, Finance Director
SUBJECT: Fiscal Year 2009 Comprehensive Annual Financial Report
DATE: April 7, 2010
Enclosed please find a copy of the City's comprehensive annual financial report (CAFR)
for the year ended September 30, 2009.
The CAFR is broken into four sections: the Introductory Section, which includes a
transmittal letter beginning on page vii; the Financial Section; the Statistical Section;
and the Single Audit & Grants Compliance Section.
The Financial Section includes a "clean" unqualified opinion on the financial statements
from the City's external auditors, beginning on page 1 of the report. This section also
includes Management's Discussion and Analysis (MD&A) beginning on page 3.
Our external auditors, Cherry, Bekaert & Holland, L.L.P., will be making an official
presentation of the CAFR to you at the April 13th Council Work Session.
If you have any questions, please contact Margie Simmons at 562-4538 or Jay Ravins
at 562-4533.
'Y a
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t
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2009
CITY OF CLEARWATER, FLORIDA
2008
2009
City of Clearwater, Florida
Comprehensive Annual Financial Report
for Fiscal Year Ended September 30, 2009
Frank V. Hibbard
Mayor
George N. Cretekos John P. Doran Paul F. Gibson Carlen A. Petersen
Councilmember Councilmember Councilmember Councilmember
William B. Horne II
City Manager
Margaret L. Simmons, CPA
Finance Director
Prepared by: City of Clearwater Finance Department
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Title Page and List of Elected and Appointed Officials ........................................................................................... i
Letter of Transmittal ..............................................................................................................................................vii
Certificate of Achievement for Excellence in Financial Reporting ........................................................................ A
Organizational Chart .............................................................................................................................................xii
FINANCIAL SECTION:
Independent Auditors' Report ................................................................................................................................1
Management's Discussion and Analysis ........................................................................................................... .... 3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ........................................................................................................................... ..18
Statement of Activities ............................................................................................................................... ..19
Fund Financial Statements:
Balance Sheet - Governmental Funds ................................................................................................... ..20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............. ..21
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ......... .. 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities ......................................................................... ..23
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Non-GAAP Basis) - General Fund ..................................................................... ..24
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis) - Special Development Fund .......................................................... 25
Statement of Net Assets - Proprietary Funds ......................................................................................... ..26
Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ................ .. 30
Statement of Cash Flows - Proprietary Funds ......................................................................................... 34
Statement of Fiduciary Net Assets - Fiduciary Funds ............................................................................ .. 38
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ......................................................... .. 39
Notes to the Basic Financial Statements ..................................................................................................... .. 40
Required Supplementary Information - Pension Trust Funds:
Schedules of Funding Progress .................................................................................................................. ..82
Schedules of Employer Contributions ......................................................................................................... .. 83
Notes to Schedules of Required Pension Supplementary Information ...................................................... ..84
Required Supplementary Information - Other Post-Employment Benefits:
Schedule of Funding Progress ................................................................................................................... ...85
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds .....................................................................90
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds ................................................................................................................. 92
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (GAAP Basis) - Community Redevelopment Agency Special Revenue Fund .......... 95
Combining Statement of Net Assets - Nonmajor Enterprise Funds ........................................................... 98
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Nonmajor Enterprise Funds ......................................................................................................................100
Combining Statement of Cash Flows - Nonmajor Enterprise Funds .........................................................102
Combining Statement of Net Assets - Internal Service Funds ..................................................................108
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Internal Service Funds ..............................................................................................................................109
Combining Statement of Cash Flows - Internal Service Funds ................................................................110
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS (Continued)
Combining Statement of Fiduciary Net Assets - Fiduciary Funds ..........................................................................114
Combining Statement of Changes in Fiduciary Net Assets - Fiduciary Funds .......................................................115
Statement of Changes in Assets and Liabilities - Treasurer's Escrow Agency Fund .............................................116
Supplementary Information:
Continuing Disclosure - Gas System Revenue Bonds, Series 2004, 2005, and 2007 ...........................................118
Continuing Disclosure - Water & Sewer Revenue Bonds, Series 2002, 2003, 2006, 2009A and 2009B ..............123
Continuing Disclosure - Stormwater System Revenue Bonds, Series 1999, 2002, 2004, and 2005 .....................126
Continuing Disclosure - Infrastructure Sales Tax Revenue Bonds, Series 2001 ...................................................127
Continuing Disclosure - Improvement Revenue Bonds, Series 2001 and 2008 ....................................................127
Fire Services Program ..............................................................................................................................................128
STATISTICAL SECTION:
Introduction ............................................................................................................................................ 129
Schedule 1 Net Assets by Component .................................................................................................................... 131
Schedule 2 Changes in Net Assets .......................................................................................................................... 132
Schedule 2a Program Revenues by Function/Program ............................................................................................ 134
Schedule 3 Fund Balances of Governmental Funds ............................................................................................... 135
Schedule 4 Changes in Fund Balances of Governmental Funds ............................................................................ 136
Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property ....................................................
Schedule 6 Direct and Overlapping Property Tax Rates ......................................................................................... 137
138
Schedule 7 Property Tax Levies and Collections .................................................................................................... 139
Schedule 8a Principal Real Property Taxpayers ........................................................................................................ 140
Schedule 8b Principal Personal Property Taxpayers ................................................................................................. 141
Schedule 9 Ratios of Outstanding Debt by Type ..................................................................................................... 142
Schedule 10 Ratios of General Bonded Debt Outstanding ....................................................................................... 143
Schedule 11 Direct and Overlapping Governmental Activities Debt .........................................................................
Schedule 12 Legal Debt Margin Information .............................................................................................................. 144
145
Schedule 13 Pledged-Revenue Coverage ................................................................................................................. 146
Schedule 14 Demographic and Economic Statistics'.............. ...................................................................... *** ........ *
Schedule 15 Principal Employers ............................................................................................................................... 148
149
Schedule 16 Full-time Equivalent City Government Employees by Function/Program ............................................ 150
Schedule 17 Operating Indicators by Function/Program ........................................................................................... 151
Schedule 18 Capital Asset Statistics by Function/Program .......................................................................................
SINGLE AUDIT / GRANTS COMPLIANCE SECTION: 152
Independent Auditors' 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 ....................................................................................................................... 155
Independent Auditors' Report On Compliance With Requirements Applicable To Each Major Federal
Awards Program And State Projects And Internal Control Over Compliance In Accordance With
OMB Circular A-133 And Chapter 10.550, Rules Of The Auditor General ...............................................................
157
Schedule of Expenditures of Federal Awards and State Financial Assistance Projects ............................................. 159
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects ...............................
Schedule of Findings and Questioned Costs ................................................................................................................ 162
163
Independent Auditors' Management Letter ................................................................................................................... 167
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CITY OF CLEARWATER
Pa,T Oi:mi Box 4748, ClJ--AR\VVl iR, FLORJDA 33758-4748
Grp 1 Lku-, 112 5007-11 OSCEOLA Av Fm L, Ci- ARWATr.R, Fu>ftJllA 33756
TF,u:i,iiotiE (727) 562-4040 FAX (727) 562-4052
G IN NIANAGrii
March 24, 2010
The Honorable Mayor, Councilmembers,
and Citizens of the City of Clearwater:
The City of Clearwater Charter (Section 2.01(c)3), Florida Statutes, and various covenants relating to
debt and pension obligations of the City require an annual audit of the City's financial statements of
all funds of the City by a firm of licensed certified public accountants. These statements must be
presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards. Pursuant to these requirements we hereby
issue the comprehensive annual financial report of the City of Clearwater for the fiscal year ended
September 30, 2009.
This report consists of management's representations concerning the finances of the City.
Consequently, 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 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's financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the City's
comprehensive framework of internal controls has been designed to provide reasonable rather than
absolute assurance that the financial statements will be free from material misstatement. As
management, we assert that, to the best of our knowledge and belief, this financial report is complete
and reliable in all material respects.
Cherry, Bekaert & Holland L.L.P., a firm of licensed certified public accountants, has audited the
City's financial statements. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the City for the fiscal year ended September 30, 2009, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor concluded that there was a reasonable basis for
rendering an unqualified opinion that the City's financial statements for the fiscal year ended
September 30, 2009, are fairly presented in conformity with GAAP. The independent auditor's report
is presented as the first component of the financial section of the report.
The independent audit of the financial statements of the City was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal and state grantor agencies.
The standards governing Single Audit engagements require the independent auditor to report not only
on the fair presentation of the financial statements, but also on the audited government's internal
controls and compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the administration of federal and state awards. These reports are in the Single
Audit section of this report.
Vii
"Eot -vi Ew?i ?,7 ?srv i wu,lfFnsti? rm ?. A? nurv Emvwi i u^
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of the Management's Discussion and Analysis
report (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the independent
auditors.
Profile of the City of Clearwater, Florida
Clearwater is located on the Pinellas Peninsula on Florida's west coast. It is directly located on the Gulf
of Mexico, 20 miles west of Tampa and 20 miles north of St. Petersburg. Clearwater is the county seat
of Pinellas County and one of the largest cities in the Tampa Bay area. The Clearwater area offers a
semitropical climate and 28 miles of beautiful beaches. Consequently, tourism is an important
component of the economy. In addition to tourism, Clearwater enjoys a diversity of manufacturing
businesses, service industries, high-tech companies, and a large retirement population.
The City operates under the council/manager form of government. Policymaking and legislative
authority are vested in the City Council, which consists of a mayor and four members elected at large
on a non-partisan basis. The City Council is responsible for adopting ordinances, adopting the budget,
and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the
policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and
for appointing the heads of the City's departments.
The City provides police and fire protection; construction and maintenance of streets, bridges,
sidewalks, storm drainage, public parks, and recreation facilities; planning, zoning, subdivision, and
building code regulation and enforcement; redevelopment of commercial and residential
neighborhoods; supervised recreation programs; public libraries; water supply and distribution; waste
water collection, treatment, and disposal; natural gas distribution; solid waste collection and recycling;
stormwater management; marina, airpark, convention center, downtown boat slips, public fishing pier
operations; and operation of the city-wide parking system.
The annual budget serves as the foundation for the City's financial planning and control. Per the City
Code of Ordinances, the City Manager is required to provide to the City Council an operating budget
for the ensuing fiscal year, a capital improvement budget, and a five-year capital improvement
program, along with an accompanying budget message no later than 60 days prior to the end of the
fiscal year. The Council is required to hold public hearings on the budget and to adopt a final operating
budget and capital improvement budget no later than September 30, the last day of the City's fiscal
year. The appropriated budget is prepared by fund and by department within fund.
Local Economy
The local economy for the Tampa Bay metropolitan area experienced a continued economic downturn
during fiscal 2009, fueled by continued declines in real estate values and area employment. The
Tampa Bay metropolitan area average unemployment rate increased from 7.1 percent for the year
ended September 2008 to 11.8 percent for the year ended September 2009, versus a national rate of
9.8 percent. However, the City remains well-poised to take advantage of the economic recovery when
it occurs, with the completion of the Beach Walk, Downtown Streetscapes, and Downtown Boat Slips
projects expected to attract redevelopment activity.
Viii 1
Long-term Financial Planning
The economic downturn has necessitated an emphasis on balancing demands for City services with
significantly reduced General Fund revenues. Identifying operating efficiencies, consolidating City
operations, prioritizing and/or eliminating programs and services, partnering with other governmental
entities, and other cost saving initiatives have been the focal point of all City departments. A down-
sizing of City services, while continuing to meet the basic needs of residents, as well as properly
maintain City assets and infrastructure, is expected to be the trend for at least the next several years in
light of current economic conditions and taxpayer sentiments.
Relevant Financial Policies
It is a policy of the City Council to maintain a General Fund reserve equal to 8-1/2% of the subsequent
year's budgeted expenditures as a contingency fund to meet unanticipated financial needs. Per Council
policy, funds in excess of these required reserves may be appropriated by the City Council for specific
capital improvement projects or other one-time needs.
It is a policy of the City Council that all enterprise fund operations shall be self-supporting. Council policy
requires a review of rate schedules every five years, at a minimum, to help ensure that enterprise funds
are self-supporting.
Major Initiatives
Consistent with the Council policy that enterprise funds shall be self-supporting, the City plans to close the
Harborview Convention Center during fiscal 2010, thereby eliminating the current General Fund subsidy
to the Harborview Enterprise Fund. The fiscal 2010 budget includes $950 thousand for demolition of the
Harborview Center during fiscal 2010.
Nearly $32 million of fiscal 2010 capital project expenses are budgeted to proactively support the City's
five utility operations, which consist of Water and Sewer, Stormwater, Solid Waste, Recycling, and Gas
utility operations. The projects include reverse osmosis plant expansion, reclaimed water distribution
system expansion, stormwater improvements to Stevenson and Alligator Creeks, coastal basin
improvements, as well as continuance of the Pinellas and Pasco new gas mains and service projects.
Completion of the City's new downtown boat slips is estimated for the summer of 2010. The operation of
the boat slips will be accounted for in the Downtown Boat Slips enterprise fund.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its comprehensive annual financial report (CAFR) for
the fiscal year ended September 30, 2008. This was the thirtieth consecutive year that the City
received this prestigious award. In order to be awarded a Certificate of Achievement, the government
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published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We
believe that our current CAFR continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City received the GFOA's Distinguished Budget Presentation Award for the fiscal year
2009 Budget document, the twenty-third consecutive year that this award has been received. In order
to qualify, the City's Budget document was judged to be proficient in several categories including as a
policy document, a financial plan, an operations guide, and a communications device.
We wish to thank the many members of the Citywide Annual Financial Reporting (CAFR) Team,
which is composed of individuals in the Finance Department and other financial staff throughout the
City, for their professionalism and dedication in producing this report. Sincere appreciation is also
extended to the City's external auditors, Cherry, Bekaert & Holland, L.L.P., for their advice and
assistance in the preparation of this report. Finally, we would like to thank the City Council for their
interest, continued support, and leadership in planning and conducting the financial operations of the
City in a progressive and responsible manner.
Sincerely,
? ?, t3. ? "--,T- - ?
William B. Horne, II
City Manager
Margaret L. Simmons, CPA
Finance Director
1
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clearwater
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
_ NGE'• OfFj?,
f7NE:?F9N
W UNITED STATES
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AND y
f CANADA c
z CORPORATION
SEAL
41, 0 President
Executive Director
Xi
CITY OF CLEARWATER ORGANIZATIONAL CHART
CITY COUNCIL
CITY ATTORNEY
City Auditor
Equity Services
Fire Department
Official Records
& Legislative
Services
Police
Department
Public
Communication
s
CITY MANAGER - -
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Assistant City Manager I Assistant City Manager
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Development & Office of I
Neighborhood Management & I Customer Service
Services Budget I
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Economic
Engineering Parks & Recreation Development &
I Housing
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Financial Services Planning Gas System
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Marine & Aviation
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Human Resources Public Services
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Information Public Utilities
Technology I
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Library Solid Waste/General Emergency
Support Services Management
xii
Report of Independent Certified Public Accountants
Honorable Mayor, City Councilmembers,
City Manager and City Management
City of Clearwater, Florida
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the
"City"), as of and for the year ended September 30, 2009, which collectively comprise the City's basic
financial statements as listed in the table of contents. We have also audited the financial statements
of each of the City's non-major governmental, non-major enterprise, internal service and fiduciary
funds presented as supplementary information in the accompanying combining and individual fund
financial statements as of and for the year ended September 30, 2009, as listed in the table of
contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the basic financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City as of September 30, 2009, and the
respective changes in financial position and cash flows, where applicable, thereof and the respective
budgetary comparisons for the general fund and the special development fund, for the year then
ended, in conformity with accounting principles generally accepted in the United States of America. In
addition, in our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of each of the non-major governmental, non-major
enterprise, internal service, and fiduciary funds of the City as of September 30, 2009, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then
ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 24,
2010 on our consideration of the City's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing
the results of our audit.
The management's discussion and analysis on pages 3 through 15 and the pension and post-
employment benefit disclosures on pages 82 through 85 are not a required part of the basic financial
statements but are supplementary information required by the Governmental Accounting Standards
Board. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements and on each of the City's non-major
governmental, non-major enterprise, internal service, and fiduciary funds. The accompanying
introductory section, supplementary information and statistical section as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic
financial statements. In addition, the accompanying schedule of expenditures of federal awards and
state projects is presented for purposes of additional analysis as required by the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and Chapter 10.550, Rules of the Auditor General, and is also not a required part of
the basic financial statements. The supplementary information, including the schedule of
expenditures of federal awards and state financial assistance projects, has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on them.
C41t &iuvr
Tampa, Florida
March 24, 2010
2
Management's Discussion and Analysis
This Management's Discussion and Analysis report provides the reader with a narrative overview and analysis of the
financial activities of the City for the fiscal year ended September 30, 2009. Management's Discussion and Analysis
(MD & A) should be read in conjunction with the City's Transmittal Letter, which begins on page vii of this report.
Financial Highlights
The City's assets exceeded its liabilities at the close of fiscal year 2009 by $706.7 million (net assets). Of this amount,
$224.0 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
The City's total net assets increased by $41.0 million, or 6.2%, during fiscal 2009. Net assets for governmental activities
increased by $15.1 million, or 4.1 %, while the business-type net assets increased by $25.9 million, or 8.8%.
Significant factors contributing to the $15.1 million increase in governmental net assets included operating and capital
grants and contributions totaling $11.7 million, and a $2.8 million, or 48%, increase in investment earnings versus the
prior year due to more favorable investment market conditions.
The $25.9 million increase in business-type net assets is primarily the result of operating revenues in excess of
operating expenses for Water & Sewer Utility, Gas Utility, Solid Waste Utility, Stormwater Utility, and Parking System
operations. Also contributing to the increase was the receipt by the Gas Utility of $4.15 million from the buyout of the
City's rights under a 20-year gas pre-purchase agreement; along with a $2.6 million, or 60%, increase in investment
earnings versus the prior year, across all business-type activities, due to more favorable investment market conditions.
At September 30, 2009, the City's governmental funds reported combined ending fund balances of $113.4 million, a
decrease of $1.5 million (or 1.3%) in comparison with the prior year. Of this amount, $73.0 million (or 64.3%) is available
for spending at the government's discretion (unreserved fund balance). The decrease of $1.5 million in governmental
fund balances is primarily the result of a $6.9 million current year decrease in Capital Improvement fund balance due to
current year project expenditures in excess of current year project funding, partially offset by General Fund expenditures
that were $4.7 less than budgeted due to cost savings across all departments, and a $1.0 million increase in the Special
Programs fund balance due to a transfer from Central Insurance fund reserves for funding of the Emergency Operations
program.
At September 30, 2009, unreserved fund balance for the General Fund was $19.2 million, or 17.4% of total current year
general fund expenditures.
Total actual revenues for the General Fund for fiscal 2009 were $1.0 million, or 0.9%, greater than final budgeted
revenues. A major factor contributing to the revenue surplus was a $0.7 million, or 51 %, surplus of investment earnings
versus budgeted due to improved investment market conditions. Total fiscal 2009 actual expenditures for the General
Fund were less than final budgeted expenditures by $4.7 million, or 4.1%. This was due to budget savings across all
City departments for fiscal 2009, including $1.1 million, or 4.9%, for Fire, $0.9 million, or 4.8%, for Parks and
Recreation, and $0.6 million, or 1.7% for Police.
Finally, actual General Fund interfund transfers in were $57,000, or 0.7%, greater than final budgeted interfund transfers
in, while actual General Fund interfund transfers out were $285,000, or 2.6%, less than final budgeted interfund
transfers out. The total combined General Fund fiscal 2009 budgetary savings per above was $5.8 million.
3
Overview of the Financial Statements
This discussion and analysis (MD&A) is intended to serve as an introduction to the City of Clearwater's basic financial
statements. The City's basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are the statement of net assets and the statement of activities. These
statements report information about the City as a whole using accounting methods similar to those used by private-
sector businesses. Emphasis is placed on the net assets of governmental activities and business-type activities, and the
change in net assets. Governmental activities are principally supported by taxes and intergovernmental revenues.
Governmental activities include most of the City's basic services, including police, fire, public works, parks and
recreation, and general administration. Business-type activities are intended to recover all or a significant portion of their
costs through user fees and charges. The City's water and sewer system, stormwater system, gas system, solid waste,
recycling, marine, aviation, convention center, downtown boat slips, and parking system operations are reported as
business-type activities.
• The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator as to whether the financial position of the City is improving or deteriorating. Net assets are reported in
three major categories: 1) invested in capital assets, net of related debt; 2) restricted; and 3) unrestricted.
• The statement of activities presents information showing how the City's net assets changed as a result of the
year's activities. All changes in net assets are recorded in the period in which the underlying event takes place,
which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the
expense of the City's various programs net of related revenues, as well as a separate presentation of revenues
available for general purposes.
The government-wide financial statements include not only the City of Clearwater itself but also the Clearwater
Redevelopment Agency (CRA). The CRA, though legally separate, is reported as part of the primary government as a
blended component unit due to the City Council serving as the CRA's governing board.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The fund financial statements provide detailed information about the City's major funds -
not the City as a whole. Fund accounting helps to ensure and demonstrate compliance with finance-related legal
requirements. Based on restrictions on the use of monies, the City has established many funds that account for the
multitude of services provided to residents. These fund financial statements focus on the City's most significant funds:
governmental, proprietary, and fiduciary.
Governmental funds
Governmental funds are used to report most of the City's basic services. These funds are used to account for
essentially the same functions reported as governmental activities in the government-wide financial statements. The
funds focus on the inflows and outflows of current resources and the balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact
of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
4
t
' The City maintains thirteen individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances
for the General, Special Development, and Capital Improvement funds, which are considered to be major funds. Data
from the other ten governmental funds are combined into a single aggregated columnar presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the form of combining statements in the
supplementary information section of this report.
Annual appropriated budgets are adopted for the General Fund, the Special Development Special Revenue Fund, and
the Community Redevelopment Agency Special Revenue Fund. Budgetary comparison statements and/or schedules
have been provided for these funds to demonstrate budgetary compliance.
I Proprietary funds
' The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to
account for the fiscal activities related to water and sewer, gas, solid waste and stormwater utilities, along with recycling,
marine, aviation, parking system, convention center, and downtown boat slip operations. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses
internal service funds to account for the City's building maintenance, custodial services, self-insurance program, risk
management program, employee group insurance, vehicle acquisition and maintenance, and various support activities
including data processing, legal, telecommunications, postal, and printing services. All of the City's internal service
funds predominantly benefit governmental activities and consequently have been aggregated and included within
governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Gas Utility, Solid
Waste Utility, and Stormwater Utility enterprise funds, which are considered to be major funds of the City. The remaining
six non-major enterprise funds are combined into a single aggregated presentation in the proprietary fund financial
statements. Similarly, governmental activity internal service funds are aggregated into a single presentation. Individual
fund data for the non-major enterprise funds and the internal service funds is provided in the form of combining
statements in the supplementary information section of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds
are not reflected in the government-wide financial statements because the resources of the fiduciary funds are not
available to support the City's own programs. The accounting used for fiduciary funds is similar to proprietary funds.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential for a full understanding of the
information provided in the government-wide and fund financial statements, including the City's progress in funding its
obligations to provide pension benefits and other post-employment benefits to its employees.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City's progress in funding its obligations to provide pension benefits and
other post-employment benefits to its employees.
The combining statements referred to earlier in connection with non-major governmental funds, non-major enterprise
funds, and internal service funds, are presented immediately following the required supplementary information.
I I
Government-Wide Financial Analysis
The overall financial position of the City improved in both the fiscal 2009 and fiscal 2008 years. As noted earlier, net
assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets
exceeded liabilities by $706.7 million at the close of the fiscal year ended September 30, 2009. This represents an
increase of $41.0 million from the September 30, 2008 total net assets of $665.7 million. Net assets of both the
governmental and the business-type activities increased primarily due to operating and capital grants and contributions
of $14.4 million, favorable operating results for business-type activities, and a $5.4 million, or 53%, increase in
investment earnings versus the prior year due to more favorable investment market conditions. The City reports positive
balances in all three categories of net assets, both for the government as a whole as well as for its separate
governmental and business-type activities, for both the current year and the prior year, as indicated in the following
table:
Governmental Activities Business-type Activities Total
2009 2008 2009 2008 2009 2008
Assets
Current and other assets $ 171,382,786 $ 180,564,878 $ 235,779,420 $ 153,203,780 $ 407,162,206 $ 333,768,658
Capital assets 280,712,145 266,990,980 361,528,638 357,132,952 642,240,783 624,123,932
Total assets 452,094,931 447,555,858 597,308,058 510,336,732 1,049,402,989 957,892,590
Liabilities
Current and other liabilities 6,754,742 8,645,410 18,890,369 14,898,178 25,645,111 23,543,588
Long-term debt outstanding:
Due within one year 17,697,486 17,780,463 7,953,042 10,541,317 25,650,528 28,321,780
Due in more than one year 40,855,580 49,478,629 250,541,848 190,846,612 291,397,428 240,325,241
Total liabilities 65,307,808 75,904,502 277,385,259 216,286,107 342,693,067 292,190,609
Net assets
Invested in capital assets,
net of related debt 240,549,768 218,384,354 158,128,827 170,734,916 398,678,595 389,119,270
Restricted 42,681,351 39,019,943 41,332,593 39,635,185 84,013,944 78,655,128
Unrestricted 103,556,004 114,247,059 120,461,379 83,680,524 224,017,383 197,927,583
Total net assets $ 386,787,123 $ 371,651,356 $ 319,922,799 $ 294,050,625 $ 706,709,922 $ 665,701,981
A large portion of the City's net assets (56.4%) represent its investment in capital assets (e.g., land, infrastructure, land
improvements, buildings, and equipment), less any related outstanding debt used to acquire those assets. The City
uses these capital assets to provide services to citizens, and consequently these assets are not available for future
spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other resources, since the capital assets themselves will not
be used to liquidate these liabilities.
An additional portion of the City's net assets (11.9%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets ($224.0 million or 31.7%) may be used to
meet the government's ongoing obligations to citizens and creditors.
There was a $22.2 million increase in invested in capital assets, net of related debt for -governmental activities. This was
primarily due to a $13.7 million increase in governmental activities capital assets along with a $7.4 million decrease in
related revenue bond debt, due to scheduled principal payments, and a $1.3 million decrease in lease purchase
contracts payable. Major capital asset additions contributing to the $13.7 million net increase in governmental capital
assets included $2.5 million in current year capitalized expenditures for infrastructure improvement to the Long Center,
$2.5 million in capital expenditures for the Royalty Theatre acquisition, $2.3 million for improvements to the Carpenter
Complex clubhouse, $1.0 million for improvements to Station Square Park, $0.8 million for the Bayfront Promenade,
$0.7 million of Beach Walk capital expenditures, and $0.5 million of capital expenditures for the downtown boat slips.
6
Invested in capital assets, net of related debt for business-type activities decreased by $12.6 million primarily due to
$17.1 million in current year depreciation expense, along with a $17 million increase in related bond debt (net of
unspent bond proceeds) due to additional water and sewer utility revenue bonds issued during the current fiscal year,
that offset the related current year capital asset additions.
Changes in Net Assets
The following table reflects the changes in net assets for the years ended September 30, 2009, and September 30,
2008:
City of Clearwater, Florida - Changes in Net Assets
Primary Government
Governmental Activities Business-t ype Activities Totals
2009 2008 2009 2008 2009 2008
Revenues
Program revenues:
Charges for services $ 38,161,263 $ 37,153,216 $ 137,555,458 $ 137,928,582 $ 175,716,721 $ 175,081,798
Operating grants and contributions 8,542,267 9,123,267 83,139 82,834 8,625,406 9,206,101
Capital grants and contributions 3,168,601 7,632,251 2,609,441 1,085,821 5,778,042 8,718,072
General revenues:
Property taxes 46,893,141 50,347,341 - - 46,893,141 50,347,341
Sales taxes 13,849,909 15,674,741 13,849,909 15,674,741
Utility taxes 12,020,599 11,532,529 12,020,599 11,532,529
Othertaxes 13,978,792 15,469,954 - - 13,978,792 15,469,954
Other 8,747,924 6,273,848 6,904,419 4,313,456 15,652,343 10,587,304
Total revenues 145,362,496 153,207,147 147,152,457 143,410,693 292,514,953 296,617,840
Expenses
General Government 13,515,387 14,342,322 - 13,515,387 14,342,322
Public Safety 64,977,624 66,582,460 - 64,977,624 66,582,460
Physical Environment 4,265,721 2,729,999 - - 4,265,721 2,729,999
Transportation 9,594,793 12,321,965 - - 9,594,793 12,321,965
Economic Environment 3,923,820 4,534,093 - - 3,923,820 4,534,093
Human Services 401,615 439,555 - - 401,615 439,555
Culture and Recreation 28,740,133 37,687,902 28,740,133 37,687,902
Interest on Long-term Debt 1,849,634 1,997,817 - - 1,849,634 1,997,817
Water and Sewer Utility - - 54,520,158 52,014,934 54,520,158 52,014,934
Gas Utility 29,285,270 35,943,600 29,285,270 35,943,600
Solid Waste Utility 14,801,035 16,035,672 14,801,035 16,035,672
Stormwater Utility 11,775,346 11,069,529 11,775,346 11,069,529
Other - - 13,856,476 14,664,687 13,856,476 14,664,687
Total expenses 127,268,727 140,636,113 124,238,285 129,728,422 251,507,012 270,364,535
Increase in net assets before
transfers 18,093,769 12,571,034 22,914,172 13,682,271 41,007,941 26,253,305
Transfers (2,958,002) 4,196,255 2,958,002 (4,196,255) - -
Increase in net assets 15,135,767 16,767,289 25,872,174 9,486,016 41,007,941 26,253,305
Net assets - beginning 371,651,356 354,884,067 294,050,625 284,564,609 665,701,981 639,448,676
Netassets - ending $ 386,787,123 $ 371,651,356 $ 319,922,799 $ 294,050,625 $ 706,709,922 $ 665,701,981
7
Governmental Activities
Governmental activities net assets increased by $15.1 million from $371.7 million as of September 30, 2008, to $386.8
million as of September 30, 2009. This increase, due to governmental activities, accounted for 37% of the total increase
in net assets for the City and represented a 4.1 % increase in net assets for governmental activities. Key elements of this
increase are as follows:
• Operating and capital grants and contributions totaling $11.7 million.
• A total of $1.0 million in General Fund revenues in excess of budget primarily due in improved investment
markets and performance, along with General Fund expenditures that were $4.7 million less than budgeted due
to cost cutting across all departments.
The cost of all governmental activities this year was $127.3 million. This reflects a $13.3 million, or 9.5%, decrease from
the fiscal 2008 total of $140.6 million. However, as shown on the Statement of Activities, the amount that the City's
taxpayers ultimately financed for these activities totaled $77.4 million, because some of the cost was paid for by those
who directly benefited from the programs ($38.2 million) or by other governments and organizations that subsidized
certain programs with grants and contributions ($11.7 million). This total of $77.4 million is $9.3 million less than the
fiscal 2008 amount financed from general revenues.
Expenses and Program Revenues - Governmental Activities
For the Year Ended September 30, 2009
Transportation Economic Human Culture and Interest on
Environment Services Recreation Long-term
Debt
8
Revenues by Sources - Governmental Activities
For the Year Ended September 30, 2009
Property taxes
32% Sales taxes
10%
Capital grants and . ?: Utility taxes
contributions 8%
2%
Communications
services taxes
Operating grants and 5%
contributions
6%
Othertaxes
5%
Other
Charges for services 6%
26%
Business-type Activities
Net assets for business-type activities increased from $294.0 million to $319.9 million. This increase totaled $25.9
million, reflecting an 8.8% increase in business-type activities net assets and 63% of the total increase in net assets for
the City. The current year increase was $16.4 million more than the fiscal year 2008 increase in net assets of $9.5
million. The increase of $25.9 million was the result of operating revenues in excess of operating expenses, along with
$2.6 million in current year capital grants and contributions, and current year interest and investment earnings totaling
$6.9 million, offset by $10.3 million in interest expense on long term debt. Also contributing to the $25.9 million increase
was the receipt by the Gas Utility of $4.15 million from the buyout of the City's rights under a 20 year gas pre-purchase
agreement.
Total revenues for business-type activities increased by $3.7 million, or 2.6%, to $147.1 million versus the prior year
total of $143.4 million, primarily due to: the receipt of $4.15 million by the Gas Utility from the buyout of the City's rights
under a gas pre-purchase agreement; an increase in investment earnings of $2.6 million, or 60%, due to improved
investment market conditions; and a $1.5 million, or 140% increase in capital grants and contributions due to current
year grant monies and developer contributions received by the Stormwater Utility and the Water and Sewer Utility.
These revenue increases were offset by a decrease in Gas Utility operating revenues of $5.6 million due to decreased
fuel prices. Please refer to the discussion of proprietary funds operating results that follows for additional discussion of
these revenues.
Total expenses for business-type activities decreased by $5.5 million, or 4.2%, from $129.7 million in fiscal 2008 to
$124.2 million for fiscal 2009. A significant factor contributing to this $5.5 million decrease was a $5.2 million, or 25%,
decrease in gas system purchases for resale as a result of decreased fuel costs. Please refer to the discussion of
proprietary funds operating results that follows for additional discussion of a number of offsetting decreases and
increases in specific expense categories that account for the balance of the $5.5 million current year decrease.
9
Expenses and Program Revenue - Business-type Activities
For the Year Ended September 30, 2009
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
¦ Expenses
¦Revenues
i
Revenues by Source - Business-type Activities ,
For the Year Ended September 30, 2009
Charges for services
93.4%
10
Capital grants and ,
contributions
1.8%
Water and Gas Utility Solid Waste Stormwater Other
Sewer Utility Utility Utility
Investment earnings
4.7%
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the
end of the fiscal year. The City reports the General Fund, Special Development Fund, and Capital Improvement Fund
as major governmental funds.
The City's governmental funds for the year ended September 30, 2009, reflect a combined fund balance of $113.4
million versus $114.9 million for the prior year, a decrease of $1.5 million. A total of $73.0 million, or 64%, represents
unreserved fund balance available for spending at the government's discretion. The remainder of the fund balance is
reserved to indicate that it is not available for new spending because it has already been committed: 1) to liquidate
construction contracts and purchase orders of the prior period ($6.7 million); 2) to pay debt service ($7.2 million); 3) for
advances due from other funds ($2.7 million); 4) for land held for resale ($2.0 million); and 5) for specific program
purposes per grant restrictions and related loan agreements ($21.8 million).
The General Fund is the chief operating fund of the City. At September 30, 2009, unreserved fund balance of the
General Fund totaled $19.2 million, with the remainder of the $22.3 million in fund balance "reserved" to indicate it has
already been committed for purchase orders of the prior period ($1.1 million) and for advances due from other funds
($2.0 million). As a measure of the general fund's liquidity it is useful to compare unreserved fund balance to total fund
expenditures. Unreserved fund balance represents 17.4% of total general fund expenditures (GAAP basis before
transfers) for the current fiscal year.
The fund balance of the City's General Fund increased by $1.3 million during the current fiscal year versus a final
budgeted decrease of $4.5 million. This $5.8 million variance from budgeted was primarily the result of total
expenditures that were less than budgeted expenditures by $4.7 million, along with total revenues that were $1.0 million
in excess of budgeted revenues. General Fund expenditure "savings" of $4.7 million, or 4.1%, was spread across all
departments due to an emphasis on cost reduction City-wide. The General Fund revenues were greater than budgeted
by $1.0 million primarily due to a $692,000 surplus of investment earnings versus budgeted due to improved market
conditions.
The fund balance of the Special Development Fund decreased from $11.4 million to $11.0 million, for a decrease of
$0.4 million or 3.3%, during the current fiscal year versus a decrease of $1.7 million for fiscal 2008. The Special
Development Fund final amended budget indicated a planned decrease in fund balance of $1.6 million. This current
' year $1.2 million variance from the budgeted decrease in fund balance was primarily due to a $1.8 million, or 298%,
surplus of investment earnings versus budgeted due to favorable investment market conditions, offset by an $0.8
million, or 8.8%, deficit of sales tax revenues versus budgeted as a result of the significant downturn in the economy.
The fund balance for the Capital Improvement Fund decreased from $43.4 million to $36.5 million during the current
fiscal year. This decrease of $6.9 million is primarily the result of current year capital project expenditures ($24.4 million)
in excess of current year capital project funding received from other funds ($15.4 million), and grant revenues received
from federal, state, and local agencies ($2.4 million). This is typical volatility for the Capital Improvement Fund due to
timing differences between project funding and project spending, as evidenced by an offsetting $7.0 million increase in
fund balance in the prior year.
The fund balances for Other (non-major) Governmental Funds increased from $39.1 million to $43.5 million during the
current fiscal year. This increase of $4.4 million was primarily the result of: $1.3 million of current year Special Programs
special revenue fund receipts for the retirement incentives program in excess of current year expenditures; $1.0 million
received by the Special Programs special revenue fund from the Central Insurance internal service fund for funding of
the emergency operations program; $941,000 of grant monies received by the Special Programs special revenue fund
for the U.S. Department of Housing and Urban Development Home Investment Partnerships Program; a $668,000
increase in the SHIP Local Housing Assistance Trust special revenue unreserved fund balance due to current year
revenues in excess of expenditures; a $305,000 increase in the Community Redevelopment Agency capital project
unreserved fund balance due to current year project funding in excess of capital project expenditures; and a $272,000
increase in the Pinellas County Local Housing Assistance Trust special revenue unreserved fund balance due to current
year revenues in excess of expenditures.
11
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial statements,
but in more detail. The City reports the Water and Sewer Utility Fund, the Gas Utility Fund, the Solid Waste Utility Fund,
and the Stormwater Utility Fund as major funds.
The Water and Sewer Utility Fund realized a $0.4 million increase in net assets versus a $0.5 million decrease for the
prior year. Operating revenues increased by $2.0 million, or 3.8%, offset by an increase in operating expenses of $1.9
million, or 4.1%. This resulted in a net increase in operating income of $0.1 million, or 1.7%, from $5.8 million in fiscal
2008 to $5.9 million for 2009. Additionally, capital grants and contributions increased by $0.6 million, or 90%, and
investment earnings increased by $1.1 million, or 57%. The increase in operating revenues was primarily the result of
scheduled rate increases. The increase in operating expenses was due primarily due to an increase in depreciation
expense of $3.9 million, or 51 %, due to a current year change in the depreciable fives used for water and sewer utility
systems. The $3.9 million increase in depreciation expense was offset by a $1.2 million, or 29.2%, decrease in repairs
and maintenance expenses due to a current year emphasis on system improvements rather than repairs and
maintenance; and a $1.0 million, or 10.3%, decrease in water purchases for resale due to increased City well production
and a corresponding decrease in water purchased from Pinellas County. The increase in capital grants and
contributions was primarily due to increases in contributions from developers that had dropped to nearly zero for fiscal
2008 due to the economic downturn. The increase in investment earnings was due to improvement in investment
market conditions.
The Gas Utility Fund realized an $8.6 million increase in net assets versus a $3.6 million increase for the prior year.
Operating revenues decreased by $5.6 million, or 14%, from the prior year, primarily due to decreased fuel costs, offset
by a $5.2 million, or 25%, decrease in cost of purchases for resale due to decreased cost of natural gas. Contributing to
a $1.0 million increase in operating income, from $4.9 million for the prior year to $5.9 million for the current year, was a
$0.9 million, or 16%, reduction in personal services expenses due to staff reductions. Also contributing to the $8.6
million increase in net assets were non-operating revenue increases including: receipt by the Gas Utility of $4.15 million
from the buyout of the City's rights under a 20 year gas pre-purchase agreement; and a $0.3 million, or 54%, increase in
investment earnings versus the prior year due to more favorable investment market conditions
The Solid Waste Utility Fund realized a $2.6 million increase in net assets versus a $0.6 million increase for the prior
year. Operating revenues increased by $341,000, or 2.0%, while operating expenses decreased by $1.3 million, or
7.8%, resulting in a $1.6 million increase in operating income from $1.0 million in the prior year to $2.6 million.
