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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2011
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ICity of Clearwater, Florida
Comprehensive Annual Financial Report
for Fiscal Year Ended September 30, 2011
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I Frank V. Hibbard
Mayor
I George N. Cretekos John P. Doran Paul F. Gibson Bill Jonson
Councilmember Councilmember Councilmember Councilmember
William B. Home II
ICity Manager
Brian Jay Ravins
IFinance Director
1 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 30,2011
TABLE OF CONTENTS I
INTRODUCTORY SECTION:
Title Page and List of Elected and Appointed Officials
Letter of Transmittal v
Certificate of Achievement for Excellence in Financial Reporting ix
Organizational Chart x
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 86
Schedules of Employer Contributions 87
Notes to Schedules of Required Pension Supplementary Information 88
Required Supplementary Information—Other Post-Employment Benefits:
Schedule of Funding Progress 89
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet—Nonmajor Governmental Funds 94
Combining Statement of Revenues, Expenditures and Changes in Fund Balances—
Nonmajor Governmental Funds 96
Schedule of Revenues, Expenditures, and Changes in Fund Balance—
Budget and Actual (GAAP Basis)—Community Redevelopment Agency Special Revenue Fund 99
Combining Statement of Net Assets—Nonmajor Enterprise Funds 102
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets-
Nonmajor Enterprise Funds 104
Combining Statement of Cash Flows-Nonmajor Enterprise Funds 106
Combining Statement of Net Assets—Internal Service Funds 112
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City of Clearwater, Florida
I Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2011
ITABLE OF CONTENTS (Continued)
I Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets—
Internal Service Funds 113
Combining Statement of Cash Flows—Internal Service Funds 114
Combining Statement of Fiduciary Net Assets—Fiduciary Funds 118
1 Combining Statement of Changes in Fiduciary Net Assets—Fiduciary Funds 119
Statement of Changes in Assets and Liabilities—Treasurer's Escrow Agency Fund 120
Supplementary Information:
I Continuing Disclosure—Gas System Revenue Bonds, Series 2004, 2005, and 2007 122
Continuing Disclosure—Water&Sewer Revenue Bonds, Series 2002,2003, 2006,2009A and 2009B 127
Continuing Disclosure—Stormwater System Revenue Bonds, Series 2002, 2004,and 2005 130
I Fire Services Program 131
STATISTICAL SECTION:
Introduction 133
I Schedule 1 Net Assets by Component 135
Schedule 2 Changes in Net Assets 136
Schedule 2a Program Revenues by Function/Program 139
Schedule 3 Fund Balances of Governmental Funds 140
1 Schedule 4 Changes in Fund Balances of Governmental Funds 141
Schedule 5 Assessed Value and Estimated Actual Value of Taxable Property 142
Schedule 6 Direct and Overlapping Property Tax Rates 143
I Schedule 7 Property Tax Levies and Collections 144
Schedule 8a Principal Real Property Taxpayers 145
Schedule 8b Principal Personal Property Taxpayers 146
Schedule 9 Ratios of Outstanding Debt by Type 147
I Schedule 10 Ratios of General Bonded Debt Outstanding 148
Schedule 11 Direct and Overlapping Governmental Activities Debt 149
Schedule 12 Legal Debt Margin Information 150
I Schedule 13 Pledged-Revenue Coverage 151
Schedule 14 Demographic and Economic Statistics 153
Schedule 15 Principal Employers 154
I Schedule 16 Full-time Equivalent City Government Employees by Function/Program 155
Schedule 17 Operating Indicators by Function/Program 156
Schedule 18 Capital Asset Statistics by Function/Program 157
I SINGLE AUDIT/GRANTS COMPLIANCE SECTION:
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 161
I Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each
Major Program and on Internal Control Over Compliance in Accordance
With OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General of the State of Florida. 163
1 Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 165
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects 168
Schedule of Findings and Questioned Costs 169
IManagement Letter 171
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CITY OF CLEARWATER
POsr OFFICE BOX 4748,CI.EARWATER,FLORIDA 33758-4748
CITY HALL, 112 SOUTH OSCEOLA AVENUE,CLEARWAIER,FLORIDA 33756
TELEPHONE(727) 562-4040 FAX (727) 562-4052
GIN MANM ER
March 30, 2012
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, 2011.
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.
Mayer Hoffman McCann P.C., 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, 2011, 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, 2011,
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
1 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.
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"EQUAL.EMPLOYMENT AND AFFIRMATIVE ACTION EMPLOYER"
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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. I
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, 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 I
The local economy for the Tampa Bay metropolitan area experienced a continued economic downturn
during fiscal 2011, fueled by continued declines in real estate values and area employment. The
Tampa Bay metropolitan area average unemployment rate decreased from 12.4 percent for the year
ended September 2010 to 10.8 percent for the year ended September 2011, versus a national rate of
9.1 percent. The real estate and construction industries, in particular, continue to be hard hit by the
economic downturn, as reflected in the Tampa Bay metro area unemployment numbers. However the
City remains well-poised to take advantage of the economic recovery when it does occur, with the
completion of the Beach Walk, Downtown Streetscapes, and Clearwater Harbor Marina projects
expected to attract future redevelopment activity.
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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. The City
continues to strategically review the efficiency and effectiveness of service operations for potential
cost savings via reengineering and/or outsourcing of services. A down-sizing of City services, while
continuing to properly maintain City assets and infrastructure, and meet the basic needs of residents,
is expected to be the trend for at least the next several years in light of current economic conditions
and taxpayer sentiments.
A major cost saving initiative underway is to decrease pension costs. During fiscal 2011, City Council
approved funding for legal and actuary professional services to assist staff in the review and
implementation of potential pension plan changes to reduce pension costs. The City is planning to
present pension plan changes for voter approval at a public referendum in November 2012, with a
January 2013 effective date for the changes.
Relevant Financial Policies
1 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. Additionally, Council policy requires that unrestricted fund balances of the enterprise
funds be maintained at a level equivalent to the greater of three months of operation and maintenance
expenses, or other reserve levels indicated in the current rate study for the enterprise fund.
Major Initiatives
More than $26 million in fiscal 2012 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. Major projects include a new reverse osmosis plant and expansion of a current
osmosis plant.
The City began construction of a natural gas fueling station in May of 2011 with an October 2011
completion date. Additionally the City began the process of converting seventy(70) solid waste garbage
trucks to natural gas during the next seven years, saving and estimated $15 thousand per truck per year
in fuel costs. These efforts reflect Clearwater's continuing efforts to "go green", reduce energy
consumption, and improve environmental sustainability.
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Awards and Acknowledgements
1 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
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the fiscal year ended September 30, 2010. This was the 32 nd consecutive year that the City received
this prestigious award. In order to be awarded a Certificate of Achievement, the government 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. I
In addition, the City received the GFOA's Distinguished Budget Presentation Award for the fiscal year
2011 Budget document, the 25th 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, Mayer Hoffman McCann P.C., 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.
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Sincerely,
Jj
William B. Horne, II
111
City Manager
s �Av`wr
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Brian Jay Ravins
Finance Director ,
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Certificate of
r Achievement
for Excellence
in Financial
r
Reporting
Presented to
City of Clearwater
Florida
For its Comprehensive Annual
1 Financial Report
for the Fiscal Year Ended
September 30, 2010
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
1 systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
`�otE °Apt, A •
°FitaiES tt eP`P . ,,-e.
u�s9
wary.cc. President
4410.4094,0
eriCASO
Executive Director
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City of Clearwater Organizational Chart I
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Citizens of Clearwater
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City Council I
City Attorney I
City Manager
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Assistant City Manager Assistant City Manager I
Office of Customer
City Auditor Engineering Management& Service
Budget
Financial Parks& Economic
Fire Department Services Recreation Development&
Housing
Official Records I
&Legislative Human Planning& Gas System
Services Resources Development
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Police Information Marine&
Department Technology Public Services Aviation
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Public Library Public Utilities
Communications I
Solid Waste/
General Support Emergency
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Services Management
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MHM Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
Clearwater, FL 33762
I Phone: 727.572.1400 • 813.879.1400
Fax: 727.571.1933
www.mhm-pc.com
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Independent Auditors' Report
Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
We have audited the accompanying 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, 2011, 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 in the accompanying combining and individual fund statements and schedules
1 as of and for the year ended September 30, 2011, 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 the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
1 designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes 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, 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, 2011, and the respective
1 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
1 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, 2011, 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.
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As discussed in Note I-D-8 to the financial statements, the City adopted the provisions of GASB I
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, during the year
ended September 30, 2011.
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2012
on our consideration of the City's internal control over financial reporting and on 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 I
benefit disclosures on pages 86 through 89 are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States of
America. We have applied certain limited procedures which consisted 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 as a whole and on each of the City's non-major
governmental, non-major enterprise, internal service and fiduciary funds. The introductory section,
supplementary information and statistical section 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 financial assistance projects is presented for purposes of
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additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of
State and 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 schedule of expenditures of
federal awards and state financial assistance projects, has been subjected to auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly presented in all material respects
in relation to the basic financial statements taken as a whole. The introductory section 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.
L-nii.4.A, Ati-kritaii Lir), e„,,,,„_ /, ' e.
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March 30, 2012 I
Clearwater, Florida
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Management's Discussion and Analysis
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iThis 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, 2011. Management's Discussion and Analysis
I (MD&A) should be read in conjunction with the City's Transmittal Letter, which begins on page vii of this report.
I Financial Highlights
I The City's assets exceeded its liabilities at the close of fiscal year 2011 by $745.8 million (net assets). Of this amount,
$206.7 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and
creditors.
IThe City's total net assets increased by$17.5 million, or 2.4%, during fiscal 2011. Net assets for governmental activities
increased by$2.7 million, or.7%, while the business-type net assets increased by$14.8 million, or 4.4%.
I Significant factors contributing to the $2.7 million increase in governmental net assets included operating and capital
grants and contributions totaling $10.8 million, offset by a $2.0 million, or 41%, decrease in investment earnings versus
the prior year due to less favorable investment market conditions, and a decrease of$4.8 million, or 10.9%, decrease in
property tax revenues versus the prior year due to decreasing taxable values.