Contributing to the decrease in operating expenses was a $364,000, or 6.2%, decrease in personal services; a
$346,000, or 9.9%, decrease in transportation expenses; and a $417,000, or 9.0%, decrease in dumping charges.
The Stormwater Utility Fund realized an increase in net assets of $2.6 million versus a prior year increase of $1.8
million. Operating revenues increased by $0.9 million, or 6.8%, due to scheduled rate increases. The increase in
operating revenues was offset by a $0.6 million, or 6.0% increase in operating expenses, primarily attributable to a $0.8
million, or 136%, increase in professional services resulting from the cancellation of capital projects that were not cost
effective, and the expensing of related professional services capitalized as construction in progress during the prior
year. Also contributing to the increase in net assets was an $815,000, or 480%, increase in capital grants and
contributions due to current year grant monies received from the Southwest Florida Water Management District and the
Florida Department of Environmental Protection, along with $207,000 of developer contributions.
Unrestricted net assets and changes in net assets of the proprietary funds for fiscal years 2009 and 2008:
Fund
Unrestricted Net Assets
Change in Net Assets
2009 2008
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Other funds
Totals
$ 35,382,376 $ 18,766,064
21,937,251 14,104,350
16,981,480 14,266,699
17,464,603 14,017,572
23,853,324 18,905,519
$ 115,619,034 $ 80,060,204
2009 2008
$ 387,545 $ (485,742)
8,639,131 3,597,948
2,588,805 581,057
2,616,680 1,797,533
10,417,988 2,692,910
$ 24,650,149 $ 8,183,706
12
General Fund Budgetary Highlights
' The final amended budget for General Fund expenditures reflected an increase of $2.0 million, or 1.8%, from the
original budget. Key elements of this increase were as follows:
' $0.9 million increase in Police and $1.3 million increase in Fire budgeted expenditures due to the accounting for
State tax contributions to Police and Fire Supplemental Pension Plans, which are recorded as General Fund
revenues and employer contribution expenditures as recommended by the Governmental Finance Officers
' Association. These budgeted expenditure increases were offset by an equal increase in budgeted revenues
below.
Final budgeted revenues reflect a $1.6 million, or 1.4%, increase from the original budget primarily due to the following:
• $1.5 million, or 15%, increase in budgeted intergovernmental revenues from state sources to reflect $2.2 million
in state insurance tax monies received on behalf of the City's police and fire supplemental pension plans, offset
by a $0.5 million decrease in sales tax and $0.2 million decrease in state revenue sharing due to the continuted
downturn in the local and national economy.
• $0.7 million, or 33%, decrease in budgeted licenses, permits, and fees due to slowing of the construction
industry and the decline in the economy, offset by a $0.6 million, or 9.2%, increase in budgeted communications
services taxes due to $383,000 received for a retroactive adjustment to prior year revenues, along with an
increase of $195,000 in estimated receipts for the current year.
' • $0.2 million, or 0.6%, increase in budgeted property taxes due to final tax roll adjustments.
' Final budgeted "transfers in" from other funds reflect a $0.7 million, or 9.4%, increase from the original budget primarily
Capital Asset and Debt Administration
'
Capital Assets
Capital assets include land, buildings and building improvements, improvements other than buildings, machinery and
'
equipment, and infrastructure. Infrastructure assets acquired prior to fiscal 2002 were added when the City retroactively
implemented the infrastructure portion of the new financial reporting model, per GASB 34, during fiscal 2006. The
infrastructure asset category includes long-lived capital assets, typically stationary in nature, such as roads, sidewalks,
and bridges. At September 30, 2009, the City had investments in capital assets totaling $642,240,783 (net of
accumulated depreciation).
13
due to:
• $0.5 million of Special Programs balances from completed programs returned to the General Fund.
• $0.2 million increase in the budgeted annual gas system dividend payment to the General Fund due to
improved gas system profitability.
Final budgeted "transfers out" reflect a $2.5 million, or 29%, increase from the original budget primarily due to the
following transfers: $1.9 million to the Special Programs special revenue fund for the retirement incentives program;
$200,000 to the Capital Improvements capital projects fund for Carpenter Complex clubhouse renovations; $119,000 to
' the Special Programs special revenue fund for the homeless shelter program; and $100,000 to the Capital
Improvements capital projects fund for the Clearwater Golf Course clubhouse acquisition.
Total actual revenues for the General Fund for fiscal 2009 were $1.0 million, or 0.9%, greater than final budgeted
revenues. Contributing to this surplus of actual revenues versus final budgeted revenues was $0.7 million surplus of
investment earnings versus budgeted due to improved investment market conditions.
Actual fiscal 2009 actual expenditures for the General Fund were less than final budgeted expenditures by $4.7 million,
or 4.1 %. This was due to budget savings across all City departments for fiscal 2009.
City of Clearwater, Florida - Capital Assets*
(amounts in thousands)
Governmental Activities Business-type Activities Total
2009 2008 2009 2008 2009 2008 ,
Land $ 79,291 $ 71,018 $ 31,312 $ 29,187 $ 110,603 $ 100,205
Buildings 81,943 81,016 13,309 12,918 95,252 93,934
Improvements other than buildings 14,130 11,888 297,288 295,039 311,418 306,927
Machinery and equipment 20,680 22,659 2,772 3,126 23,452 25,785
Infrastructure 71,159 49,355 - - 71,159 49,355
Construction in progress 13,509 31,055 16,848 16,863 30,357 47,918
Total
$ 280,712 $ 266,991
$ 361,529 $
357,133
$ 642,241 $
624,124 '
* Net of accumulated depreciation _
Net capital assets for the City's governmental activities increased from $267.0 million to $280.7 million, reflecting an
increase of $13.7 million for the current fiscal year. Capital asset additions of $26.5 million and transfers from business-
type assets of $2.2 million were offset by depreciation expense of $14.5 million and net capital asset retirements totaling
approximately $0.6 million. Major fiscal 2009 governmental capital asset transactions included $2.5 million in current
year capitalized expenditures for infrastructure improvement to the Long Center, $2.5 million in capital expenditures for
the Royalty Theatre acquisition, $2.3 million for improvements to the Carpenter Complex clubhouse, $1.0 million for
improvements to Station Square Park, $0.8 million for the Bayfront Promenade, $0.7 million of Beach Walk capital
expenditures, and $0.5 million of capital expenditures for the downtown boat slips.
Net capital assets for the City's business-type activities increased from $357.1 million to $361.5 million, reflecting an
increase of $4.4 million for the current fiscal year. Capital asset additions of $23.9 million were offset by depreciation
expense of $17.2 million and net capital asset retirements and transfers totaling approximately $2.3 million. Major fiscal
2009 business-type capital asset transactions included $6.5 million for the downtown boat slips and $1.3 million for
Station Square parking.
Additional information on the City's capital assets can be found in Note III (C) on the notes to the financial statements.
Long-term debt ,
The City's total long-term debt increased from $268.7 million to $317.1 million, an increase of $48.4 million or 18.0%.
Long-term debt for governmental activities decreased by $8.7 million, or 12.9%; while long-term debt for business-type ,
activities increased by $57.1 million or 28.4%. Key factors contributing to these changes included:
• The decrease in long-term debt for governmental activities is primarily due to a $7.4 million, or 19.2%, decrease
in net revenue bonds payable due to scheduled bond principal payments.
• The increase in long-term debt for business-type activities is primarily due to approximately $110 million of
water and sewer system revenue and revenue refunding bonds issued during fiscal 2009, partially offset by
$45.6 million of outstanding water and sewer bonds that were refunded, along with approximately $9 million of
scheduled bond principal payments.
The City's bonded debt as of September 30, 2009, consists entirely of revenue bonds (secured solely by specified ,
revenue sources) with no general obligation debt or special assessment debt outstanding. Governmental activities net
revenue bonds totaled $30.9 million while business-type activities totaled $254.8 million.
The City's Charter limits indebtedness to twenty percent of the assessed valuation of non-exempt real estate. The ,
current debt limitation is approximately $1.9 billion, which is significantly in excess of the City's applicable indebtedness
of approximately $272 million at September 30, 2009.
Additional information on the City's long-term debt can be found in Note III (F) of the notes to the financial statements. ,
14 1
Economic Factors And Year 2010 Budgets and Rates
Factors considered in preparing the City of Clearwater's budget for fiscal year 2010 included:
• Passage of Amendment 1 to the Florida Constitution on January 29, 2008, providing property tax relief to the
citizens of Florida. Related state mandates also limit the level at which the City can set the millage rate.
• A declining economy and real estate market resulting in further reductions in property tax values and revenues,
along with sales tax, municipal revenue sharing, communications services tax, and building permit revenues.
• The unemployment rate for the Tampa Bay metropolitan area for September 2009 was 11.8%, an increase from
the September 2008 rate of 7.1 %. The national rate for September 2009 was 9.8% versus 6.2% for September
2008.
• Total taxable assessed values for the City of Clearwater decreased approximately 12.8% for fiscal 2010. The
City's millage rate was increased by 9.1%, from 4.7254 to 5.1550 mills for fiscal 2010, reflecting a 7.19%
decrease from the rolled-back rate of 5.5543 mills.
• A reduction of 79.8 full-time equivalent positions City-wide, including a reduction in General Fund employees of
86.2 FTE's, from 1,177.3 to 1,091.1, due to service level reductions and program consolidations.
• An increase of $13.9 million in the actuarially required contribution to the Employees' Pension Plan, from $10.0
million in fiscal 2009 to $23.9 for fiscal 2010. $5.2 million of this $13.9 million increase will be funded from the
fiscal 2010 budget across all funds, while the balance of $8.7 million will be funded from the pension plan credit
balance, which has a current balance of approximately $15.3 million.
• A reduction in employee medical insurance costs of $659,000, or 6%, from fiscal 2009 due to the decrease in
employees from the prior year, while maintaining the same cost per employee as the prior year.
• Budgeted Water and Sewer utility revenues for 2010 reflect a 7% rate increase effective October 1, 2009, while
fiscal 2010 budgeted Stormwater utility revenues reflect a 6% rate increase effective October 1, 2009.
Contacting the City's Financial Management.
This financial report is designed to provide a general overview of the City's finances for all those with an interest in our
government and to show the City's accountability for the money it receives. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to: City of Clearwater,
Finance Department, 100 South Myrtle Avenue, Clearwater, Florida 33756-5520.
i.
15
This Page Intentionally Left Blank
16
Basic Financial Statements
17
City of Clearwater, Florida
Statement of Net Assets
September 30, 2009
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 134,766,510 $ 106,835,351 $ 241,601,861
Investments 888,514 - 888,514
Total receivables (net) 16,913,377 12,060,479 28,973,856
Internal balances (740,988) 740,988 -
Due from other governments 5,973,300 4,878,922 10,852,222
Prepaid items 1,228,270 38,423 1,266,693
Inventories 418,598 1,558,755 1,977, 353
Restricted assets:
Cash and investments - 99,558,237 99,558,237
Due from other governments - 4,078,199 4,078,199
Deferred charges 207,170 2,430,974 2,638,144
Net pension asset 11,728,035 3,599,092 15,327,127
Capital assets:
Land 79,291,397 31,312,012 110,603,409
Buildings 81,942,506 13,308,852 95,251,358
Improvements other than buildings 14,129,488 297,288,134 311,417,622
Machinery and equipment 20,679,925 2,771,492 23,451,417
Infrastructure 71,159,508 - 71,159,508
Construction in progress 13,509,321 16,848,148 30,357,469
Total assets 452,094,931 597,308,058 1,049,402,989
LIABILITIES
Accounts payable and other current liabilities 1,854,224 4,619,803 6,474,027
Accrued liabilities 3,410,446 944,850 4,355,296
Accrued interest payable 234,670 120,377 355,047
Due to other governments 384,289 249,925 634,214
Deposits 2,400 89,646 92,046
Unearned revenue and liens 868,713 2,072,478 2,941,191
Payable from restricted assets:
Construction contracts payable - 1,019,570 1,019,570
Accrued interest payable - 4,051,862 4,051,862
Customers deposits - 5,721,858 5,721,858
Non-current liabilities due within one year:
Compensated absences 4,558,185 1,111,525 5,669,710
Loans and leases payable 3,546,301 301,517 3,847,818
Revenue bonds payable 7,630,000 6,540,000 14,170,000
Claims payable 1,963,000 - 1,963,000
Long-term debt and liabilities:
Unearned revenue - 187,113 187,113
Compensated absences 3,025,951 737,886 3,763,837
Other postemployment benefits 2,817,553 965,147 3,782,700
Loans and leases payable 5,683,706 358,701 6,042,407
Revenue bonds payable 23,302,370 248,293,001 271,595,371
Claims payable 6,026,000 - 6,026,000
Total liabilities 65,307,808 277,385,259 342,693,067
NET ASSETS
Invested in capital assets, net of related debt 240,549,768 158,128,827 398,678,595
Restricted for
Capital projects 11,044,686 - 11,044,686
Debt service 6,944,334 21,290,935 28,235,269
Renewal and replacement - 11,983,425 11,983,425
Grant programs 24,692,331 - 24,692,331
Impact fees - 8,058,233 8,058,233
Unrestricted 103,556,004 120,461,379 224,017,383
Total net assets $ 386,787,123 $ 319,922,799 $ 706,709,922
The notes to the financial statements are an integral part of this statement
18
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19
ASSETS
Cash and investments
Receivables (net where applicable, of allowances
for estimated uncollectible amounts):
Accrued interest
Accounts and contracts
Mortgages, notes and other loans
Rehabilitation advances
Property taxes
Other
Due from other funds (deficit in pooled cash)
Due from other governmental entities
Investments
Land held for resale
inventories, at cost
Prepaid items
Advances to other funds
Total assets
LIABILITIES
Accounts and contracts payable
Accrued payroll
Due to other funds (deficit in pooled cash)
Due to other governmental entities
Deposits
Construction escrows
Deferred revenue
Advances from other funds
Total liabilities
FUND BALANCES
Reserved for:
Encumbrances
Debt service requirements
Interfund and notes receivable
Grant programs
Land held for resale
Unreserved, reported in:
General fund
Special revenue funds
Debt service funds
Capital projects funds
Total fund balances
Total liabilities and fund balances
City of Clearwater, Florida
Balance Sheet
Governmental Funds
September 30, 2009
Special
General Development
Fund Fund
Capital Other
Improvement Governmental
Fund Funds
Totals
Governmental
Funds
$ 19,029,460 $ 8,634,146 $ 36,757,499 $ 27,047,191 $ 91,468,296
247,524 323,637 2,070 140,421 713,652
206,306 - - 206,306
- 13, 316, 403 13, 316,403
- - 12,476 12,476
294,620
1,928,393 19,830
-
- -
47,469 314,450
1,975,862
24,565 - 24,565
2,543,344 2,407,124 459,966 562,866 5,973,300
- - - 888,514 888,514
- 1,998,751 1,998,751
34,356 - 34,356
-
2,000,000
-
- 24,565
700,000 24,565
2,700,000
,
$ 26,284,003 $ 11,384,737 $ 37,244,100 $ 44,738,656 $ 119,651,496
$ 428,081 $ - $ 721,565 $ 207,079 $ 1,356,725 ,
2,967,955 - 43,411 3,011,366
- 24,565 24,565
15,224 320,221 48,844 384,289 ,
2,400 - - 2,400
- - 191,227 191,227
531,724 19,830 39,241 590,795
- - - ,000
700,000 700,000
3,945,384 340,051 721,565 1,254,367 6,261,367
,
1,167,491 - 5,494,315 6,661,806
- 7,179,004 7,179,004
2,000,000 14,016,403 16,016,403
- 8,571,665 8,571,665
- 1,998,751 1,998, 751
19,171,128 - - 19,171,128
- 11,044,686 5,854,022 16,898,708
- 135,662 135,662
- - 31,028,220 5,728,782 36,757,002
22,338,619 11,044,686 36,522,535 43,484,289 113,390,129
$ 26,284,003 $ 11,384,737 $ 37,244,100 $ 44,738,656 $ 119,651,496
The notes to the financial statements are an integral part of this statement.
20
City of Clearwater, Florida
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
September 30, 2009
Total fund balances of governmental funds $ 113,390,129
Capital assets used in governmental activities are not financial resources, therefore,
are not reported in the funds. The cost of the assets totals $436,353,485, and the
accumulated depreciation totals $155,641,340.
Total capital assets for governmental activities $ 280,712,145
Less: Land included in governmental funds as "Land Held for Resale" (1,998,751)
278,713,394
The net pension asset related to governmental activities does not represent financial
resources and is not reported in the funds. 11,728,035
Accrued general long-term debt interest expenses are not financial uses and, therefore,
are not reported in the funds. (234,670)
Accrued property taxes are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 314,451
Accrued liens are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 204,443
Accrued permit fees are not financial resources in the current period and, therefore,
are reported as deferred revenues in the funds. 32,660
The assets and liabilities of the internal service funds (funds used to charge the costs of certain activities
to individual funds) are included in the governmental activities in the statement of net assets.
Net assets of internal service funds 46,009,951
Less: Capital assets included in total governmental capital assets above (16,062,520)
Less: Net pension asset included in total governmental net pension asset above (1,204,271)
Add: Capital lease purchases payable included in total governmental below 7,812,890
Add: Compensated absences included in total governmental below 904,486
Add: Other post-employment benefits included in total governmental below 377,386
Less: Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds (4,842,345)
32, 995, 577
Long-term liabilities, including bonds payable, are not due and payable in the current
period and accordingly are not reported in the funds.
Long-term liabilities at year-end consist of:
Bonds payable (30,905,000)
Less: Deferred charge on refunding (to be amortized as interest expense) 236,582
Less: Deferred charge for issuance costs (to be amortized over life of debt) 207,170
Less: Issuance discount (to be amortized as interest expense) 28,050
Add: Issuance premium (to be amortized as a reduction of interest expense) (292,002)
Capital lease purchases payable (9,230,007)
Other post-employment benefits (2,817,553)
Compensated absences (7,584,136)
(50,356,896)
Total net assets of governmental activities $ 386,787,123
The notes to the financial statements are an integral part of this statement.
21
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2009
Special Capital Other Total
General Development Improvement Governmental Governmental
Fund Fund Fund Funds Funds
REVENUES
Taxes:
Property $ 43,828,562 $ 2,750,128 $ $ $ 46,578,690
Sales - 8,574,091 8,574,091
Utility 12,020,599 - 12,020,599
Communications services 6,966,606 6,966,606
Other taxes 2,163,324 2,003,320 4,166,644
Total taxes 64,979,091 13,327,539 78,306,630
Franchise fees 10,204,413 - 10,204,413
Licenses, permits, and fees 1,458,862 458,850 1,917,712
Intergovernmental:
Federal - - 2,517,481 2,517,481
State 10,815,755 2,064,914 1,612,805 14,493,474
Local 8,344,246 321,168 2,295,634 10,961,048
Total intergovernmental 19,160,001 2,386,082 6,425,920 27,972,003
Charges for services 13,782,882 - 1,149,758 14,932,640
Fines and forfeitures 785,278 - - 692,362 1,477,640
Investment earnings 2,055,570 2,386,484 13,563 1,312,397 5,768,014
Miscellaneous 1,055,478 50,484 774,056 1,880,018
Total revenues 113,481,575 16,172,873 2,450,129 10,354,493 142,459,070
EXPENDITURES
Current:
General government 12,089,749 - 155,349 1,387,848 13,632,946
Public safety 62,111,657 312,531 1,817,393 64,241,581
Physical environment 3,803,919 20,216 261,304 4,085,439
Transportation 5,926,124 1,841,664 - 7,767,788
Economic environment 1,536,350 - 1,629,249 3,165,599
Human services 269,822 - 135,380 405,202
Culture and recreation 24,512,740 1,022,464 1,578,925 27,114,129
Debt service:
Principal - - 7,825,291 7,825,291
Interest & fiscal charges - 1,617,136 1,617,136
Capital outlay 21,033,696 1,278,788 22,312,484
Total expenditures 110,250,361 24,385,920 17,531,314 152,167,595
Excess (deficiency) of revenues
over/ (under) expenditures 3,231,214 16,172,873 (21,935,791) (7,176,821) (9,708,525)
OTHER FINANCING SOURCES (USES)
Transfers in 8,711,012 45,563 15,375,746 14,819,667 38,951,988
Transfers out (10,667,451) (16,590,456) (836,779) (3,213,230) (31,307,916)
Other long term debt issued 525,232 525,232
Total other financing sources (uses) (1,956,439) (16,544,893) 15,064,199 11,606,437 8,169,304
Net change in fund balances 1,274,775 (372,020) (6,871,592) 4,429,616 (1,539,221)
Fund balances - beginning 21,063,844 11,416,706 43,394,127 39,054,673 114,929,350
Fund balances - ending $ 22,338,619 $ 11,044,686 $ 36,522.535 $ 43,484,289 $ 113,390,129
The notes to the financial statements are an integral part of this statement.
22
City of Clearwater, Florida
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2009
Net change in fund balances - total governmental funds $ (1,539,221)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities report
depreciation expense to allocate those costs over the life of the assets. This is the amount by
which capital outlays exceeded depreciation in the current period.
Expenditures for capital assets $ 24,956,556
Less current year depreciation (9,600,776)
15,355,780
In the Statement of Activities, capital assets donated from enterprise funds are reported as transfers
in from governmental funds. Governmental funds do not report capital assets. 314,319
In the Statement of Activities the loss on disposition of capital assets is reported. The loss is not
a use of current resources and thus is not reported in the funds. (871,107)
Loan proceeds provide current financial resources to governmental funds; however issuing debt
increases long-term liabilities in the Statement of Net Assets. In the current year these amounts are:
Capital lease proceeds (525,232)
Repayment of long term debt principal is an expenditure in the governmental funds, however the
repayment reduces long-term liabilities in the Statement of Net Assets. Current year amounts are:
Revenue bond principal payments 7,325,000
Capital lease principal payments 500.288
7,825,288
Net pension asset is not a current financial resources and consequently is not reported in the
funds. However it is an asset in the Statement of Net Assets.
Current year change in the net pension asset 888,164
Liability for other post-employment benefits (OPEB) does not require the use of current financial resources
and consequently is not reported in the funds. However it is a liability in the Statement of Net Assets.
Current year change in the liability for other post-employment benefits (1,275,969)
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore are not reported as expenditures in the governmental funds:
Current year change in compensated absences 561,384
Amortization of deferred charge on refunding (23,165)
Amortization of issuance costs (32,465)
Amortization of bond discounts and premiums 51,593
Current year change in accrued interest expense 87,306
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds:
Reversal of prior year accrual - communications services tax refund receivable per State
Accrual of property taxes receivable
Accrual of liens receivable
Accrual of permit fees receivable
The net revenues of internal service funds (funds used to charge the costs of certain activities
to individual funds) for governmental activities are reported in the Statement of Activities but not
in the governmental funds.
Total change in net assets of governmental activities
The notes to the financial statements are an integral part of this statement.
644,653
(568,777)
314,451
204,443
32,660
(5, 663, 685)
$ 15,135,767
23
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes
in Fund Balances
- '
Budget and Actual (Non -GAAP Budgetary Basis)
General Fund
For the Year Ended September 30, 2009
Budgeted Amounts
Variance with '
Actual Final Budget
REVENUES Original Final Amounts Positive (Negative)
Taxes:
Property $ 43,461,390 $ 43,741,053 $ 43,828,562 $ 87,509
Utility taxes 12,030,350 12,030,350 12,020,599 (9,751)
Communications services 6,286,500 6,865,000 6,966,606 101,606
Other taxes 2,150,000 2,150,000 2,163,324 13,324
Total taxes
Franchise fees 63,928,240
9,819,270 64,786,403
9,819,270 64,979,091
10,204,413 192,688
385,143 '
Licenses, permits, and fees 2,092,500 1,400,000 1,458,862 58,862
Interqovernmental:
State 9,562,410 11,035,378 10,815,755 (219,623)
Local 8,594,710 8,594,710 8,344,246 (250,464)
Total intergovernmental 18,157,120 19,630,088 19,160,001 (470,087)
Charqes for services 13,684,160 13,689,098 13,782,882 93,784
Fines and forfeitures 902,300 782,300 785,278 2,978
Investment earninqs 1,364,000 1,364,000 2,055,570 691,570
Miscellaneous 939,950 972,270 1,055,478 83.208
Total revenues
110,887,540
112,443,429
113,481,575
1,038,146 ,
EXPENDITURES
General government
City Council 285,390 285,166 258,938 26,228
City Manaqer's Office 1,066,210 1,050,010 998,434 51,576
City Attorney's Office
1,688,790
1,667,759
1,484,868
182,891 '
Official Records & Legislative Services 1,180,430 1,123,801 1,067,179 56,622
Public Communications 1,088,580 1,049,313 893,840 155,473
Finance 2,265,030 2,180,201 2,130,504 49,697
Human Resources 1,212,180 1,119,602 1,013,011 106,591
Non-Departmental
1,888,520
2,451,558
2,458,325
(6,767) '
Enqineerinq 58,766 58,399 52,791 5,608
Public Services 18,481 18,386 27,136 (8,750)
Planninq 1,429,290 1,358,617 1,283,975 74,642
City Auditor's Office 175,520 173,417 173,341 76
Office of Manaqement & Budqet
297,690
266,937
263,976
2,961 '
Total qeneral qovernment 12,654,877 12,803,166 12,106,318 696,848
Public safety
Police
Fire 36,777,410
20,466,590 37,813,418
21,844,053 37,188,442
20,764,758 624,976
1,079,295 '
Development & Neiqhborhood Services 3,765,173 3,654,563 3,463,387 191,176
Marine / Beach Guards 674,030 666,421 605,775 60,646
Total public safety 61,683,203 63,978,455 62,022,362 1,956,093
Physical environment
Enqineerinq
2,644,479
2,627,969
2,375,591
252,378 '
Public Services 1,637,847 1,630,388 1,234,678 395,710
Total physical environment 4,282,326 4,258,357 3,610,269 648,088
Transportation
Enqineerinq 4,357,595 4,349,045 4,189,998 159,047
Public Services
1,869,042
1,862,332
1,923,504
(61,172) ,
Total transportation 6,226,637 6,211,377 6,113,502 97,875
Economic environment
Economic Development 1,389,940 1,362,084 1,266,800 95,284
Development & Neiqhborhood Services 256,167 248,642 235,635 13,007
Total economic environment
1,646,107
1,610,726
1,502,435
108,291 '
Human services
Equity Services 284,010 279,539 264,390 15,149
Total human services 284,010 279,539 264,390 15,149
Culture and recreation
Parks and Recreation
19,928,850
19,534,239
18,587,648
946,591 '
Library 5,370,790 5,354,228 5,140,385 213,843
Marine 549,570 607,927 570,492 37,435
Total culture and recreation 25,849,210 25,496,394 24,298,525 1,197,869
Total expenditures (budqetary basis) 112,626,370 114,638,014 109,917,801 4,720,213
Excess of revenues over expenditures (budgetary basis)
(1,738,830)
(2,194,585)
3,563,774
5,758,359 '
OTHER FINANCING SOURCES (USES)
Transfers in 7,912,390 8,653,393 8,711,012 57,619
Transfers out (8,473,560) (10,952,633) (10,667,451) 285,182
Total other financing sources (uses) (budgetary basis)
(561,170)
(2,299,240)
(1,956,439)
342,801 '
Excess (deficiency) of revenues and other financing sources (2,300,000) (4,493,825) 1,607,335 6,101,160
over expenditures and other financinq uses (budqetary basis)
Encumbered purchase orders, beqinninq of year (1,500,051) (1,500,051)
Encumbered purchase orders, end of year 1,167,491 1,167,491
Excess (deficiency) of revenues and other financinq sources
over expenditures and other financinq uses (GAAP basis) (2,300,000) (4,493,825) 1,274,775 5,768,600
Fund balances - beqinninq 21,063,844 21,063,844 21,063,844
Fund balances - ending $ 18,763,844 $ 16,570,019 $ 22,338,619 $ 5,768,600
The notes to the financial statements are an integral part of this statement.
'
24
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis)
Special Development Fund
For the Year Ended September 30, 2009
REVENUES
Taxes:
Property
Sales
Other taxes
Total taxes
Licenses, permits, and fees
Investment earnings
Total revenues
EXPENDITURES
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Excess / (Deficiency) of revenues and other
sources over expenditures and other uses
Fund balances - beginning
Fund balances - ending
Budgeted Amounts
Actual
Original Final Amounts
Variance with
Final Budget
Positive
(Negative)
$ 2,727,150 $ 2,739,880 $ 2,750,128 $ 10,248
9,925,000 9,400,000 8,574,091 (825,909)
1,537,790 1,991,740 2,003,320 11,580
14,189,940 14,131,620 13,327,539 (804,081)
906,290 394,190 458,850 64,660
600,000 600,000 2,386,484 1,786,484
15,696,230 15,125,810 16,172,873 1,047,063
15,696,230 15,125,810 16,172,873 1,047,063
- 45,563 45,563
(13,380,180) (16,719,276) (16,590,456) 128,820
(13,380,180) (16,719,276) (16,544,893) 174,383
2,316,050 (1,593,466) (372,020) 1,221,446
14,483,168 10,802,335 11,416,706 614,371
$ 16,799,218 $ 9,208,869 $ 11,044,686 $ 1,835,817
The notes to the financial statements are an integral part of this statement.
25
City of Clearwater, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2009
Business-type
Enterprise
ASSETS
Current assets:
Cash and investments
Accrued interest receivable
Accounts and contracts receivable:
Billed
Unbilled charges estimated
Less: Allowance for uncollectable accounts
Total receivables, net
Other receivables
Due from other funds
Due from other governmental entities
Inventories, at cost
Prepaid expenses and other assets
Total current assets - unrestricted
Current assets - restricted:
Restricted cash and investments
Due from other governmental entities
Total current assets - restricted
Total current assets
Noncurrent assets:
Restricted cash and investments
Deferred charges
Other receivables
Advance to other funds
Net pension asset
Capital assets:
Land and other nondepreciable assets
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
Water
and Sewer Gas Solid Waste
utility utility utility
$ 28,312,669 $ 21,782,713 $ 15,553,725
486,421 126,598 108,229
2,952,134 1,040,882 980,863
1,915,400 1,291,800 626,939
4,867,534 2,332,682 1,607,802
(85,974) (43,947) (27,243)
4,781,560 2,288,735 1,580,559
75,895 - -
580,463 -
792,001 710,663
6,130 - -
35,035,139 24,908,709 17,242,513
6,258,244 2,379,184 963,339
4,078,199 - -
10,336,443 2,379,184 963,339
45,371,582 27,287,893 18,205,852
75,915,968 300,000
1,719,338 300,163
187,113 -
1,427,508 740,979 801,917
11,052,720 327,284 1,041,913
211,593,867 40,854,789 1,773,078
301,896,514 42,523,215 3,616,908
347,268,096 69,811,108 21,822,760
The notes to the financial statements are an integral part of this statement.
26
Activities
Funds Govemmental
Activities -
Stormwater Other Internal Service
utility Funds Total Funds
$ 11,356,575 $ 29,829,669 '$ 106,835,351 $ 43,298,214
99,995 226,351 1,047,594 374,228
766,057 94,147 5,834,083 -
1,151,900 110,639 5,096,678
1,917,957 204,786 10,930,761
(21,310) (2,410) (180,884)
1,896,647 202,376 10,749,877
- - 75,895 -
- - - 111,925
4,212,260 86,199 4,878,922 -
- 56,091 1,558,755 384,242
- 32,293 38,423 1,203,705
17,565,477 30,432,979 125,184,817 45,372,314
1,766,349 - 11,367,116 -
- 4,078,199
1,766,349 - 15,445,315
19,331,826 30,432,979 140,630,132 45,372,314
2,932,832 9,042,321 88,191,121 -
372,746 38,727 2,430,974
- - 187,113 -
- - - 2,722,660
255,056 373,632 3,599,092 1,204,271
24,856,976 10,881,267 48,160,160 729,591
46, 532,133 12, 614, 611 313, 368, 478 15, 332, 929
74,949,743 32,950,558 455,936,938 19,989,451
94,281,569 63,383,537 596,567,070 65,361,765
(Continued)
27
City of Clearwater, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2009
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued payroll
Accrued interest payable
Due to other governmental entities
Deposits
Unearned revenue and liens
Current portion of long-term liabilities:
Compensated absences
Revenue bonds
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Claims payable
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Construction contracts payable
Accrued interest payable
Current portion of long-term liabilities, revenue bonds
Customer deposits
Total current liabilities payable from restricted assets
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other postemployment benefits
Revenue bonds (net of unamortized discounts and
deferred amount on refunding)
Notes, loan pool agreement and acquisition contracts
Unearned revenue
Advances from other funds
Claims payable
Total non-current liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for:
Revenue bond debt service and sinking fund requirements
Revenue bond renewal and replacement requirements
Water and sewer impact fees
Stormwater system fees
Parking improvements
Unrestricted
Total net assets
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
utility utility utility
1,322,954 1,211,092 322,872
355,732 175,425 202,442
52,234 47,711 20,432
75,895 1,978,810 -
391,951 254,880 174,783
1,297,732 710,417 -
110,909 - 101,776
3,607,407 4,378,335 822,305
1,019,570 - -
3,174,643 58,722
3,387,268 64,583 -
2,502,641 2,255,878 963,339
10,084,122 2,379,183 963,339
13,691,529 6,757,518 1,785,644
260,199 169,202 116,029
340,644 175,481 226,392
184,030,642 15,264,734 -
80,138 - 108,847
187,113 -
10•+,050,/a0 IO,OVzy,•+I/ '#J 1,LO0
198,590,265 22,366,935 2,236,912
76,698,306 25,142,339 2,604,368
17,383,189 64,583
11,683,425 300,000
7,530,535 -
35,382,376 21,937,251 16,981,480
$ 148,677,831 $ 47,444,173 $ 19,585,848
The notes to the financial statements are an integral part of this statement.
28
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
28,940 1,723,917 4,609,775 306,272
95,130 116,121 944,850 399,080
- - 120,377 -
249,925 - 249,925
- 99,674 99,674 -
- 17,773 2,072,478 829,472
156,640 133,271 1,111,525 543,610
90,000 - 2,098,149 -
4,855 83,977 301,517 3,028,292
- 20,271 20,271 91,654
- - - 1,963,000
625,490 2,195,004 11,628,541 7,161,380
- - 1,019,570
747,548 70,949 4,051,862
990,000 - 4,441,851
- - 5,721,858
1,737,548 70,949 15,235,141
2,363,038 2,265,953 26,863,682 7,161,380
103,986 88,470 737,886 360,876
94,056 128,574 965,147 377,386
39,862,625 9,135,000 248,293,001 -
- 169,716 358,701 4,784,598
- 187,113 -
4,081,086 4,081,086 641,574
- - - 6,026,000
40,060,667 13,602,846 254,622,934 12,190,434
42,423,705 15,868,799 281,486,616 19,351,814
30,441,629 23,242,185 158,128,827 8,249,630
3,460,969 382,194 21,290,935
- - 11,983,425
- 7,530,535
490,663 - 490,663
- 37,035 37,035 -
17,464,603 23,853,324 115,619,034 37,760,321
$ 51,857,864 $ 47,514,738 315,080,454 $ 46,009,951
Adjustment to reflect consolidation of
internal service fund act ivities related to
enterprise funds 4,842,345
Net assets of business-type activities $ 319,922,799
29
City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2009
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Operating revenues:
Sales to customers $ 53,302,095 $ 33,483,372 $ 17,518,632
Service charges to customers 531,568 1,068,399 88,071
User charges to customers - -
Billings to departments
Rentals - -
Total operating revenues 53,833,663 34,551,771 17,606,703
Operating expenses:
Personal services 9,192,241 4,614,806 5,466,505
Purchases for resale 8,312,863 15,533,693 -
Operating materials and supplies 2,874,409 249,555 267,043
Transportation 865,733 475,014 3,134,508
Utility service 3,053,860 96,239 87,474
Dumping charges - - 4,231,559
Depreciation 11,593,194 1,797,396 256,589
Interfund administrative charges 5,953,860 2,161,100 996,470
Other current charges:
Professional fees 1,495,659 190,401 5,526
Advertising - 411,233 6,212
Communications 183,573 99,379 91,040
Printing and binding - 37 -
Insurance 785,780 341,128 165,540
Repairs and maintenance 2,872,308 151,624 157,006
Rentals - 5,269 1,934
Miscellaneous 324,029 78,444 39,867
Data processing charges 390,100 331,970 132,200
Taxes - 2,072,695 -
Total other current charges 6,051,449 3,682,180 599,325
Total operating expenses 47,897,609 28,609,983 15,039,473
Operating income (loss) 5,936,054 5,941,788 2,567,230
The notes to the financial statements are an integral part of this statement,
30
Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
$ 13,367,832 $ 3,166,685 $ 120,838,616 $
66,196 7,773 1,762,007
- 6,630,292 6,630,292 -
_ - 43,328,597
- 3,165,050 3,165,050 -
13,434,028 12,969,800 132,395,965 43,328,597
2,614,507 2,920,507 24,808,566 10,352,614
- 2,771,048 26,617,604 3,364,642
286,640 440,943 4,118,590 651,375
781,034 448,820 5,705,109 254,334
- 450,448 3,688,021 662,974
- - 4,231,559 -
2,228,314 1,310,423 17,185,916 4,850,889
1,781,220 1,722,821 12,615,471 249,860
1,398,012 1,569,562 4,659,160 470,675
- 59,413 476,858 -
47,693 64,221 485,906 1,267,957
- 9,478 9,515 47,041
42,540 168,452 1,503,440 15, 500, 598
521,476 323,811 4,026,225 1,823,414
- 813,889 821,092 554,653
54,783 128,555 625,678 206,858
155,800 110,738 1,120,808 392,590
- 36,214 2,108,909 4,139
2,220,304 3,284,333 15,837,591 20,267,925
9,912,019 13,349,343 114,808,427 40,654,613
3,522,009 (379,543) 17,587,538 2,673,984
(Continued)
31
City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2009
Nonoperating revenues (expenses):
Investment earnings
Interest expense
Amortization of bond issue costs
Gain on sale of capital assets
Loss on sale of capital assets
Other
Total nonoperating revenue (expenses)
Income before contributions and transfers
Capital grants and contributions
Transfers in
Transfers out
Changes in net assets
Total net assets - beginning
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility utility
2,986,725 913,557 808,544
(7,009,523) (877,110) (34,753)
(99,384) (28,499)
(1,150)
131,379 4,526,688 240,354
(3,990,803) 4,534,636 1,012,995
1,945,251 10,476,424 3,580,225
1,325,674 - -
- 200,000
(2,883,380) (2,037,293) (991,420)
(1,557,706) (1,837,293) (991,420)
387,545 8,639,131 2,588,805
14R 9Qn 9RFR 3R Rns n49 1 fi QQ7_n43
Total net assets - ending $ 148,677,831 $ 47,444,173 $ 19,585,848
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities (page 19)
The notes to the financial statements are an integral part of this statement.