The $14.8 million increase in business-tvpe net assets is primarily the result of operating revenues in excess of
operating expenses for Water & Sewer Utility, Gas Utility, Solid Waste Utility, and Stormwater Utility operations. Also
I contributing to the increase was the receipt by the Water and Sewer Utility of$3.8 million in capital grants for reclaimed
water projects, Reverse Osmosis Reservoir #2, and other miscellaneous utilities projects, and $1.3 million in capital
grants received by the Stormwater Utility for various drainage projects, offset by a $1.8 million, or 33.8%, decrease in
I investment earnings versus the prior year due to less favorable investment market conditions.
At September 30, 2011, the City's governmental funds reported combined ending fund balances of $108.7 million, a
decrease of$3.3 million, or 2.9%, in comparison with the prior year. Of this amount, $21.2 million (or 19.5%) is available
I for spending at the government's discretion (unassigned fund balance). The decrease of $3.3 million in governmental
fund balances is primarily the result of: a $4.8 million decrease in property tax revenues as a result of declining taxable
values and a decrease of$1.4 million in investment earnings due to less favorable market conditions, offset by reduced
principal and interest payments as a result of the early redemption of the 2001 Improvement Revenue Refunding Bonds
in February 2011.
At September 30, 2011, unassigned fund balance for the General Fund was$23.1 million, or 21.5% of total current year
1 general fund expenditures.
Total actual revenues for the General Fund for fiscal 2011 were $1.1 million, or 1.1%, greater than final budgeted
I revenues primarily due to miscellaneous revenues, fines and forfeitures and intergovernmental revenues that exceeded
budget, as discussed in the detailed General Fund discussion included in the governmental funds financial analysis that
follows. Total fiscal 2011 actual expenditures for the General Fund were less than final budgeted expenditures by$3.9
million, or 3.5%. This was due to budget savings across all City departments for fiscal 2011, including $1 million, or
2.6%, for Police, $0.3 million, or 1.9%, for Parks and Recreation, and $0.7 million, or 3.1%, for Fire.
Finally, actual General Fund interfund transfers in were $159,089, or 1.8%, more than final budgeted interfund transfers
ii in, while actual General Fund interfund transfers out were $285,769, or 4.2%, more than final budgeted interfund
transfers out. The combined General Fund fiscal 2011 budgetary savings per above totaled $4.9 million.
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Overview of the Financial Statements I
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, Clearwater Harbor Marina, 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 1
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 1
I
The City maintains eleven individual governmental funds. Information is presented separately in the governmental funds
I 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 eight governmental funds are combined into a single aggregated columnar presentation. Individual fund data
I 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
I the Community Redevelopment Agency Special Revenue Fund. Budgetary comparison statements and/or schedules
have been provided for these funds to demonstrate budgetary compliance.
IProprietary funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
I 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, Harborview Convention Center, and Clearwater Harbor Marina boat slip
I 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, and postal services.
I 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.
1 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
I 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
I 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.
I
Notes to the Financial Statements
I 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.
I
Other Information
I 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.
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1 5
I
Government-Wide Financial Analysis i
The overall financial position of the City improved in both the fiscal 2011 and fiscal 2010 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 $745.8 million at the close of the fiscal year ended September 30, 2011. This represents an
increase of $17.5 million from the September 30, 2010 total net assets of $728.2 million. Net assets of both the
governmental and the business-type activities increased primarily due to operating and capital grants and contributions
of $16.2 million, along with favorable operating results for business-type activities, partially offset by a $3.8 million, or
37.3%, decrease in investment earnings versus the prior year due to less 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
2011 2010 2011 2010 2011 2010
Assets
Current and other assets $ 165,204,443 $ 169,840,956 $ 224,466,572 $ 222,289,754 $ 389,671,015 $ 392,130,710
Capital assets 277,160,493 277,095,034 379,223,599 376,289,621 656,384,092 653,384,655
Total assets 442,364,936 446,935,990 603,690,171 598,579,375 1,046,055,107 1,045,515,365
1
Liabilities
Current and other liabilities 7,287,274 7,560,939 15,210,298 18,895,434 22,497,572 26,456,373
Long-term debt outstanding:
Due within one year 10,351,270 10,925,242 8,532,700 8,248,498 18,883,970 19,173,740
Due in more than one year 29,984,731 36,441,414 228,928,800 235,195,283 258,913,531 271,636,697
Total liabilities 47,623,275 54,927,595 252,671,798 262,339,215 300,295,073 317,266,810
Net assets
Invested in capital assets,
net of related debt 257,542,168 249,042,568 159,912,679 165,704,305 417,454,847 414,746,873
Restricted 57,244,544 49,682,371 55,039,183 44,332,065 112,283,727 94,014,436
Unrestricted 79,954,949 93,283,456 136,066,511 126,203,790 216,021,460 219,487,246
Total net assets $ 394,741,661 $ 392,008,395 $ 351,018,373 $ 336,240,160 $ 745,760,034 $ 728,248,555
A large portion of the City's net assets (56.0%) 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 (15.1%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets ($216.0 million or 28.9%) may be used to
meet the government's ongoing obligations to citizens and creditors.
There was an $8.5 million, or 3.4%, increase in invested in capital assets, net of related debt for governmental activities
I
versus the previous year. The increase was due to a decrease in related revenue bond debt due to $550,000 in
scheduled bond principal payments and the early redemption of the 2001 Improvement Revenue Refunding Bonds in
the amount of $8.5 million. This $9.1 million reduction in capital-related revenue bonds, plus a current year $.4 million
increase in capital lease purchase contracts, was offset by a net increase of$65,000 in governmental capital assets for
the current fiscal year. The increase in governmental capital assets resulted from capital asset additions of$17.4 million
that were offset by depreciation expense of $16.2 million and net capital asset retirements totaling approximately $1.1
I
million. See the following discussions of capital assets and long term debt for more information on current year activity.
6 1
I
Invested in capital assets, net of related debt for business-type activities decreased by $5.8 million, or 3.5%, due to
I $20.5 million of capital asset additions, offset by $17.5 million in current year depreciation expense, $69 thousand in
capital asset disposals, and a $8.7 million increase in related bond debt, net of unspent bond proceeds. The $8.7 million
increase in related bond debt, net of unspent bond proceeds was the result of a current year$10.9 million spend-down
of bond proceeds offset by scheduled principal payments.
III Changes in Net Assets
The following table reflects the changes in net assets for the years ended September 30, 2011, and September 30,
i 2010:
I City of Clearwater,Florida-Changes in Net Assets
Primary Government
Governmental Activities Business-type Activities Totals
2011 2010 2011 2010 2011 2010
IRevenues
Program revenues:
Charges for services $ 37,493,034 $ 36,935,873 $ 143,518,556 $ 137,495,683 $ 181,011,590 $ 174,431,556
I Operating grants and contributions 8,061,861 7,560,887 133,519 186,649 8,195,380 7,747,536
Capital grants and contributions 2,765,599 1,315,379 5,289,674 11,060,483 8,055,273 12,375,862
General revenues:
I Property taxes 39,252,898 44,040,222 - - 39,252,898 44,040,222
Sales taxes 13,384,678 13,253,393 13,384,678 13,253,393
Utility taxes 13,228,749 13,573,548 - - 13,228,749 13,573,548
Other taxes 13,303,118 13,879,951 - - 13,303,118 13,879,951
I Other 3,090,805 5,143,004 3,496,865 5,284,122 6,587,670 10,427,126
Total revenues 130,580,742 135,702,257 152,438,614 154,026,937 283,019,356 289,729,194
Expenses
1 General Government 16,183,344 15,965,621 - 16,183,344 15,965,621
Public Safety 66,913,985 69,456,573 66,913,985 69,456,573
Physical Environment 3,868,026 4,940,808 - - 3,868,026 4,940,808
Transportation 13,274,877 13,760,461 - - 13,274,877 13,760,461
Economic Environment 3,113,409 4,155,478 3,113,409 4,155,478
Human Services 181,483 97,549 181,483 97,549
Culture and Recreation 30,606,145 30,609,832 - - 30,606,145 30,609,832
Interest on Long-term Debt 1,216,684 1,446,021 1,216,684 1,446,021
Water and Sewer Utility 61,010,369 57,228,965 61,010,369 57,228,965
Gas Utility - - 28,353,645 31,199,734 28,353,645 31,199,734
Solid Waste Utility - - 15,843,532 15,617,918 15,843,532 15,617,918
I Stormwater Utility - - 12,234,015 10,936,788 12,234,015 10,936,788
Other 12,708,363 12,774,813 12,708,363 12,774,813
Total expenses 135,357,953 140,432,343 130,149,924 127,758,218 265,507,877 268,190,561
I Increase in net assets before
transfers (4,777,211) (4,730,086) 22,288,690 26,268,719 17,511,479 21,538,633
Transfers 7,510,477 9,951,358 (7,510,477) (9,951,358) - -
I Increase in net assets 2,733,266 5,221,272 14,778,213 16,317,361 17,511,479 21,538,633
Net assets-beginning 392,008,395 386,787,123 336,240,160 319,922,799 728,248,555 706,709,922
Net assets-ending $ 394,741,661 $ 392,008,395 $ 351,018,373 $ 336,240,160 $ 745,760,034 $ 728,248,555
I
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Governmental Activities
Governmental activities net assets increased by $2.7 million from $392.0 million as of September 30, 2010, to $394.7 111
million as of September 30, 2011. This increase due to governmental activities accounted for 15.6% of the total
increase in net assets for the City, and represented a .7% increase in net assets for governmental activities.