32
Activities
Funds Governmental
Activities -
Stormwater Other internal Service
utility Funds Total Funds
737,751 1,460,195 6,906,772 2,920,650
(1,790,509) (611,325) (10,323,220) (348,232)
(28,819) (4,162) (160,864) -
436,762
(169,002) - (170,152) (70,378)
59,018 285,193 5,242,632 239,655
(1,191,561) 1,129,901 1,495,168 3,178,457
2,330,448 750,358 19,082,706 5,852,441
984,972 298,795 2,609,441 314,319
- 10,356,966 10,556,966 247,994
(698,740) (988,131) (7,598,964) (10,856,414)
286,232 9,667,630 5,567,443 (10,294,101)
2,616,680 10,417,988 24,650,149 (4,441,660)
49,241,184 37,096,750 50,451,611
$ 51,857,864 $ 47,514,738 $ 46,009,951
1,222,025
$ 25,872,174
33
City of Clearwater, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2009
Business-type
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers
Cash received from other funds
Cash payments to suppliers
Cash payments to employees
Cash payments to other funds
Other revenues
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Receipt of cash on loans to/from other funds
Payment of cash on loans to/from other funds
Net cash provided (used) by noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt
Interest paid
Acquisition of capital assets
Sale of capital assets
Proceeds from issuance of debt
Payment of bond issue costs
Capital contributed by:
Other governmental entities
Property owners
Developers
Net cash provided (used) by capital
and related financing activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents classified as
Enterprise
Water
and Sewer Gas Solid Waste
utility utility utility
$ 53,752,601 $ 37,163,416 $ 17,529,482
(21,862,495) (20,089,857) (4,841,171)
(9,192,881) (4,971,040) (5,445,626)
(9,311,779) (2,260,479) (4,519,758)
131,379 4,526,688 240,354
13,516,825 14,368,728 2,963,281
(2,883,380) (1,837,293) (991,420)
(2,883,380) (1,837,293) (991,420)
(51,548,357) (623,178) (139,930)
(3,558,103) (921,348) (53,269)
(10,209,792) (1,984,229) (4,859)
- 13,026
108,436,007 -
(1,020,331)
455,759
2,779
867,136
43,425,098 (3,528,755) (185,032)
3,042,681 919,087 836,350
3,042,681 919,087 836,350
57,101,224 9,921,767 2,623,179
53, 385, 657 14, 540,130 13,893, 885
$ 110,486,881 $ 24,461,897 $ 16,517,064
Cash and investments $ 28,312,669 $ 21,782,713 $ 15,553,725
Restricted cash and investments 82,174,212 2,679,184 963,339
Total cash and cash equivalents $ 110,486,881 $ 24,461,897 $ 16,517,064
The notes to the financial statements are an integral part of this statement.
34
Activities
Funds
Stormwater Other
Utility Funds Total
Governmental
Activities -
Internal Service
$ 13,308,089 $ 12,869,304 $ 134,622,892 $ -
43,328,597
(2,252,387) (6,668,025) (55,713,935) (24,961,251)
(2,542,735) (2,877,741) (25,030,023) (10,326,110)
(2,812,146) (2,246,199) (21,150,361) (1,624,405)
59,018 285,193 5,242,632 178,596
5,759,839 1,362,532 37,971,205 6,595,427
- 10,356,966 10,356,966 247,994
(698,740) (988,131) (7,398,964) (10,805,414)
91,654
(15,101) (15,101) (91,653)
(698,740) 9,353,734 2,942,901 (10,557,419)
(1,113,235) (149,559) (53,574,259) (3,515,233)
(1,814,634) (558,768) (6,906,122) (348,232)
(5,666,915) (7,033,347) (24,899,142) (3,579,493)
- 13,026 436,134
191,850 108,627,857 2,159,834
- (809) (1,021,140) -
578,075 62,596 1,096,430
- - 2,779
867,136
(8,016,709) (7,488,037) 24,206,565 (4,846,990)
859,995 1,452,171 7,110,284 3,027,886
859,995 1,452,171 7,110,284 3,027,886
(2,095,615) 4,680,400 72,230,955 (5,781,096)
18,151,371 34,191,590 134,162,633 49,079,310
$ 16,055,756 $ 38,871,990 $ 206,393,588 $ 43,298,214
$ 11,356,575 $ 29,829,669 $ 106,835,351 $ 43,298,214
4,699,181 9,042,321 99,558,237 -
$ 16,055,756 $ 38,871,990 $ 206,393,588 $ 43,298,214
35
(Continued)
City of Clearwater, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2009
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Other nonoperating revenue
Depreciation
Capitalized labor
Construction in process reclassified as expense
Change in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in amount due from other governments
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable
Increase (decrease) in claims payable
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
(Increase) decrease in net pension asset
Increase (decrease) in accrued payroll
Increase (decrease) in other postemployment benefits
Total adjustments
Net cash provided by operating activities
$ 5,936,054 $ 5,941,788 $ 2,567,230
131,379 4,526,688 240,354
11,593,194 1,797,396 256,589
(207,783) (324,465) -
232,411 -
(108,792) 643,349 (63,538)
(3,733,944) -
(98,255) 180,450
(404,470) (284,335) (44,550)
27,129 (10,514) (13,683)
- 1,978,810
(108,424) (57,730) (61,540)
76,978 (112,856) (37,764)
181,348 90,147 120,183
7,580,771 8,426,940 396,051
$ 13,516,825 $ 14,368,728 $ 2,963,281
Noncash investing, capital and financing activities:
Amortization of bond issue costs
Amortization of premium / (discount) on bond issuance
Amortization of deferred loss on defeasance of debt
Capital assets transferred from General Government
Increase in other receivables for developer contributions
increase in deferred revenue for developer contributions
$ (99,384) $ (28,500) $
$ 172,752 $ (4,449) $
$ (372,291) $ (142,373) $
$ 263,008 $ $
$ (263,008) $ $
The notes to the financial statements are an integral part of this statement.
36
Activities
Funds Governmental
Activities -
Stormwater Other Intemal Service
Utility Funds Total Funds
$ 3,522,009 $ (379,543) $ 17,587,538 $ 2,673,984
59,018 285,193 5,242,632 178,596
2,228,314 1,310,423 17,185,916 4,850,889
- - (532,248)
- 232,411
(125,939) 111,586 456,666
- (3,733,944) -
59,622 141,817 62,161
8,153 8,153 (153,577)
(17,037) 136,413 (613,979) (1,133,814)
21,702 - 21,702 -
- (202,438) (199,506)
(9,643) 1,969,167
(27,705) (28,495) (283,894) (123,793)
49,040 3,104 (21,498) 40,622
50,437 68,157 510,272 200,359
2,237,830 1,742,075 20,383,667 3,921,443
$ 5,759,839 $ 1,362,532 $ 37,971,205 $ 6,595,427
$ (28,819) $ (3,352) $ (160,055) $
$ (33,128) $ $ 135,175 $
$ (34,247) $ $ (548,911) $ -
$ $ $ - $ 314,319
$ $ $ 263,008 $ -
$ $ $ (263,008) $
37
City of Clearwater, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2009
ASSETS
Cash and investments
Managed investment accounts, at fair value:
Cash and cash equivalents
Government bonds
Agency bonds
Domestic corporate bonds
International corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Asset backed securities
Commodity exchange-traded funds
Domestic equity mutual funds
International equity mutual funds
Total managed investment accounts
Securities lending collateral
Receivables:
Interest and dividends receivable
Unsettled investment sales
Securities lending earnings receivable
Accounts receivable
Total receivables
Total assets
LIABILITIES
Accounts payable
Unsettled investment purchases
Obligations under securities lending
Other miscellaneous payables:
Downtown Development Board
Special purpose funds
Other
Total miscellaneous payables
Total liabilities
NET ASSETS
Held in trust for pension benefits and other purposes
Total net assets
The notes to the financial statements are an integral part of this statement.
Pension
Trust Agency
Funds Fund
$ 4,545,961 $ 424,929
33,998,529 -
24,006,350 -
12,870,506 -
67,208,006 -
5,341 -
69, 879,101 -
239,153,601 -
64,816,779 -
94,393 -
563,473 -
35, 759,178 -
26,042,061 -
574,397,318 -
134,478,540 -
2,110,270 2,391
4,906,921 -
28,718
-
249,652 -
7,295,561 2,391
720,717,380 427,320
736,072 -
13,317,098 -
136,034,800 -
- 311,453
- 7,640
- 108,227
- 427,320
150,087,970 427,320
570,629,410
$ 570,629,410 $
38
City of Clearwater, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2009
ADDITIONS
Contributions:
Contributions from employer
Contributions from employer - state tax
Contributions from employees
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest
Dividends
Less investment expenses:
Investment management / custodian fees
Net income from investing activities
Securities lending income:
Gross earnings
Rebate paid
Bank fee
Net income from securities lending
Total additions
DEDUCTIONS
Benefits and withdrawal payments:
Benefits
Withdrawal payments
Total benefits and withdrawal payments
Income before administrative expenses
Administrative expenses
Net increase
Net assets held in trust for pension benefits:
Beginning of year
End of year
The notes to the financial statements are an integral part of this statement.
Pension
Trust
Funds
$ 10,368,010
2,098,078
6,253,091
18,719,179
17,811,225
10,681,538
5,091,304
33,584,067
2,870,046
30,714,021
746,619
(115,442)
(176,604)
454,573
49,887,773
26,834,711
610,253
27,444,964
22,442,809
198,791
22,244,018
548,385,392
$ 570,629,410
39
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Note I - Summary of Significant Accounting Policies
The City of Clearwater, Florida (the City) was incorporated in 1923 per Chapter 9710, Special Laws of Florida, as amended.
The City is a Florida municipal corporation governed by a five member City Council including a mayor-council-member. The
City has an estimated population of 110,000 and is located in the four-county Tampa-St. Petersburg-Clearwater
Metropolitan Statistical Area (MSA), which has an estimated population of 2,735,000.
The financial statements of the City of Clearwater, Florida, reporting entity (City) have been prepared in accordance with
generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting.
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 enterprise fund types in accordance with GASB Statement Number 20.
The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting standards
which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental
units. The City's more significant accounting policies are described below.
A. Financial Reporting Entity
In evaluating the City as a reporting entity, management has included in the accompanying financial statements the City of
Clearwater (the primary government) and its component units, entities for which the government is considered to be
financially accountable. The City has adhered to the standards set forth in GASB Statement No. 14, as amended by GASB
Statement No. 39, in reporting the primary government (including blended component units), the reporting entity, and
related organizations.
Blended Component Unit - Clearwater Community Redevelopment Agency: Component units that meet the criteria for
blended presentation in accordance with GASB Statement Number 14, as amended by GASB Statement No. 39, are
reported in a manner similar to that of the primary government itself. Accordingly, throughout this report, data presented for
the primary government includes data of the following blended component unit. The Clearwater Community Redevelopment
Agency (CRA), created by authority of Florida Statute Chapter 163, Part III, and City of Clearwater Resolution 81-68,
although it is legally separate, is reported as if it were part of the City (blended component unit) due to the City Council
serving as the governing board of the CRA. Separate financial statements for the CRA are not available. However financial
statements for the CRA are included in the City's comprehensive annual financial report as a governmental non-major
special revenue fund and a governmental non-major capital projects fund.
Related Organization - Clearwater Housing Authority (CHA): CHA is a public housing authority created by City Resolution
69-5 (1969), under Section 421.04 of the Florida Statutes. CHA receives primary funding from the Federal Department of
Housing and Urban Development (HUD). The City Council appoints the governing board, however the City Council is not
able to impose its will on the CHA, nor does the City have any responsibility for the budget, debt, financing deficits, or fiscal
management of CHA. Consequently it is not a component unit of the City of Clearwater. Separate audited financial
statements of CHA as of September 30, 2009, are available from CHA.
Related Organization - Downtown Development Board: The City of Clearwater serves as administrative agent for the
Clearwater Downtown Development Board (DDB). The Downtown Development Board is an independent special district of
the City of Clearwater with an independent board elected by its members, with its own levy (0.9651 mills for fiscal 2009) on
downtown properties, and is not financially dependent upon the City. Consequently it is not a component unit of the City of
Clearwater. The DDB's cash balance held by the City as administrative agent is reflected in the City's fiduciary agency fund.
Separate audited financial statements of the DDB as of September 30, 2009, are available from the DDB.
Jointly governed organization - Florida Gas Utility: The City of Clearwater is a member of the Florida Gas Utility (FGU), a
non-profit municipal public entity created for the sole purpose of reducing the costs of purchased gas for its members. FGU
is a public body corporate and politic pursuant to Section 163.01 Florida Statutes (the Florida Interlocal Cooperation Act), as
amended, and the Interlocal Agreement, dated September 1, 1989, which was subsequently amended by the Amended
Interlocal Agreement on June 1, 1992, amended and restated by the Amended and Restated Interlocal Agreement, dated
July 1, 1996, and thereafter amended and restated by the Second Amended and Restated Interlocal Agreement, dated July
40
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
27, 1999, (the Interlocal Agreement), executed and delivered among FGU and its members, which include municipalities,
municipal utilities, and an interlocal agreement consisting of such entities. Due to the diverse needs of municipal utility
systems, FGU established itself as a project-oriented agency. Under this structure, each member has the option whether or
not to participate in a project. FGU has the authority to, among other things, plan, finance, acquire, construct, manage,
operate, deliver, service, utilize, own, broker, exchange, and distribute natural gas, or other energy and energy services,
pursuant to the Interlocal Agreement. As of September 30, 2009, FGU has 23 members. Separate audited financial
statements of FGU as of September 30, 2009, are available from FGU.
B. Basic Financial Statements Under the New Financial Reporting Model
The City's Basic Financial Statements contain three components: government-wide financial statements, fund financial
statements, and notes to the financial statements.
1. Government-wide financial statements. The government-wide financial statements report information on all of the
nonfiduciary activities of the primary government and its component unit using the accrual basis of accounting, which is
similar to the accounting used by private-sector businesses. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The statement of net assets presents information on all of the assets and liabilities of the City. The difference between
assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. The operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. Taxes and
other items not properly included among program revenues are reported instead as general revenues. All revenues and
expenses are reported as soon as the underlying transaction has occurred, regardless of when cash is received or paid.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements.
1 Exceptions to this general rule are payments-in-lieu of taxes and other quasi-external charges between enterprise funds
and various other functions of the government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
2. Fund financial statements. Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial statements. The fund financial
statements are, in substance, very similar to the financial statements presented in the previous financial reporting model.
An emphasis is on the major funds in either the governmental or business-type categories. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Non-major
funds (by category) are summarized into a single column.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Special Development fund is a special revenue fund used to account for impact fees, property taxes for road
improvements, local option gas taxes, infrastructure taxes, and other revenues which are restricted legally or by City
Council policy to be used for specific capital improvement projects.
The Capital Improvement Fund is used to provide combined accounting presentation for all City capital improvement
projects except those financed from proprietary funds or bond proceeds where bond ordinance provisions require the
segregation of bond proceeds in separate funds.
41
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
The City reports the following major proprietary funds:
The Water and Sewer Utility enterprise fund is used to account for the financing, construction, operation, and maintenance
of the water and sewer services of the City from charges made to users of the service.
The Gas Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the gas
service of the City from charges made to the users of the service.
The Solid Waste Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the
solid waste service of the City from charges made to the users of the service.
The Stormwater Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the
stormwater management system of the City from charges assessed against each developed property.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with the proprietary
fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and service,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Additionally, the City reports the following fund types:
Internal service funds account for fleet management, information technology, telephone, graphics, employee relations,
facilities management, radio communications, insurance, and risk management services provided to other City departments
on a cost reimbursement basis. The Garage, Administrative Services, General Services, and Central Insurance funds
primarily benefit governmental funds and are consequently included as governmental activities. Pension trust funds account
for the financial operation and condition of the Employees' Pension Plan, the Firefighter's Relief and Pension Plan, the
Police Supplemental Pension Plan, and the Firefighters Supplemental Pension Plan.
The Treasurer's Escrow Agency Fund accounts for the receipt, custody, and expenditure of monies held temporarily in an
agency capacity for other parties.
The pension trust funds and the agency fund are fiduciary funds used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not included in the government-wide financial statements because the
resources of these funds are not available to support the City's own programs.
When both restricted and nonrestricted resources are available for use, it is the City's practice to use restricted resources
first, then unrestricted resources as needed. ,
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund included within the
fiduciary fund financial statements also uses the accrual basis of accounting but does not have a measurement focus.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers property tax revenues to be available if they are ,
collected within 60 days of the end of the current fiscal year. Other revenues are considered to be available if they are
collected within 90 days of fiscal year-end. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Intergovernmental revenues, representing grants and assistance received from other governmental units, are generally
recognized as revenues in the period when all eligibility requirements, as defined by GASB Statement 33, have been met,
and funds are available from the grantor agency or government.
42
City of Clearwater Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered
susceptible to accrual and so have been recognized as revenues of the current fiscal period for the governmental funds. All
other revenue items are considered to be measurable and available only when cash is received by the City.
I D. Assets, Liabilities, and Net Assets or Equity
Deposits, pooled cash, and investments
Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The
majority of the investments in which the City's funds have equity are held by the City's consolidated pool of cash and
investments. The City utilizes the consolidated cash pool to account for cash and investments of all City funds other than those
that are required by ordinance to be physically segregated. The consolidated cash pool concept allows each participating fund
to benefit from the economies of scale and improved yield that are inherent to a larger investment pool. Formal accounting
records detail the individual equities of the participating funds. The cash pool utilizes a single checking account for all City
receipts and disbursements.
Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds
may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's equity
account is considered a cash equivalent regardless of the maturities of investments held by the pool.
All individual fund cash equity in a deficit (overdraft) position with respect to the consolidated cash pool is reclassified at
year-end to short-term interfund payables to the Capital Improvement Fund. The Capital Improvement Fund is the fund
selected by management to reflect the offsetting interfund receivables in such cases.
The City has an agreement with its depository bank to provide that all excess cash is swept daily and automatically into an
overnight money market account which pays interest at the federal funds rate, with no requirement for a minimum
compensating balance. The fed funds rate was 0.25% at September 30, 2009. This account is collateralized through the
State of Florida Public Deposits Program.
Under City Charter and the current Investment Policy, adopted by the City Council on September 7, 1995, consolidated
cash pool investments are limited to the following: United States Government Securities, Certificates of Deposit in Local
Banks, Repurchase Agreements, Savings Accounts in Local Banks, Federal Government Agency Securities, Municipal
Bonds issued by governmental entities within the state of Florida (other than City of Clearwater issues), and State of Florida
Bonds.
The City utilizes a very conservative investment philosophy when it invests its pooled cash funds in that the return of the
principal is more important than the return on the principal. The City does not actively trade its portfolio and generally holds
investments until maturity. Through the use of a laddered approach to maturities and by timing maturities to cash needs, the
City does not anticipate selling investments to meet cash flow requirements.
Under the City's Investment Policy, a performance measurement standard has been established. The performance measure
chosen is a weighted average of: the overnight interest rate; and three month, six month, one year, three year, five year, and
ten year Treasury rates, respectively. For the fiscal year ended September 30, 2009, the performance measure weighted
average was 1.09%. The actual pooled cash earnings performance before bank charges was 3.43%.
Investments being held outside of the consolidated cash pool include escrowed debt service investments and employee
retirement investments. Permissible escrowed debt service investments are specifically defined in each individual debt
instrument, but generally follow the same limitations applicable to consolidated cash pool investments. The City maintains
four different employee retirement programs, and each one has its own list of permitted investments. Generally, each plan
1 allows the same type of investments as the consolidated cash pool, but additionally allows some portion of its assets to be
invested in corporate bonds, notes of corporations, and stocks that are listed on one or more of the recognized national or
international stock exchanges.
2. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year
are referred to as either "due to/from other funds" (i.e. the current portion of interfund loans) or "advances to/from other
funds" (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due
to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities
are reported in the government-wide financial statements as "internal balances".
43
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable less than
60 days are included in the trade accounts receivable allowance for uncollectibles at the five-year average loss experience
rate of 2.99%. Trade accounts receivable in excess of 60 days are reserved at 40%. The property tax receivable allowance
for uncollectibles is 10% of the current year portion of the receivable, and 30%, 50%, 70%, 90%, and 95% for the receivable
portions attributable to the prior five years respectively (fiscal 2008 thru 2004), and 100% of the receivable attributable to
fiscal years 2003 and prior.
Property tax revenue is recognized in the fiscal year for which the taxes are levied, provided the availability test is met, in
conformance with NCGA Interpretation No. 3. Property taxes for the following fiscal year are levied by Council action in
September of each year. This levy is apportioned to property owners based on the previous January 1 assessed values.
Tax bills are mailed out on or about November 1, and the collection period runs from November 1 through March 31. On
April 1, unpaid property taxes are considered delinquent and become a lien. Tax certificates are sold in June for real
property with delinquent taxes.
Since taxes are not collected prior to November 1, the City does not record revenue for advance collections. Uncollected
taxes receivable at year-end are recorded, with an appropriate allowance for estimated uncollectible amounts. The net
amount deemed to be collectible but not current (not expected to be collected within sixty days after the close of the fiscal
year) is shown as deferred revenue in the appropriate fund.
All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities accounted for
in the Special Development Fund, are recorded in the General Fund. Property tax revenues are recognized in the General
Fund and the required transfers to the appropriate debt service or pension fund are recorded as operating transfers from
the General Fund.
The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill limitation
is authorized if approved by referendum. The tax rate of 4.7254 mills for the year ended September 30, 2009, reflects a
1.0% increase from the prior year millage rate of 4.6777.
3. Inventories and prepaid items
Inventories of proprietary funds are stated at cost and valued on the first-in first-out (FIFO) basis. In governmental funds, the
majority of inventory items are accounted for under the purchases method, which provides that expenditures are recognized
when the inventory item is purchased. The only governmental fund inventory that is accounted for under the consumption
method is the General Fund inventory of items for resale at the City's public fishing pier. Under the consumption method, the
expenditure is recognized when the inventory item is sold (or consumed).
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements.
4. Restricted assets
Certain resources of the City's enterprise funds are classified as restricted assets. Restricted assets include: Water and Sewer
improvement charges restricted by the authorizing ordinances to the construction of additions and improvements to the water
and sewer systems; Gas Utility and Solid Waste Utility restricted customer deposits; and assets of the Water & Sewer Utility,
Gas Utility, Stormwater Utility, and Parking System funds restricted under the provisions of authorizing ordinances for revenue
bonds to the payment of future revenue bond debt service, system construction, and renewals and replacements.
5. Capital assets
Capital assets, which include property, plant, equipment, and certain infrastructure assets, (e.g. roads, bridges, etc.) are
reported in the applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets, as defined by the City, are assets with an initial individual cost of more than $5,000 (amount not rounded)
and an estimated useful life in excess of five years. Individual assets that cost less than $5,000, but that operate as part of
a network system, may be capitalized in the aggregate, using the group method, if the estimated average useful life of the
individual asset is five years or more. Additionally, higher thresholds for capitalization apply to the following categories: land
44
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
improvements, $50,000; buildings, building improvements, and utility systems, $100,000; and infrastructure, $500,000.
Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs
that do not add to the value of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets
constructed. The total interest expense incurred by business-type activities during the current fiscal year was $10,936,178.
Of this amount, $454,455, $50,368, and $108,135 were included as part of the cost of capital assets under construction in
connection with water & sewer, gas, and stormwater system projects, respectively. These interest expense amounts were
netted against related project interest earnings of ($541,978), $-0-, and ($53,909), respectively, to arrive at net capitalized
interest of ($87,523), $50,368, and $54,226 for water & sewer, gas, and stormwater system projects, respectively.
¦ Property, plant, and equipment of the primary government are depreciated using the straight-line method over the following
estimated useful lives:
Assets Years
Buildings & building improvements 10-40
Public domain infrastructure 20-40
Utility systems 18-40
Machinery & equipment 5-15
Vehicles 5-10
¦ 6. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick
leave "caps" vary depending upon an employee's bargaining unit, hire date, etc, but generally employees may accumulate
vacation time not exceeding 320 hours and sick leave not exceeding 1,560 hours. Upon retirement from City service a qualified
employee is paid for all vacation time not exceeding the applicable vacation "cap" and one-half of accumulated unused sick
leave not exceeding the sick leave cap (i.e. maximum pay-out of 780 hours for an employee with a 1,560 hour cap). The City
accrues for all earned but unused vacation pay up to the applicable cap and the portion of unused sick leave estimated to be
payable upon retirement. The current portion of compensated absences is the amount estimated to be used in the following
year. For governmental activities, compensated absences are liquidated within the same governmental funds where the
employee vacation and/or sick leave was earned.
7. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
1 amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received
on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
¦ 8. Fund equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for
appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent
tentative management plans that are subject to change.
45
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Note II - Stewardship, Compliance, and Accountability
A. Budgets and budgetary accounting
Annual budgets are legally adopted for the General Fund, Special Development special revenue fund, and the Community
Redevelopment Agency special revenue fund. The budget for the Special Development Fund is adopted on a basis consistent
with GAAP, and appropriations lapse at year-end. Appropriations for open encumbered purchase orders at year-end in the
General Fund do not lapse, but rather continue until liquidated or otherwise cancelled by City Council action. For the General
Fund budgetary comparison statements, actual expenditures have been adjusted to include end-of-year encumbrances and to
exclude beginning-of-year encumbrances, in order to provide a meaningful comparison. Except for the treatment of
encumbrances and certain transactions relating to interfund loans, the General Fund Budget is adopted on a basis consistent
with GAAP, and all non-encumbered appropriations lapse at year-end.
The level of budgetary control established by the legislative body, the level on which expenditures may not legally exceed
appropriations, is the individual fund. In accordance with provisions of Ordinance 5025-90 and with Section 2.519(4) of the I
Clearwater Code, the City Manager may transfer part or all of any unencumbered appropriation balance among programs
within an operating fund, provided such action does not result in the discontinuance of a program. Such transfers must be
included in the next budget review presented to the City Council. Upon detailed written request by the City Manager, the City
Council may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another.
As established by administrative policy, department directors may transfer money from one operating code to another within
a program without a formal written amendment. Formal requests for budget amendments from department directors are
required for transfers in capital expenditures, transfers, and reserves. Thus, certain object classifications within
departmental and/or program budget appropriations are subject to administratively imposed controls, in addition to the legal
controls imposed by City Council action described above.
The Community Redevelopment Agency (CRA) Fund annual budget is adopted by the trustees of that agency in accordance
with state law. The level of budgetary control is the total fund. Except for the treatment of encumbrances, the CRA Fund
Budget is adopted on a basis consistent with GAAP, and all non-encumbered appropriations lapse at year-end.
Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the City Council
and the governing board of the component unit. All amendments were adopted in conformance with legal requirements.
Individual amendments, as well as the net effects of all amendments during the fiscal year, were not material in relation to
the original appropriations for the governmental funds in the aggregate.
Budgets for the Capital Projects Funds, the Special Programs Fund, the Local Housing Assistance Trust Fund, and the
Pinellas County Local Housing Assistance Trust Fund are adopted on a multi-year completed program basis, where budgetary
appropriations do not lapse at year-end, but may extend across two or more fiscal years. A comparison of annual results with
these budgets would not be meaningful and is therefore not included in this report.
All City Council adopted budgets are integrated into the formal accounting system to allow for monthly comparison of
projected and actual results in all funds for which budgets are adopted.
Note III - Detailed Notes on All Funds
A. Deposits and investments
Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The
majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool of cash and
investments. Since fund equities in this cash management pool have the general characteristics of demand deposits, in that
additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty,
each fund's equity account is considered a cash-equivalent regardless of the maturities of investments held by the pool. Funds
with deficit (overdraft) positions within the consolidated pool report the deficits as interfund payables to the City's Capital
Improvement Fund.
46
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Deposits
All cash of the City is entirely insured either by federal depository insurance or via banks' participation as qualified public
depositories pursuant to Florida Statutes, Chapter 280, "Security for Public Deposits". The City is required to verify that
monies are invested in "qualified public depositories" as defined in Florida Statutes section 280.02.
Pooled Cash and Investments
To increase returns and minimize fees, the City follows the practice of pooling available cash and investments of all funds
with the exception of retirement plan investments and assets held under Bond Trust Indenture Agreements. Please refer to
1 Note (1)(D)(1) for a discussion of allowable investments under the pooled cash and investments investment policy. All
investments at year-end were in compliance with the pooled cash and investments investment policy.
At year-end, the government's cash and investment balances were as follows, excluding pension plan investments and
investments held under Bond Trust Indenture Agreements:
Carrying % of Weighted avg Moody's
Pooled Cash and Investments Amount Portfolio maturity (years) Rating
Cash and cash equivalents:
Cash on hand $ 649,364 n/a n/a
Cash in bank 10,677,424 n/a n/a
Commercial paper -
Total cash and cash equivalents $ 28,995,295 8.4% n/a n/a
Investments:
Treasuries 20,213,360 5.8% 1.31 n/a
Treasury zeroes 3,022,617 0.9% 0.50 n/a
U.S. Agencies
Government National Mortgage Assn (GNMA) 31,955,271 9.2% 2.37 Aaa
Federal Farm Credit Bank (FFCB) 18,572,146 5.4% 4.02 Aaa
Federal Home Loan Bank (FHLB) 56,627,388 16.4% 1.96 Aaa
t Federal Home Loan Mortgage Assn (FHLMC) 40,740,589 11.8% 3.49 Aaa
Federal Home Loan Mortgage Assn Zeroes - 0.0% Aaa
Financing Corporation (FICO) - 0.0% 0.00 Aaa
Federal National Mortgage Assn (FNMA) 54,651,830 15.8% 4.91 Aaa
Federal National Mortgage Assn (FNMA) Zeroes - 0.00 Aaa
Federal National Mortgage Assn (FNMA) Zeroes - 0.00 Aa-
Dept of Housing and Urban Development (HUD) 14,901,632 4.3% 3.84 Aaa
Student Loan Marketing Association (SLMA) 5,371,372 1.6% 2.66 Aaa
Student Loan Marketing Association (SLMA) - 0.0% A
Student Loan Marketing Association (SLMA) 6,596,186 1.9% 5.43 Baal
Other Government Sponsored Agencies 17,308,273 5.0% 3.24 Aaa
Other Government Sponsored Agencies - Zeroes 23,667,823 6.8% 4.59 Aaa
Municipal bonds 8,121,389 2.3% 3.06 Aa2/Aa3
Municipal bonds 1,961,859 0.6% 0.90 Baa11W/R
Collateralized mortgage obligations 13,423,958 3.9% 3.02 Aaa
Total investments 317,135,693
Total pooled cash and investments $ 346,130,988 100.0% 3.28
47
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Cash and investments as of September 30, 2009 are classified in the accompanying financial statements as follows:
Statement of net assets 09/30/09
Primary Government:
Cash and investments $ 241,601,861
Restricted cash and investments 99,558,237
Fiduciary Funds:
Cash and investments-pension funds 4,545,961
Cash and investments-agency fund 424,929
Total cash and investments per CAFR $ 346,130,988
Interest Rate Risk - Pooled Cash and Investments:
As a means of limiting exposure to fair value losses arising from rising interest rates, the city's pooled cash investment
policy prohibits investments in securities maturing more than fifteen years from the date of purchase, unless matched to a
specific cash flow requirement. Additionally, the policy allows no more than 10% of the portfolio to have maturities in excess
of ten years unless specifically matched against a debt or obligation. Finally, the policy requires that the weighted average
maturity be three years or less, except for temporary situations due to market conditions and/or cash needs when the
average maturity may exceed three years but shall not exceed four years. Weighted average maturities for the city's pooled
cash investments are indicated in the table above.
Credit Risk - Pooled Cash and Investments:
The City's pooled cash investment policy, in accordance with Florida Statutes, allows investments to direct obligations of the
United States, federal agencies, debt issued by the State of Florida or any political subdivision, and commercial paper of prime
quality of the highest letter and numerical rating as provided by at least one nationally recognized rating service. Ratings for the
City's pooled cash investments are disclosed in the preceding table.
Concentration of Credit Risk - Pooled Cash and Investments:
The City's pooled cash investment policy limits the investment in any one issuer to 40% of the portfolio. Concentrations for
several issuers exceeded 5% as disclosed in the preceding table, though none exceeded the 40% limit per the policy.
Bond Trust Indenture Agreement /Debt Service Investments
The City invests in certain prescribed investments per the terms of revenue bond trust indenture agreements. As of
September 30, 2009, these consisted of:
Bond Trust Indenture Debt Service Investments
Investments:
Commercial paper
Total investments
Total pooled cash and investments
Pension Plan Assets
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
$ 888,514 100.0% 0.15 Al
888,514
$ 888,514
The City reports four pension funds in the accompanying financial statements. Each of the plans has a separate governing
board of trustees, a separate investment policy, and differing investment restrictions/risks. Consequently each is disclosed
separately below. All investments at year-end were in compliance with the respective plan investment policies. Please
refer to Note (1)(D)(1) for a discussion of allowable investments under the pension plans.
48
City of Clearwater Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
i Employees Pension Plan
At year-end, the Employees' Pension Plan cash and investment balances were as follows:
I EmDlovees' Pension Plan Cash and Investments
Cash and cash equivalents:
Cash and cash equivalents - pooled cash
Cash in managed investment accounts
Total cash and cash equivalents
Investments:
Treasuries
Treasuries - strips
Treasuries - index linked
Government bonds
U.S. agencies
U.S. agencies
U.S. agencies
Domestic corporate bonds
Domestic corporate bonds
1 Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
International equity securities
Domestic stocks
Mortgage backed bonds
Commodity exchange traded notes
Domestic equity mutual funds
Other/rights/warrants
International equity mutual funds
Total investments
Total managed cash and investments
See pooled cash note disclosure above
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
$ 2,001,423 0.4% n/a n/a
32,108,945 5.9% n/a n/a
34,110,368
14,026,557 2.6%
334,231 0.1%
3,066,173 0.6%
2,405,640 0.4%
5,593,040 1.0%
1,348,270 0.2%
109,151 0.0%
7,074,167 1.3%
22,840,038 4.2%
27,451,955 5.0%
3,019,045 0.6%
721,020 0.1%
3,855,495 0.7%
72,509 0.01%
68,520,040 12.50%
230,595,726 42.1%
63,235,271 11.5%
563,473 0.1%
35,416,923 6.5%
94,393 0.0%
23,743,278 4.3%
514,086,395
$ 548,196,763 100.0%
7.4
15.1
9.5
24.1
18.6
11.3
n/a
n/a
23.2
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Baal
Aaa
Aa2
Baal
Aa 1 /Aa2/Aa3
Al /A2/A3
Baal/Baa2/Baa3
Bat Ba2 Ba3
B3
C CA Caal Cat
D
n/a
n/a
Aaa
n/a
n/a
n/a
n/a
Interest Rate Risk - Employees' Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Employees' Pension Plan
investment policy limits the investment in fixed income investments to no more than 50% of the portfolio. There are no limits
related to weighted average maturities due to the long-term nature of pension plan investing.
Credit Risk - Employees' Pension Plan:
The Employees' Pension Plan investment policy limits credit risk by restricting equity investments to corporations that are
listed on one of the national or international stock exchanges. Additionally, fixed income corporate bonds must carry an
"investment grade" rating as established by one of the nationally recognized rating agencies. At September 30, 2009, the
Plan had $7,668,069 invested in domestic corporate bonds that had fallen below investment grade as the result of
investment downgrades, as indicated on the table above. The respective money managers notified the Plan administrators
of the downgrades and the planned courses of action related to these securities on a timely basis, consistent with the policy
individual manager guidelines.
? 1 49
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Concentration of Credit Risk - Employees' Pension Plan:
The Employees' Pension Plan investment policy limits concentration of credit risk by limiting the investment in common
stock or capital stock of any one corporation to 3% of the plan equity assets, unless due to a higher percentage included in
a nationally recognized market index at least as broad as the Standard and Poor's Composite Index of 500 companies, or
upon a specific finding by the investment committee that such higher percentage is in the best interest of the fund.
Additionally, the individual manager guidelines associated with the policy provide further diversification of both equity and
fixed income investments to minimize concentration of credit risk.
Foreign Currency Risk - Employees' Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Employees' Pension Plan investment policy does not
have a formal policy to limit foreign currency risk, other than a guideline of no more than 25% of the plan assets invested in
international equities. The Pension Plan's exposure to foreign currency risk is as follows:
Investment Currency Fair Value
Common stock Euro $ 24,890,430
Common stock Japanese Yen 9,665,047
Common stock Hong Kong Dollar 6,031,127
Common stock Chinese Yan Renminibi 5,684,872
Common stock Brazil Real 5,105,755
Common stock Taiwan Dollars 4,390,206
Common stock Mexico Pesos 4,035,339
Common stock South Korea Won 3,787,345
Common stock India Rupee 3,623,553
Common stock British Pound 3,454,221
Common stock South Africa Rand 2,935,363
Common stock Australian Dollar 2,460,616
Common stock Russian Ruble 2,030,470
Common stock Swedish Krona 1,946,955
Common stock Israel Shekel 1,940,557
Common stock Thailand Bath 1,637,318
Common stock Indonesia Rupiah 1,268,877
Common stock Singapore Dollar 1,189,546
Common stock Chile Peso 1,106,893
Common stock Turkey Liras 807,271
Common stock Malaysia Ringgit 759,785
Common stock Poland Zloty 712,298
Common stock Norwegian Krone 622,091
Common stock Czeck Rep Koruna 455,724
Common stock Swiss Franc 366,851
Common stock Peru nuevo sol 363,344
Common stock Saudi Arabia 349,155
Common stock Danish Krone 243,728
Common stock Various Others 350,308
Total $ 92,215,046
Firefighter's Relief and Pension Plan
At year-end, the Firefighter's Relief and Pension Plan cash and investment balances were as follows:
50
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Cash and cash equivalents:
Cash and cash equivalents
Total cash and cash equivalents
Investments:
U.S. agency - Federal Nat'l Mortgage Assn. (FNMA)
U.S. agency - Federal Agricultural Mortgage Corp. (FAMCA)
Total investments
Total managed cash and investments
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Ratin
$ 2,526,363 35.0% n/a n/a
2,526,363
3,672,206 50.8% 9.87 Aaa
1.027.995 14.2% 0.55 Aaa
4, NU,LU1
$ 7,226,564 100.0%
Interest Rate Risk - Firefighter's Relief and Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighter's Relief and Pension
Plan investment policy limits the target investment in fixed income investments to no more than 70% of the portfolio. There
are no limits related to weighted average maturities due to the long-term nature of pension plan investing.
Credit Risk - Firefighter's Relief and Pension Plan:
The Firefighter's Relief and Pension Plan investment policy limits credit risk by restricting the fixed income investments to
investment grade securities, per a nationally recognized ranking agency.
Concentration of Credit Risk - Firefighter's Relief and Pension Plan:
The Firefighter's Relief and Pension Plan investment policy limits concentration of credit risk by limiting the target allocation
of the plan to domestic fixed income to 70% of the portfolio, with the remainder of the portfolio allocated to the City's well-
diversified pooled cash portfolio (see above disclosure). There are no additional limitations on concentrations with individual
issuers or agencies due to the relatively small portfolio of this closed pension plan.
Foreign Currency Risk - Firefighter's Relief and Pension Plan:
The Firefighter's Relief and Pension Plan investment policy does not permit investment in foreign fixed income or equity
securities.
Police Supplemental Pension Plan
At year-end, the Police Supplemental Pension Plan cash and investment balances were as follows:
Cash and cash equivalents:
Cash in bank
Cash in managed investment accounts
Total cash and cash equivalents
Investments:
Treasuries
U.S. agencies
Domestic corporate bonds
Domestic corporate bonds
Domestic corporate bonds
Domestic stocks
Mortgage backed bonds
International equity securities
Total investments
Total managed cash and investments
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
$ 18,175 0.1% n/a n/a
220,054 1.6% n/a n/a
238,229 n/a n/a
3,104,404 23.0% 6.97 n/a
794,454 5.9% 3.55 Aaa
309,613 2.3% Aal/Aa2/Aa3
842,367 6.3% 5.77 Al/A2/A3
15,286 0.1% Baal
6,787,319 50.3% n/a n/a
31,381 0.2% 31.33 Aaa
1.359.061 10.1% n/a n/a
1 J,L43,iSt55
$ 13,482,114 100.0%
51
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Interest Rate Risk - Police Supplemental Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Police Supplemental Pension Plan
investment policy limits the duration of the fixed income portfolio to 125% of the duration of the Lehman Brothers
Government/Corporate Bond index. Additionally, no issues, Treasury, or Corporate Bonds may be purchased with
maturities in excess of 15 years.