Total expenses for governmental activities decreased by $5.1 million, or 3.6%, versus the prior year. This was primarily
111
due to reductions in staffing levels in the Police and Fire departments, as well as the Planning and Development and
Engineering departments. Travel, training, memberships and other operating costs have also been reduced throughout
the organization. •
Total program revenues for governmental activities increased by $2.5 million, or 5.5%, versus the prior year. This
increase was primarily due to a $0.6 million increase in charges for services reflecting increased receipts from public
safety activities; a $.5 million increase in operating grants and contributions due to grant funding received for the
Federal Early Retiree Reinsurance Program and the Pinellas County Neighborhood Stabilization Grant; and a $1.4
million increase in capital grants and contributions due to increased impact fees received for transportation and culture
and recreation programs.
Total general revenues for governmental activities decreased by$7.6 million, or 8.5%, primarily due to a $4.8 million, or
10.9%, decrease in property taxes due to decreased property values resulting from the continued economic downturn.
Additionally, investment earnings for governmental activities decreased by $2.0 million, or 41%, due to less favorable
market conditions.
The cost of all governmental activities this year was $135.4 million. This reflects a $5.1 million, or 3.6%, decrease from
the fiscal 2010 total of $140.4 million. However, as shown on the Statement of Activities, the amount that the City's
taxpayers ultimately financed for these activities totaled $87.0 million, because some of the cost was paid for by those
who directly benefited from the programs ($37.5 million) or by other governments and organizations that subsidized
certain programs with grants and contributions ($10.8 million). This total of $87.0 million is $7.6 million less than the
fiscal 2010 amount financed from general revenues. '
Expenses and Program Revenues -Governmental Activities
For the Year Ended September 30, 2011
Millions --
II Expenses •Revenues
$70
$60
$50 1 ,
$40
Culture and
Recreation
$30 General
Government
$20 -e _ I
$10 f Environmen� r Eonomic-- _---j
Environment
Public Transportation Human Interest on
Safety Services Long-term Debt i
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Revenues by Sources -Governmental Activities
For the Year Ended September 30, 2011
I Property taxes
30% Sales taxes
10%
Capital grants and
1 contributions
2% Utility taxes opplow. 10%
Operating grants and
contributions
I 6°/0 „ . . . Communications services
taxes
5%
cIA Other taxes
6%
Charges for services Other revenues
29% 2%
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1
IBusiness-type Activities
Net assets for business-type activities increased from $336.2 million for the prior year to $351.0 million. This increase
totaled $14.8 million, reflecting a 4.4% increase in business-type activities net assets and 84.4% of the total increase in
I net assets for the City. Net revenue from business-type activities, before investment earnings and transfers, decreased
from $21.0 million for the prior year to $18.8 million for fiscal 2011. This $2.2 million, or 10.4%, decrease was the result
of a $2.4 million increase in operating expenses, along with a $5.8 million decrease in capital grants and contributions
Ioffset by a $6.0 million increase in charges for services.
Total revenues for business-type activities decreased by $1.6 million, or 1.0%, to $152.4 million versus the prior year
total of $154.0 million, primarily due to the decrease in investment earnings of $1.8 million offset by an increase in
I program revenues of just$200,000.
Total expenses for business-type activities increased by $2.4 million, or 1.9%, from $127.8 million in fiscal 2010 to
$130.1 million for fiscal 2011. A significant portion of the $2.4 million increase in expenses was attributable to increased
I costs in the Water and Sewer Utility Fund due to the addition of two full-time positions and an increase in capital
projects, offset by a decrease in the Gas Utility Fund due to a reduction in planned capital projects and a decline in gas
commodity costs.
IFinally, transfers for business-type activities changed from a net transfer out to governmental activities of$9.9 million in
fiscal 2010 to a net transfer out to governmental activities of $7.5 million in the current year. This net change of $2.4
million was primarily due to a decrease in transfers from the Gas Utility Fund to the General Fund in fiscal 2011 related
to the large dividend paid by the Gas Utility Fund to the General Fund in fiscal 2010 as a result of the buyout of a gas
Ipre-purchase agreement.
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1 9
Expenses and Program Revenue -Business-type Activities
For the Year Ended September 30, 2011
$70,000,000
$60,000,000
$50,000,000 -
$40,000,000 -
■Expenses
•Revenues
$30,000,000 -
$20,000,000 -
$10,000,000 -
$0
Water and Sewer Gas Utility Solid Waste Utility Stormwater Utility Other
Utility I
f
Revenues by Source-Business-type Activities
For the Year Ended September 30, 2011
Charges for services
94.1% ,
I
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I
Capital grants and ,
contributions
Other 3.5%
0.1% Investment earnings
2.3%
I
10 1
•
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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,
unassigned 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, 2011, reflect a combined fund balance of $108.7
million versus $112.0 million for the prior year, a decrease of$3.3 million. A total of$21.2 million, or 19.5%, represents
unassigned fund balance available for spending at the government's discretion. The remainder of the fund balance is
classified as assigned($8.3 million or 7.6%)to indicate that it is intended to be used for specific purposes supported by
management's intent; committed ($17.1 million or 15.8%) to indicate that it can be used only for the specific purposes
determined by a formal vote of the City Council; restricted($61.9 million or 57.0%) to indicate that it can be spent only
for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation; or
nonspendable ($.1 million or .1%) to indicate that it cannot be spent or is legally or contractually required to remain
intact.