Credit Risk - Police Supplemental Pension Plan:
The Police Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to corporations
that are listed on one of the national or international stock exchanges. Additionally, fixed income security investments are
limited to "A" rated or higher corporate bonds, debentures, and preferred stocks; corporate debt provided the corporation
meets the standards set forth in section 185.06(1)(b), Florida Statues; and U.S. Government and agency obligations.
Finally, the investment policy requires that investment managers dispose of any issue that has been downgraded below "A"
as soon as is economically feasible.
Concentration of Credit Risk - Police Supplemental Pension Plan:
The Police Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment in
common stock or capital stock of any one issuing company to 5% of the outstanding capital stock of the company.
Additionally, the policy limits any one-industry position to no more than 25% of the equity portfolio.
Foreign Currency Risk - Police Supplemental Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Police Supplemental Pension Plan investment policy
does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 20% of the plan assets
invested in international equities. Investment in fixed income foreign investments is not permitted per the investment policy.
The Plan has no current exposure to foreign currency risk.
Firefighters Supplemental Pension Plan
At year-end, the Firefighters Supplemental Pension Plan cash and investment balances were as follows:
Carrying % of Weighted avg Moody's
Amount Portfolio maturity (years) Rating
Cash and cash equivalents:
Cash in managed investment accounts $ 113,270 1.3% n/a n/a
Total cash and cash equivalents 113,270
Investments:
Treasuries 1,069,345 12.6% 8.36 n/a
U.S. agencies 325,390 3.8% 2.16 Aaa
Domestic corporate bonds 80,297 0.9% Aal/Aa2/Aa3
Domestic corporate bonds 481,101 5.7% 3.78 Al/A2/A3
Domestic corporate bonds 405,886 4.8% Baal/Baa2/Baa3
Domestic corporate bonds floating rate 17,600 0.2% 17.95 Ba3
Domestic corporate bonds floating rate 21,627 0.3% 4.37 Baal/Baa2/Baa3
Foreign bonds 5,341 0.1% 8.46 Baal/Baa2/Baa3
Domestic stocks 1,770,556 20.9% n/a n/a
Equity mutual funds 342,255 4.0% n/a n/a
EAFE mutual funds 2,298,783 27.1% n/a n/a
Mortgage/Asset backed bonds 1,550,127 18.3% 23.87 Aaa
Total investments 8,368,308
Total managed cash and investments 8,481,578 100.0%
52
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
r Interest Rate Risk - Firefighters Supplemental Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters Supplemental Pension
Plan investment policy limits the duration of the fixed income portfolio to 1359/6 of the duration of the Merrill Lynch Master
Bond Index.
Credit Risk - Firefighters Supplemental Pension Plan:
The Firefighters Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to securities
that are fully and easily negotiable. Additionally, investments in corporations whose stock has been publicly traded for less
than one year are limited to 15% of the equity portfolio. An additional investment policy restriction is that investment in
equity securities whose market capitalization is less than $2 billion dollars shall be limited to 25% of the total equity portfolio.
Additionally, fixed income corporate security investments are limited to "Baa" rated (per Moody's) or higher corporate bonds
(investment grade). Finally, collateralized mortgage obligations must be backed by a federal agency (i.e. GNMA, FHLMC, or
FNMA) or rated Aaa by Moody's, and must pass the FFIEC High Risk Security Test on an annual basis.
Concentration of Credit Risk - Firefighters Supplemental Pension Plan:
The Firefighters Supplemental Pension Plan investment policy limits concentration of credit risk by limiting the investment in
common stock or capital stock of any one issuing company within an investment manager's portfolio to 5% of the portfolio.
Similarly, no more than 10% of a fixed income investment manager's portfolio may be invested in the securities of any
single corporate issuer per the plan investment policy. Finally, investments in collateralized mortgage obligations are limited
to 15% of the investment manager's total portfolio.
Foreign Currency Risk - Firefighters Supplemental Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Firefighters Supplemental Pension Plan investment
policy does not have a formal policy to limit foreign currency risk, other than a guideline of no more than 10% of the plan
assets invested in international equities.
B. Receivables
Receivables as of year-end for the City's governmental, proprietary, internal service, and fiduciary funds, including the
applicable allowances for uncollectible accounts for the proprietary funds, are segregated on the fund financial statements.
The Mortgages, Notes, and Other Loans amount of $13,316,403 reported on the Governmental Funds balance sheet includes
$13,223,495 of long-term loans receivable that are not expected to be collected within the next fiscal year.
I' Receivables as of year-end for the primary government's individual major funds, as well as non-major funds and internal
service funds in the aggregate, are as follows:
Receivables, net of applicable allowances for uncollectible accounts:
Taxes Interest Accounts Notes Other Total
1 General fund $ 294,620 $ 247,524 $ 206,306 $ $ 1,928,393 $ 2,676,843
Special Development 19,830 323,637 - - 343,467
Capital Improvement = 2,070 2,070
1 Non-major governmental funds 140,421 = 13,316,403 59,945 13,516,769
Internal service funds - 374,228 374,228
Total governmental activities $ 314,450 $ 1,087,880 $ 206,306 $ 13,316,403 $ 1,988,338 $ 16,913,377
Water and Sewer Utility $ - $ 486,421 $ 4,781,560 $ - $ 75,895 $ 5,343,876
Gas Utility 126,598 2,288,735 2,415,333
Solid Waste Utility 108,229 1,580,559 1,688,788
Stormwater Utility 99,995 1,896,647 = = 1,996,642
1 Non-major enterprise funds 226,351 202,376 428,727
Total business-type $ $ 1,047,594 $ 10,749,877 $ $ 75,895 $ 11,873,366
U
53
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
C. Capital assets
Capital asset activity for the year ended September 30, 2009:
Beginning Transfers / Ending
Governmental Activities: Balance Increases Decreases Reclassifications Balance
Non-depreciable capital assets:
Land $ 71,018,184 $ 8,397,713 $ 124,500 $ - $ 79,291,397
Construction in progress 31,054,974 7,276,437 24,822,090 - 13,509,321
Total non-depreciablecapital assets 102,073,158 15,674,150 24,946,590 - 92,800,718
Depreciable capital assets:
Buildings 109,472,999 4,521,205 - - 113,994,204
Improvements other than buildings 20,872,541 1,159,700 204 2,332,800 24,364,837
Machinery and equipment 70,714,624 4,782,816 3,730,194 - 71,767,246
Infrastructure 108,253,861 25,172,619 - - 133,426,480
Total depreciable capital assets 309,314,025 35,636,340 3,730,398 2,332,800 343,552,767
Less accumulated depreciation for:
Buildings (28,456,702) (3,594,996) - - (32,051,698)
Improvements other than buildings (8,984,746) (1,157,495) (204) (93,312) (10,235,349)
Machinery and equipment (48,055,332) (6,331,625) (3,299,636) - (51,087,321)
Infrastructure (58,899,423) (3,367,549) - - (62,266,972)
Total accumulated depreciation (144,396,203) (14,451,665) (3,299,840) (93,312) (155,641,340)
Net depreciable capital assets 164,917,822 21,184,675 430,558 2,239,488 187,911,427
Net governmental activities capital assets $ 266,990,980 $ 36,858,825 $ 25,377,148 $ 2,239,488 $ 280,712,145
Beginning Transfers / Ending
Business-type activities: Balance Increases Decreases Reclassifications Balance
Non-depreciable capital assets:
Land $ 29,186,598 $ 2,125,415 $ 1 $ - $ 31,312,012
Construction in progress 16,862,765 13,269,855 13,284,472 - 16,848,148
Total non-depreciable capital assets 46,049,363 15,395,270 13,284,473 - 48,160,160
Depreciable capital assets:
Buildings 23,735,580 1,262,965 - - 24,998,545
Improvements other than buildings 455,200,665 20,014,632 39,663 (2,332,800) 472,842,834
Machinery and equipment 9,423,331 508,350 286,057 26,201 9,671,825
Total depreciable capital assets 488,359,576 21,785,947 325,720 (2,306,599) 507,513,204
Less accumulated depreciation for:
Buildings (10,817,583) (872,110) - - (11,689,693)
Improvements other than buildings (160,161,519) (15,486,493) - 93,312 (175,554,700)
Machinery and equipment (6,296,885) (827,313) (250,066) (26,201) (6,900,333)
Total accumulated depreciation (177,275,987) (17,185,916) (250,066) 67,111 (194,144,726)
Net depreciable capital assets 311,083,589 4,600,031 75,654 (2,239,488) 313,368,478
Net business-type activities capital assets $ 357,132,952 $ 19,995,301 $ 13,360,127 $ (2,239,488) $ 361,528,638
54
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Depreciation expense was charged to functions / programs of the primary government as follows:
Governmental activities:
General government $ 716,605
Public safety 1,715,102
Physical environment 190,964
Transportation, including depreciation of general infrastructure assets 3,345,879
Culture and recreation 3,632,226
Capital assets held by the government's governmental internal service funds are charged to
the various functions based on their usage of the assets 4,850,889
Total depreciation expense - governmental activities $ 14,451,665
. Business-type activities:
Water and sewer utility
Gas utility
Solid waste utility
Stormwater utility
Recycling utility
Marine operations
Aviation operations
Parking system operations
Harborview Center operations
Total depreciation expense - business-type activities
Construction commitments
At September 30, 2009, material outstanding construction commitments were as follows:
Project
Reclaimed Water Distribution System
Downtown Boat Slips
Reverse Osmosis Plant Expansion - Reservoir #1
Wastewater Treatment Plan Aeration Improvements
Wellfield Expansion
Streets and Sidewalks Maintenance
Alligator Creek Channel F Drainage
Lake Bellevue Stormwater Improvements
Beach Connector Trail
Traffic Calming
Carpenter Complex Clubhouse Renovations
Total Construction Commitments
$ 11,593,194
1,797,396
256,589
2,228,314
198,201
116,266
196,872
251,692
547,392
$ 17,185,916
Fund
Water & Sewer Utility enterprise fund
Downtown Boat Slips enterprise fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Water & Sewer Utility enterprise fund
Capital Improvement capital projects fund
Stormwater Utility enterprise fund
Stormwater Utility enterprise fund
Capital Improvement capital projects fund
Capital Improvement capital projects fund
Capital Improvement capital projects fund
55
Construction
Commitments
Outstanding
$ 12,256,559
5,777,357
2,184, 382
2,099,315
1,868,874
1,443,718
1,384,548
927,711
904,943
772,754
537,103
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
D. Interfund receivables, payables, and transfers
1. Interfund balances
As discussed in Note III-A, individual fund deficits in the consolidated cash pool, if any, have been reclassified as of
September 30, 2009, as interfund loans from the Capital Improvement Fund, which was selected by management for this
purpose. This reclassification results in a corresponding reduction in the cash equity in the Capital Improvement Fund,
offset by an increase in interfund receivables.
The amounts of the reclassified cash pool deficits, if any, as well as other individual fund interfund payable and receivable
balances (current), at September 30, 2009, were as follows:
Due from Other Funds Due to Other Funds
Deficit in Other Deficit in Other
Fund Pooled Cash Receivables Pooled Cash Payables
Debt Service Fund:
Notes and Mortgages $ - $ - $ 24,565 $ -
Capital Project Fund:
Capital Improvement 24,565 - - -
Enterprise Fund:
Airpark Operations - - - 20,271
Internal Service Funds:
Administrative Services - - - 91,654
Central Insurance - 111,925 - -
$ 24,565 $ 111,925 $ 24,565 $ 111,925
Individual interfund advances (long-term) at September 30, 2009, follow:
Advances to Advances from
Fund Other Funds Other Funds
General Fund
Special Revenue Funds:
Special Programs
Community Redevelopment Agency
Enterprise Funds:
Airpark Operations
Parking System
Internal Service Funds:
$ 2,000,000 $ -
700,000 -
- 700,000
81,086
4,000,000
Administrative Services - 641,574
Central Insurance 2,722,660 -
$ 5,422,660 $ 5,422,660
Descriptions of long-term interfund loans as of September 30. 2009:
Two interfund loans from the Special Programs special revenue fund to the Community Redevelopment Agency special
revenue fund in the amount of $350,000 each, related to the purchase, remediation, and development of downtown parcels.
An internal five-year loan from the Central Insurance Fund to the Airpark Operations enterprise fund, for the construction of
a new multi plane hangar, in the amount of $101,357. The loan provides for five annual payments of $20,271 plus interest
at the cash-pool rate, due on September 30 of each year. The loan commenced April 2, 2008, with the first principal
payment due September 30th of the year that construction is completed, currently estimated to be September 30, 2010.
56
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Internal loans of $2,000,000 each from the General Fund and the Central Insurance Fund, at the cash-pool rate, to the
Parking Fund to fund a contingency for construction of a beach parking garage. The loans commenced September 30,
2002, per contingency conditions of a development agreement. The contingency is no longer required per the terms of the
development agreement, but the monies remain in the Parking Fund to potentially fund construction or acquisition of a
beach parking garage.
An internal ten-year loan from the Central Insurance Fund to the Administrative Services Fund for the purchase and
installation of fiber optic cable and termination equipment. The loan provides for ten annual payments of $91,654 plus
' interest at the cash-pool rate, due on September 30 of each year. The loan commenced September 30, 2003 with the first
annual principal payment due September 30, 2008, the year that the infrastructure project was completed.
2. Interfund transfers
Interfund transfers for the year ended September 30, 2009, consisted of the following:
Transfers to General Fund from:
Capital Improvements Fund
Water & Sewer Utility Enterprise Fund
Gas Utility Enterprise Fund
Solid Waste Utility Enterprise Fund
Stormwater Utility Enterprise Fund
Nonmajor governmental funds
Nonmajor enterprise funds
Total
Transfers to Special Development Fund from:
Capital Improvements Fund
Total
Transfers to Capital Improvements Fund from:
General Fund
Special Development Fund
Nonmajor governmental funds
Internal service funds
Total
Transfers to Nonmajor governmental funds from:
General Fund
Special Development Fund
Water & Sewer Utility Enterprise Fund
Gas Utility Enterprise Fund
Solid Waste Utility Enterprise Fund
Stormwater Utility Enterprise Fund
Nonmajor governmental funds
Internal service funds
Total
Transfers to Gas Utility Enterprise Fund from:
General Fund
Total
Transfers to Nonmajor enterprise funds from:
General Fund
uapitai improvements Fund
Internal service funds
Total
Transfers to Internal service funds from:
General Fund
Capital Improvements Fund
Gas Utility Enterprise Fund
Internal service funds
Total
Total interfund transfers
$ 45,293
2,760,380
1,837,820
940,420
651,740
1,487,228
988,131
8,71 1'=
45,563
5,062,104
9,886,135
30,000
397,507
4,730,344
6,704,321
123,000
187,000
51,000
47,000
1,696,002
1,281,000
200,000
200,000
570,170
ti15,ZJb
9,171,561
104,833
130,688
12,473
6,346
254,340
$ 49,763,294
57
City of Clearwater Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Transfers are primarily used to 1) transfer revenues that have been collected in the required fund per state law to the funds and
activities that state law allows for expenditures; 2) transfer of "payment in lieu of taxes" contributions from the utility funds to the
General Fund; 3) transfer funding from governmental funds to debt service and capital improvements funds; and 4) transfer
matching funds from the General Fund to various grant programs.
E. Leases
The City purchases various equipment for governmental and business-type activities under lease purchase financing
agreements. The equipment is purchased with cash and subsequently provided as collateral via a "lease purchase" financing
arrangement, typically for a five-year term. Obligations under these lease purchase agreements are recorded at the present
value of their future minimum lease payments as of date of inception. Purchase of the assets is recorded as a cash outflow and
the subsequent receipt of the financing proceeds is recorded as "proceeds from issuance of debt" for Statement of Cash Flows
reporting.
Capitalized equipment subject to lease purchase financing as of September 30, 2009:
Equipment
Less: Accumulated Depreciation
Total
Governmental Business-type
Activities Activities
$ 19,648,872 $ 1,830,574
(8,550,162) (1,048,253)
$ 11,098,710 $ 782,321
The future minimum lease payments under capital lease purchase agreements are as follows as of September 30, 2009:
Governmental Business-type
Year Ending Sept. 30 Activities Activities
2010 $ 3,828,240 $ 320,775
2011 2
231
852 175
911 ,
,
, ,
2012 1,732,596 102,562
2013 963
834 71
174
, ,
2014
2015 374,884
34
676 25,815
, -
9,786,461 696,237
Deduction of the amount of imputed interest necessary to ,
reduce net minimum lease payments to present value (556,454) (36,019)
$ 9,230,007 $ 660,218
The City also leases personal computers under a three-year operating lease that is cancelable on an annual basis. Lease
payments for fiscal year ended September 30, 2009, totaled $500,580. '
58
?1
' F. Long-term debt
1. Revenue Bonds
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
$46,445,000 Infrastructure Sales Tax Revenue Bonds, Series 2001; issued for the
acquisition, construction, or reconstruction of certain capital improvements to the City,
including, but not limited to, a portion of the costs of constructing various capital
improvements relating to road and bridge projects and a new main library; with
' $6,620,000 of principal due December 1, 2009; interest at 4.00%.
$11,470,000 Improvement Revenue Refunding Bonds, Series 2001; issued to provide a
portion of the funds necessary to defease the City's Florida Public Service Tax and
I Bridge Revenue Bonds; serial bonds due in annual installments of $355,000 due
February 1, 2010, to $450,000 due February 1, 2016; interest at 3.85% to 4.60%; 5.25%
term bonds in the amount of $3,240,000 due February 1, 2022; and 5.00% term bonds in
the amount of $2,850,000 due February 1, 2026.
$14,810,000 Spring Training Facility Revenue Bonds, Series 2002; issued to provide a
portion of the costs of the acquisition, construction, rehabilitation, and equipping of a
spring training facility to be used by the Philadelphia Phillies major league baseball team;
1 serial bonds due in annual installments of $530,000 due March 1, 2010, to $295,000 due
March 1, 2022, with a maximum principal of $845,000 due March 1, 2021; interest at
3.375% to 5.375%; 5.375% term bonds in the amount of $1,730,000 due March 1, 2027;
and 5.375% term bonds in the amount of $1,750,000 due March 1, 2031.
$12,900,000 Improvement Revenue Bonds, Series 2008; issued to provide a portion of
the funds necessary to construct a downtown boat slip marina and the Beachwalk
project; serial bonds due in annual installments of $125,000 due August 1, 2010, to
I' $1,005,000 due August 1, 2028; interest at 4.66%. Bonds outstanding as of September
30, 2009, totaling $9,135,000 are reported in the Downtown Boat Slips enterprise fund for
' financing of the boat slip marina construction.
Total revenue bonds for governmental activities
$58,680,000 Water and Sewer Revenue Bonds, Series 2002; issued to pay for costs of
expansions to the City's water and sewer system; serial bonds due in annual installments
of $1,255,000 due December 1, 2009, to $2,420,000 due December 1, 2024, interest at
3.75% to 5.00%; 5.00% term bonds in the amount of $11,050,000 due December 1,
2028; and 5.00% term bonds in the amount of $13,665,000 due December 1, 2032.
$8,410,000 Water and Sewer Revenue Refunding Bonds, Series 2003; issued to
advance refund the City's Water and Sewer Refunding Revenue Bonds, Series 1993;
serial bonds due in annual installments of $190,000 at December 1, 2009, to $260,000
due December 1, 2018, interest at 2.50% to 4.00%.
$26,430,000 Water and Sewer Revenue Bonds, Series 2006; issued to pay the costs of
' the design, acquisition, construction, or reconstruction of capital improvements to the
City's water and sewer system; serial bonds due in annual installments of $1,410,000 at
December 1, 2019, to $2,070,000 due December 1, 2028, interest at 4.25% to 4.50%;
4.50% term bonds in the amount of $4,410,000 due December 1, 2030; and 4.625% term
bonds in the amount of $4,795,000 due December 1, 2032.
$67,715,000 Water and Sewer Revenue Bonds, Series 2009A; issued to pay the costs of
the design, acquisition, construction, or reconstruction of capital improvements to the
City's water and sewer system; serial bonds due in annual installments of $420,000 at
December 1, 2019, to $495,000 due December 1, 2023, interest at 4.375% to 5.00%;
5.125% term bonds in the amount of $5,655,000 due December 1, 2032; and 5.25% term
bonds in the amount of $59,780,000 due December 1, 2039.
1
59
$ 6,620,000
8,895,000
11,740,000
3,650,000
30,905.000
52,360,000
2,210,000
26,430,000
67,715,000
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
$41,700,000 Water and Sewer Revenue Refunding Bonds, Series 20098; issued to
advance refund the City's Water and Sewer Refunding Revenue Bonds, Series 1998;
serial bonds due in annual installments of $3,240,000 at December 1, 2009, to 41,700,000
$5,150,000 due December 1, 2018, interest at 4.00% to 5.00%.
$8,890,000 Gas System Revenue Refunding Bonds, Series 2004; issued to advance
refund the City's Gas System Revenue Bonds, Series 1996A; serial bonds due in annual
installments of $180,000 due September 1, 2010, to $1,575,000 due September 1, 2026,
interest at 2.50% to 4.375%. 8,025,000
$7,195,000 Gas System Revenue Refunding Bonds, Series 2005; issued to partially
advance refund the City's Gas System Revenue Refunding Bonds, Series 1997A and
Series 1997B; serial bonds due in annual installments of $225,000 due September 1,
2010, to $325,000 due September 1, 2025, interest at 3.25% to 4.375%; and 4.375%
term bonds in the amount of $2,400,000 maturing on September 1, 2027. 6,485,000
$3,700,000 Gas System Revenue Refunding Bonds, Series 2007; issued together with
other funds of the City to refund and redeem on December 1, 2007, all of the outstanding
principal amount of the City's Gas System Revenue Bonds, Series 1998; serial bonds due
in equal annual installments of $370,000 due September 1, 2010, through September 1,
2017; interest at 4.00%. 2,960,000
$24,685,000 Stormwater Revenue Bonds, Series 2002; issued to finance the costs of
capital improvements to the City's stormwater management system; serial bonds due
in annual installments of $515,000 due November 1, 2009, to $965,000 due November
1, 2023, interest at 3.125% to 4.75%; and 4.75% term bonds in the amounts of
$3,205,000, $5,115,000, and $2,985,000, due November 1, 2026, 2030, and 2032,
respectively. 21,900,000
$14,430,000 Stormwater System Revenue Bonds, Series 2004; issued to finance the
costs of capital improvements to the City's stormwater management system; serial
bonds due in annual installments of $345,000 due November 1, 2009, to $865,000 due
November 1, 2032, interest at 2.625% to 4.75%. 13,110,000
$6,925,000 Stormwater System Revenue Refunding Bonds, Series 2005; issued to
partially advance refund the Stormwater Revenue Bonds, Series 1999; serial bonds
due in annual installments of $220,000 due November 1, 2009, to $470,000 due
November 1, 2029, interest at 3.00% to 4.50%. 6,770,000
$12,900,000 Improvement Revenue Bonds, Series 2008; issued to provide a portion of
the funds necessary to construct a downtown boat slip marina and the Beachwalk project;
serial bonds due in annual installments of $125,000 due August 1, 2010, to $1,005,000
due August 1, 2028; interest at 4.66%. Bonds outstanding as of September 30, 2009,
totaling $3,650,000 have been allocated to the general government activities for the
Beachwalk project per above. 9,135,000
Total revenue bonds for business-type activities
Total revenue bonds
2. Restrictive covenants and collateral requirements
258,800,000
$ 289,705,000
The Infrastructure Sales Tax Revenue Bonds are limited obligations of the City payable solely from and secured by a lien
upon and a pledge of the City's share of the proceeds derived by Pinellas County from the levy and collection of the one-
cent discretionary infrastructure sales tax pursuant to Section 212.055(2), Florida Statutes, as amended (the Sales Tax
Revenues) and, until applied in accordance with the provisions of the Ordinance, all moneys, including investments thereof,
in the funds and accounts established by the Ordinance, other than the Rebate Fund (collectively the "Pledged Revenues").
The pledge of the Sales Tax Revenues does not constitute a lien upon any property of the City. The covenants of the
ordinance authorizing the bonds include, among other things, an obligation of the City to do all things necessary on its part
60
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
to continue the levy and collection of the Sales Tax Revenues at the maximum rate permitted by and in compliance with
1 Chapter 166, Part II, Florida Statutes, as amended, Chapter 212, Part I, Florida Statutes, as amended, and other applicable
provisions of law (the "Act"), and any successor provision of the law. The City further covenants to proceed diligently to
perform legally and effectively all steps required on its part in the levy and collection of the Sales Tax Revenues and shall
exercise all legally available remedies to enforce such collections now or hereafter available under State law.
The Improvement Revenue Refunding Bonds, Series 2001 and the Improvement Revenue Bonds, Series 2008 are limited
obligations of the City payable solely from and secured by a lien upon and a pledge of the Public Service Tax as authorized
by Section 166.231, Florida Statutes, as amended. The pledge of the Public Service Tax does not constitute a lien upon any
property of the City. The covenants of the ordinance authorizing the bonds include, among other things, an obligation of the
City to do all things necessary on its part to continue the levy and collection of the Public Service Tax at the rate permitted
by and in compliance with Section 166.231, Florida Statutes, and Article III, Chapter 44, Code of Ordinances of the Issuer,
and any successor provision of law. The Public Service tax is a revenue of the General Fund.
The Spring Training Facility Revenue Bonds are special, limited obligations of the City, payable solely from and secured by
a lien upon and pledge of the (i) payments received by the City from the State of Florida pursuant to Section 212.20, Florida
Statutes (State Payments); and (ii) payments received by the City from Pinellas County, Florida pursuant to the Interlocal
Agreement dated December 1, 2000 (County payments). The pledge of the State Payments and County Payments does
not constitute a lien upon any property of the City. Furthermore, neither the City, Pinellas County, the State of Florida, nor
any political subdivision thereof has pledged its faith or credit or taxing power to the payment of the bonds.
The Water and Sewer Revenue Bonds, Series 2002; the Water and Sewer Refunding Revenue Bonds, Series 2003; the
Water and Sewer Revenue Bonds, Series 2006; the Water and Sewer Revenue Bonds, Series 2009A; and the Water and
Sewer Refunding Revenue Bonds, Series 2009B are limited obligations of the City payable solely from and secured by a
lien upon and pledge of the net revenues of the City's water and sewer system (System). The pledge of the System's net
revenues does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds
include, among other things, an obligation of the City to fix and maintain such rates, and collect such fees, rentals and other
charges for the services and facilities of the System and revise the same from time to time whenever necessary, which will
provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one
hundred fifteen percent (115%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds;
plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to the ordinances
authorizing the bonds. The City further covenants that such rates, fees, rentals and other charges will not be reduced so as
to render them insufficient to provide gross revenues for such purpose.
The Gas System Revenue Refunding Bonds, Series 2004; Gas System Revenue Refunding Bonds, Series 2005; and the
Gas System Revenue Refunding Bonds, Series 2007 are limited obligations of the City payable solely from and secured by
a lien upon and pledge of the net revenues of the City's gas system (System). The pledge of the System's net revenues
does not constitute a lien upon any property of the City. The covenants of the ordinances authorizing the bonds include,
among other things, an obligation of the City to fix, establish, revise from time to time whenever necessary, maintain and
collect always, such fees, rates, rentals and other charges for the use of the product, services and facilities of the System
which will always provide revenues in each year sufficient to pay, and out of such funds pay, 100% of the cost of operations
and maintenance of the system in such year and all reserve and other payments provided for in the ordinances authorizing
the bonds, along with one hundred twenty five percent (125%) of the bond service requirement due in such year on all
outstanding bonds.
1 The Stormwater System Revenue Bonds, Series 1999; Stormwater Revenue Bonds, Series 2002; Stormwater Revenue
Bonds, Series 2004; and Stormwater Revenue Refunding Bonds, Series 2005 are limited obligations of the City payable
solely from and secured by a lien upon and pledge of the net revenues of the City's stormwater management system
(System). The pledge of the System's net revenues does not constitute a lien upon any property of the City. The covenants
' of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, revise from time to time
whenever necessary, and maintain and collect always such fees, rates, rentals and other charges for use of the products,
services, and facilities which will always provide net revenues in each year sufficient to pay one hundred fifteen percent
(115%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds. The City further
covenants that such rates, fees, rentals and other charges will not be reduced so as to render them insufficient to provide
revenues for such purpose. Additionally, the covenants of each of the above issues includes a "Reserve Requirement"
equal to the lesser of: the Maximum Bond Service Requirement for any given year; 125% of the Average Annual Bond
Service Requirement; or the largest amount as shall not adversely affect the exclusion of interest on the Bonds from gross
income for Federal income tax purposes. A Reserve Fund has been funded for the Series 2002 and Series 2004 Bonds
while the Series 1999 and Series 2005 Reserve Requirements have been satisfied with Reserve Fund Surety Bonds.
' 61
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Annual debt service requirements to maturity for revenue bonds are as follows:
Revenue Bonds
Year Ending Governmental Activities Business-type Activities
September 30 Principal Interest Principal Interest
2010 $ 7,630,000 $ 1,271,586 $ 6,540,000 $ 12,222,548
2011 1,050,000 1,100,559 7,185,000 11,894,678
2012 1,085,000 1,059,711 7,490,000 11,577,452
2013 1,130,000 1,016,340 7,825,000 11,244,182
2014 1,175,000 970,037 8,200,000 10,893,080
2015-2019 6,695,000 3,981,685 26,965,000 48,461,733
2019-2024 6,715,000 2,201,876 54,500,000 39,145,135
2025-2029 4,505,000 721,043 45,265,000 29,540,634
2030-2034 920,000 49,988 42,305,000 18,962,753
2035-2039 - - 42,585,000 8,433,206
2040-2044 - - 9,940,000 260,925
Totals $ 30,905,000 $ 12,372,825 $ 258,800,000 $202,636,326
3. Pledged revenues
Sales Tax Pledged: The City has pledged future revenues derived from Pinellas County, Florida, from the levy and
collection of a one-cent discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes, as
amended, to repay $46.4 million in Infrastructure Sales Tax Revenue bonds issued in June 2001. Proceeds from the bonds
providing financing for the acquisition, construction, or reconstruction of certain capital improvements to the City, including,
but not limited to a portion of the costs of constructing various capital improvements relating to road and bridge projects and
a new main library. The bonds are payable solely from the sales tax revenue and are payable through December 2009.
Annual principal and interest payments on the bonds are expected to require less than 85 percent of net revenues. The total
principal and interest remaining to be paid on the bonds is $6,752,400. Principal and interest paid for the current year and
total sales tax revenue were $6,746,900 and $8,574,091, respectively.
State of Florida and Pinellas County Payments Pledged: The City has pledged future revenues derived from payments
received from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from Pinellas County, Florida
pursuant to an Interlocal Agreement, together with any investment income earned on the revenues, to repay $14.8 million in
Spring Training Facility Revenue bonds issued in September 2002. Proceeds from the bonds providing financing for a
portion of the costs of the acquisition, construction, rehabilitation, and equipping of a spring training facility to be used by the
Philadelphia Phillies major league baseball team. The bonds are payable solely from the State of Florida and Pinellas
County, Florida payments and are payable through March 2031. Annual principal and interest payments on the bonds are
expected to require less than 100 percent of net revenues. The total principal and interest remaining to be paid on the
bonds is $17,721,680. Principal and interest paid for the current year and total revenue received were $1,076,146 and
$1,087,654, respectively.
Public Service Tax and Communications Tax Pledged: The City has pledged future revenues derived from the collection
of Public Service Tax and Communications Tax, to repay $11.7 million in Improvement Revenue Refunding bonds issued in
November 2001 and $12.9 million in Improvement Revenue bonds issued in August 2008. Proceeds from the 2001 bonds
provided a portion of the funds necessary to defease the City's outstanding Florida Public Service Tax and Bridge Revenue
bonds, Series 1985 and Improvement Revenue Bonds, Series 1995. Proceeds from the 2008 bonds provided financing for
the acquisition, construction, or reconstruction of certain capital improvements to the City, including a portion of the costs of
constructing various capital improvements relating to the Beach Walk and Downtown Boat Slip Projects. The bonds are
payable solely from the Public Service tax revenue and are payable through August 2028. Annual principal and interest
payments on the bonds are expected to require less than 20 percent of net revenues. The total principal and interest
remaining to be paid on the bonds is $29,641,343. Principal and interest paid for the current year and total Public Service
Tax and Communication Tax revenues were $1,475,922 and $18,468,831, respectively.
62
F1
11
City of Clearwater, Florida
Notes to the Basic Financial Statements
III , For the Year Ended September 30, 2009
' Water and Sewer Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater,
Florida, Water & Sewer Utility defined as all income or earnings, including any income from the investment of funds, derived
by the City from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of
the system, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for
depreciation to repay:
$58.7 million in Water & Sewer Revenue bonds issued in July 2002. Proceeds from the bonds provided financing to make
capital improvements and expansions to the City's water and sewer system. The bonds are payable solely from the Water
and Sewer Utility net revenues and are payable through December 2032.
$8.4 million in Water & Sewer Revenue Refunding bonds issued in October 2003. Proceeds from the bonds provided
financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1993. The
bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018.
$26.4 million in Water & Sewer Revenue bonds issued in August 2006. Proceeds from the bonds provided financing for the
costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system.
The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2032.
$67.7 million in Water & Sewer Revenue bonds issued in May 2009. Proceeds from the bonds provided financing for the
costs of design, acquisition, construction or reconstruction of capital improvements to the City's water and sewer system.
The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2039.
$41.7 million in Water and Sewer Revenue Refunding bonds issued in May 2009. Proceeds from the bonds provided
financing to refund and redeem the City's then outstanding Water and Sewer Revenue Refunding Bonds, Series 1998. The
bonds are payable solely from the Water and Sewer Utility net revenues and are payable through December 2018.
Annual principal and interest payments on the bonds are expected to require less than 85 percent of net revenues. The total
principal and interest remaining to be paid on the bonds is $354,058,038. Principal and interest paid for the current year and
' total net revenue were $10,967,983 and $20,647,352, respectively.
Stormwater Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida,
Stormwater Utility defined as all income or earnings, including any income from the investment of funds, derived by the City
from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the system,
but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation to
' repay:
$24.7 million in Stormwater Revenue bonds issued in September 2002. Proceeds from the bonds provided financing to
make capital improvements to the City's stormwater management system. The bonds are payable solely from the
' Stormwater Utility net revenues and are payable through November 2032.
$14.4 million in Stormwater Revenue bonds issued in September 2004. Proceeds from the bonds provided financing to
make capital improvements to the City's stormwater management system. The bonds are payable solely from the
' Stormwater Utility net revenues and are payable through November 2032.
$6.9 million in Stormwater Revenue Refunding bonds issued in May 2005. Proceeds from the bonds provided sufficient
funds to be available on November 1, 2008 to pay and redeem the City's outstanding Stormwater Revenue Bonds, Series
' 1999. The bonds are payable solely from the Water and Sewer Utility net revenues and are payable through November
2029.
Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total
' principal and interest remaining to be paid on the bonds is $67,859,526. Principal and interest paid for the current year and
total net revenue were $2,700,340 and $6,547,092, respectively.
J
63
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Gas System Utility Net Revenues Pledged: The City has pledged future net revenues of the City of Clearwater, Florida,
Gas System Utility defined as all income or earnings, including any income from the investment of funds, derived by the City
from the operation of the utility after deduction of current expenses for the operation, maintenance and repair of the system,
but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation to
repay:
$8.9 million in Gas System Revenue Refunding bonds issued in February 2004. Proceeds from the bonds provided
financing to advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1996A.
The bonds are payable solely from the Gas System Utility net revenues and are payable through September 2026.
$7.2 million in Gas System Revenue Refunding bonds issued in June 2005. Proceeds from the bonds provided financing to
advance refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1997A. The bonds
are payable solely from the Gas System Utility net revenues and are payable through September 2027.
$3.7 million in Gas System Revenue Refunding bonds issued in October 2007. Proceeds from the bonds provided financing
to refund the outstanding principal of the City of Clearwater Gas System Revenue Bonds, Series 1998. The bonds are
payable solely from the Gas System Utility net revenues and are payable through September 2017.
Annual principal and interest payments on the bonds are expected to require less than 60 percent of net revenues. The total
principal and interest remaining to be paid on the bonds is $25,396,164. Principal and interest paid for the current year and
total net revenue were $1,500,151 and $13,179,429, respectively.
4. Advance refunding of bonds
On May 27, 2009, the City issued Water and Sewer Revenue Refunding Bonds, Series 20098, in the amount of $41.7 million,
with the average interest rate of 4.993%, to advance refund $45.59 million of outstanding Water and Sewer Revenue
Refunding Bonds, Series 1998(Capital Appreciation Bonds), with an average interest rate of 5.096%. The bond net proceeds of
$45,042,852 (after payment of $390,515 in underwriter fees and other issuance costs plus bond premium of $3,733,367), and
$2,488,161 released debt service reserve escrow, were deposited into an irrevocable trust with an escrow agent to provide for
all future debt service payments on the refunded bonds. Subsequently the debt was called and fully redeemed during the
current fiscal year.
The City completed the advance refunding to reduce its total debt service payments over the next 10 years by $5.062 million
and to obtain an economic gain (difference between the present values of the old and new debt service payments, less the
cash contribution of $4.155 million) of $1,935,485.
In prior fiscal years, the City entered into various advance-refunding transactions related to certain of its bonded debt. A portion
of the proceeds of the refunding bond issues was placed in trust and used to purchase securities of the United States
Government and related agencies at various interest rates and maturities sufficient to meet all debt service requirements of the
refunded debt, of which $6,285,000 was outstanding at September 30, 2009. These assets are administered by trustees and
are restricted to use for retirement of the refunded debt. The liability for the refunded bonds and the related securities and
escrow accounts are not included in the accompanying financial statements as the City defeased its obligation for payment of
the refunded bonded debt upon completion of the refunding transactions.
64
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
I
The following schedule reflects the outstanding principal on refunded bonds as of September 30:
Business-type Activities:
Stormwater System Revenue Bonds, Series 1999 $ 6,285,000
Total Business-type Activities 6,285,000
Total $ 6,285,000
5. Changes in long-term liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Revenue bonds payable
Add (subtract) deferred amounts:
For issuance premiums (discounts)
On refunding
Net revenue bonds payable
Lease purchase contracts (a)
Compensated absences
Other postemployment benefits
Claims payable
Governmental activity
Long-term liabilities
Business-type activities:
Revenue bonds payable
Less deferred amounts:
For issuance premiums (discounts)
On refunding
Net revenue bonds payable
' Lease purchase contracts
Compensated absences
Other postemployment benefits
Claims payable
Unearned revenue
Business-type activity
Long-term liabilities
$ 38,230,000 $
315,545 - (51,593) 263,952 -
(259,747) - 23,165 (236,582)
38,285,798 - (7,353,428) 30,932,370 7,630,000
10,560,463 2,685,068 (4,015,524) 9,230,007 3,546,301
8,128,606 4,165,191 (4,709,661) 7,584,136 4,558,185
1,341,225 1,953,763 (477,435) 2,817,553 -
8,943,000 1,331,141 (2,285,141) 7,989,000 1,963,000
$ 67,259,092 $ 10,135,163 $ (18,841,189) $ 58,553,066 $ 17,697,486
$ 202,495,264 $ 110,901,777 $ (54,597,041) $ 258,800,000 $ 6,540,000
$ (7,325,000) $ 30,905,000 $ 7,630,000
(1,275,019) 2,429,059 (135,175) 1,018,865 -
(3,355,136) (2,179,638) 548,910 (4,985,864) -
197,865,109 111,151,198 (54,183,306) 254,833,001 6,540,000
931,966 224,027 (495,775) 660,218 301,517
1,937,792 1,060,082 (1,148,463) 1,849,411 1,111,525
454,875 675,337 (165,065) 965,147 -
198,187 - (198,187) - -
187,113
187,113 -
$ 201,387,929 $ 113,297,757 $ (56,190,796) $ 258,494,890 $ 7,953,042
(a) Governmental activities lease purchase contracts additions of $2,685,068 includes $2,159,834 attributable to internal service
funds and $525,234 attributable to governmental funds. The lease purchase contracts reduction of $4,015,524 includes $3,515,233 for
'internal service funds and $500,291 for governmental funds.
I G. Segment information
Generally accepted accounting principles (GAAP) require segment disclosure for nonmajor enterprise funds with revenue
bonds outstanding. The following condensed statements are presented for the Downtown Boat Slips enterprise fund to satisfy
this disclosure requirement:
65
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Condensed Statement of Net Assets
Assets:
Current assets
Restricted assets
Deferred charges
Capital assets
Total assets
Liabilities:
Current liabilities
Current liabilities payable from restricted assets
Noncurrent liabilities
Revenue bonds
Total noncurrent liabilities
Total liabilities
Net assets:
Invested in capital assets (net of related debt)
Restricted assets
Unrestricted
Total net assets
Downtown
Boat Slips
$ 5,973,035
9,005,286
38,727
6,882,199
21,899,247
1,027,544
70,949
9,135,000
9,135,000
10,233,493
6,882,199
382,194
4,401,361
$ 11,665,754
Condensed Statement of Revenues, Downtown Downtown
Expenses, and Changes in Net Assets Boat Slips Condensed Statement of Cash Flows Boat Slips
Operating revenues $ -
Operating expenses 9,421 Net cash provided (used) by:
Operating income (loss) (9,421) Operating activities $ 40,579
Nonoperating revenues (expenses): Noncapital financing activities 9,786,796
Investment earnings 230,512 Capital and related financing activities (5,919,595)
Amortization of bond issue costs (461,557) Investing activities 173,272
Interest expense (4,162)
Other 50,000 Net increase (decrease) 4,081,052
Transfers in from other funds 9,786,796 Beginning cash and cash equivalents 10,833,582
Change in net assets 9,592,168 Ending cash and cash equivalents $ 14,914,634
Beginning net assets 2,073,586
Ending net assets $ 11,665,754
H. Restricted assets
1. Water and Sewer Utility Fund
Assets in the Water and Sewer Utility Fund restricted for construction include:
Water Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions and improvements to the water system; assets remaining at September
30, 2009, are:
Cash and Investments $ 1,702,816
Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions and improvements to the sewer system; assets remaining at September
30, 2009, are:
Cash and Investments 5,827,719
66
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing
the issuance of Water and Sewer Revenue Bonds consisted of the following at September 30, 2009:
Water and Sewer Revenue Bonds Debt Service:
Cash and Investments
20,557,832
Water and Sewer Revenue Bonds Renewals and Replacements:
Cash and Investments 10,525,539
Interest Receivable 106,526
Water and Sewer Revenue Bonds Construction:
Cash and Investments 40,909,209
41
930
Interest Receivable ,
Assets of the Water and Sewer Utility Fund consisting of amounts Due from Other Governments for
1 advances to the Florida Department of Transportation for utility relocations related to improvements to
State Road 55 (U. S. Highway 19) 4,078,199
I' Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted,
consisting entirely of Cash and Investments at September 30, 2009 2,502,641
Total restricted assets - Water and Sewer Utility Fund $86 252 411
2. Gas Utility Fund
I , Assets in the Gas Utility Fund restricted under the provisions of the ordinance authorizing the issuance of revenue bonds
consisted of the following at September 30, 2009:
Gas Svstem Revenue Bonds
Debt Service:
Cash and Investments $ 123,306
Renewals and Replacements:
Cash and Investments 300,000
Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2009:
Cash and Investments 2,255,878
Total restricted assets - Gas Utility Fund $2,679,184
3. Solid Waste Utility Fund
Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in the amount of
$963,339 at September 30, 2009, and consisted entirely of Cash and investments.
4. Stormwater Utility Fund
Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of
the following at September 30, 2009:
Stormwater Revenue Bonds - Series 2002
Debt Service: Cash and Investments $ 2,445,287
Stormwater Revenue Bonds - Series 2004
Debt Service: Cash and Investments 1,449,324
Stormwater Refunding Revenue Bonds - Series 2005
Debt Service: Cash and Investments 313,907
67
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Fees received in lieu of on-site drainage retention for new or improved businesses within the Prospect
Lake Drainage District, restricted for stormwater improvements, at September 30, 2009:
Cash and Investments 490,663
Total restricted assets - Stormwater Utility Fund 4.699,181
5. Parking System Fund
Contributions from the Special Development Fund from developer payments in lieu of parking,
restricted for downtown parking; assets remaining at September 30, 2009:
Cash and Investments $ 37,035
Total restricted assets - Parking System Fund $ 37,035
6. Downtown Boat Slips Fund
Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of the following at
September 30, 2009:
Improvement Revenue Bonds - Series 2008
Debt Service: Cash and Investments $ 453,142
Construction: Cash and Investments 8,552,144
Total restricted assets - Downtown Boat Slips Fund $9,005-286
Note IV - Other Information
A. Risk management
The City is self-insured within certain parameters for losses arising from claims for general liability, auto liability, police
professional liability, public official's liability, property damage, and workers' compensation. Insurance coverage has been
maintained by the City to pay for or indemnify the City for losses in excess of certain specific retentions and up to specified
maximum limits in the case of claims for liability, property damage, and workers' compensation. The liability excess
coverage is $7,000,000 per occurrence ($14,000,000 aggregate) with self-insured retention of $500,000. There is workers'
compensation coverage to the statutory limit, with self-insured retention of $500,000. The property damage excess
coverage is $50,000,000 with a $300,000 ($500,000 or 5%, whichever is greater for named storm) self-insured retention.
Settled claims have not exceeded excess coverage in any of the past three years.
The transactions relating to the self-insurance program are accounted for in the Central Insurance Fund, an internal service
fund. The billings by the Central Insurance Fund to the various operating funds (the interfund premiums) are based on
actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability reported at September
30, 2009, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires
that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is
probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in the claims liability amounts in fiscal years 2008 and 2009 were:
68
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Self
Insurance
Balance at October 1, 2008 $ 9,125,776
Current year claims and changes in estimates 1,720,073
Claim payments (1,704,662)
Balance at September 30, 2008 9,141,187
Current year claims and changes in estimates 1,331,141
Claim payments (2,483,328)
Balance at September 30, 2009 $ 7,989,000
B. Statements of cash flows
For purposes of the statements of cash flows, investments with original maturities of three months or less are considered to
meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity are
held by the Citys consolidated pool of cash and investments. Since fund equities in this cash management pool have the
general characteristics of demand deposits in that additional funds may be deposited at any time and also funds may be
withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of
the maturities of investments held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the
deficits as interfund payables to the Citys Capital Improvement Fund.
C. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from the estimates.
D. Employee retirement systems and pension plans
1. Defined benefit pension plans
' The City contributes to two separate single-employer, self-administered defined benefit pension plans covering approximately
three-fourths of all City employees. The Employees' Pension Plan covers all permanent, full-time City employees who
successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963, and certain
nonclassified (primarily managerial) employees. The Firefighter's Relief and Pension Plan covered eligible firefighters hired
prior to July 1, 1963, and is closed to new entrants. Neither of these plans issues a stand-alone financial report. As indicated,
both plans are self-administered, and the costs of administering the plans are paid from the respective plan assets.
The Employees' Pension Plan is authorized by and operates under the provisions of Sections 2.391 through 2.411 of the
Municipal Code of the City of Clearwater. Plan provisions have been duly approved as required by the voters in referendums.
There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a
' monthly benefit equal to 2-3/4% of average monthly compensation for the highest five of the final ten years of service multiplied
by the number of years of service to date of retirement. The minimum benefit under the plan is $300 per month. Eligibility for
normal retirement occurs upon completion of at least 10 years of service and the attainment of age 65, or completion of at least
20 years of service and the attainment of age 55, or completion of 30 years of service, for employees engaged in non-
hazardous duty. For those engaged in hazardous duty, eligibility occurs upon completion of 20 years of service. The normal
monthly benefits are payable for the life of the participant and continue, after the participant's death, to be paid at the same
amount for 5 years to eligible surviving beneficiaries; after 5 years, the survivor annuity is reduced to 50% of the original
' amount. The plan provides for an annual cost of living increase of up to 1-1/2%. The plan also provides for disability and death
benefits, vesting after completion of 10 years of service and the refund of employee contributions in case of a non-vested
termination. There are seven other benefit payment options that are computed to be the actuarial equivalent of the normal
69
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
benefit. Covered employees contribute 8% of their compensation. It is the Citys obligation to provide a sufficient additional
contribution to maintain the actuarial soundness of the fund but, in any event, not less than 7% of participating employee's
compensation per the ordinance governing the plan.
The Firefighter's Relief and Pension Plan is authorized and operated under the provisions of Subpart B, Article I (Laws of
Florida, Chapter 30658, 1955 and amendments), Sections 1 through 27 of the Municipal Charter and Related Law of the
City of Clearwater and Chapter 26, Article III, Sections 26.50 through 26.52 of the Municipal Code of the City of Clearwater.
There were no changes in plan provisions or actuarial assumptions for the current year. The normal retirement benefit is a
monthly benefit in the amount of 50% of the prevailing wage at the date of retirement of the lowest rank held by the
participant during the three years immediately preceding retirement plus 2% of such prevailing wage for each year of
service in excess of 20 years up to a maximum of 60%. Participants retiring at the age of 65 years are entitled to a benefit
of 60% of the prevailing wage of the lowest rank held by the participant during the three years immediately preceding
retirement. The ending rate of pay specified above may not exceed the highest rate of pay for the rank of Captain. Eligibility
for normal retirement occurs upon completion of 20 years of service or attainment of age 65. The monthly benefits are
payable for the life of the participant and continue, after the participant's death, to be paid to certain eligible surviving
beneficiaries at an amount that is one-half of the amount received by the participant. Benefits are also provided for children
of the deceased participant who are less than 18 years of age subject to certain limitations as to amount. The plan also
provides for disability and death benefits and for vesting upon completion of at least 12 years of service. The plan provides
for post retirement cost of living increases equal to the increase in the prevailing wage for the rank at which the participant
retired with a limitation for those retiring on or after January 1, 1972, of 100% of the initial pension benefit for total cost of
living increases. Participating employees are required to contribute 6% of their salaries up to the equivalent of the salary of
a fireman holding the rank of Captain. The City was required to contribute a sufficient additional amount to maintain the
actuarial soundness of the plan for a period of 35 years commencing January 1, 1972. This contribution was based upon,
but not limited to, the amount of property tax that a levy of 0.6 mills would produce. Effective with the fiscal year ended
September 30, 2007, the Firefighter's Relief and Pension Plan, with no remaining active members (only retirees), is fully funded
per the requirements of the governing Ordinance. The City may elect to contribute should future valuations show an actuarial
need for such.
As of the the most recent actuarial valuation date, January 1, 2009 for the Employees' Pension Plan and January 1, 2008
for the Firefighter's Relief and Pension Plan, the membership of the plans was as follows:
Employees'
Pension Plan
Retirees and beneficiaries currently receiving benefits 835
Terminated employees entitled to benefits but not yet receiving them 68
Active employees:
Fully vested 1,116
Nonvested 512
Total number of participants 2,531
Firefighter's Relief
and Pension Plan
43
43
For the fiscal year ended September 30, 2009, the covered payroll for the Employees' Pension Fund was $78,446,812. The
City's total payroll for the same period was $89,850,696. Annual pension cost and contributions information for the last three
fiscal years for both the Employees' Pension Plan and the Firefighter's Relief and Pension Plan follows:
Employees' Pension Plan
Year Annual Net
Ended Pension Employer Percent Pension
Sept 30 Cost (a) Contributions Contributed Asset
2007 $ 14,027,313 $ 10,256,662 (b) 73% $ 15,046,922
2008 $ 11,391,880 $ 10,376,234 (b) 91% $ 14,031,276
2009 $ 9,022,632 $ 10,318,483 (b) 114% $ 15,327,127
a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2009, are based on
actuarial valuations as of January 1, 2008. Since the City's contributions are made during its fiscal year (which commences
70
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
nine months after the date of the actuarial valuation), the City, with approval of State regulatory authorities, is following the
' practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one
year.
(b) The employer contribution is less than the annual pension cost due to a "drawdown" of the net pension asset. The net
pension asset is the result of legally required contributions in excess of actuarially required contributions in prior years.
[1
11
l1
Firefighter's Relief and Pension Plan
Year
Ended
Sept 30
2007
2008 (b)
2009
Annual
Pension
Cost (a)
$ 1,467,259
Employer
Contributions
$ 1,467,259
Percent
Contributed
100%
a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2009, are based on
actuarial valuations as of January 1, 2008. Since the City's contributions are made during its fiscal year (which commences
nine months after the date of the actuarial valuation), the City, with approval of State regulatory authorities, is following the
practice of adding interest to its required contributions at the assumed rate of return on investments for a period of one
year.
b) Effective with the fiscal year ended September 30, 2007, the Firefighter's Relief and Pension Plan, with no remaining active
' members (only retirees), is fully funded per the requirements of the governing Ordinance. The City may elect to contribute
should future biennial valuations show an actuarial need for such.
' The Employees' Pension Plan net pension asset at September 30, 2009, totaled $15,327,127. It was comprised of the
following components:
' Annual required contributions (ARC) $ 8,451,471
Interest on the net pension asset (1,052,346)
Adjustment to annual contribution 1,623,507
Annual pension cost 9,022,632
Fiscal 2009 employer contributions 10,318,483
Increase in net pension asset 1,295,851
' Net pension asset beginning of year 14,031,276
Net pension asset end of year $ 15,327,127
The net pension asset for the Employees' Pension Plan, representing excess contributions as calculated per GASB 27
requirements, is identical in amount to the plan "credit balance" as disclosed in prior years. A total of $10,523,764 of the
current net pension asset balance is attributable to governmental funds and therefore is not reflected in the governmental
' fund financial statements in accordance with the modified accrual basis of accounting. The remaining $4,803,363
attributable to proprietary funds is reflected in the proprietary fund financial statements on the accrual basis of accounting.
Each pension fund is accounted for as a pension trust fund; therefore each is accounted for in substantially the same manner
as proprietary funds with a "capital maintenance" measurement focus and the accrual basis of accounting. Fund assets,
primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25. Investment
values are determined using the estimated fair value determined by averaging estimated fair values obtained from three or
' more nationally recognized brokers.
71
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
As of September 30, 2009, neither the Employees' Pension Plan nor the Firefighter's Relief and Pension Plan held
investments (other than U.S. Government or U.S. Government guaranteed obligations) in any one organization comprising
5% or more of the net assets available for benefits.
Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2009, the most recent actuarial
valuation date, are as follows:
Employees' Pension Plan
(1) Assumed rate of return on investments of 7.5%.
(2) Projected salary increase at a rate of 6% per year, including both cost-of-living adjustments of 3% and merit or
seniority increases at 3%.
(3) Mortality based on the RP 2000 Combined Healthy Mortality Table.
(4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates for
hazardous and non-hazardous duty categories.
(5) Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale of moderate
disability rates (Class 1, 1952 Inter-Company); rates for females assumed to be twice that for males.
Firefighter's Relief and Pension Plan
(1) Assumed rate of return on investments of 4.5%.
(2) Assumed benefits grow at an annually compounded rate of 2%. There are no longer any active members in this
plan.
(3) Mortality based on the 1994 Unisex Mortality Table for retired participants; assumed disabled participants will
experience mortality according to PBGC Tables 3 and 4 for males and females, respectively.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
The actuarial valuation of the Employees' Pension Plan as of January 1, 2007, reflected changes in actuarial assumptions
as follows: The mortality assumption was updated from the 1994 Group Annuity Reserving Table to the RP 2000 Combined '
Healthy Mortality Table; the retirement assumption was updated to reflect the City's experience and expected future
retirement rates; and the withdrawal assumption was updated to reflect the City's experience and expected future
withdrawal rates. The impact of these changes decreased the unfunded actuarial accrued liability from $37,113,063 to
$22,417,537. '
The actuarial valuation of the Firefighter's Relief and Pension Plan as of January 1, 2003, reflected two changes in actuarial
assumptions. The valuation assumed an investment yield of 4.5% versus the prior valuation assumption of 5.5%. Also, the '
mortality pattern assumption was changed to the 1994 Unisex Mortality Table from the 1983 Group Annuity Mortality Table.
The impact of these changes increased the unfunded actuarial accrued liability from $3,222,326 to $4,742,517.
It is the City's policy to fund pension costs accrued as determined on an actuarial basis. Annual required contributions
(ARC) for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability method. The
initial unfunded actuarial accrued liability determined at July 1, 1963, was amortized over a 40-year period; changes made
in 1979 and subsequent years, which have had the effect of either increasing or decreasing the actuarial liability, are being '
amortized over a 30-year period from their effective dates in accordance with State law. The amortization method is level
dollar closed.
Annual required contributions (ARC) for the Firefighter's Relief and Pension Fund are based on a variation of the aggregate '
actuarial cost method, under which the unfunded portion of the present value of the projected benefits is allocated over the
present value of a 6.0% per year increasing annuity for the remaining years in the 35-year funding period which began
January 1, 1972, pursuant to an agreement between the City and the Plan participants. For this purpose, the unfunded '
actuarial liability is determined after consideration of the available assets at the valuation date. The increasing fixed
schedule produced by this method was established in 1988 and will be modified in the future only to the extent that a
72
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current year.
Under the non-standard cost method used for this plan (due to the fact that there are no longer any active employees), all
' liabilities are unfunded actuarial liabilities and are being amortized according to the closed cost method. This method does
not identify or separately amortize unfunded actuarial accrued liabilities.
As of January 1, 2009, the most recent actuarial valuation date, the Employees' Pension Plan was 96.3 percent funded.
The actuarial accrued liability for benefits was $557.5 million, and the actuarial value of assets was $536.8 million, resulting
in an unfunded actuarial accrued liability (UAAL) of $20.7 million. The covered payroll (annual payroll of active employees
covered by the plan) was $82.1 million, and the ratio of the UAAL to the covered payroll was 25 percent.
I
As of January 1, 2008, the most recent actuarial valuation date, the Firefighter's Relief and Pension Plan was 103 percent
funded. The actuarial accrued liability for benefits was $7.8 million, and the actuarial value of assets was $8.1 million,
resulting in an unfunded actuarial accrued liability (UAAL) of ($247) thousand. The covered payroll was $-0- with no active
employees covered.
The Schedules of Funding Progress, presented as required supplementary information following the notes to the financial
statements, present multiyear trend information regarding the change in the actuarial value of plan assets versus the
actuarial accrued liabilities for benefits over time. Also included as required supplementary information following the notes
to the financial statement, per Governmental Accounting Standards Board Statement Nos. 25 and 27, are the Schedules of
Employer Contributions, which provide similar multiyear trend information on required employer contributions versus the
' actual amount contributed.
' 2. Police Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible policemen, which is funded by earmarked revenues
' received from the State and is administered by the Board of the Police Supplemental Pension Plan. The revenues received
from the State are allocated among eligible police officers on the basis of days employed as Clearwater Police Officers.
These revenues received from the State of Florida "on-behalf' of the City's employees, which comprise the plan
' contributions, totaled $937,449 for the year ended September 30, 2009, and are obtained from an eighty-five one
hundredths of one percent (0.85%) excise tax on the gross receipts from premiums collected on casualty insurance policies
covering property within the City's corporate limits. These monies were recognized as General Fund revenues and General
Fund police department expenditures in the current year. The current year contributions represent 4.8% of current year
' covered payroll. The fair value of cash and investments at September 30, 2009, totaled $13,482,114.
The Police Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.471 through 2.480 of
the Municipal Code of the City of Clearwater and Chapter 185 of Florida Statutes. Under the plan provisions, the total monies
received during each fiscal year, after payment or provision for all costs and expenses of management and operation of the
plan, are allocated to participants on the basis of the total number of shares to which each participant is entitled. Each
participant is entitled to one share in the fund for each day of service as a police officer of the City.
All police officers, as defined in Section 26.70(g) of the Code of Ordinances of the City of Clearwater, who are elected,
appointed, or employed full-time by the City are eligible to participate in the plan. There are no employee contributions to the
' supplemental plan. Benefits are fully vested for a lump sum distribution after twenty years from the date of hire, with
provision for partial vesting after ten or more years under the plan. Accumulated benefits are payable in full in case of death
while employed by the City or in case of total and permanent job-related disability. Non-vested participants' account values
upon termination of employment during any fiscal year are added to the monies received during that fiscal year for
' allocation to the remaining participants in the plan on the basis of total days worked.
73
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25.
Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained
from three or more nationally recognized brokers.
For the fiscal year ended September 30, 2009, the payroll of the covered officers' was $19,494,435; the City's total payroll for
the same period was $89,850,696.
Since the entitlement to benefits is based entirely upon the allocation of monies received by the plan to the participants' share
accounts, there is no actuarial liability on the part of either the State or the City.
3. Firefighters Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible firefighters, which is funded by earmarked revenues
received from the State and is administered by the Board of the Clearwater Firefighters Supplemental Pension Plan. The
revenues received from the State are allocated among eligible firefighters on the basis of days worked during the previous
year. These revenues received from the State of Florida "on-behalf' of the City's employees, which comprise the plan
contributions, amounted to $1,148,629 in the year ended September 30, 2009, and are obtained from a one and eighty-five one
hundredths percent (1.85%) excise tax on the gross receipts from premiums collected on property insurance policies covering
property within the City's corporate limits. These monies were recognized as General Fund revenues and General Fund fire
department expenditures in the current year. The contributions represent 8.8% of current year covered payroll. The fair value
of cash and investments at September 30, 2009, totaled $8,481,578.
As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number of
days worked during the fiscal year ended September 30, and interest earnings allocated based on the beginning balances
in each participant's account, there is no actuarial liability on the part of the State or the City.
The Firefighters Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.441 through
2.450 of the Municipal Code of the City of Clearwater and Chapter 175 of Florida Statutes. Eligibility requires two years of
credited calendar year service as a firefighter with concurrent participation in the Employees' Pension Plan. There is no
employee contribution to the supplemental plan, and benefits are vested for a lump sum distribution at ten years unless
there is early retirement, disability or death. Non-vested participants' account values upon termination of employment are
reallocated among the remaining participants on the basis of days worked during the previous year.
Plan assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25.
Investment values are determined using the estimated fair value determined by averaging estimated fair values obtained
from three or more nationally recognized brokers.
For the fiscal year ended September 30, 2009, the covered payroll was $12,983,380; the City's total payroll for the same
period was $89,850,696.
4. Pension Plan Financial Statements
Separate financial statements are provided in the Notes per the guidance of GASB Statement No. 34 as follows:
74
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Statement of Fiduciary Net Assets: Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firemen's Supplemental Supplemental
ASSETS
Cash and investments $ 2,001,423 $ 2,526,363 $ 18,175 $ -
Managed investment accounts, at fair value:
Cash and cash equivalents 33,665,205 - 220,054 113,270
Government bonds 19,832,601 - 3,104,404 1,069,345
Agency bonds 7,050,461 4,700,201 794,454 325,390
Domestic corporate bonds 65,034,229 - 1,167,266 1,006,511
International corporate bonds - - 5,341
International equity securities 68,520,040 1,359,061 -
Domestic stocks 230,595,726 - 6,787,319 1,770,556
Mortgage backed bonds 63,235,271 - 31,381 1,550,127
Other rights / warrants 94,393 - - -
Commodity exchange-traded funds 563,473 - - -
Domestic equity mutual funds 35,416,923 - - 342,255
International equity mutual fund 23,743,278 - - 2,298,783
Total managed investment accounts 547,751,600 4,700,201 13,463,939 8,481,578
Securities lending collateral 134,478,540 - - -
Receivables:
Interest and dividends 1,938,720 73,247 57,816 40,487
Unsettled investment sales 4,906,921 - - -
Securities lending earnings 28,718 - -
Due from others 99,542 - - 150,110
Total receivables 6,973,901 73,247 57,816 190,597
Total assets 691,205,464 7,299,811 13,539,930 8,672,175
LIABILITIES
Accounts payable 736,072 - - -
Unsettled investment purchases 13,317,098 - -
Obligations under securities lending 136,034,800 -
Total liabilities 150,087,970 - - -
NET ASSETS
Net assets held in trust for pension benefits $ 541,117,494 $ 7,299,811 $ 13,539,930 $ 8,672,175
75
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Statement of Changes in Fiduciary Net Assets:
Defined Benefit
Pension Trust Funds
Defined Contribution
Pension Trust Funds
ADDITIONS
Contributions:
Contributions from employer
Contributions from employer - state tax
Contributions from employees
Total contributions
Investment income (loss):
Net appreciation (depreciation) in
fair value of investments
Interest
Dividends
Less investment expenses:
Investment management / custodian fees
Net income (loss) from investing activities
Securities lending income:
Gross earnings
Rebate paid
Bank fee
Net income (loss) from securities lending
Total additions (losses)
DEDUCTIONS
Benefits and withdrawal payments:
Benefits
Withdrawal payments
Total benefits and withdrawal payments
Income (loss) before administrative expenses
Administrative expenses
Net increase (decrease)
Net assets held in trust for pension benefits:
Beginning of year
End of year
5. 401(a) defined contribution plan
Employees' Firemen's
$ 10,368,010 $ $
12,000
6,253,091
16,633,101 -
Police Firefighters
Supplemental Supplemental
937,449 1,148,629
a3/,44a I,14t9,0Ly
17,912,888 81,724 (290,577) 107,190
9,839,280 456,404 219,654 166,200
4,877,668 - 160,485 53,151
32,629,836 538,128 89,562 326,541
2,706,964 - 72,464 90,618
29,922,872 538,128 17,098 235,923
746,619 - - -
(115,442) - -
(176,604) - -
454,573 - -
47,010,546 538,128 954,547 1,384,552
24,322,035 832,454 725,565 954,657
610,253 - - -
24,932,288 832,454 725,565 954,657
22,078,258 (294,326) 228,982 429,895
164,704 10,731 23,356
21,913,554 (294,326) 218,251 406,539
519,203,940 7,594,137 13,321,679 8,265,636
$ 541,117,494 $ 7,299,811 $ 13,539,930 $ 8,672,175
For all management employees not covered under either of the defined benefit pension plans, the City provides pension
benefits through a 401(a) defined contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the plan plus investment earnings. Employees are participants from the date of employment and are fully
vested upon enrollment. The plan is totally contributory on the part of the City in an amount equal to 15% of compensation
on behalf of the City Manager and the City Attorney; 14% of compensation on behalf of the Chief of Police; and 8% of
compensation on behalf of all other management contract employees and Assistant City Attorneys. The City makes bi-
weekly contributions to the Trust throughout the plan year to meet its funding obligations under the plan. Plan provisions
and contribution requirements are established and may be amended by the City Council.
The International City Management Association Retirement Corporation (ICMA-RC), the trustee for the defined annuity,
offers participants a variety of investment options.
76
City of Clearwater, Florida
' Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
The City's total payroll for the fiscal year ended September 30, 2009 was $89,850,696. The Plan members' payroll for the
same period totaled $5,778,574. The City's contribution, per the above contribution rates, totaled $485,435. The assets,
' reported at fair value based on quoted market prices, totaled $4,006,547 at September 30, 2009.
6. Deferred compensation plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457.
I' The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the
plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable
emergency.
' Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from City assets to
employee assets. As a result of these changes, plan assets are no longer subject to the claims of the City's general creditors.
The City has previously reported the assets and associated liabilities of the deferred compensation plan in the City's financial
statements as an agency fund. Effective with the change in legislation these assets are no longer City assets and the fiduciary
responsibility has been transferred to the third party plan administrator. Consequently, effective with fiscal 1997, these assets
are no longer reported in the accompanying financial statements, in compliance with Governmental Accounting Standards
Board Statement No. 32.
E. Post Employment Benefits Other Than Pension
1 Plan Description - The City of Clearwater administers a single-employer defined benefit healthcare plan (the "Plan") that
provides medical insurance benefits to its employees and their eligible dependents. In accordance with Section 112.0801 of
the Florida Statutes, because the City provides a medical plan to active employees of the City and their eligible dependents,
the City is also required to provide retirees with the opportunity to participate in this Plan. Benefit provisions for the Plan are
established by the City Council and may be amended by the City Council. The retirees pay the full group premium amount
for health insurance with no explicit subsidy from the City. Additionally the City provides and pays for $1,000 of term life
insurance for retirees. The term life insurance benefit provision is also established, and may be amended, by action of the
City Council. The City does not issue stand-alone financial statements for these programs.
Funding Policy - Contribution rates for the Plan are established on an annual basis by the City Council. Eligible retirees and
their covered dependents receiving benefits contribute 100% of their premium costs for health insurance and 0% of the cost
for the $1,000 term life insurance. For the year ended September 30, 2009, the total retiree contributions for health
insurance premiums were $1,693,954. While the City does not directly contribute towards the costs of retiree premiums via
' an explicit subsidy, the ability of retirees to obtain health insurance coverage at a group rate which includes active
employees, constitutes a significant economic benefit to retirees, or an "implicit" subsidy. This implicit subsidy is considered
to be an other post employment benefit (OPEB) obligation of the City. The City is currently funding this OPEB obligation on
a pay-as-you-go basis. For the year ended September 30, 2009, the City estimated it subsidized $728,617 of health care
1 costs for it retirees and their covered dependents, and paid $14,513 for life insurance benefits for retirees.
Annual OPEB Cost and Net OPEB Obligation - The City's annual OPEB cost (expense) is calculated based on the annual
' required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost
each year and to amortize unfunded liabilities of the plan over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to
the plan, and changes in the City's net OPEB obligation to the City's Plan, including both the implicit rate subsidy for health
insurance and the term life insurance benefit:
iI
77
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Annual required contribution $ 2,657,200
Interest on net OPEB obligation 71,800
Adjustment to annual required contribution (99,800)
Annual OPEB cost (expense) 2,629,200
Contributions made (642,600)
Increase in net OPEB obligation 1,986,600
Net OPEB obligation - beginning of year 1,796,100
Net OPEB obligation - end of year $ 3,782,700
No trust or agency fund has been established for the plan and there were no adjustments to the annual required
contribution or interest earnings.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
(asset) for the fiscal year ending September 30, 2009, are presented below. Data is only presented for two fiscal years due
to the implementation of GASB Statement 45 and this related disclosure effective with fiscal year ended September 30,
2008.
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Costs Contributed Obligation
9/30/2008 $ 2,415,000 25.6% $ 1,796,100
9/30/2009 $ 2,629,100 24.4% $ 3,782,700
As of September 30, 2009, the accrued liability for benefits was $25,316,800, all of which was unfunded. The covered
payroll (annual payroll of active employees covered by the plan) was $80.4 million and the ratio of the unfunded actuarial
liability (UAL) to covered payroll was 31.5%.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial valuations
for other post-employment benefits involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future, and consequently actuarially determined amounts are subject to continual revision
as results are compared to past expectations and new estimates are made about the future.
For the September 30, 2009 actuarial valuation, the unit credit, level dollar actuarial cost method was used. The annual
required contribution (ARC) reflects a 30-year, level dollar open amortization of the unfunded actuarial accrued liability
(AAL). The actuarial assumptions included a 4.0% investment rate of return and 4.0% projected salary increases. Annual
medical costs are assumed to increase 8.5% in the first year of valuation, with future annual increases assumed to grade
uniformly to 5% over a seven year period and remain at 5% thereafter.
F. Securities lending transactions
The City of Clearwater Employees' Pension Plan participates in securities lending transactions, as authorized by the Pension
Trustees on April 14, 2003, via a Securities Lending Authorization Agreement with Northern Trust Company, who is also the
pension plan's custodian. Securities are loaned versus collateral that may include cash, U.S government securities, and
irrevocable letters of credit. U.S. government securities are loaned versus collateral at 102% of the market value of the
securities plus any accrued interest. Non-U.S. securities are loaned versus collateral at 105% of the market value plus any
accrued interest. The Plan's investment policy places no restrictions on the amount of securities that can be loaned.
Non-cash collateral cannot be pledged or sold unless the borrower defaults. All securities loans can be terminated on demand
by either the lender or the borrower. The average term for the pension plans loans at September 30, 2009 was 32 days. If a
borrower fails to return the loaned security because of bankruptcy, insolvency, reorganization, liquidations, receivership,
conservatorship, or a similar event, Northern Trust Company shall, at its expense, credit the City with the difference between
78
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
the market value of such loaned security and the market value of the related collateral. At September 30, 2009, there was no
failure by a borrower to return a loaned security.
Cash "open" collateral is invested in a short-term investment pool, the Core USA Collateral Section, which had an average
weighted maturity of 31 days as of September 30, 2009. Cash collateral may also be invested separately in "term loans" in
which investments match the loan term. These term loans may be terminated on demand by either the lender or the borrower.
Because of the unprecedented turmoil in the financial markets some of the securities held by the Core USA Collateral Fund
suffered an unrealized "paper" loss during fiscal year 2008. The Plan's share of the decline in market value of these securities
is $1,556,260, and has been reflected in the pension plan's financial statements. None of these securities are in default and
Northern Trust believes that at maturity they will receive par for all securities.
There were no significant violations of legal or contractual provisions, nor any borrower or lending agent defaults known to the
securities lending agent. The Plan did not impose any restrictions on the amount of loans made by Northern Trust during fiscal
?i year 2009.
Northern Trust has indemnified the Plan for losses attributable to violations by the entity of the Standard of Care set out in the
Agreement. Northern Trust has also indemnified the Plan for all losses as a result of borrower default and for any losses
resulting from related collateral insufficiency. At year-end the Plan has no credit risk exposure to borrowers because the
amounts the Plan owes the borrowers equal or exceed the amounts the borrowers owe the Plan and the lending agent
indemnifies the Plan if the collateral is inadequate to repay the borrowers. The deficiency of the cash collateral versus fair
values of U.S. Equity securities listed below is a temporary situation due to change in market values and time lag in obtaining
additional collateral; and does not reflect credit risk exposure due to the fact that the lending agent agreement indemnifies the
Plan against loss if the collateral is inadequate to replace the securities lent. The unrealized loss on Core USA collateral pool of
$1,556,260 per following table is discussed above.
The following is a summary of securities on loan and their collateral:
Security Type
U.S. Corporate Fixed
U.S. Equity
U.S. Government Fixed
U.S. Agencies
Global Equities
Core USA unrealized loss
Total
Securities Collateralized by Cash
Fair Value Cash Collateral
7,219,931 $ 7,406,469
110,333,204 113,200,729
9,205,960 9,417,158
3,423,484 3,503,332
2,306,304 2,507,112
(1,556,260) -
132,4F8_,8_87_ 34,47875 0 5,270 5,39
Securities Collateralized by Non-Cash
Fair Value Non-Cash Collateral
f - $ -
5,270 5,392
On the statement of fiduciary net assets, a securities lending asset of $134,478,540 was reported that represents the fair
value of the investments made with cash collateral at September 30, 2009. In addition, a securities lending obligation of
$136,034,800 was reported that represents the collateral that the City is required to maintain to cover the market value of
the loaned securities. The statement of changes in fiduciary net assets represents the net income associated with the
securities lending transactions of $454,573.
G. Contingencies and commitments
Loan Guarantee - PACT, Inc.
PACT, Inc. is a nonprofit corporation formed in 1978, for the purpose of financing, constructing, and operating a performing
arts center. Per a Guaranty Agreement dated May 18, 2001, the City guaranteed $1,000,0000 on a $5,000,000 mortgage
note for PACT, Inc., used to refinance a previous mortgage with a similar City guarantee. City management does not
' consider it probable that this guarantee will be called, and, accordingly, no amounts have yet been accrued or otherwise
recorded in the accompanying financial statements to reflect this possibility.
Loan Guarantee - Chi Chi Rodriquez Youth Foundation, Inc.
' On March 30, 1992, the City Council approved a contingent loan guarantee of $1,000,000 on a $2,500,000 note for the Chi
Chi Rodriquez Youth Foundation, Inc. The proceeds of the note were used to refinance existing foundation debt incurred to
construct a golf course on a parcel of City-owned land. Subsequently, the note was refinanced with Variable Rate Demand
Revenue Bonds (Chi Chi Rodriquez Youth Foundation Project), Series 1998, on August 1, 1998. In the event of default, the
City is obligated to contribute $1,000,000 out of legally available non-ad valorem revenues. In addition, the City has the
option to retire the entire unpaid balance and assume ownership and operation of the golf course facility.
79
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
Pollution Remediation Claims Liabilities
During fiscal year 2009, the City implemented GASB Statement 49, Accounting and Financial Reporting for Pollution
Remediation Obligations. This statement requires that the City analyze known polluted sites to determine future component
cost outlays, including estimation where required, for pollution remediation. The effect of adopting GASB Statement 49 was
a $234,839 accrued liability for petroleum contamination cleanup at the fuel site at the Clearwater Airpark, an enterprise
fund of the City. It is estimated that at least 57% of these cleanup costs are reimbursable through a grant from the Florida
Department of Transportation. At fiscal year-end, grant-related expenditures for this cleanup are less than $500 and no
reimbursement has been accrued.
The City has nineteen other sites that currently have known contamination from petroleum products, metals, chlorine or
coal tar. Ten of these sites are on the State of Florida Petroleum Clean-up Program. When any of these ten sites will be
scheduled for cleanup cannot be determined at this time.
The remaining nine sites are under monitoring plans or are awaiting responses from the Florida Department of
Environmental Protection (FDEP) on data submitted by the City. Any additional cleanup costs for these sites cannot be
estimated at this time.
Additionally the City has eleven further sites that are awaiting a No Further Action Site Rehabilitation Completion Order from
the FDEP. No further costs are anticipated to be incurred for these sites.
Soil and groundwater contamination site
The City owns a property, currently used by the City Gas Division as its administrative offices and operating facility, that has
been identified as having soil and groundwater impacts in a June 1990 report prepared by a United States Environmental
Protection Agency contractor. The contamination allegedly resulted from the prior operation of a manufactured gas plant
(MGP) from approximately 1929 to 1960. Following the discovery of the impacts, the Florida Department of Environmental
Protection (FDEP) directed the City to implement measures to delineate the area and vertical extent of the impacts at the
Property, and, if necessary, implement appropriate remedial action. Field activities to delineate the extent of impacts were
performed between 1995-2003. The results of the final field work are presented in a Supplemental Assessment Report
dated May 2003, in which the City's consultant concluded that field activities to delineate the extent of soil and groundwater
impacts were complete and that a risk assessment should be undertaken to evaluate an appropriate remedy for the
reported impacts.
By letter dated April 19, 2004, FDEP directed the City to install two additional monitoring wells within the source area on site
to delineate the vertical extent of groundwater impacts. The City and FDEP previously discussed the potential harm to the
underlying aquifer that may result from the installation of monitoring wells through a source area and the underlying clay
confining unit during a meeting with FDEP held on November 29, 2003. Based on the advice of its environmental consultant
and other specialists consulted concerning this issue, the City has consistently maintained that the installation of the
additional monitoring wells requested by FDEP will likely provide a pathway for the migration of impacts into the aquifer
underlying the clay confining unit that is otherwise not presently impacted by the former operations of the MGP based on
existing perimeter monitoring well data. The City responded to the FDEP by letter dated April 29, 2004, requesting that
FDEP advise the City whether the directive to install the additional vertical extent wells was deemed by FDEP to be final
agency action that would otherwise be subject to review in an administrative proceeding. The City's April 29, 2004 response
included a request for an extension of time to file an administrative proceeding in the event that FDEP deemed the April 19,
2004 FDEP communication to be final agency action. On January 17, 2008, FDEP issued a letter to the City stating FDEP
was willing to replace the need for additional vertical delineation wells with periodic sampling of the existing deep wells, so
long as they remain unaffected by the contaminants of concern on the site. Prior to the resolution of this outstanding
matter, we are unable to determine, to an acceptable degree of certainty, whether remediation will, in fact, be required at
the Property and, if so, the estimated cost of such remediation.