The General Fund is the chief operating fund of the City. At September 30, 2011, unassigned fund balance of the
General Fund totaled $23.1 million, with the remaining $.9 million in fund balance classified as nonspendable or
assigned. As a measure of the general fund's liquidity it is useful to compare unassigned fund balance to total fund
expenditures. Unassigned fund balance represents 21.5% of total general fund expenditures (GAAP basis before
transfers)for the current fiscal year.
The fund balance of the City's General Fund decreased by $.1 million during the current fiscal year versus a final
budgeted decrease of $4.7 million. This $4.6 million variance from the budgeted decrease was primarily the result of
total expenditures that were less than budgeted expenditures by $3.9 million, along with total revenues that were $1.1
million in excess of budgeted revenues. General Fund expenditure "savings" of $3.9 million, or 3.5%, was spread
across all departments due to an emphasis on cost reductions City-wide. General Fund revenues were greater than
budgeted by$1.1 million primarily due to$.3 million surplus of fines and forfeitures due to a lien payment received; local
fire service revenues received in excess of the final budget amount by $.3 million; and miscellaneous revenues which
exceeded the final amended budget by$.6 million.
The fund balance of the Special Development Fund decreased from $6.5 million to $5.7 million, for a decrease of $.8
million or 12.0%, during the current fiscal year versus a decrease of $4.5 million for fiscal 2010. The significant
decrease for fiscal 2010 was primarily due to a one-time transfer of $4.6 million to the General Fund towards
redemption in full of the City's Improvement Refunding Revenue Bonds, Series 2001.
The fund balance for the Capital Improvement Fund increased from $34.4 million to $43.0 million during the current
fiscal year. This increase of$8.6 million is primarily the result of current year capital project funding received from other
funds ($20.3 million) and grant revenues received from federal, state, and local agencies ($1.7 million) in excess of
current year capital project expenditures ($12.8 million). This is typical volatility for the Capital Improvement Fund due to
timing differences between project funding and project spending.
The fund balances for Other (non-major) Governmental Funds decreased from $47.0 million to $36.0 million during the
' current fiscal year. This decrease of $11.0 million was primarily the result of: A decrease of $8.7 million in the 2001
Improvement Revenue Refunding Bonds debt service fund due to the early redemption of the bonds, and a decrease of
$2.5 million in the Community Redevelopment Agency capital projects fund primarily due to the purchase of land in the
East Gateway area during fiscal 2011.
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Proprietary Funds
I
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 $1.4 million increase in net assets versus a $5.1 million increase for the 1prior year. Operating revenues increased by$4.1 million, or 7.3%, offset by an increase in operating expenses of$3.1
million, or 6.4%. This resulted in a net increase in operating income of$1.0 million, or 14.4%, from $6.7 million for 2010.
Additionally, capital grants and contributions decreased by $3.9 million, or 50.7%; investment earnings decreased by
$0.8 million, or 31.2%; and transfers out to other funds decreased by $0.2 million, or 6.4%. The increase in operating
revenues was the result of a 7% rate increase effective October 1, 2010. The increase in operating expenses was
primarily an increase in repair and maintenance expenditures of$4.0 million due to increased repair and maintenance
costs associated with infrastructure. The decrease in capital grants and contributions was primarily the result of a
reduction in grant funding received for reclaimed water projects from the previous year. The decrease in investment
earnings was due to market conditions.
The Gas Utility Fund realized a $6.9 million increase in net assets versus a $2.0 million increase for the prior year.
Operating revenues decreased by only$98,000, or .3%, from the prior year, primarily due to level fuel costs, offset by a
$2.9 million, or 9.6%, decrease in operating expenses. The decrease in operating expenses was primarily due to a
decrease of $1.2 million (7.9%) in commodity charges; a decrease of $.3 million (17.4%) in depreciation expense
because assets installed prior to 1987 were fully depreciated in fiscal 2011; a decrease of $.6 million (67.7%) in
I
professional services due to due to lower design costs for fewer capital projects and lower locate charges; and a
decrease of $.5 million (87.4%) in repairs and maintenance due to a one-time accrual of $491,200 in fiscal 2010 for
remediation costs that did not occur again in fiscal 2011. This resulted in a $2.8 million, or 47.7%, increase in operating
income from the prior year. Additionally, transfers out to other funds decreased by$2.5 million, or 58.4%. The decrease
in transfers out was due to a one-time buyout of the City's rights under a gas pre-purchase agreement in 2009 which
resulted in increased transfers for fiscal 2010 that did not occur again in fiscal 2011.
The Solid Waste Utility Fund realized a $3.1 million increase in net assets versus a $2.3 million increase for the prior
year. Operating revenues increased by $717,000, or 3.9%, offset by a decrease in operating expenses of $50,000,
resulting in a $768,000 increase in operating income from $2,530,000 in fiscal 2010 to $3,298,000 in fiscal 2011. The
3.9% increase in operating revenues was due to scheduled rate increases for residential, commercial and roll-off
ill
customers, offset by decreased consumption due to the economic downturn.