During fiscal 2005, the Myrtle Avenue Utility and Roadway Widening project began, requiring extensive dewatering during
construction. Consulting, equipment, laboratory, permitting, and labor costs for dewatering in areas where there was
suspected or known contamination from the former MGP plant were charged to the City of Clearwater Gas Division.
The City has pursued insurance claims under certain insurance policies covering the Property for the period of time from
June 1961 through July 1986. The City recovered $487,500 in various insurance settlement payments thru September 30,
1991. On September 17, 2001, the City agreed to reduce its claim against Southern American Insurance Company
("SAIC"), the sole remaining excess carrier, to an undiscounted value of $300,000. Because this carrier was in liquidation,
we were unable to determine, to an acceptable degree of certainty, the actual amount of payment to be received by the City.
80
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2009
In December 2007, the liquidator managing the SAIC liquidation made an initial payment to the City in the amount of
$96,000. In September 2008, a final distribution payment of $174,000 was issued to the City for a total collection amount of
$270,000 on the $300,000 claim settlement. In summary, the City has recovered $757,500 on all of its outstanding
insurance claims.
Since 1993, the City has spent a total of $758,238 on the manufactured gas plant assessment activities, which includes
both environmental consultant and outside attorney fees.
Contractual Commitment - Water and Sewer Utility
Under the terms of a 30-year contract between the City and Pinellas County, which is effective through September 30,
2035, the maximum amount of water available to the City is 15 million gallons per day on an annual average basis with no
minimum quantity purchase requirement. Effective October 1, 2009, the rate, which is set by the Pinellas County Board of
County Commissioners (BOCC), was $3.1844 per 1,000 gallons.The cost of water purchased from the County during fiscal
years 2008 and 2009 was $9,264,739 and $8,312,863, respectively.
Grant Revenues
During the current fiscal year and prior fiscal years, the City received revenues and contributions related to grants from the
Southwest Water Management District, the State of Florida, the federal government, and other grantors. These grants are for
specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for
reimbursement for expenditures disallowed under the terms of the grants. Based upon prior experience, City management
believes such disallowances, if any, will not be significant.
G. Pending litigation
In the normal course of operations the City is a defendant in various legal actions, the ultimate resolution of which is not
expected to have a material effect on the financial statements, other than for amounts that have been reserved and recorded
as liabilities in the Central Insurance Fund.
H. Conduit debt
The City has one issue of conduit debt outstanding as follows:
Description / Purpose
Drew Gardens Refunding Bonds / residential rental facility
Original Amount Amount
Issue Outstanding Outstanding
Amount at 9/30/08 at 9/30/09
$ 3,425,000 $ 2,645,000 $ 2,565,000
The bonds do not constitute a debt, liability, or obligation of the City of Clearwater, the State of Florida, or any political
subdivision thereof and accordingly have not been reported in the accompanying financial statements.
81
Page 1 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Schedules of Fundinc Procress:
Employees Pension Plan
Actuarial Actuarial Actuarial Unfunded AAL
Valuation Value of Accrued Liability Unfunded Funded Covered as a Percentage
Date Assets (AAL) - Entry Age AAL Ratio Payroll of Covered Payroll
(a) (b) (b-a) a/b) (c) ((b-a) /c)
1/1/2004 $ 507,256,663 $ 546,915,627 $ 39,658,964 93% $ 69,907,473 57%
1/1/2005 $ 510,265,274 $ 549,136,184 $ 38,870,910 93% $ 73,836,304 53%
1/1/2006 $ 525,573,824 $ 563,597,580 $ 38,023,756 93% $ 76,010,269 50%
1/1/2007 $ 559,830,590 $ 582,248,127 $ 22,417,537 96% $ 79,385,090 28%
1/1/2008 $ 610,979,087 $ 632,559,753 $ 21,580,666 97% $ 80,371,617 27%
1/1/2009 $ 536,834,473 $ 557,515,503 $ 20,681,030 96% $ 82,104,837 25%
Firefighters Relief and Pension Plan
Actuarial Actuarial Actuarial Unfunded AAL
Valuation Value of Accrued Liability Unfunded Funded Covered as a Percentage
Date Assets (AAL) - Entry Age AAL Ratio Payroll ' of Covered Payroll
(a) (b) (b-a) a/b (c) ((b-a) /c)
1/1/2003 $ 5,741,450 $ 10,483,967 $ 4,742,517 55% $ - n/a
1/1/2004 $ 6,190,744 $ 9,974,824 $ 3,784,080 62% $ - n/a
1/1/2005 $ 6,744,043 $ 8,938,022 $ 2,193,979 75% $ - n/a
1/1/2006 $ 7,445,172 $ 8,773,238 $ 1,328,066 85% $ - n/a
1/1/2007 $ 8,375,505 $ 8,320,672 $ (54,833) 101% $ - n/a
1/1/2008''" $ 8,063,338 $ 7,815,729 $ (247,609) 103% $ - n/a
Covered payroll is for the calendar year period used for the actuarial valuation.
** Effective 1/1/2008 the fully funded Firefighters Relief and Pension Plan has opted for biennial actuarial
valuations. Consequently there was no valuation done on 1/1/2009, with the next valuation to be 1/1/2010.
82
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Page 2 of 3
Schedules of Employer Contributions:
Employees' Pension Plan
Year Annual (a)
Ended Required Percent
Sept. 30, Contribution Contributed
2004 $ 4,156,253 116%
2005 $ 5,415,848 95% (b)
2006 $ 11,614,495 64% (b)
2007 $ 13,180,855 78% (b)
2008 $ 10,805,681 96% (b)
2009 $ 8,451,471 122%
(a) The actuarially determined contributi on requirements for the City's fiscal year ended September 30, 2009, are
based on actuarial valuations as of Jan uary 1, 20 08. Since the City's contributions are made during its fiscal year,
which commences nine months after the date of t he actuarial valuations, the City, with approval of State regulatory
authorities, is following the practice of a dding inte rest to its required contributions at the assumed rate of return on
investments for a period of one year.
(b) The actual contribution is less than t he annual required contribution due to a "drawdown" of the net pension asset.
'
Firefi s Relief and Pension Plan
ghter
Year Annual
Ended Required Percent
Sept. 30, Contribution Contributed
2004 $ 1,264,729 101%
2005 $ 1,331,045 100%
2006 $ 1,397,390 100%
1 2007 $ 1,467,259 100%
2008 $ (a) n/a
2009 $ - n/a
(a) Effective with the fiscal year ended September 30, 2007, the Firefighter's Relief and Pension Plan, with no
remaining active members (only retirees), was fully funded per the requirements of the governing Ordinance. The City
may elect to contribute should future valuations show an actuarial need for such.
1 83
Page 3 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Notes To Schedules Of Required Pension Supplementary Information
Annual required contributions for the Employees' Pension Plan are calculated using the Entry Age Normal with Frozen Initial Liability
method. The initial unfunded actuarial accrued liability determined at July 1, 1963 is being amortized over a 40-year period; changes
made in 1979 and subsequent years which have had the effect of either increasing or decreasing the actuarial liability are being
amortized over a 30-year period from their effective dates in accordance with State law. The amortization method is level dollar closed.
Annual required contributions for the Firefighter's Relief and Pension Plan are based on the aggregate actuarial cost method, under which
the unfunded portion of the present value of the projected benefits is allocated over the present value of a 6.0% per year increasing
annuity for the remaining years in the 35-year funding period which begin January 1, 1972, pursuant to an agreement between the City
and the Plan participants. For this purpose, the unfunded actuarial liability is determined after consideration of the available assets at the
valuation date. The increasing fixed schedule produced by this method was established in 1988 and will be modified in the future only to
the extent that a current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current
year. The amortization method for the Firemen's Relief and Pension Fund is a non-standard (no active employees) closed cost method.
The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2009, are based on actuarial
valuations as of January 1, 2008. Since the City's contributions are made during its fiscal year, which commences nine months after the
date of the actuarial valuations, the City, with approval of State regulatory authorities, is following the practice of adding interest to its
required contributions at the assumed rate of return on investments for a period of one year in the case of the Employees' Pension Plan
and for nine months in the case of the Firefighter's Relief and Pension Plan.
Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2008, in the determination of the annual required
contribution are as follows:
Employees' Pension Plan
(1) Assumed rate of return on investments of 7.5% per annum.
(2) Projected salary increase at a rate of 6% per year, including cost-of-living adjustments of 3% and merit or seniority increases at 3%.
(3) Mortality based on the RP 2000 Combined Healthy Mortality Table.
(4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates based on hazardous versus
non-hazardous duty categories.
(5) Pre-retirement incidence of disability assumed to occur in accordance with a standard scale of moderate disability rates (Class 1,
1952 Inter-Company); rates for females assumed to be twice that for males.
(6) Assumed inflation rate of 3%
Firefighter's Relief and Pension Plan
(1) Assumed rate of return on investments of 4.5% compounded annually.
(2) Assumed benefits grow at annually compounded rate of 2% related to cost of living adjustments only.
(3) Mortality based on the 1994 Unisex Mortality Table projected to 2010 for participants.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
(7) Assumed inflation rate of 3%
Significant changes affecting the presented 6-year trend information include:
The actuarial valuation of the Employees' Pension Plan as of January 1, 2007, reflected changes in actuarial assumptions as follows: The
mortality assumption was updated from the 1994 Group Annuity Reserving Table to the RP 2000 Combined Healthy Mortality Table; the
retirement assumption was updated to reflect the City's experience and expected future retirement rates; and the withdrawal assumption
was updated to reflect the City's experience and expected future withdrawal rates. The impact of these changes decreased the unfunded
actuarial accrued liability from $37,113,063 to $22,417,537.
The actuarial valuation of the Employees' Pension Plan as of January 1, 2002, reflected changes in actuarial assumptions as follows: An
investment yield of 7.5% versus the prior valuation assumption of 7.0%. Salaries were projected to increase at 6% versus the prior
valuation assumption of 5%. Employee turnover rates were revised for male and female employees and separate rates were adopted for
hazardous duty employees. The mortality table was changed from the 1983 Group Annuity Mortality Table to the 1994 Group Annuity
Reserving Table. Finally, the retirement age assumption was changed from 100% retirement at first eligibility for unreduced benefits to a
table of decrements at different ages. The impact of these changes decreased the unfunded actuarial accrued liability from $72,178,974
to $41,332,472.
The actuarial valuation of the Firefighter's Relief and Pension Plan as of January 1, 2003, reflected two changes in actuarial
assumptions. The report assumed an investment yield of 4.5% versus the prior valuation assumption of 5.5%. Also, the mortality
pattern assumption used the 1994 Unisex Morality Table versus the previous 1983 Group Annuity Mortality Table. The impact of
these changes increased the unfunded actuarial accrued liability from $2,648,428 to $4,742,517.
t
84 1
Page 1 of 1
City of Clearwater, Florida
Other Post-Employment Benefits
Required Supplementary Information - Unaudited
Schedule of Employer Contributions:
Fiscal
Year
Ending
September 30, 2008 (2)
September 30, 2009
Annual
Required Estimated Percentage
Contributions Contributions (1) Contributed
$ 2,415,000 $ 618,900 25.6%
$ 2,657,200 $ 642,600 24.2%
(1) Since there is no funding, these are the estimated benefit payments.
(2) Initial year of plan disclosure, no prior data available.
Schedule of Funding Progress:
Actuarial Actuarial Accrued Unfunded AAL
Fiscal Value of Liability (AAL) - Unfunded Funded Covered as a Percentage
Year Assets Projected Unit Credit AAL Ratio Payroll of Covered Payroll
Ending (a) (b) (b-a) a/b (c) ((b-a) /c)
September 30, 2008 (1) $ - $ 23,215,500 $ 23,215,500 0% $ 83,088,355 27.9%
September 30, 2009 $ - $ 25,316,800 $ 25,316,800 0% $ 80,380,800 31.5%
(1) Initial year of plan disclosure, no prior data available.
85
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86
1
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures
for particular purposes.
Special Programs Fund - to account for grants and contributions, the use of which is restricted for certain
programs.
Community Redevelopment Agency Fund - to account for receipt, custody, and expenditure of property tax
increment funds associated with related redevelopment projects.
Local Housing Assistance SHIP Trust Fund - to account for monies allocated to the City under the State
Local Housing Assistance SHIP grant program.
Pinellas County Local Housing Assistance Trust Fund - to account for monies allocated to the City under
the Pinellas County Local Housing Assistance grant program.
87
Debt Service Funds
Debt service funds provide separate accounting records for all debt interest, principal, and reserve
requirements for general government long-term. Debt of proprietary funds is serviced through restricted
accounts maintained within the individual enterprise or internal service fund associated with the debt.
Improvement Revenue Refunding Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of public service tax and communications services tax revenues
from the General Fund and the payment of currently maturing installments of principal and interest during
each fiscal year.
Beachwalk Improvement Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of public service tax and communications services tax revenues
from the General Fund and the payment of currently maturing installments of principal and interest during
each fiscal year.
Infrastructure Sales Tax Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of sales tax revenues from the Special Development Special
Revenue Fund and the payment of currently maturing installments of principal and interest during each
fiscal year.
Notes and Mortgages Debt Service Fund - to account for the advance monthly accumulation of resources
by transfer of General Revenues from the General and Special Revenue Funds and the payment of
currently maturing installments of principal and interest on the various note and mortgage obligations of the
governmental funds during each fiscal year.
Spring Training Facility Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources received from the State of Florida and Pinellas County, and the payment of
currently maturing installments of principal and interest each year.
88
E
LI
t
Capital Projects Funds
Capital projects funds are used to account for resources to be used for the acquisition or construction of
major capital improvement projects, other than those financed by proprietary funds. A major capital
improvement project is a property acquisition, a major construction undertaking, or a major improvement to
an existing facility or property, with a cost greater than $25,000 and a minimum useful life of at least five
years.
Community Redevelopment Agency Capital Projects Fund - to provide separate accounting records for the
acquisition or construction of capital improvement projects for the Clearwater Community Redevelopment
Agency.
?1
1
'I
'i
1 89
City of Clearwater, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2009
Special Revenue Funds
SHIP Pinellas County
Community Local Housing Local Housing
Special Redevelopment Assistance Assistance
Programs Agency Trust Trust Total
ASSETS
Cash and investments $ 11,956,711 $ 743,097 $ 1,273,040 $ 965,806 $ 14,938,654
Receivables:
Accrued interest 74,364 6,741 6,322 5,834 93,261
Mortgage notes 5,111,501 - 7,291,652 913,250 13,316,403
Rehab advances 11,200 - 1,276 - 12,476
Other 8,228 39,241 - 47,469
Investments - - -
Due from other governments - grants 562,866 - 562,866
Land held for resale 84,701 1,914,050 1,998,751
Prepaid items - - -
Advances to other funds 700,000 700,000
Total assets $ 18,509,571 $ 2,703,129 $ 81572,290 $ 11884,890 $ 31,669,880
LIABILITIES
Accounts and contracts payable $ 145,956 $ 1,838 $ 58,522 $ $ 206,316
Accrued payroll 43,411 - - 43,411
Due to other governmental entities 844 48,000 - 48,844
Construction escrows 17,033 - 11,967 162,227 191,227
Due to other funds (deficit in pooled cash) - - - - -
Advances from other funds 700,000 700,000
Deferred revenue 39,241 39,241
Total liabilities 207,244 789,079 70,489 162,227 1,229,039
FUND BALANCES
Reserved for:
Interfund and notes receivable 5,811,501 7,291,652 913,250 14,016,403
Grant programs 8,571,665 - - - 8,571,665
Land held for resale 84,701 1,914,050 1,998,751
Debt service:
Current requirements - principal - - -
Current requirements - interest
Future requirements - - -
Unreserved, reported in:
Special revenue funds 3,834,460 1,210,149 809,413 5,854,022
Debt service funds - - - -
Capital projects funds - - -
Total fund balances 18,302,327 1,914,050 8,501,801 1,722,663 30,440,841
Total liabilities and fund balances $ 18,509,571 $ 21703,129 $ 81572,290 $ 11884,890 $ 31,669,880
The notes to the financial statements are an integral part of this statement.
90
Debt Service Funds Capital
Spring Project
Improvement Beachwalk Infrastructure Training Fund Total
Revenue Improvement Sales Tax Notes Facility Community Nonmajor
Refunding Revenue Revenue and Revenue Redevelopment Governmental
Bonds Bonds Bonds Mortgages Bonds Total Mency Funds
$ 281,979 $ 49,182 $ 5,604,933 $ - $ 485,676 $ 6,421,770 $ 5,686,767 $ 27,047,191
1,354 3,028 4,382 42,778 140,421
13,316,403
- - - 12,476
- - 47,469
888,514 888,514 888,514
- - 562,866
- - 1,998,751
24,565 24,565 24,565
700,000
$ 1,171,847 $ 49,182 $ 51604,933 $ 24,565 $ 488,704 $ 7,339,231 $ 5,729,545 $ 44,738,656
$ $ $ $ $ $ $ 763 $ 207,079
- 43,411
48,844
191,227
24,565 24,565 24,565
- - 700,000
39,241
24,565 24,565 763 1,254,367
14,016,403
8,571,665
- - - - - 1,998,751
236,667 20,833 5,516,667 309,167 6,083,334 6,083,334
71,963 28,349 88,266 46,092 234,670 234,670
861,000 - - - 861,000 861,000
- - - 5,854,022
2,217 133,445 135,662 - 135,662
- 5,728,782 5,728,782
1,171,847 49,182 5,604,933 - 488,704 7,314,666 5,728,782 43,484,289
$ 1,171,847 $ 49,182 $_ __5 04 933 $ 24,565 $ 488,704 $ 7,339,231 $ 5,729,545 $ 44,738,656
91
City of Clearwater, Florida
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2009
Special Revenue Funds
SHIP Pinellas County
Community Local Housing Local Housing
Special Redevelopment Assistance Assistance
Programs Agency Trust Trust Total
REVENUES
Intergovernmental:
Federal $ 2,517,481 $ $ - $ $ 2,517,481
State 133,213 979,588 1,112,801
Local 199,297 1,109,190 - 399,497 1,707,984
Charges for services 1,149,758 - - 1,149,758
Fines and forfeitures 692,362 - - - 692,362
Investment earnings 596,934 44,418 56,742 55,574 753,668
Miscellaneous 688,539 72,676 12,841 774,056
Total revenues: 5,977,584 1,226,284 1,049,171 455,071 8,708,110
EXPENDITURES
Current:
General government 1,387,848 - - - 1,387,848
Public safety 1,817,393 1,817,393
Physical environment 261,304 - - - 261,304
Economic environment 540,528 174,591 281,745 127,501 1,124,365
Human services 135,380 - - - 135,380
Culture and recreation 1,578,925 1,578,925
Debt service:
Principal - -
Interest & fiscal charges - -
Capital outlay 203,414 - 203,414
Total expenditures 5,924,792 174,591 281,745 127,501 6,508,629
Excess (deficiency) of revenues
over/(under) expenditures 52,792 1,051,693 767,426 327,570 2,199,481
OTHER FINANCING SOURCES (USES)
Transfers in 3,893,380 930,594 - - 4,823,974
Transfers out (942,065) (1,982,287) (99,782) (55,072) (3,079,206)
Total other financing sources (uses) 2,951,315 (1,051,693) (99,782) (55,072) 1,744,768
Net change in fund balances 3,004,107 - 667,644 272,498 3,944,249
Fund balances- beginning 15,298,220 1,914,050 7,834,157 1,450,165 26,496,592
Fund balances - ending $ 18,302,327 $ 1,914,050 $ 8,501,801 $ 1,722,663 $ 30,440,841
The notes to the financial statements are an integral part of this statement.
92
Debt Service Funds Capital
Spring Project
Improvement Beachwalk Infrastructure Training Fund Total
Revenue Improvement Sales Tax Notes Facility Community Nonmajor
Refunding Revenue Revenue and Revenue Redevelopment Governmental
Bonds Bonds Bonds Mortgages Bonds Total Agency Funds
$ $ $ $ $ - $ - $ $ 2,517,481
500,004 500,004 1,612,805
587,650 587,650 2,295,634
- - 1,149,758
- - 692,362
23,591 3,307 183,654 16,534 227,086 331,643 1,312,397
774,056
23,591 3,307 183,654 1,104,188 1,314,740 331,643 10,354,493
1,387,848
1,817,393
- 261,304
504,884 1,629,249
- 135,380
1,578,925
340,000 115,000 6,355,000 500,291 515,000 7,825,291 7,825,291
438,150 170,088 396,875 50,878 561,145 1,617,136 - 1,617,136
1,075,374 1,278,788
778,150 285,088 6,751,875 551,169 1,076,145 9,442,427 1,580,258 17,531,314
(754,559) (281,781) (6,568,221) (551,169) 28,043 (8,127,687) (1,248,615) (7,176,821)
764,651 288,332 6,704,321 551,169 - 8,308,473 1,687,220 14,819,667
(134,024) (3,213,230)
764,651 288,332 6,704,321 551,169 8,308,473 1,553,196 11,606,437
10,092 6,551 136,100 - 28,043 180,786 304,581 4,429,616
1,161,755 42,631 5,468,833 460,661 7,133,880 5,424,201 39,054,673
$__1J71 ,847 $ 49,182 $ 5,604,933 $ $ 488,704 $ 7,314,666 $ 5,728,782 $ 43,484,289
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94
City of Clearwater, Florida
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis)
Community Redevelopment Agency
For the Year Ended September 30, 2009
REVENUES
Intergovernmental - Local
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current - Economic environment
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Excess (Deficiency) of revenues and other sources
over expenditures and other uses
Fund balances - beginning
Fund balances - ending
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 1,110,789 $ 1,109,190 $ 1,109,190 $
100,000 100,000 44,418 (55,582)
65,328 70,326 72,676 2,350
1,276,117 1,279,516 1,226,284 (53,232)
286,846 286,585 174,591 111,994
286,846 286,585 174,591 111,994
989,271 992,931 1,051,693 58,762
932,254 930,594 930,594
(1,921,525) (1,923,525) (1,982,287) (58,762)
(989,271) (992,931) (1,051,693) (58,762)
1,914,050 1,914,050 1,914,050
$ 1,914,050 $ 1,914,050 $ 1,914,050 $
The notes to the financial statements are an integral part of this statement.
95
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96
Nonmajor Enterprise Funds
Enterprise funds are used to account for the financing, acquisition, operation, and maintenance of
governmental facilities that are supported primarily by user charges.
Recycling Utility Fund - to account for the financing, processing, operation and maintenance of the City's
recycling service from charges made to users of the services and funds received from the sale of recyclable
commodities processed to meet market requirements. The service area extends beyond the City limits
Marine Operations Fund - to account for the financing, operation, and maintenance of the City's marine
operations (excluding the downtown boat slips) and associated real property from rents collected from users.
Aviation Operations Fund - to account for the financing, operation, and maintenance of the City's airpark
operations from rents collected from users.
Parking System Fund - to account for the financing, construction, operation and maintenance of the City's
parking system, including on- and off-street parking on Clearwater Beach and Downtown Clearwater, from
parking charges.
Harborview Center Fund - to account for the operation of the City's convention center and related facilities.
Downtown Boat Slips Fund - to account for the financing, operation, and maintenance of the City's downtown
boat slips from boat slip rentals.
97
City of Clearwater, Florida
Combining Statement of Net Assets
Nonmajor Enterprise Funds
September 30, 2009
ASSETS
Current assets:
Cash and investments
Accrued interest receivable
Accounts and contracts receivable:
Billed
Unbilled charges estimated
Less: Allowance for uncollectable accounts
Total receivables, net
Due from other governmental entities
Inventories, at cost
Prepaid expenses and other assets
Total current assets
Noncurrent assets:
Restricted cash and investments
Deferred charges
Net pension asset
Capital assets:
Land and other nondepreciable assets
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued payroll
Deposits
Unearned revenue and liens
Current portion of long-term liabilities:
Compensated absences
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Accrued interest payable
Total current liabilities payable from restricted assets
Total current liabilities
Noncurrent liabilities:
Compensated absences
Other postemployment benefits
Revenue bonds (net of unamortized discounts/premiums)
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Total non-current liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for:
Revenue bond debt service and sinking fund requirements
Parking improvements
Unrestricted
Total net assets
The notes to the financial statements are an integral part of this statement.
Recycling Marine
Utility Operations
$ 4,584,178 $ 56,296
33,684
82,526
110,639
193,165
(2,410)
190,755
- 33,124
10,313 -
4,818,930 89,420
172,370 101,675
- 670,086
625,770 684,578
798,140 1,456,339
5,617,070 1,545,759
16,700 24,592
39,505 38,574
- 18,995
30,758 55,575
80,293
167,256 137,736
167,256 137,736
20,418 36,893
45,279 37,825
169,716
235,413 74,718
402,669 212,454
375,761 1,354,664
4,838,640 (21,359)
$ 5,214,401 $ 1,333,305
98
1
Aviation Parking Harborview Downtown
Operations System Center Boat Slips Total
$ 321,734 $ 18,039,668 $ 918,445 $ 5,909,348 $ 29,829,669
2,076 123,544 3,360 63,687 226,351
i - - 11,621 - 94,147
_ - 110,639
11,621 5,973,035 204,786
- - (2,410)
' 11,621 5,973,035 202,376
86,199 - - 86,199
- - 22,967
21,980 _ 56,091
32,293
410,009 18,163,212 978,373 5,973,035 30,432,979
- 37,035 - 9,005,286
38,727 9,042,321
38,727
5,415 94,172 373,632
1,410,900 992,082 926,000 6,882,199 10,881,267
1,951,138 3,256,613 6,096,512 12,614,611
3,367,453 4,379,902 7,022,512 15,926,212 32,950,558
-
3,777,462 22,543,114 8,000,885 21,899,247 63,383,57
270,891 30,929 363,289 1,017,516 1,723,917
2,883 35,159 - - 116,121
- 1,475 69,176 10,028 99,674
17,773 17,773
6,091 40,847 133,271
- 3,684 83,977
20,271 20,271
136
300 129,867 432,465 1,027,544 2,195,004
,
_ - - 70,949 70,949
70,949 70,949
300,136 129,867 432,465 1,098,493 2,265,953
1 4,043 27,116 - - 88,470
3,625 41,845 128,574
_ - 9,135,000 9,135,000
169,716
I 81,086 4,000,000 4,081,086
88,754 4,068,961 9,135,000 13,602,846
388,890 4,198,828 432,465 10,233,493 15,868,799
1 3,362,038 4,245,011 7,022,512 6,882,199 23,242,185
_ _ - 382,194 382,194
- 37,035 - - 37,035
I 26,534 14,062,240 545,908 4,401,361 23,853,324
$ 3,388,572 $ 18,344,286 $ 7,568,420 $ 11,665,754 $ 47,514,738
99
11
City of Clearwater, Florida
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Year Ended September 30, 2009
Recycling Marine
Utility Operations
Operating revenues:
Sales to customers $ 744,151 $ 2,414,669
Service charges to customers 7,773 -
User charges to customers 1,474,846 156,965
Rentals - 1,314,159
Total operating revenues 2,226,770 3,885,793
Operating expenses:
Personal services 1,047,317 957,480
Purchases for resale 184,243 2,154,213
Operating materials and supplies 89,886 45,434
Transportation 340,347 14,488
Utility service 11,564 194,697
Depreciation 198,201 116,266
Interfund administrative charges 568,290 226,930
Other current charges:
Professional fees 1,688 22,302
Advertising 13,813 23,677
Communications 8,982 22,740
Printing and binding - -
Insurance 35,390 33,730
Repairs and maintenance 17,512 120,395
Rentals - 1,469
Miscellaneous 10,578 87,912
Data processing charges 30,290 29,510
Taxes - -
Total other current charges 118,253 341,735
Total operating expenses 2,558,101 4,051,243
Operating income (loss) (331,331) (165,450)
Nonoperating revenues (expenses):
Investment earnings 256,470
Interest expense (7,739) (2,353)
Amortization of bond issue costs - -
Other 83,139 144,994
Total nonoperating revenue (expenses) 331,870 142,641
Income (loss) before transfers 539 (22,809)
Capital grants and contributions - -
Transfers in 230,000
Transfers out (176,190) (230,110)
Changes in net assets (175,651) (22,919)
Total net assets - beginning 5,390,052 1,356,224
Total net assets - ending $ 5,214,401 $ 1,333,305
The notes to the financial statements are an integral part of this statement.
11
11
U
U
100
Aviation Parking Harborview Downtown
Operations System Center Boat Slips Totals
$ 7,865 $ $ $ $ 3,166,685
- 7,773
- 4,998,481 6,630,292
208,071 3,793 1,639,027 3,165,050
215,936 5,002,274 1,639,027 12,969,800
68,320 847,390 - 2,920,507
- - 432,592 2,771,048
4,327 261,807 39,489 440,943
461 93,524 - 448,820
20,291 62,999 160,897 450,448
196,872 251,692 547,392 1,310,423
25,821 891,440 10,340 1,722,821
343,970 223,884 977,718 1,569,562
- - 16,365 5,558 59,413
2,087 10,657 15,892 3,863 64,221
- 8,491 987 - 9,478
34,110 48,320 16,902 168,452
11,233 91,692 82,979 323,811
- 799,937 12,483 813,889
29,423 284 358 128,555
2,230 27,730 20,978 110,738
- - 36,214 - 36,214
423,053 1,210,995 1,180,876 9,421 3,284,333
739,145 3,619,847 2,371,586 9,421 13,349,343
(523,209) 1,382,427 (732,559) (9,421) (379,543)
12,969 934,342 25,902 230,512 1,460,195
(3,435) (136,241) - (461,557) (611,325)
- - - (4,162) (4,162)
24 4,921 2,115 50,000 285,193
9,558 803,022 28,017 (185,207) 1,129,901
(513,651) 2,185,449 (704,542) (194,628) 750,358
148,795 150,000 - - 298,795
- - 340,170 9,786,796 10,356,966
(12,310) (569,521) - - (988,131)
(377,166) 1,765,928 (364,372) 9,592,168 10,417,988
3,765,738 16,578,358 7,932,792 2,073,586 37,096,750
$ 3,388,572 $ 18,344,286 $ 7,568,420 $ 11,665,754 $ 47,514,738
101
11
City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2009
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers
Cash payments to suppliers
Cash payments to employees
Cash payments to other funds
Other revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds
Transfers out to other funds
Payment of cash on loans to/from other funds
Net cash provided (used) by
noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt
Interest paid
Acquisition of capital assets
Proceeds from issuance of debt
Payment of bond issue costs
Capital contributed by other governmental entities
Net cash provided (used) by capital
and related financing activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents classified as:
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
Recycling Marine
Utility Operations
$ 2,324,788 $ 3,883,312
(410,264) (2,869,631)
(1,027,938) (960,289)
(953,009) (100,468)
83,139 144,994
16,716 97,918
230,000
(176,190) (230,110)
(15,101)
N-lc 1nni Mc 1311\
(118,286)
(8,956) (1,707)
(233,847) (25,904)
191,850
(169,239) (27,611)
267,689
267,689 -
(61,024) 55,096
4,645,202 1,200
$ 4,584,178 $ 56,296
$ 4,584,178 $ 56,296
$ 4,584,178 $ 56,296
The notes to the financial statements are an integral part of this statement.
11
11
11
I I
102
Aviation Parking Harborview Downtown
Operations System Center Boat Slips Totals
$ 215,936 $ 5,005,431 $ 1,439,837 $ - $ 12,869,304
(113,576) (1,457,991) (1,811,005) (5,558) (6,668,025)
(66,632) (822,882) (2,877,741)
(64,708) (1,060,233) (63,918) (3,863) (2,246,199)
24 4,921 2,115 50,000 285,193
(28,956) 1,669,246 (432,971) 40,579 1,362,532
340,170
(12,310) (569,521) -
(12,310) (569,521) 340,170
9,786,796 10, 356, 966
- (988,131)
(15,101)
(31,273) (149,559)
(3,435) (136,241) (408,429) (558,768)
(1,263,239) (5,510,357) (7,033,347)
- 191,850
- (809) (809)
62,596 - 62,596
59,161 (1,430,753) - (5,919,595) (7,488,037)
13,293 971,384 26,533 173,272 1,452,171
13,293 971,384 26,533 173,272 1,452,171
31,188 640,356 (66,268) 4,081,052 4,680,400
290,546 17,436,347 984,713 10,833,582 34,191,590
$ 321,734 $ 18,076,703 $ 918,445 $ 14,914,634 $ 38,871,990
$ 321,734 $ 18,039,668 $ 918,445 $ 5,909,348 $ 29,829,669
103
City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2009
Recycling Marine
Utility Operations
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (331,331) $ (165,450)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Other nonoperating revenue 83,139 144,994
Depreciation 198,201 116,266
Change in assets and liabilities:
(Increase) decrease in accounts receivable 98,018 -
(Increase) decrease in capital assets - 29,829
(Increase) decrease in prepaid expenses -
Increase (decrease) in accounts and contracts payable (50,690) (22,432)
Increase (decrease) in deposits (2,480)
Increase (decrease) in unearned revenue
(Increase) decrease in net pension asset (12,414) (7,464)
Increase (decrease) in accrued payroll 7,856 (15,528)
Increase (decrease) in other postemployment benefits 23,937 20,183
Total adjustments 348,047 263,368
Net cash provided (used) by operating activities $ 16,716 $ 97,918
Noncash investing, capital and financing activities:
Amortization of bond issue costs $ - $ -
Acquisition of capital assets per accrued payable $ $
104
Aviation Parking Harborview Downtown
Operations System Center Boat Slips Totals
$ (523,209) $ 1,382,427 $ (732,559) $ (9,421) $ (379,543)
24 4,921 2,115 50,000 285,193
196,872 251,692 547,392 - 1,310,423
- - 13,568 111,586
26,124 3,669 59,622
- - 8,153 8,153
269,545 2,541 (62,551) 136,413
- 300 (200,258) (202,438)
- 2,857 (12,500) (9,643)
(492) (8,125) (28,495)
352 10,424 3,104
1,828 22,209 - - 68,157
494,253 286,819 299,588 50,000 1,742,075
$ (28,956) $ 1,669,246 $ (432,971) $ 40,579 $ 1,362,532
$ $ $ $ (3,352) $
$ $ $ $ 1,017,516 $
(3,352)
105
This Page Intentionally Left Blank
106
Internal Service Funds
Internal service funds are used to account for services and commodities furnished by a designated
department to other departments within the City or to other governments on a cost reimbursement basis.
Garage Fund - to account for the cost of automotive and other motorized equipment of the City. The
acquisition cost of new or upgraded equipment is financed through user departments and the asset value is
simultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is financed by
the Garage Fund.
Administrative Services Fund - to account for various support activities including information technology,
printing, mailing, and telephone services. The cost for these services is charged to user departments based
on the cost of providing units of service.
General Services Fund - to account for various support activities including building maintenance and
custodial services for all City departments and facilities. The cost for these services is charged to user
departments based on the cost of providing units of service.
Central Insurance Fund - to account for the City's limited self-insurance program wherein all funds are
assessed charges based on damage claims incurred and on management's assessment of individual funds'
risk exposure. All claims and premiums are paid out of this fund, together with other costs necessary to
administer the program. Medical insurance premiums are also paid from this fund.
107
City of Clearwater, Florida
Combining Statement of Net Assets
Internal Service Funds
September 30, 2009
ASSETS
Current assets:
Cash and investments
Accrued interest receivable
Due from other funds
Inventories, at cost
Prepaid expenses and other assets
Total current assets
Noncurrent assets:
Advances to other funds
Net pension asset
Capital assets:
Land and other nondepreciable assets
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued payroll
Unearned revenue
Current portion of long-term liabilities:
Compensated absences
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Claims payable
Total current liabilities (payable from current assets)
Noncurrent liabilities:
Compensated absences
Other postemployment benefits
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Claims payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Garage Administrative General Central
Fund Services Services Insurance Total
$ 4,840,747 $ 5,668,037 $ 1,205,409 $ 31,584,021 $ 43,298,214
30,395 43,177 8,115 292,541 374,228
- - - 111,925 111,925
382,547 1,695 - 384,242
102,092 1,101,613 1,203,705
5,355,781 5,712.909 1,213,524 33,090,100 45.372.314
- - - 2,722,660 2,722,660
314,707 627,996 208,002 53,566 1,204,271
729,591 - - - 729,591
10,611,915 4,607,688 106,187 7,139 15,332,929
11,656,213 5,235,684 314,189 2,783,365 19,989,451
17,011,994 10,948,593 1,527,713 35,873,465 65,361,765
86,277 109,824 58,452 51,719 306,272 ,
102,461 173,316 102,453 20,850 399,080
829,472 - - - 829,472
117,174 280,849 98,613 46,974 543,610
2,832,749 173,779 21,764 - 3,028,292
- 91,654 -
- -
1,963,000 91,654
1,963,000 ,
3,968,133 829,422 281.282 2,082,543 7,161,380
i
77,786 186,441 65,465 31,184 360,876
88,934 170,808 101,481 16,163 377,386
4,408,721 363,167 12,710 4,784,598
- 641,574 - - 641,574
6,026,000 6,026,000
4,575,441 1,361.990 179.656 6,073.347 12.190.434
4 8
1
90 19
1
814
3
8,543,574 2,191,412 60.938 ,
55.8 ,
,
5
4,100,036 4,070,742 71,713 7,139 8,249,630
4,368.384 4,686,439 995,062 27,710,436 37,760.321
$ 8,468,420 $ 8,757,181 $ 1,066,775 $ 27,717,575 $ 46,009,951
The notes to the financial statements are an integral part of this statement.
108
City of Clearwater, Florida
Combining Statement of Revenue, Expe nses, and Changes in Fund Net Assets
1 Internal Service Funds
For the Year Ended September 30, 2009
Garage Administrative General Central
Fund Services Services Insurance Total
Operating revenues
Billings to departments $ 11,367,108 $ 9,338,326 $ 5,222,403 $ 17,400,760 $ 43,328,597
Operating expenses:
Personal services 2,426,784 4,677,302 2,722,199 526,329 10,352,614
Purchases for resale 3,364,642 - - - 3,364,642
Operating materials and supplies 144,950 107,015 395,562 3,848 651,375
Transportation 776 88,837 163,407 1,314 254,334
Utility service 137,439 6,347 519,188 662,974
Depreciation 4,002,418 826,447 18,455 3,569 4,850,889
Interfund administrative charges 245,860 4,000 - - 249,860
Other current charges:
Professional fees 273,009 151,046 - 46,620 470,675
Communications 18,305 1,208,633 36,035 4,984 1,267,957
Printing and binding - 47,021 20 - 47,041
Insurance
Premiums
Claims incurred 32,550
581,969 61,310 27,430 13,470,240
1,327,099 13,591,530
1,909,068
Repairs and maintenance - 806,761 1,001,943 14,710 1,823,414
Rentals 5,071 535,582 13,400 600 554,653
Miscellaneous 16,420 87,426 23,630 79,382 206,858
Data processing charges 120,230 186,330 74,000 12,030 392,590
Taxes 3,389 750 - 4,139
Total other current charges 1,050,943 3,084,859 1,176,458 14,955,665 20,267,925
Total operating expenses 11,373,812 8,794,807 4,995,269 15,490,725 40,654,613
Operating income (loss) (6,704) 543,519 227,134 1,910,035 2,673,984
' Nonoperating revenues (expenses)
Investment earnings 225,398 326,508 60,214 2,308,530 2,920,650
Interest expense (298,951) (46,990) (2,291) - (348,232)
Gain on sale of capital assets 418,146 18,616 436,762
Loss on disposal of capital assets (30,520) (39,858) (70,378)
Other 236,088 238 3,329 239,655
I Total nonoperating revenue (expenses) 550,161 258,276 58,161 2,311,859 3,178,457
Income (loss) before transfers 543,457 801,795 285,295 4,221,894 5,852,441
Capital grants and contributions 157,385 156,934 - - 314,319
' Transfers in 146,877 12,473 88,644 247,994
Transfers out (51,000) (141,346) (95,000) (10,569,068) (10,856,414)
253,262 28,061 (95,000) (10,480,424) (10,294,101)
Change in net assets 796,719 829,856 190,295 (6,258,530) (4,441,660)
Total net assets - beginning 7,671,701 7,927,325 876,480 33,976,105 50,451,611
Total net assets - ending $ 8,468,420 _$__8,757.,181 $ 1,066,775 $ 27,717,575 $ 46,009,951
The notes to the financial statements are an integral part of this statement.
10 9
City of Clearwater, Florida ,
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2009
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from other funds
Cash payments to suppliers
Cash payments to employees
Cash payments to other funds
Other revenues
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds
Transfers out to other funds
Receipt of cash on loans to/from other funds
Payment of cash on loans to/from other funds
Net cash provided (used) by
noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt
Interest paid
Acquisition of capital assets
Sale of capital assets
Proceeds from issuance of debt
Net cash provided (used) by capital
and related financing activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash and cash equivalents classified as:
Cash and investments
Garage Administrative General Central
Fund Services Services Insurance Total
$ 11,367,108 $ 9,338,326 $ 5,222,403 $ 17,400,760 $ 43,328,597
(4,472,530) (2,566,585) (1,955,187) (15,966,949) (24,961,251)
(2,397,307) (4,686,120) (2,726,052) (516,631) (10,326,110)
(617,324) (661,587) (313,170) (32,324) (1,624,405)
175,029 238 3,329 178,596
4,054,976 1,424,034 228,232 888,185 6,595,427
146,877 12,473
- (141,346)
(91,653)
88,644
(95,000) (10,569,068)
91,654
247,994
(10,805,414)
91,654
(91,653)
146,877 (220,526) (95,000) (10,388,770) (10,557,419) 1
(3,245,565) (240,124)
(298,951) (46,990)
(2,542,506) (1,036,987)
436,134 -
1,985,709 174,125
(29, 544) (3, 515, 233)
(2,291) (348,232) '
(3,579,493)
436,134
2,159,834
(3,665,179) (1,149,976) (31,835) (4,846,990) '
231,967 339 ,436 61, 989 2,394,494 3,027, 886
231,967 339 ,436 61, 989 2,394,494 3,027, 886
768,641 392,968 163,386 (7,106,091) (5,781,096)
4,072,106 5,275 ,069 1,042, 023 38,690,112 49,079, 310
$ 4,840,747 $ 5,668 ,037 $ 1,205, 409 $ 31,584,021 $ 43,298 ,214
4
840
747 $ 5
668 037 $ 205
1 409 $ 31
584
021 $ 43
298 214
$
,
, , , ,
, ,
, , ,
The notes to the financial statements are an integral part of this statement.
110 t
II
City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2009
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Other nonoperating revenue
Depreciation
Change in assets and liabilities:
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable
(Increase) decrease in net pension asset
Increase (decrease) in accrued payroll
1 Increase (decrease) in other postemployment benefits
Total adjustments
Net cash provided (used) by operating activities
Noncash investing, capital and financing activities:
1 Capital assets transferred from General Government
Garage Administrative General Central
Fund Services Services Insurance Total
$ (6,704) $ 543,519 $ 227,134 $ 1,910,035 $ 2,673,984
175,029 - 238 3,329 178,596
4,002,418 826,447 18,455 3,569 4,850,889
62,161 - - - 62,161
(102,092) (1,694) (49,791) (153,577)
(105,313) (26,104) (13,742) (988,655) (1,133,814)
(33,498) (54,283) (29,481) (6,531) (123,793)
15,756 45,465 (28,246) 7,647 40,622
47,219 90,684 53,874 8,582 200,359
4,061,680 880,515 1,098 (1,021,850) 3,921,443
$ 4,054,976 $ 1,424,034 $ 228,232 $ 888,185 $ 6,595,427
$ 157,385 $ 156,934 $
- $ - $ 314,319
111
This Page Intentionally Left Blank
112
Fiduciary Funds
Fiduciary Funds are used to account for resources that are managed in a trustee capacity or as an agent for
other parties or funds.
Employees' Pension Fund - to account for the financial operation and condition of the major employee
retirement system.
Firefighter's Relief and Pension Fund - to account for the financial operation and condition of the Firefighter's
Relief and Pension Plan, closed to new members in 1962, and containing 43 retired members with no active
members. The Plan was fully funded effective with fiscal year 2007.
Police Supplemental Pension Fund - to account for the financial operation and condition of a supplemental
pension plan funded by the State for sworn police officers.
Firefighters Supplemental Pension Fund - to account for the financial operation and condition of a
supplemental pension plan funded by the State for firefighters.
Treasurer's Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held
temporarily in trust for other parties.
113
City of Clearwater, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2009
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighter's Supplemental Supplemental Totals
ASSETS
Cash and investments $ 2,001,423 $ 2,526,363 $ 18,175 $ - $ 4,545,961
Managed investment accounts, at fair value:
Cash and cash equivalents 33,665,205 - 220,054 113,270 33,998,529
Government bonds 19,832,601 - 3,104,404 1,069,345 24,006,350
Agency bonds 7,050,461 4,700,201 794,454 325,390 12,870,506
Domestic corporate bonds 65,034,229 - 1,167,266 1,006,511 67,208,006
International corporate bonds - - 5,341 5,341
International equity securities 68,520,040 1,359,061 - 69,879,101
Domestic stocks 230,595,726 6,787,319 1,770,556 239,153,601
Mortgage backed bonds 63,235,271 31,381 1,550,127 64,816,779
Other rights / warrants 94,393 - - 94,393
Commodity exchange-traded funds 563,473 - 563,473
Domestic equity mutual funds 35,416,923 342,255 35,759,178
International equity mutual funds 23,743,278 - - 2,298,783 26,042,061
Total managed investment accounts 547,751,600 4,700,201 13,463,939 8,481.578 574,397,318
Securities lending collateral 134,478,540 - - - 134,478,540
Receivables:
Interest and dividends 1,938,720 73,247 57,816 40,487 2,110,270
Unsettled investment sales 4,906,921 - - 4,906,921
Securities lending earnings 28,718 - 28,718
Due from others 99,542 - - 150,110 249,652
Total receivables 6,973,901 73,247 57,816 190,597 7,295,561
Total assets 691,205,464 7,299,811 13,539.930 8,672,175 720,717,380
LIABILITIES
Accounts payable 736,072 - - - 736,072
Unsettled investment purchases 13,317,098 13,317,098
Obligations under securities lending 136,034,800 136,034,800
Total liabilities 150,087,970 150,087,970
NET ASSETS
Net assets held in trust for pension benefits $ 541,117,494 $ 7,299,811 $ 13,539,930 $ 8,672,175 $ 570,629,410
The notes to the financial statements are an integral part of this statement.
114
City of Clearwater, Florida
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2009
ADDITIONS
Contributions:
Contributions from employer
Contributions from employer - state tax
Contributions from employees
Total contributions
investment income:
Net appreciation (depreciation) in
fair value of investments
Interest
Dividends
Less investment expenses:
Investment management / custodian fees
Net income (loss) from investing activities
Securities lending income:
Gross earnings
Rebate paid
Bank fee
Net income (loss) from securities lending
Total additions
DEDUCTIONS
Benefits and withdrawal payments:
Benefits
Withdrawal payments
Total benefits and withdrawal payments
Income (loss) before administrative expenses
Administrative expenses
Net increase (decrease)
' Net assets held in trust for pension benefits:
Beginning of year
End of year
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighter's Supplemental Supplemental Totals
$ 10,368,010 $ $ - $ - $ 10,368,010
12,000 937,449 1,148,629 2,098,078
6,253,091 6,253,091
16,633,101 937,449 1,148,629 18,719,179
17,912,888 81,724 (290,577) 107,190 17,811,225
9,839,280 456,404 219,654 166,200 10,681,538
4,877,668 160,485 53,151 5,091,304
32,629,836 538,128 89,562 326,541 33,584,067
2,706,964 - 72,464 90,618 2,870,046
29,922,872 538,128 17,098 235,923 30,714,021
746,619 - - - 746,619
(115,442) (115,442)
(176,604) (176,604)
454,573 - - - 454,573
47,010,546 538,128 954,547 1,384,552 49,887,773
24,322,035 832,454 725,565 954,657 26,834,711
610,253 - - - 610,253
24,932,288 832,454 725,565 954,657 27,444,964
22,078,258 (294,326) 228,982 429,895 22,442,809
164,704 10,731 23,356 198,791
21,913,554 (294,326) 218,251 406,539 22,244,018
519,203,940 7,594,137 13,321,679 8,265,636 548,385,392
$ 541,117,494 $ 7,299,811 $ 13,539,930 $ 81672,175 $ 570,629,410
The notes to the financial statements are an integral part of this statement.
1 115
City of Clearwater, Florida
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30, 2009
ASSETS
Cash and investments
Accrued interest receivable
Total Assets
LIABILITIES
Other miscellaneous payables:
Downtown Development Board
Special purpose funds
Other
Total Liabilities
Balance Balance
October 1, September 30,
2008 Additions Deductions 2009
$ 439,896 445,579 460,546 $ 424,929
3,566 2,634 3,809 2,391
$ 443,462 448,213 464,355 $ 427,320
$ 312,845 441,261 442,653 $ 311,453
7,640 - - 7,640
122,977 6,952 21,702 108,227
$ 443,462 448,213 464,355 $ 427,320
The notes to the financial statements are an integral part of this statement.
116
Supplementary
Information
117
Page 1 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
The System:
Rates, Fees and Charges
The City Council has established a schedule of rates and charges by ordinance, which includes a
purchased gas cost adjustment provision allowing the City to pass-through to customers any increase or
decrease in the purchased price of gas. The City is not subject to regulation by any State agency in
establishing or revising its rates. Where competitive fuel sources or transportation service are available to
the customer, the City Council has authorized the City Manager to enter into contract gas service rates at
special rates and/or conditions as required to obtain/retain the customer load. Such contract service must
meet the normal construction feasibility formula to insure profitable payback to the City. As of September
30, 2009, contract rates applied to 269 customer accounts and impacted 18.68% of total revenues.
The rates charged by the System through September 30, 1996, were part of the Phase I Gas Rate Case
implemented October 1, 1995, which was based on a comprehensive cost of service study performed by
the Utility Advisory Services Group of the international accounting firm of Coopers & Lybrand, LLP (the
"Rate Study'). This Phase I implementation resulted in an extensive overhaul of the Gas System customer
rates, providing numerous classes of service and a modernized billing methodology.
The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the
competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to all
classes of customers, provide funding to implement planned expansion in both existing northern Pinellas
County services area and into the newly acquired southwestern Pasco service area, and provide an
adequate growth potential in return to the City of Clearwater to further offset the ad valorem tax rates
(current impact is about 0.5 mills).
As the result of experiences during the first seven months of the Phase 1 implementation, adjustments
made to the Phase II rates were implemented October 1, 1996, and additional adjustments (Phase 111)
were implemented effective October 1, 1997. The total projected impact of both new phases of the rate
case is $1.05 million, or less than 7.9% of total gas sales revenues.
The rate ordinance containing the Phase II and Phase III rate changes was approved by the City Council
on June 6, 1996. Gas rates for customer charges were increased effective April 1, 2005. The total
estimated annual impact of this rate increase was $373,352.
New rates, effective October 1, 2008, were designed to recover the costs of providing service to
respective classes of customers. The goal of the "Cost of Service and Rate Study" was to establish rates
which would be sufficient to meet Clearwater Gas System's total revenue requirements and reflect cost of
service consideration and practical rate implementation constraints as required.
118
Page 2 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
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119
Page 3 of 5 '
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
GAS SUPPLY
On August 1, 1990, the Federal Energy Regulatory Commission (FERC) deregulated the natural gas pipeline industry.
This allows other natural gas suppliers and local distribution companies, like the City of Clearwater, to transport gas over
the Florida Gas Transmission (FGT) pipelines as opposed to purchasing natural gas supply from only FGT.
The two natural gas transmission companies that serve within the State of Florida are Florida Gas Transmission (FGT)
and Gulfstream. Currently FGT is the sole provider of transportation service to the City. FGT is equally owned by Cross
Country Energy Corp (owned by Southern Union) AND Southern Natural, an El Paso Corporation Affiliate.
The City joined Florida Gas Utility (FGU) in October 2000 by Resolution 00-35. FGU is responsible for the purchase &
management of the City's natural gas supply. An updated All Requirements Gas Service Agreement, which was
approved by Resolution 02-02 in January 2002, required the City to purchase 100% of its supply through FGU. FGU was
formed through an Interlocal Agreement among its members. The Interlocal Agreement became effective on September
1, 1989 and consisted of five municipal utilities. Over the next several years, additional electric and gas distribution
utilities joined FGU, bringing its current membership to 23 entities.
In addition, the City has entered into a Gas Supply & Transportation Agreement with Peoples Gas System (PGS), dated
12/02/04, to purchase natural gas to serve customers located in our Central Pasco territory, generally east of the
Suncoast Parkway in Pasco County. The City has received a letter from FGU Council, dated 8/31/04, granting the City
permission to utilize Teco Peoples Gas as a third party gas supplier since FGU is unable and unwilling to provide gas to
the City within the meaning of the provisions of Section 3 (a)(i) and (ii) of the ALL Requirements Gas Service Agreement
between the City and FGU.
The City has two Firm Transportation Service agreements (FTS-1 & FTS-2) with FGT in order to deliver natural gas to
the City's four gate stations. FGU is currently managing the City's Phase II (FTS-1) and Phase III (FTS-2) transportation '
capacity on a daily basis. Table 1 shows the breakdown of the City's annual gas supply entitlements with FGT. The total
annual entitlement is 3,212,226 decatherms of natural gas transportation.
Table 1 Breakdown of Transportation Capacity
Contract Period Phase II (FTS-1)
MMBtu Per Day
2/01/07 - 1/31/17 Phase III (FTS-2)
MMBtu Per Day
12/9/91 - 2/28/15 Total
MMBtu
Per Da
October 170,438 41,788 212,226
Nov-Mar 1,543,069 268,931 1,812,000
April 216,570 53,430 270,000
May-Sept 711,756 206,244 918,000
Total Annual 2,641,833 570,393 3,212,226
120
1
11
11
11
Page 4 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
Service Area
The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of
Clearwater. CGS operates over 814 miles of underground gas main and handles the supply and
distribution of both natural and propane (LP) gas throughout northern Pinellas County and western Pasco
County. As a "full service" gas utility, CGS provides gas appliance sales, installation of inside customer
gas piping, domestic and commercial gas equipment service, construction and maintenance of
underground gas mains and service lines, and 24-hour response to any gas emergency within the service
area. CGS is regulated for safety by the Florida Public Service Commission and the Federal Department
of Transportation.
CGS has been serving customers in the Clearwater area for over 86 years (since 1923) when operations
were begun with a manufactured gas plant operation from coal and coke. In 1959, when natural gas
transmission lines were finally extended to the Florida peninsula, CGS discontinued manufacturing gas
and began receiving piped natural gas from Florida Gas Transmission.
Clearwater Gas System serves over 19,527 customers in a 330 square mile service territory, which
includes 20 municipalities as well as the unincorporated areas of northern Pinellas County and western
Pasco County. The Pinellas County service territory is 158 square miles and extends generally from
Ulmerton and Walsingham Roads on the south to the Pasco County line on the north and from the Gulf of
Mexico on the West to the Hillsborough County line on the east. This includes all of the Pinellas beach
communities south to Redington Beach. The Pasco County service territory is 172 square miles and
extends from the Gulf of Mexico on the West inland about 20 miles to just east of State Road 41 and Land
O' Lakes and from the Pinellas and Hillsborough County lines on the South to generally State Road 52 on
the north. The CGS service territory extends 42.3 miles from the southwestern-most to the northwestern-
most points.
Clearwater Gas System prides itself in being a competitive and public service-minded utility, providing
safe, economical and environmentally-friendly gas, which is made in America, available in our
communities for all of the homes and businesses in our service area, with special focus on the residential
customers who make up 88.52% of our customer base.
121
Page 5 of 5
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 2004, 2005, and 2007
Supplementary Information
As of September 30, 2009 the System's active natural gas customers were located as shown in the
following table:
Location
Belleair
Belleair Beach
Belleair Bluffs
Belleair Shores
Clearwater
Dunedin
Indian Rocks Beach
Indian Shores
Largo
New Port Richey
North Redington Beach
Oldsmar
Port Richey
Redington Beach
Redington Shores
Safety Harbor
Tarpon Springs
Unincorporated Areas Pasco
Central Pasco
Unincorporated Areas Pinellas
Total
Meters
402
153
25
22
6,515
1,057
87
68
917
294
13
93
14
44
27
571
1,407
2,658
268
2,745
17,380
Percentage
2.31%
0.88%
0.14%
0.13%
37.49%
6.08%
0.50%
0.39%
5.28%
1.69%
0.07%
0.54%
0.08%
0.25%
0.16%
3.29%
8.10%
15.29%
1.54%
15.79%
100.00%
The following table shows the five largest interruptible customers by peak monthly consumption and
the percent of the System's revenues derived from such customers during the 12 months ending
September 30, 2009:
Customer Name
Morton Plant Hospital
Mease Hospital
Angelica Textile Service
Metal Industries
Ajax Paving Industries
Peak Monthly
Therms
116,164
87,205
100,456
75,335
89,099
% of Gross
Revenues
3.30% '
2.35%
2.27%
1.79%
1.78%
The following table shows the breakdown of the System's customers by category as well as the volume '
of gas sold and the sales revenues generated by each category for the year ended September 30, 2009:
Average No. Gas Gas
Customers
Volume ,
Sales
Interruptible 14 25.98% 15.87%
Residential 15,270 16.06% 23.40%
Commercial
2,096
57.96% '
60.72%
Therms Revenues
Interruptible 5,586,238 $ 5,065,185
Residential 3,453,964 7,467,849
Commercial 12,461,425 19,374,141
Totals 21,501,627 $ 31,907,175
122
Page 1 of 3
City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 2003 and 200913; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Historical Financial Information
Water System:
Source and Volume of Water Pumped
(in million gallons per day, averaged over the fiscal year)
FY City Wells County Total
' 2004 3.601 9.544 13.145
2005 3.550 10.630 14.180
2006 4.093 9.999 14.092
' 2007 3.570 9.090 12.660
2008 3.075 9.090 12.660
2009 3.738 9.090 12.660
Historical Growth in Number of Water Customers
(all figures are as of September of the year indicated)
Year Water Customers
2004 40,235
2005 40,178
2006 40,467
2007 40,407
' 2008 40,131
2009 39,935
Ten Largest Water Customers
Fiscal Year Ending September 30, 2009
Water Used Revenues
Name of User (in 100 Cubic Feet) Produced
1. City of Clearwater 82,498 $ 675,957
2. Church of Scientology FSO Inc. 119,244 549,364
3. Morton Plant Hospital 59,639 322,664
4. Pinellas County Schools 37,009 256,604
5. IMT-LB Central FL Portfolio LLC 45,996 214,498
6. Clearwater Housing Authority 46,428 204,673
7. Sandpearl Resort LLC 31,965 141,515
8. Pinnacle Management Corp. 33,696 138,644
9. Bre/Clearwater Owner LLC 34,189 127,048
10. Brenntag Mid-South, Inc. 25.943 125,989
Total _51U07
$ 2.756 956
123
Page 2 of 3
City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 2003 and 200913; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Sewer System:
Average Sewage Flow Historical Growth in Number of Sewer Customers
(as of September of the year indicated)
Fiscal Annual Ave. Daily Fiscal
Year Flow In MGD Year Sewer Customers
2004 15.0 2004 33,234
2005 14.7 2005 33,305
2006 13.8 2006 33,279
2007 13.6 2007 33,255
2008 14.0 2008 33,146
2009 13.6 2009 33,084
Ten Largest Sewer Customers
Fiscal Year Ending September 30, 2009
Name of User
1. Church of Scientology
2. City of Clearwater
3. Morton Plant Hospital
4. Pinellas County Schools
5. IMT-LB Central FL Portfolio LLC
6. Clearwater Housing Authority
7. Bre/Clearwater Owner LLC
8. Pinnacle Management Corp.
9. Sandpearl Resort LLC
10. Publix
Total
Sewer Used Revenues
(in 100 Cubic Feet) Produced
98,609 $ 531,960
37,673 360,713
57,550 358,990
36,133 331,332
45,996 215,031
40,891 191,182
34,189 162,551
33,696 159,370
31,965 149,381
11,252
429 137,062
$ 2 597 572
Rates, Fees And Charges
The City uses a three-tiered rate structure for water and sewer usage. The base rate includes a
minimum usage for residential and nonresidential water rates. Any usage over the minimum is
billed at one rate per 1,000 gallons up to a designated level and at a second rate for usage over
that level. For irrigation, there is a base rate, with no minimum, and a charge per 1,000 gallons of
water usage up to a designated level and a higher charge for usage over that amount. The sewer
base rate includes a minimum usage and a fixed charge per 1,000 gallons of water usage over
the basic allowance. The minimum usage and second tier usage level vary with the size of the
meters. For fiscal year 2009 there were no changes to the three-tiered rate structure for water or
sewer usage.
124
Page 3 of 3
City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 2003 and 200913; and Revenue Bonds Series 2002, 2006, and 2009A
Supplementary Information
Residential and October 1, October 1, October 1, October 1, October 1,
Nonresidential Water Rates 2005 2006 2007 2008 2009
Size of Meter Gallons
Minimum- Under 1 inch 11.34 12.03 12.75 13.65 14.58
l inch 26.46 28.07 29.75 31.85 34.02
1.5 inch 378.00 401.00 425.00 455.00 486.00
2 inch 880.74 934.33 990.25 1,060.15 1,132.38
3 or 2 inch manifold 1,357.02 1,439.59 1,525.75 1,633.45 1,744.74
4 inch 2,611.98 2,770.91 2,936.75 3,144.05 3,358.26
6 inch 6,709.50 7,117.75 7,543.75 8,076.25 8,626.50
8 inch 11,340.00 12,030.00 12,750.00 13,650.00 14,580.00
Additional charges are assessed for usage in excess of designated minimums.
Rates for Irrigation (Lawn) Meters October 1, October 1, October 1, October 1, October 1,
2005 2006 2007 2008 2009
Size of Meter Gallons
Minimum- Under 1 inch 4.04 4.28 4.54 4.86 5.20
l inch 12.13 12.86 13.63 14.58 15.60
1.5 inch 60.67 64.31 68.17 72.94 78.05
2 inch 169.87 180.06 190.86 200.22 218.52
3 or 2 inch manifold 335.70 355.84 377.19 403.59 431.84
4 inch 647.14 685.97 727.13 778.03 832.49
6 inch 1,953.54 2,070.75 2,195.00 2,348.65 2,513.06
Sewer Rates October 1, October 1, October 1, October 1, October 1,
2005 2006 2007 2008 2009
Size of Meter Gallons
Minimum- Under 1 inch 15.60 16.53 17.52 18.75 20.07
l inch 36.40 38.57 40.88 43.75 46.83
1.5 inch 520.00 551.00 584.00 625.00 669.00
2 inch 1,211.60 1,283.83 1,360.72 1,456.25 1,558.77
3 or 2 inch manifold 1,866.80 1,978.09 2,096.56 2,243.75 2,401.71
4 inch 3,593.20 3,807.41 4,035.44 4,318.75 4,622.79
6 inch 9,230.00 9,780.00 10,366.00 11,093.75 11,874.75
8 inch 15,600.00 16,530.00 17,520.00 18,750.00 20,070.00
Per 1,000 gallons of water used over 5.20 5.51 5.84 6.25 6.69
that allowed in minimum
Additional Indebtedness
Additional indebtedness incurred totaled $67,715,000 for capital improvements to the water and sewer
systems and $32,176 for the lease purchase of capital equipment. The issuance of the Series 2009B
refunding revenue bonds to refund and redeem the 1998 refunding revenue bonds resulted in a net
decrease to indebtedness of $3,882,041.
125
City of Clearwater, Florida
Continuing Disclosure - Stormwater System Revenue Bonds
Series 1999, 2002, 2004, and 2005
Supplementary Information
Rates, Fees, and Charges
The City uses a measurement of one equivalent residential unit or ERU as the basis for the
'
stormwater management utility fee. The rate per ERU was unchanged from the inception of the
utility on January 1, 1991 until 1998 when annual increases were adopted for five fiscal years
beginning October 1, 1998. In November 2001, additional increases were adopted including a
'
change to the increase previously adopted, to be effective October 1, 2002. Effective August 5,
2004, additional increases were adopted. On July 20, 2006, rate increases were adopted for the
five-year period beginning October 1, 2007. An increase was adopted on June 19, 2008, for the
one-year period beginning October 1, 2012. The monthly rates are as follows: '
Effective Date Rate Per ERU
January 1, 1991 $3.00 '
October 1, 1998 $4.00
October 1, 1999 $4.17
October 1, 2000 $4.35
October 1, 2001 $4.54
January 1, 2002 $6.13
October 1, 2002 $7.16 '
October 1, 2003 $8.01
October 1, 2004 $8.65
October 1, 2005 $9.35
October 1, 2006 $9.71
October 1, 2007 $10.51
October 1, 2008 $11.14
October 1, 2009 $11.80
October 1, 2010 $12.51
,
October 1, 2011 $13.26
October 1, 2012 $13.59 '
Single-family homes, multifamily units, condominium units, apartments and mobile homes are
rated as one ERU per dwelling unit. Nonresidential property is charged at the rate of 1,830
square feet of impervious area per ERU.
HISTORICAL NET REVENUES
Fiscal Years Ended September 30,
2005 2006 2007 2008 2009
Net Operating Revenues (Excluding
Depreciation) $4,548,421 $5,103,551 $5,688,934 $5,681,465 $5,750,323 ,
Interest Income and other Non-
Operating Revenues (Expenses) 220,570 465,203 608,038 550,935 787,426
Total Net Revenues $4,768,991 $5,568,754 $6,296,972 $6,232,400 $6,537,749
Maximum Annual Debt Service $2,889,994 $2,889,994 $2,889,994 $2,889,994 $2,889,994
Coverage 1.65 1.93 2.19 2.16 2.26 '
126 ,
I
City of Clearwater, Florida
Continuing Disclosure - Infrastructure Sales Tax Revenue Bonds, Series 2001
Supplementary Information
Historical Debt Service Coverage
Sales Tax Maximum Annual Debt Service
' Fiscal Year Revenues (1) Debt Service Coverage
2005 $ 9,977,529 $ 6,955,888 1.43
2006 10,704,390 6,887,888 1.55
' 2007 9,930,812 6,884,800 1.44
2008 9,862,977 6,884,800 1.43
2009 8,574,091 6,752,400 1.27
(1) The Infrastructure Sales Tax Revenue Bonds, Series 2001, were issued June 1, 2001 in the amount of $46,445,000.
They are secured by a lien upon and a pledge of the City's share of the proceeds derived by Pinellas County, Florida
from the levy and collection of the one-cent discretionary infrastructure sales tax pursuant to Section 212.055(2), Florida
Statutes, as amended (sales tax revenues).
Continuing Disclosure
Improvement Revenue Refunding Bonds, Series 2001
Improvement Revenue Bonds, Series 2008
Supplementary Information
Historical Debt Service Coverage
i
Pledged Revenues Maximum Annual Debt Serv
ce
Fiscal Year (1) Debt Service Coverage
' 2005 $ 17,493,450 $ 864,060 20.25
2006 18,117,728 861,000 21.04
2007 18,193,910 861,000 21.13
2008 18,279,990 1,919,221 9.52
2009 18,987,205 1,835,664 10.34
(1) The Improvement Revenue Refunding Bonds, Series 2001, were issued October 15, 2001 in the amount of
$11,470,000. They were secured by a lien upon and a pledge of the Public Service Tax pursuant to Section 166.231,
Florida Statutes as amended. Effective October 1, 2001, the Florida Legislature repealed the public service tax on
' telecommunications created per Section 166.231(9), Florida Statutes, and created a simplified tax structure for
communications services pursuant to Chapter 2000-260, Laws of Florida. To the extent that the Public Service Tax
receipts derived by the City pursuant to Section 166.231(9), Florida Statutes, is eliminated as a result of this new tax, all
of the revenues received by the City pursuant to the new Communications Services Tax shall be deemed to replace the
' Public Service Tax receipts so eliminated. Consequently the pledged revenues include both public service taxes and
communications services taxes effective October 1, 2001. Improvement Revenue Bonds, Series 2008, were issued
August 12, 2008, in the amount of $12,900,000. They were secured by a lien upon and a pledge of the public service tax
pursuant to Chapter 166, Part II, Florida Statutes.
127
City of Clearwater, Florida
Fire Services Program
Supplementary Information
Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas
County Emergency Medical Services Authority, the City has provided fire and emergency medical services to the
respective authorities. With respect to fire services, the services are provided for the benefit of properties
located outside the corporate limits of the City, but within a designated service area. Emergency medical
services are provided for the benefit of persons residing both inside and outside the corporate limits of the City,
based on the Authority's nearest unit dispatch policy.
With respect to the Fire Services Program, a budget was prepared by Fire Department personnel covering
proposed expenditures for fiscal year ending September 30, 2009, for the Fire Department as a whole. Since the
funding for the Emergency Medical Services Program is based on the level fixed in prior years, the Fire Services
Program budget is essentially the residual obtained by deducting the approved level of funding for the
Emergency Medical Services Program from the budgeted amounts included in the total Fire Department budget.
This budget was submitted to, and duly approved by, the relevant Authority prior to the commencement of the
fiscal year. Income received from Pinellas County Fire Protection Authority and valid program expenditures for
the Fire Services Program for the fiscal year ended September 30, 2009 are summarized below.
Total Revenue Received from Pinellas County Fire Protection Authority
Total Fire Service Expendituresfor Fiscal Year Ended September 30, 2009
The Fire Services Program does not currently utilize an equipment reserve.
$ 2,103,923
$ 16,588,351
128
?,1
CITY OF CLEARWATER, FLORIDA
' STATISTICAL SECTION
' This section of the City's CAFR presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required supplementary information say
' about the City's overall financial health. This information has not been audited by the independent
auditor.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being changed over time.
'
Schedule 1 Net Assets by Component
Schedule 2 Changes in Net Assets
Schedule 2a Program Revenues by Function/Program
Schedule 3 Fund Balances of Governmental Funds
Schedule 4 Changes in Fund Balances of Governmental Funds
Revenue Capacity
' These schedules contain information to help the reader assess the City's significant local revenue,
the property tax.
i
Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property
Schedule 6 Direct and Overlapping Property Tax Rates
Schedule 7 Property Tax Levies and Collections
Schedule 8a Principal Real Property Taxpayers
Schedule 8b Principal Personal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt, and the City's ability to issue additional debt in the future.
Schedule 9
' Schedule 10
Schedule 11
Schedule 12
Schedule 13
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged-Revenue Coverage
1 129
CITY OF CLEARWATER, FLORIDA
STATISTICAL SECTION (CONTINUED)
Economic and Demographic Information
These schedules offer economic and demographic indicators to help the reader understand the
environment within which the City's financial activities take place.
Schedule 14 Demographic and Economic Statistics
Schedule 15 Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
Schedule 16 Full-time Equivalent City Government Employees by Function/Program
Schedule 17 Operating Indicators by Function/Program
Schedule 18 Capital Assets Statistics by Function/Program
Sources: Unless otherwise noted, the information in this section is derived from the City's
comprehensive annual financial reports for the relevant year. The City implemented the new reporting
model, GASB 34, in the fiscal year ending September 30, 2002.
130
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131
Schedule 2
City of Cl earwater, Florida
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of acc ounting) 1
Page 1 of 2
Fiscal Year
(amounts in thousands)
Expenses 2,0044 2005 2007 22 ??$
Governmental activities:
General government $ 11,647 $ 11,353 $ 11,772 $ 11,945 $ 13,203 $ 13,169 $ 14,342 $ 13,515
Public safety 45,136 47,429 51,454 56,456 60,178 68,636 66,582 64,977
Physical environment 2,886 2,271 2,684 2,826 3,098 3,027 2,730 4,266
Transportation 10,120 8,878 12,510 12,001 13,898 13,694 12,322 9,595
Economic environment 3,231 4,288 3,225 3,395 3,321 3,142 4,534 3,924
Human services 555 571 555 530 444 448 440 402
Culture and recreation 22,231 22,094 25,402 28,875 32,636 32,872 37,688 28,740
Interest on long-term debt 2,963 3,284 3,013 2,699 2,373 2,248 1,998 1,850
Total governmental activities expenses 98,769 100,168 110,615 118,727 129,151 137,236 140,636 127,269
Business-type activities:
Water and sewer utility 37,470 40,825 41,995 43,852 48,592 49,840 52,015 54,520
Gas utility 23,574 26,638 29,152 33,394 36,947 33,579 35,944 29,285
Solid waste utility 14,398 14,232 15,096 15,615 16,013 16,172 16,036 14,801
Stormwater utility 5,459 7,022 8,250 8,768 9,013 9,465 11,070 11,775
Recycling 2,084 2,165 2,388 2,574 2,579 2,895 3,207 2,518
Marine
2,848
3,060
3,249
3,801
4,303
4,366
4,696 '
4,025
Aviation 336 211 299 350 468 382 417 743
Parking system 3,075 3,281 3,617 3,846 3,976 3,427 3,521 3,752
Harborview center 2,714 2,525 2,418 2,552 2,618 2,664 2,800 2,345
Downtown boat slips - - - - - 23 474
Total business-type activities expenses 91,958 99,959 106,464 114,752 124,509 122,790 129,729 124,238
Total primary government expenses $ 190,727 $ 200,127 $ 217,079 $ 233,479 $ 253,660 $ 260,026 $ 270,365 $ 251,507
Program revenues
Governmental activities:
Charges for services:
General government8 b $ 11,741 $ 12,268 $ 12,961 $ 13,585 $ 14,628 $ 14,508 $ 21,639 $ 21,679
Public safety 7,747 7,960 7,742 7,500 8,222 8,444 9,803 10,291
Physical environment 93 180 76 119 150 123 91 249
Transportation 59 126 159 163 235 261 194 397
Economic environment 124 91 87 164 110 107 108 211
Human services - 6 - - - - - -
Culture and recreation 3,070 3,191 4,344 4,753 5,296 5,574 5,318 5,334
Operating grants and contributions
6,224
8,267
6,605
6,273
7,181
9,687
9,123 '
8,542
Capital grants and contributions 9,787 5,207 3,129 15,058 3,405 11,748 7,632 3,169
Total governmental activities 38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872
program revenues
Business-type activities:
Charges for services:
Water and sewer utility 37,739 39,207 43,143 45,306 49,159 50,381 52,111 53,965
Gas utility 26,890 30,064 33,001 37,469 43,160 38,906 40,902 39,079
Solid waste utility 16,090 15,960 16,403 16,541 16,816 17,301 17,512 17,847
Stormwater utility 6,767 8,485 9,526 10,319 11,138 11,885 12,770 13,493
Recycling 2,171 2,427 2,649 2,784 2,740 3,204 3,411 2,227
Marine 2,735 2,949 3,072 3,721 4,075 4,323 4,798 4,031
Aviation 144 176 187 205 213 224 227 216
Parking system 4,097 4,003 4,418 4,752 4,981 4,655 4,166 5,007
Harborview center 1,872 1,661 1,654 1,646 1,842 1,846 2,032 1,641
Downtown boat slips - - - - - - 50
Operating grants and contributions - 14 420 59 59 83 83 83
Capital grants and contributions 4,301 9,406 5,591 6,138 6,639 6,382 1,086 2,609
Total business-type activities 102,806 114,352 120,064 128,940 140,822 139,190 139,098 140,248
program revenues
Total primary government
program revenues $ 141,651 $ 151,648 $ 155,167 $ 176,555 $ 180,049 $ 189,642 $ 193,006 $ 190,120 .
132
II
Schedule 2 (continued)
City of Clearwater, Florida
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of accounting)
Page 2 of 2
Net (Expenses) / Revenue
Governmental activities
Business-type activities
Total primary government net (expense) / revenue
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property
Sales
Franchise °
utility
Communications services
Other taxes b
Investment earnings
Miscellaneous
Special items
Transfers
Total governmental activities
Business-type activities:
Investment earnings
Transfers
Total business-type activities
Total primary government
Change in Net Assets
Fiscal Year
(amounts in thousands)
2402 240 2404 200 2445 2402 244$ 244;3
$(59,924) $(62,872) $(75,512) $(71,112) $ (89,924) $ (86,784) $ (86,728) $ (77,397)
10,848 14,393 13,600 14,188 16,313 16,400 9,369 16,010
$(49,076) $ 48479 _L(§1_91 2 $ 56924 $ (73,611) -i-20- $ (77,359) $ (61,387)
$ 30,322 $ 33,927 $ 37,157 $ 41,588 $ 48,076 $ 53,717 $ 50,347 $ 46,893
14,664 14,529 15,263 16,351 17,155 16,079 15,675 13,850
7,087 7,140 7,505 8,226 9,435 9,505 - -
10,402 10,363 10,237 10,611 11,264 11,410 11,533 12,021
7,870 7,019 6,790 6,883 6,854 6,784 7,316 6,398
4,294 3,974 4,435 5,183 5,523 5,779 8,154 7,581
4,859 2,188 3,231 2,648 5,352 7,402 5,837 8,635
213 168 758 151 396 131 437 113
- 5,810 10,047 - -
376 51443 4,515 4,707 3,658 61948 4,196 (2,958)
80,087 90,561 99,938 96,348 107,713 117,755 103,495 92,533
3,083 2,148 1,987 2,210 4,341 5,373 4,313 6,904
(376) (5,443) (4,515) (4,707) (3,658) (6,948) (4,196) 2,958
2,707 3 295 (2,528) (2,497) 683 (1,575) 117 9,862
$ 82,794 $ 87,266 $ 97,410 $ 93,851 $ 108,396 $ 116,180 $103,612 $102,395
Governmental activities $ 20,163 $ 27,689 $ 24,426 $ 25,236 $ 17,789 $ 30,971 $ 16,767 $ 15,136
Business-type activities 13,555 11,098 11,072 11,691 16,996 14,825 9,486 25,872
Total primary government change in net assets $ 33,718 $ 38,787 $ 35,498 $ 36,927 $ 34,785 $ 45,796 $ 26,253 $ 41,008
° Franchise fees reclassified from General Revenues to Charges for Services effective with fiscal 2008, per guidance
from State of Florida, Department of Financial Services, Bureau of Local Government.
° Occupational licenses reclassified from Charges for Services to Local Business Tax (Other Taxes) effective with
fiscal 2008, per guidance from State of Florida, Department of Financial Services, Bureau of Local Government.
Special items for fiscal 2003 and 2004 consisted of a donated recreation complex and a cash donation for a new
Spring Training sports complex, respectively.
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2002.