The Stormwater Utility Fund realized an increase in net assets of $3.8 million versus a prior year increase of $4.6
I
million. Operating revenues increased by$0.9 million, or 6.5%, due to scheduled rate increases. Additionally fiscal 2011
realized a $1.2 million, or 13.3% increase in operating expenses, primarily attributable to a $.6 million, or 119%,
increase in professional services resulting from the increased project activity and an increase of$.6 million, or 108%, in
repairs and maintenance due to the Stormpipe Improvement and Stevenson Creek Estuary Restoration projects that
were expensed as renewal and replacement.
Unrestricted net assets and changes in net assets of the proprietary funds for fiscal years 2011 and 2010:
1
Unrestricted Net Assets Change in Net Assets
Fund 2011 2010 2011 2010 '
Water and Sewer Utility $ 46,633,516 $ 37,371,341 $ 1,435,607 $ 5,128,829
Gas Utility 26,342,719 22,709,440 6,947,892 2,028,168
Solid Waste Utility 22,328,536 19,269,262 3,099,936 2,329,338
Stormwater Utility 23,679,353 20,377,571 3,760,362 4,589,938
Other funds 12,528,360 21,304,268 152,297 1,911,525
Totals $ 131,512,484 $ 121,031,882 $ 15,396,094 $ 15,987,798
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I General Fund Budgetary Highlights
I The final amended budget for General Fund expenditures reflected an increase of $3.7 million, or 3.4%, from the
original budget. Key elements of this increase were as follows:
• $0.9 million increase in Police and $1.2 million increase in Fire budgeted expenditures due to the accounting for
I 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, an increase of $.9 million in the Non-Departmental budget for a grant to the Clearwater Marine
Aquarium and a legal settlement to Pierce 100, an increase of$.7 million in the City Attorney's Office budget
I for a legal settlement to Pickles Plus. These budgeted expenditure increases were offset by an equal increase
in budgeted revenues below.
1 Final budgeted revenues reflect a$1.8 million, or 1.8%, increase from the original budget primarily due to the following:
• $2.3 million, or 26.7%, increase in budgeted intergovernmental revenues from state sources to reflect state
I insurance tax monies received on behalf of the City's police and fire supplemental pension plans, offset by a
decrease in budgeted interest income of$.4 million, or 32.3%, due to lower than expected interest rates.
Final budgeted "transfers in" from other funds reflect a $.6 million, or 7.0%, increase from the original budget primarily
Idue to:
• A $.6 million increase in budgeted "transfers in" to reflect the return of General Fund revenues from closed
Iprojects in the Special Programs Fund and the Capital Improvement Fund.
Final budgeted "transfers out" reflect a$2.8 million, or 69.7%, increase from the original budget primarily due to:
1 • $90,000 transferred to the Capital Improvement Fund for the purchase of property adjacent to Bright House
Networks Field
• $1.3 million transferred to the Capital Improvement Fund for the installation and service of sports field lighting
1 equipment at various city athletic facilities
• $1 million transferred to the Capital Improvement Fund for Clearwater Pass maintenance dredging.
ITotal actual revenues for the General Fund for fiscal 2011 were $1.1 million, or 1.1%, greater than final budgeted
revenues. Contributing to this surplus of actual revenues versus final budgeted revenues was $0.6 million, or 50.7%,
I surplus of miscellaneous revenue versus budgeted; $0.3 million, or 48.2%, of fines and forfeitures in excess of final
budgeted revenues. Finally, intergovernmental revenues from local sources exceeded final budget by $0.3 million, or
4.0%.
I Fiscal 2011 actual expenditures for the General Fund were less than final budgeted expenditures by $3.9 million, or
3.5%. This was due to budget savings across all City departments for fiscal 2011.
I Capital Asset and Debt Administration
Capital Assets
I Capital assets include land, buildings and building improvements, improvements other than buildings, machinery and
equipment, and infrastructure. The infrastructure asset category includes long-lived capital assets, typically stationary in
nature, such as roads, sidewalks, and bridges. At September 30, 2011, the City had investments in capital assets
Itotaling $656,384,092(net of accumulated depreciation).
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I
City of Clearwater, Florida-Capital Assets* ,
(amounts in thousands)
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
Land $ 79,114 $ 79,592 $ 31,281 $ 31,281 $ 110,395 $ 110,873
Buildings 89,726 83,437 12,267 12,649 101,993 96,086 I
Improvements other than buildings 16,614 15,029 320,856 307,424 337,470 322,453
Machinery and equipment 18,238 18,673 2,619 2,665 20,857 21,338
Infrastructure 68,279 69,894 - - 68,279 69,894 I
Construction in progress 5,189 10,470 12,201 22,271 17,390 32,741
Total $ 277,160 $ 277,095 $ 379,224 $ 376,290 $ 656,384 $ 653,385 1
Net of accumulated depreciation
Net capital assets for the City's governmental activities increased from $277.1 million to $277.2 million, reflecting an
increase of$65,000 for the current fiscal year. Capital asset additions of$17.4 were offset by depreciation expense of
$16.2 million and net capital asset retirements totaling approximately $1.1 million. Major fiscal 2011 governmental
I
capital asset transactions included $2.1 million in current year capital expenditures at the new Aging Well Center, $2.4
million of capital expenditures for traffic calming projects, $3.0 million for improvements to Carpenter Field Complex,
$1.3 million in capital expenditures for infrastructure improvements at the Long Center, $1.2 million for the purchase of
the Lokey Building, and $0.6 million for the expansion of Fire Station 48.