133
Schedule 2a
City of Clearwater, Florida
Program Revenues by Function/Program
Last Eight Fiscal Years
(accrual basis of accounting)
Function/Program
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Subtotal governmental activities
Business-type activities:
Water and sewer utility
Gas utility
Solid waste utility
Stormwater utility
Recycling
Marine
Aviation
Parking system
Harborview center
Downtown boat slips
Subtotal business-type activities
Total primary government
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009
$ 11,843 $ 12,340 $ 13,090 $ 13,605 $ 14,697 $ 14,514 $ 21,640 b $ 21,681
9,046 9,661 9,009 9,207 9,275 11,763 12,784 13,284
1,052 1,118 796 448 1,274 704 695 304
6,261 3,982 2,003 14,056 a 2,300 10,491 6,628 1,852
2,802 4,028 2,629 2,425 2,708 3,298 2,844 3,327
- 6 - - - - -
7,841 6,161 7,576 7,874 8,973 9,682 9,317 9,424
38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872
40,051 43,120 46,357 47,656 52,264 56,071 52,807
26,890 30,064 33,001 37,469 43,160 38,906 40,902
16,090 15,974 16,823 16,541 16,816 17,301 17,512
8,262 13,411 11,158 14,061 14,343 12,559 12,941
2,171 2,427 2,649 2,843 2,799 3,287 3,493
2,735 2,953 3,750 3,721 4,128 4,323 4,810
638 739 253 251 489 242 335
4,097 4,003 4,418 4,752 4,981 4,655 4,266
1,872 1,661 1,655 1,646 1,842 1,846 2,032
102,806 114,352 120,064 128,940 140,822 139,190 139,098
$ 141,651 $ 151,648 $ 155,167 $ 176,555 $ 180,049 $ 189,642 $ 193,006
55,291
39,078
17,847
14,478
2,310
4,031
365
5,157
1,641
50
140,248 '
$ 190,120
I I
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2002.
a In 2005, the City received a $10 million reimbursement grant from the Florida Department of Revenue for
construction of the new Clearwater Memorial Causeway Bridge.
b Franchise fees reclassified from General Revenues to Charges for Services effective with fiscal 2008, per
guidance from State of Florida, Department of Financial Services, Bureau of Local Government.
I I
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137
Schedule 6
City of Clearwater, Florida
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rates Overlapping Rates
Pinellas Pinellas Emergency Downtown
Fiscal GOB Debt Total Pinellas County Transit Medical Other Develop.
Year Operating Service Direct County Schools District Services Districts Board a
2000 5.5032 0.0000 5.5032 5.8540 8.6660 0.6501 0.6470 1.6572 1.0000
2001 5.5032 0.0000 5.5032 6.0040 8.4330 0.6501 0.7470 1.6562 1.0000
2002 5.5032 0.0000 5.5032 6.1410 8.4870 0.6501 0.6600 1.6562 1.0000
2003 5.7530 0.0000 5.7530 6.1410 8.4490 0.6319 0.6600 1.6562 1.0000
2004 5.7530 0.0000 5.7530 6.1410 8.2430 0.6319 0.6600 1.6562 1.0000
2005 5.7530 0.0000 5.7530 6.1410 8.1220 0.6377 0.6600 1.6557 1.0000
2006 5.7530 0.0000 5.7530 6.1410 8.3900 0.6377 0.6600 1.6555 1.0000
2007 5.2088 0.0000 5.2088 5.4700 8.2100 0.6074 0.6300 1.6378 1.0000
2008 4.6777 0.0000 4.6777 4.8730 7.7310 0.5601 0.5832 1.5121 0.9651
2009 4.7254 0.0000 4.7254 4.8108 8.0610 0.5601 0.5832 1.5551 b 0.9651
Source: Pinellas County Property Appraiser
a A separate taxing district established by referendum which affects only downtown properties.
b .Other" includes Pinellas County Planning Council 0.0170; Juvenile Welfare Board 0.7915;
SW Florida Water Management District 0.3866; Pinellas Anclote River Basin 0.3600.
138
Schedule 7
City of Clearwater, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Percentage Subsequent Percentage
Year the Fiscal Year Amount of Levy Years Amount of Levy
2000 $ 26,998,318 $ 26,876,461 99.55% $ 77,716 $ 26,954,177 99.84%
2001 28,664,112 28,567,429 99.66 130,632 28,698,061 100.12
2002 31,303,900 31,204,025 99.68 91,548 31,295,573 99.97
2003 35,153,114 35,038,555 99.67 94,574 35,133,129 99.94
2004 38,430,718 38,277,689 99.60 124,999 38,402,688 99.93
2005 43,001,524 42,905,336 99.78 118,601 43,023,937 100.05
2006 49,719,539 49,598,439 99.76 48,222 49,646,661 99.85
2007 55,514,622 55,423,836 99.84 131,471 55,555,307 100.07
2008 52,134,689 51,926,581 99.60 173,529 52,100,110 99.93
2009 48,093,238 47,964,265 99.73 - 47,964,265 99.73
Note 1: Discounts are allowed for early payment: 4% for November, 3% for December, 2% for January, and 1 % for
February. No discount is allowed for payment in March. Penalties are assessed beginning in April.
Note 2: The County Tax Collector does not allocate delinquent taxes collected by the original tax year levied.
Consequently all collections of delinquent taxes are applied to the immediately prior tax year and, as a result, the
total colle ctions-to-date percentage of the tax levy-to-date shown above may be grea ter than 100% of the tax levy for
a given year.
139
Schedule 8a
Taxes
REAL PROPERTY
Bellweather Prop. LP Ltd.
Centro NP Clearwater Mall
Taylor, John S. III
Sandpearl Resort LLC
Sand Key Association Ltd.
Grand Reserve Property Owner
W R I Countryside Centre LLC
Weingarten Nostat Inc.
ZOM Bayside Arbors Ltd.
Duff, Andrew R. - Trustee
Excel Realty Trust Inc
Clearwater Land Co.
Walmart Stores, Inc.
Branch Sunset Assoc, LTD
Nortwood Plaza
Total
City of Clearwater, Florida
Principal Real Property Taxpayers,
Current Year an d Nine Years Ago
2009 2000
Percentage of Percentage of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
$ 127,897,800 1 1.32% $ 83,872,700 1 1.93%
49,125,600 2 0.51%
22,578,600 4 0.52%
47,960,000 3 0.49%
42,196,200 4 0.43%
40,000,000 5 0.41% 19,304,400 8 0.44%
40,000,000 6 0.41% 25,002,300 3 0.57%
33,750,000 7 0.35%
32,965,000 8 0.34%
29,421,800 9 0.30% 19,499,100 7 0.45%
27,250,000 10 0.28%
0.00% 29,223,200 2 0.67%
0.00% 21,473,800 5 0.49%
0.00% 17,635,600 10 0.41%
0.00% 20, 742, 300 6 0.48%
0.00% 18,245,200 9 0.42%
$ 470,566,400 4.85% $ 277,577,200 6.38%
Source: Pinellas County Property Appraiser
140
Schedule 8b
City of Clearwater, Florida
Principal Personal Property Taxpayers,
Current Year and Nine Years Ago
2009
Taxpayer
PERSONAL PROPERTY
Progress Energy (1)
Verizon Florida Inc (2)
Bright House Networks LLC (3)
Sandpearl Resort LLC
Bausch & Lomb Inc
Monin Inc
General Electric Credit Co
Instrument Transformers
Macy's Florida (4)
Holiday Inn Hotel & Suites
GTE Americast
Sheraton Sand Key
Nationsbank, NA
Clearwater Community Hospital
Double Tree Resort
Percentage of
Total City
Taxable Taxable
Assessed Assessed
Value Rank Value
$ 71,515,659 1 13.03%
27,102,047 2 4.94%
17,667,279 3 3.22%
6,905,510 4 1.26%
6,088,670 5 1.11%
4,919,160 6 0.90%
4,896,354 7 0.89%
4,276,570 8 0.78%
3,575,750 9 0.65%
3,155,270 10 0.57%
2000
Taxable
Assessed
Value Rank
$ 47,447,280 3
94, 262, 500 1
10,967,060 4
Percentage of
Total City
Taxable
Assessed
8.64%
17.17%
2.00%
3,532,060 7 0.64%
5,611,970 5 1.02%
72,412,870 2
3,398,440 8
2,293,530 10
4,548,550 6
2,350,700 9
Total $ 150,102,269 27.34% $ 246,824,960
Notes: (1) Progress Energy was Florida Power in 2000.
(2) Verizon Florida, Inc. was GTE in 2000.
(3) Bright House Networks was Time Warner Entertainment in 2000.
(4) Macy's Florida was Burdines Inc in 2000.
Source: Pinellas County Property Appraiser
13.19%
0.62%
0.42%
0.83%
0.43%
44.95%
141
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142
Schedule 10
City of Clearwater, Florida
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts in thousands, except per capita)
General Bonded Debt Outstanding
Percentage of
General Public Service Sales Tax Actual Taxable
Fiscal Obligation Tax Revenue Revenue Value of Per
Year Bonds Bonds Bonds Total Property (a) Capita b
2000 $ - $ 10,427 $ - $ 10,427 0.18% $ 96
2001 - 10,179 46,445 56,624 0.92% 518
2002 - 11,360 46,445 57,805 0.86% 527
2003 - 11,005 41,345 52,350 0.73% 476
2004 - 10,645 36,075 46,720 0.59% 423
2005 - 10,270 30,615 40,885 0.47% 369
2006 - 9,885 24,955 34,840 0.34% 315
2007 - 9,565 19,080 28,645 0.23% 259
2008 - 13,000 12,975 25,975 0.20% 236
2009 - 12,545 6,620 19,165 0.16% 174
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a) See Schedule 5 for property value data.
(b) Population data can be found in Schedule 14.
143
Schedule 11
City of Clearwater, Florida
Direct and Overlapping Governmental Activities Debt
As of September 30, 2009
(amounts in thousands)
Governmental Unit
Debt repaid with property taxes
Other debt
Pinellas County Capital Improvement Revenue Bonds
Pinellas County Capital Leases
Pinellas County School District State Bonds b
Pinellas County School District Capital Leases
Subtotal, overlapping debt
City direct debt
Total direct and overlapping debt
10,479
40,135
$ 50,614
Sources: Assessed value data used to estimate applicable percentages provided by Pinellas County Property Appraiser.
Debt outstanding data is provided by each respective governmental unit.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of Clearwater. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
a The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is
within the City's boundaries and dividing it by each unit's total taxable assessed value.
b The School District State Bonds are secured by a pledge of the District's portion of the State-assessed motor vehicle
license tax. The State's full faith and credit is also pledged for the bonds.
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Aoolicable a Debt
$ - n/a $ -
22,600 13.9% 3,141
96 13.9% 13
32,360 13.9% 4,497
20,351 13.9% 2,828
144
Schedule 12
City of Clearwater, Florida
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts in thousands)
Total Net Debt
Applicable
Total Net Debt to Limit
Fiscal Debt Applicable Legal as Percentage
Year Limit to Limit Debt Margin of Debt Limit
2000 $ 870,699 $ 121,644 $ 749,055 13.97%
2001 931,415 167,938 763,477 18.03
2002 1,026,014 254,873 771,141 24.84
2003 1,116,032 243,518 872,514 21.82
2004 1,236,804 249,370 987,434 20.16
2005 1,395,730 236,154 1,159,576 16.92
2006 1,631,179 247,706 1,383,473 15.19
2007 2,028,832 230,639 1,798,193 11.37
2008 2,128,847 224,224 1,904,623 10.53
2009 1,942,045 271,594 1,670,451 13.98
Leaal Debt Marcin Calculation for Fiscal Year 2009:
Assessed valuation of non-exempt rea l estate $ 9,710,226
Debt Limit (20% of assessed valuation per City Charter) 1,942,045
Debt applicable to limit:
Revenue bonds $ 289,705
Capital leases 9,890
Less: Amount set aside for repayment
of bonded debt (28,001)
271,594
Legal debt margin $ 1,670,451
Note: Per City Charter, the City's indebtedness, to include revenue, refunding, and improvement bonds,
shall not exceed 20 percent of the current assessed valuation of all real property located in the City.
145
Schedule 13
City of Clearwater, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years (e)
(amounts in thousands)
Page 1 of 2
Less: Net
Fiscal Gross Operating Available Debt Service
Year Revenues Expenses Revenues Principal Interest Coverage
Infrastructure Sales Tax Bonds (b)
2001 $ 8,340 $ - $ 8,340 $ - $ - n/a
2002 8,458 - 8,458 - 1,984 4.26
2003 8,662 - 8,662 5,100 1,882 1.24
2004 9,120 - 9,120 5,270 1,674 1.31
2005 9,978 - 9,978 5,460 1,432 1.45
2006 10,704 - 10,704 5,660 1,896 (°) 1.42
2007 9,931 - 9,931 5,875 889 1.47
2008 9,863 - 9,863 6,105 641 1.46
2009 8,574 - 8,574 6,355 397 1.27
Spri ng Training Facility Bonds (`)
2002 $ 1,148 $ - $ 1,148 $ - $ - n/a
2003 1,115 - 1,115 165 629 1.40
2004 1,086 - 1,086 460 623 1.00
2005 1,098 - 1,098 465 614 1.02
2006 1,107 - 1,107 475 603 1.03
2007 1,112 - 1,112 490 591 1.03
2008 1,107 - 1,107 500 577 1.03
2009 1,104 - 1,104 515 561 1.03
Public Service Tax/Improvement Revenue Bonds (d)
2000 $ 15,243 $ - $ 15,243 $ 235 $ 634 17.54
2001 15,486 - 15,486 250 613 17.94
2002 18,273 - 18,273 110 408 35.28
2003 17,381 - 17,381 355 506 20.19
2004 17,027 - 17,027 360 496 19.89
2005 17,493 - 17,493 375 485 20.34
2006 18,118 - 18,118 385 473 21.12
2007 18,194 - 18,194 320 464 23.21
2008 18,280 - 18,280 330 450 23.44
2009 18,987 - 18,987 340 438 24.40
(a) Less than ten years of coverage are provided for the Infrastructure Sales Tax Revenue Bonds
issued June 2001 and the Spring Training Facility Bonds issued September 2002.
(b) Pledged revenues for the Infrastructure Sales Tax Revenue Bonds include the City's share of
revenues derived by Pinellas County, Florida, from the levy and collection of a one-cent
discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes, as
amended. Interest for 2006 includes arbitrage rebate of $742,000.
(c) Pledged revenues for the Spring Training Facility Revenue Bonds include payments received
from the State of Florida pursuant to Section 212.20, Florida Statutes, and payments from
Pinellas County, pursuant to an inter-local agreement dated December 1, 2000, along with
related interest earnings.
(d) Pledged revenues for the Improvement Revenue Refunding Bonds, issued October 2001, were
public service taxes. Effective October 1, 2001, the Florida Legislature repealed the public tax
on communications and created a replacement communications services tax. Consequently
the pledged revenues effective October 1, 2001, include both public service taxes and the new
communications services taxes.
146
Schedule 13 (continued)
City of Clearwater, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years (a)
(amounts in thousands)
Page 2 of 2
Less: Net
Fiscal Gross Operating Available Debt Service Maximum
Year Revenues Expenses Revenues Principal Interest Coverage Coverage (a)
Water & Sewer Utility Revenue Bonds
2000 $ 37,407 $ 25,883 $ 11,524 $ 4,705 $ 1,581 1.83
2001 39,486 27,337 12,149 4,920 1,359 1.93
2002 39,452 28,552 10,900 5,165 1,118 1.73
2003 40,243 29,611 10,632 5,430 3,334 1.21
2004 44,193 31,206 12,987 6,575 2,964 1.36
2005 46,379 32,243 14,136 7,000 2,892 1.43
2006 51,197 36,546 14,651 7,020 2,711 1.51
2007 52,815 37,109 15,706 7,115 3,588 1.47
2008 54,014 38,325 15,689 7,080 3,817 1.44
2009 56,952 36,305 20,647 7,195 3,773 1.88
Gas Utility Revenue Bonds
2000 $ 21,533 $ 16,463 $ 5,070 $ 560 $ 1,543 2.41 2.33
2001 31,212 24,575 6,637 580 1,519 3.16 3.05
2002 27,218 20,665 6,553 610 1,495 3.11 3.01
2003 30,373 23,729 6,644 630 1,470 3.16 3.05
2004 33,229 26,316 6,913 675 1,370 3.38 3.18
2005 37,797 30,584 7,213 770 1,228 3.61 3.35
2006 43,772 34,154 9,618 825 1,195 4.76 4.47
2007 39,756 30,483 9,273 855 1,162 4.60 4.31
2008 41,582 33,562 8,020 765 741 5.33 3.73
2009 39,992 26,813 13,179 770 730 8.79 6.13
Stormwater Utility Revenue Bonds
2000 $ 4,938 $ 3,183 $ 1,755 $ - $ 185 9.49
2001 5,323 3,608 1,715 105 400 3.40
2002 6,846 3,958 2,888 120 395 5.61
2003 8,660 4,727 3,933 125 1,104 3.20
2004 9,680 5,923 3,757 570 1,445 1.86
2005 10,523 5,754 4,769 580 1,830 1.98
2006 11,589 6,020 5,569 925 1,906 1.97
2007 12,458 6,161 6,297 985 1,874 2.20
2008 13,159 6,927 6,232 1,015 1,845 2.18
2009 14,259 7,684 6,575 1,050 1,814 2.30
(e) Maximum debt service coverage is presented for continuing disclosure on the Gas System
Revenue Bonds and is based upon the maximum annual debt service for outstanding bonds
and parity bonds.
I
11
11 147
Schedule 14
City of Clearwater, Florida
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Income Per Capita Annual Average
(thousands of Personal Median School Unemployment
Year Population (a) dollars) Income (b) Age (c) Enrollment (d) Rate (e)
2000 108,787 $ 3,134,480 $ 28,813 44.2 15,978 2.7%
2001 109,231 3,238,590 29,649 43.0 16,293 2.7
2002 109,719 3,487,309 31,784 43.0 17,047 3.9
2003 110,055 3,586,142 32,585 43.9 16,295 5.4
2004 110,325 3,680,552 33,361 44.0 16,323 4.7
2005 110,831 3,730,350 33,658 44.2 15,964 3.4
2006 110,602 3,987,755 36,055 44.2 15,696 2.9
2007 110,469 4,238,033 38,364 44.5 15,500 3.8
2008 110,251 4,482,144 40,654 44.5 15,482 5.5
2009 109,907 4,676,103 42,546 45 14,975 10.1
(a) Source is the University of Florida, B ureau of Economic and Business Research: April 1, 2009 estimate
for current year and Florida Statistical Abstract for prior years.
(b) Data is from per capita persona/ income for Pinellas County for two years prior. Source is the University
of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract.
(c) Data is for Pinellas County and for prior year. Source is the University of Florida, Bureau of Economic
and Business Research, Florida Statistical Abstract.
(d) Source of data is the Pinellas County School District.
(e) Source for fiscal years 2000 thru 2008 is the University of Florida, Bureau of Economic and Business
Research, Florida Statistical Abstract, Annual Averages of the indicated fiscal year. Source for fiscal 2009
is the US Dept of Labor, Bureau of Labor Statistics, Tampa Metro Area, average for year ended
September 2009.
Note: Data is the latest published annual data available for an unspecified point in each year, not specifically
September 30.
148
Schedule 15
City of Clearwater, Florida
Principal Employerse,
Current Year and Nine Years Ago
2009 b 2000 °
Percentage Percentage
of Total of Total
County County
Employer Employees Rank Employment Employees Rank Employment
Pinellas County School District 13,850 1 3.46%
Fidelity Information Services 4,000 2 1.00%
Home Shopping Network 4,000 3 1.00%
Bay Pines VA Medical Center 3,500 4 0.87%
Nielsen Media Research 3,000 5 0.75%
City of St. Petersburg 2,748 6 0.69%
Raymond James Financial 2,600 7 0.65%
Pinellas County Sheriff 2,509 8 0.63%
Tech Data Corp. 2,500 9 0.62%
Pinellas County Board of County Commissioners d 2,041 10 0.51%
Total Employment b 400,055
a Data is for Pinellas County. City data is not available.
b Source: Florida Research and Economic Database and Pinellas County Department of Economic Development.
Data for 2000 is not available.
d Includes part-time personnel budgeted.
149
Schedule 16
City of Clearwater, Florida
Full-time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
Function/Prooram
General government
Public safety
Fire
Police
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Library
Parks & Rec
Water & Sewer Utility
Gas Utility
Solid Waste Utility
Stormwater Utility
Recycling
Marine
Aviation
Parking System
Total
Full-time Equivalent Emp loyees as of September 30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
291.9 293.4 301.9 287.0 286.4 287.3 307.5 322.0 327.3 321.6
180.5 186.5 199.7 200.0 202.0 202.0 215.0 221.0 212.0 212.0
411.0 408.4 408.4 397.6 399.9 405.9 407.9 407.9 393.9 389.9
33.0 34.0 36.0 36.0 36.0 36.0 38.7 38.7 34.0 33.5
65.0 67.0 72.0 73.0 73.0 71.0 74.3 74.3 69.0 67.5 j
47.0 52.0 52.3 64.3 67.3 67.1 69.5 66.5 64.5 62.5
10.0 4.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.0
79.0 80.4 81.4 83.4 95.9 95.9 94.9 93.9 88.4 78.3 ,
203.0 207.8 209.6 217.0 241.9 235.4 239.8 240.8 221.8 203.7
154
8 158
0 166
0 170
0 169
0 169
0 175
0 175
0 168
0 169
0
. . . . . . . . . .
95.0 91.0 90.0 90.0 90.0 90.0 90.0 90.0 90.0 84.0
108.0 108.5 109.5 106.0 107.5 109.5 112.0 112.0 112.0 112.0
36.2 38.0 38.0 40.0 40.0 46.0 46.0 46.0 46.0 47.0
23.0 24.5 24.5 23.5 23.5 23.5 22.5 22.5 22.5 22.3
30.8 30.8 32.8 35.9 35.9 36.4 32.6 18.1 18.6 18.8
- 2.0 1.0 2.4 2.4 1.9 1.9 1.9 1.9 1.7
9
6 9
6 9
6 14
8 20
8 20
8 20
8 20
7 20
7 20
7
. . . . . . . . . .
1,777.8 1,795.9 1,836.7 1,844.9 1,895.5 1,900.7 1,951.4 1,954.3 1,893.6 1,846.5
Source: City of Clearwater Office of Management and Budget
150
City of Clearwater, Florida
Operating Indicators by Function/Program
Last Six Fiscal Years*
Fiscal Year Ended Sept 30:
2004 2005 2006 2007 2008
Function/Prouram
General government
Planning
Commercial building permits issued 1,850 1,804 2,157
Residential building permits issued 6,353 7,361 6,321
Public safety
Police
Average officer training hours 141 ' 150 ' 55
Total volunteer training hours 1,229 1,017 932
Fire
Percentage of fire responses under 7.5 minutes 92% 91% 90%
Physical environment
Square feet of sidewalks repaired/constructed 53,528 37,039 48,458
Transportation
Miles of roadway resurfaced 13 12 10
Economic environment
Code enforcement cases brought to compliance 9,439 8,701 9,762
Human services
City employees that mentor in area schools 28 30 38
Culture and recreation
Library system
Library visits 854,004 975,547 902,135
Circulation 1,164,424 1,190,577 1,193,637
Parks and recreation
Recreation center visitations 1,098,407 1,106,216 623,500
Athletic program visitations 266,276 511,620 515,100
Water and Sewer Utility
Water customers 40,235 40,178 40,467
Volume of water pumped (million gallons/day) 13.15 14.18 14.09
Sewer customers 33,234 33,305 33,279
Miles of sewers cleaned 168 169 166
Gas Utility
Number of customers 18,454 18,548 19,035
Solid Waste Utility
Solid waste tonnage collected and disposed 130,914 128,080 132,741
Stormwater Utility
Number of equivalent residential units 98,621 97,669 97,297
Recycling Utility
Marketable tons recycled 14,443 14,324 14,433
* Note: Only six years of data are available. Fiscal 2009 is estimated if not available. No operating indicators
are available for marine, aviation, parking, downtown boat slips, and Harborview Center functions.
'Training hours for fiscal 2004 and 2005 included grant-funded training for Homeland Security.
2,081 1,681
5,117 4,608
Schedule 17
2009
1,450
4,183
105 78 83
1,023 1,001 735
91% 92% 96%
88,028 64,201 47,076
14 10 10
8,794 9,300 8,553
34 24 20
979,544 976,987 864,350
1,121,480 1,181,184 1,161,059
967,817 1,050,782 868,445
414,805 643,995 546,446
40,407 40,131 39,935
12.66 11.92 11.52
33,255 33,146 33,084
19,470 19,527 19,527
130,308 123,018 112,851
98,513 97,986 98,436
14,492 14,006 12,114
151
Schedule 18
City of Clearwater, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
As of September 30
2000 2001 2002 2003 2004 2005 2006 2007 2006 2009
Function/Program
Public safety
Fire
Stations 6 7 7 7 8 8 8 8 8 8
Police
Stations 8 8 9 9 9 10 10 10 9 6
Transportation
Paved streets (miles) 304 304 304 304 305 305 305 305 305 313
Culture and recreation
Library system
Volumes in collection (thousands) 497 534 546 557 557 570 565 590 601 606
Parks and recreation
Parks acreage 1,366 1,370 1,370 1,370 1,370 1,374 1,400 1,400 1,400 1,400
Recreational paths (miles) 7 7 7 7 7 13 14 16 16 16
Playgrounds 30 31 31 31 31 32 33 33 29 29
Baseball and softball fields 37 36 36 36 35 35 35 35 32 32
Soccer and football fields 20 17 17 17 17 24 25 25 20 20
Recreation centers 10 10 11 12 12 7 7 7 7 7
Water & Sewer Utility
Water mains (miles) 522 523 559 559 567 567 568 571 575 593
Sanitary sewer mains (miles) 323 322 363 363 363 363 365 368 362 362
Daily treatment capacity 29 29 29 29 29 29 29 29 29 29
(millions of gallons)
Gas Utility
Gas mains (miles) 631 653 669 686 729 753 786 816 814 821
Stormwater Utility
Stormwater mains (miles) 123 123 147 147 147 147 148 156 146 148
Marine
Boat slips 209 209 209 209 209 209 209 209 209 207
Aviation
Airpark spaces 174 174 177 177 177 177 177 177 177 177
Parking system
Parking spaces 3,773 3,753 3,538 3,615 3,653 3,686 3,636 3,322 ° 3,382 3,497
'The decrease in parking spaces for fiscal 2007 was loss of beach parking due to Beach Walk construction
Sources: Various city departments
Note: No capital asset indicators are available for the general government, physical environment, economic environment,
human services, solid waste, recycling, and Harborview Center functions.
152
Single Audit /
Grants Compliance
153
This Page Intentionally Left Blank
154
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GoverwentAudiifugStwdards
Honorable Mayor, City Councilmembers,
City Manager and City Management
City of Clearwater, Florida:
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the
"City") as of and for the year ended September 30, 2009, which collectively comprise the City's basic
financial statements, and have issued our report thereon dated March 24, 2010. We have also
audited the financial statements of each of the City's non-major governmental, non-major enterprise,
internal service and fiduciary funds presented as supplementary information in the accompanying
combining and individual fund financial statements as listed in the table of contents. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the City's financial statements that is
more than inconsequential will not be prevented or detected by the City's internal control.
155
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the City's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of the City in a separate letter dated March
24, 2010.
This report is intended solely for the information and use of City Mayor, City Councilmembers, City
Manager and City Management, the State of Florida Office of the Auditor General and applicable
federal and state awarding agencies and is not intended to be and should not be used by anyone
other than these specified parties.
UOV, UVWr W, 4 4 P,
Tampa, FL
March 24, 2010
156
Independent Auditors' Report on Compliance With Requirements Applicable to
Each Major Federal Awards Program and State Project and on Internal Control
Over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules
of the Auditor General
Honorable Mayor, City Councilmembers,
City Manager and City Management
City of Clearwater, Florida
Compliance
We have audited the compliance of the City of Clearwater, Florida, "the City", with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement, and the requirements described in the State of Florida Department of
Financial Services State Projects Compliance Supplement, that are applicable to each of its major
federal programs and state financial assistance projects for the year ended September 30, 2009. The
City's major federal programs and state financial assistance projects are identified in the summary of
auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its
major federal programs and state financial assistance projects is the responsibility of the City's
management. Our responsibility is to express an opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the
Auditor General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor
General, require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program and state financial assistance project occurred. An
audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does
not provide a legal determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that
' are applicable to each of its major federal programs and state financial assistance projects for the
year ended September 30, 2009.
157
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs and state financial assistance projects. In planning and performing our audit, we considered
the City's internal control over compliance with the requirements that could have a direct and material
effect on a major federal program or state financial assistance project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose
of expressing an opinion on the effectiveness of internal control over compliance in accordance with
OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over compliance.
A control deficiency in an entity's internal control over compliance exists when the design or operation
of a control does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a
federal program or state financial assistance project on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to
administer a federal program or state financial assistance project such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal program or
state financial assistance project that is more than inconsequential will not be prevented or detected
by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that material noncompliance with a type of compliance requirement
of a federal program or state financial assistance project will not be prevented or detected by the
City's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the City Mayor, City Council members,
City Manager and City Management, the State of Florida Office of the Auditor General and applicable
federal and state awarding agencies and is not intended to be and should not be used by anyone
other than these specified parties.
?",r 440vt
Tampa, Florida
March 24, 2010
158
City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects
For the Year Ended September 30, 2009
Federal Grantor /
Pass-through Grantor / CFDA
Program Title Number
FEDERAL AWARDS
U.S. Department of Housing and Urban Development:
Grant I.D. Number
Community Development Block Grant - Entitlement 14.218 B-08-MC-12-0002
Home Investment Partnerships Program 14.239 M-06-MC-12-0230
and Urban Development
tment of Housin
D
T
l U
S
t
g
epar
.
o
a
.
U.S. Department of the Interior:
Development and Planning
' Ross Norton Improvements 15.916 LW549
Total U.S. Department of the Interior
artment of Justice:
D
U
S
ep
.
.
Federal Forfeiture Sharing 16.000 FL0520300
T
ffi
ki
H 16
320 2006-VT-BX-0007
uman
ra
c
ng
Creation of the Clearwater Area Task Force on .
Clearwater Human Trafficking Immersion 16.320 2008-VT-BX-K101
16.320
Bureau of Justice Assistance
2006 Bulletproof Vest Partnership 16.607 2006-BO-BX-06133388
Office of Community Oriented Policing Services
COPS 2004 Technology 16.710 2004-CK-WX-0302
COPS 2005 Technology 16.710 2005-CK-WX-0071
16.710
Edward Byrne Memorial Justice Assistance Grant Program
JAG Equipment Grant - FY2008 16.738 2008-DJ-BX-0339
Operacion Apoyo Hispano 16.738 2006-DJ-BX-0587
16.738
Total U.S. Department of Justice
159
Federal
Share of
Expenditures
$ 660,557
227,930
888,487
11,429
11,429
196,349
135,018
42,333
177,351
809
232,029
124,437
356,466
30,414
34,046
64,460
795,435
City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects - Continued
For the Year Ended September 30, 2009
Federal Grantor /
Pass-through Grantor / CFDA/CSFA
Program Title Number Grant I.D. Number
FEDERAL AWARDS (continued)
U.S. Department of Transportation:
Federal Highway Administration
Passed thru Florida Department of Transportation:
Clearwater Beach Trail Connector Phase 1
Clearwater Beach Trail Connector Phase 2
Clearwater Beach Trail Connector Phase 2
Total U.S. Department of Transportation
U.S. Environmental Protection Agency:
Brownfields Assessment and Brownfields EPA Assessment
Passed through FL Department of Environmental Protection:
Kapok Wetland & Floodplain Restoration Project
Total U.S. Environmental Protection Agency
20.205 FPN 415744-1-58-01
FPN 415744-1-58-02
20.205 FPN 415744-2-58-01
66.818 BF-96486307-0
66.460 C9-9945-1503-0; FDEP G0087
Corporation For National and Community Services:
Passed through FL Commission on Community Services
Americorps Clearwater 2008 94.006 Grant 06AFHFL0010008
Americorps Clearwater 2009 94.006 Grant 06AFHFL0010008
Total Corporation for National and Community Services
Passed thru Florida Department of Law Enforcement
FY2007 Buffer Zone Protection Grant 97.078 2007-BZPP-PINE-1-V4-005
Total U.S. Department of Homeland Security
Total Federal Financial Assistance
Federal
Share of
Expenditures
318,680
340
319,020
189,111
15,740
204,851
32,986
76,083
109,069
113,990
113,990
$ 2,442,281
160
' City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects - Continued
For the Year Ended September 30, 2009
State Grantor / State
Pass-through Grantor / CSFA Share of
Program Title Number Grant I.D. Number Expenditures (a)
' STATE FINANCIAL ASSISTANCE
Florida Executive Office of the Governor, Office of
Tourism, Trade, and Economic Development
Brownfield Grant 31.011 OT98-097 $ 8,727
Total Florida Executive Office of the Governor 8,727
Florida Department of Environmental Protection:
Florida Recreation Development Assistance Program
Morningside Improvements 37.017 DEP Agreement A9098 52
Enterprise Park 37.017 DEP Agreement F8082 96,851
37.017 96,903
1 Statewide Restoration Projects-Lake Bellevue Stormwater Improvmnts 37.039 WAP050 241,534
Total Florida Department of Environmental Protection 338,437
Florida Department of Community Affairs:
Florida Communities Trust
Lake Chautauqua Equestrian & Nature Preserve 52.002 FCT Project 07-054-FF7 1,464,948
Florida Housing Finance Corporation
State Housing Initiative Partnership Program (SHIP) 52.901 n/a 1,005,483
Total Florida Department of Community Affairs 2,470,431
Florida Department of Transportation:
Install new security fencing, camera 55.004 FPNA15770-1-94-01, Contract APF54 86,199
New FBO Building at Airpark 55.004 FPN:41 2431-1-94-01; Contract ANW13 20,843
Total Florida Department of Transportation 107,042
artment of Elder Affairs:
Florida De
p
Fixed Capital Outlay - Senior Center 65.013 44,095
Total Florida Department of Elder Affairs 44,095
Florida Department of Revenue:
Phillies Stadium 73.016 500,004
Total Florida Department of Revenue 500,004
Total State Financial Assistance $3,468,736
Total Expenditures of Federal Awards
' and State Financial Assistance Projects $ 5,911,017
(a) Funded with State grants and aids appropriations.
161
City of Clearwater, Florida
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE PROJECTS
For the Year Ended September 30, 2009
NOTE 1 - Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance
Projects presents the activity of all federal financial and state grant activity projects of the City of
Clearwater, Florida (the "City"). Federal and state financial assistance received directly from federal
and state agencies, and federal financial assistance passed through other governmental agencies are
included on the schedules. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations and Chapter 10.550, Rules of the Auditor General.
NOTE 2 - Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance
Projects is presented using the modified accrual or accrual basis of accounting, which is described in
Note 1 to the City's basic financial statements.
NOTE 3 - CFDA/CSFA Numbers
CFDA numbers represent Catalog of Federal Domestic Assistance and apply only to federal awards.
CSFA numbers represent Catalog of State Financial Assistance and apply only to state financial
assistance.
NOTE 4 - Subrecipients
Of the federal and state expenditures presented in the Schedule, the City provided federal and state
awards to subrecipients as follows:
Federal CFDA/ Amount Provided
Program Title State CFSA To Subrecipients
U.S. HUD Community Development Block Grant
U.S. HUD Home Investment Partnerships Program
Florida Housing Finance Corporation, State Housing
Initiative Partnership Program
14.218 $296,746
14.239 $ 77,867
52.901 $488,612
162
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2009
SECTION I. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:
- Material weakness(es) identified Yes X No
- Significant deficiency(s) identified
that are not considered to be
material weaknesses Yes X None reported
Noncompliance material to financial
statements noted Yes X No
Federal Awards
Internal control over major federal programs:
- Material weakness(es) identified Yes X No
- Significant deficiency(s) identified
that are not considered to be
material weaknesses Yes X None reported
Noncompliance material to federal
awards Yes X No
Type of auditor's report issued on compliance for major federal programs: Unqualified
Any audit findings disclosed that are
required to be reported in accordance
with Section 510(a) of Circular A-133 Yes X No
Identification of major federal programs:
CFDA Number Name of Federal Program
Federal Program:
14.218 Community Development Block Grant
Dollar threshold used to distinguish between Type A and Type B Programs $ 300,000
Auditee qualified as low-risk auditee? X Yes No
163
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs (continued)
For the Year Ended September 30, 2009
SECTION I. Summary of Auditor's Results (continued)
Identification of major state projects:
CSFA Number(s) Name of State Projects
State Projects:
52.002 Florida Forever Grant
52.901 State Housing Initiative Partnership Program
Internal control over major State projects:
- Material weakness(es) identified Yes X No
- Significant deficiency(s) identified
that are not considered to be
material weaknesses _ Yes X None reported
Noncompliance material to State awards _ Yes X No
Type of auditor's report issued on compliance for major State projects: Unqualified
Any audit findings disclosed that are
required to be reported in accordance
with Chapter 10.550, Rules of the
Auditor General Yes X No
Dollar threshold used to distinguish between Type A and Type B Programs $ 300.000
164
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs (continued)
For the Year Ended September 30, 2009
SECTION ll. Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, and
instances of noncompliance related to the financial statements that are required to be reported in
accordance with Government Auditing Standards.
None
SECTION Ill. Federal Award Findings and Questioned Costs
None
165
CITY OF CLEARWATER, FLORIDA
Schedule of Findings and Questioned Costs (continued)
For the Year Ended September 30, 2009
SECTION IV. State Award Findings and Questioned Costs
None
166
I
t
Independent Auditors' Management Letter
Honorable Mayor, City Councilmembers,
City Manager and City Management
City of Clearwater, Florida
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the
"City"), as of and for the year ended September 30, 2009, and have issued our report thereon dated
March 24, 2010. We have also audited the financial statements of each of the City's non-major
governmental, non-major enterprise, internal service and fiduciary funds presented as supplementary
information in the accompanying combining and individual fund financial statements as listed in the
table of contents.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits
of States, Local Governments and Non-Profit Organizations. We have issued our Independent
Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards, Report on Compliance with Requirements Applicable to each Major Federal Program and
State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter
10.550, Rules of the Auditor General of the State of Florida, and the Schedule of Findings and
Questioned Costs. Disclosures in those reports and schedule, which are dated March 24, 2010,
should be considered in conjunction with this management letter
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the aforementioned
auditor's reports or schedule:
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. See Appendix A for an update on the prior year's recommendation.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, nothing came to our attention that would cause us to believe that the City
was in noncompliance with Section 218.415 regarding the investment of public funds.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. There are no current year's
recommendations to improve the City's financial management.
167
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of laws,
regulations, contracts or grant agreements or abuse that have occurred, or are likely to have
occurred, that have an effect on the determination of financial statement amounts that is less than
material but more than inconsequential. In connection with our audit, we did not have any such
findings.
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that are inconsequential effect on financial
statements, considering both quantitative and qualitative factors: (1) violations of provisions of
contracts or grant agreements, fraud, illegal acts or abuse and (2) control deficiencies that are not
significant deficiencies. In connection with our audit, we did not have such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
the management letter, unless disclosed in the notes to the financial statements. Such disclosure is
included in the notes to the financial statements.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement to be included as to
whether or not the City has met one or more of the conditions described in Section 218.503(1), Florida
Statutes, and identification of specific conditions met. In connection with our audit, the results of our
tests did not indicate the City met any of the conditions described in Section 218.503(1), Florida
Statutes. However, our audit does not provide a legal determination on the City's compliance with this
requirement.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual
financial report for the City for the fiscal year ended September 30, 2009, filed with the Florida
Department of Financial Services, pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement
with the annual financial audit report for the fiscal year ended September 30, 2009. Our comparison
of the financial report filed with the Department of Financial Services to the City's 2009 audited
financial statements resulted in no material differences.
Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management's responsibility to monitor the City's
financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by same.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of management, and
the Florida Auditor General and is not intended to be and should not be used by anyone other than
these specified parties.
C41t &4wr W, 4 ? P.,
Tampa, Florida
March 24, 2010
168
City of Clearwater, Florida
Appendix A - Management Letter Comments
September 30, 2009
STATUS OF PRIOR YEAR RECOMMENDATIONS
Comment
continues to
Prior Year's Comments be relevant
Construction in Process
Projects not capitalized upon completion
HOME Grant Program
Revenue recognition in appropriate
fiscal year
Depreciation Schedules
Excel spreadsheets used to maintain
fixed asset depreciation schedules
Interdepartment Communications
Departments not communicating
transaction information to Finance
X
Comment has been
addressed or is no
longer relevant
X
X
X
169
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170