Net capital assets for the City's business-type activities increased from $376.3 million to $379.2 million, reflecting an
increase of $2.9 million for the current fiscal year. Capital asset additions of $20.5 million were offset by depreciation
expense of$17.5 million and net capital asset retirements totaling approximately$.1 million. Major fiscal 2011 business-
type capital asset transactions included an additional $1.3 million in construction in progress for reclaimed water
projects, an additional $1.6 million in construction in progress for reverse osmosis water plant expansion projects, and
an additional $1.4 million in construction in progress for wastewater treatment plant screw pump replacements.
Additional information on the City's capital assets can be found in Note Ill (C)on the notes to the financial statements.
Long-term debt
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The City's total long-term debt decreased from $290.8 million to $277.8 million, a decrease of $13.0 million or 4.5%.
Long-term debt for governmental activities decreased by$7.0 million, or 14.8%, while long-term debt for business-type
activities decreased by$6.0 million or 2.5%. Key factors contributing to these decreases included:
• The decrease in long-term debt for governmental activities is primarily due to the early redemption of the 2001
Improvement Revenue Refunding bonds in the amount of$8.5 million, offset by slight increases in accruals for
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lease purchases, other post-employment benefits and insurance claims payable.
• The decrease in long-term debt for business-type activities is primarily due to approximately $6.9 million of
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scheduled bond principal payments and a $1.5 million reduction in principal payments achieved by issuing the
2011 Water and Sewer Revenue Refunding Bonds to redeem the 2002 Water and Sewer Revenue Bonds.
The City's bonded debt as of September 30, 2011, 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 $10.6 million while business-type activities totaled $234.8 million.
The City's Charter limits indebtedness to 20% of the assessed valuation of non-exempt real estate. The current debt
limitation is approximately $1.6 billion, which is significantly in excess of the City's applicable indebtedness of
approximately$233 million at September 30, 2011.
Additional information on the City's long-term debt can be found in Note III (F)of the notes to the financial statements.
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IEconomic Factors and Year 2012 Budgets and Rates
Factors considered in preparing the City of Clearwater's budget for fiscal year 2012 included:
II • A continued economic downturn and an additional 3.2% decline in property values, reflecting a 32% decline
from the point at which City property values peaked four years ago.
I . The unemployment rate for the Tampa Bay metropolitan area for September 2011 was 10.8%, a decrease from
1 the September 2010 rate of 12.4%. The unemployment rate for Pinellas County was also a decrease — from
11.9% for September 2010 to 10.3% for September 2011. The unemployment rate for Florida similarly
decreased —from 12.0% for September 2010 to 10.6% for September 2011. The national rate also reflected a
I slight decrease—from 9.2%for September 2010 to 9.1%for September 2011.
• Total taxable assessed values for the City of Clearwater decreased approximately 3.2% for fiscal 2012. The
City's millage rate was unchanged from the fiscal 2011 rate of 5.1550 mills, reflecting a 4.31% decrease from
I the fiscal 2012 rolled-back rate of 5.3874 mills.
• A reduction of 28.7 full-time equivalent positions City-wide, including a reduction in General Fund employees of
23.5 FTE's, from 1,041.9 to 1,018.4, due to service level reductions and program consolidations. The City has
reduced City-wide full-time equivalent positions by 14% and General Fund full-time equivalent positions by 21%
I over the past five years.
• A decrease of $475,000 in the actuarially required contribution to the Employees' Pension Plan, from $19.4
million, or 24.07% of covered payroll, for fiscal 2011 to $18.9 million, or 24.69% of covered payroll, for fiscal
I 2012. The 3% increase in the pension contribution rate is partially offset by reductions in staff levels and limited
pay increases which result in a reduction to the covered payroll and ultimately the pension cost.
• A reduction in employee medical insurance costs of$166,000, or 2%, from fiscal 2011 due to the decrease in
I employees from the prior year, while maintaining the same cost per employee as the prior year.
• Budgeted Water and Sewer utility revenues for 2012 reflect a 4.5% rate increase effective October 1, 2011,
while fiscal 2012 budgeted Stormwater utility revenues reflect a 4.25% rate increase effective October 1, 2011.
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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,
1 Finance Department, 100 South Myrtle Avenue, Clearwater, Florida 33756-5520.
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1 Basic Financial Statements
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City of Clearwater,Florida
Statement of Net Assets '
September 30,2011
Primary Government
Governmental Business-type
Activities Activities Total
III
ASSETS
Cash and investments $ 138,674,203 $ 113,028,253 $ 251,702,456
Receivables(net) 18,797,360 13,100,881 31,898,241
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Internal balances (4,065,282) 4,065,282 -
Due from other governments 4,412,111 8,247,819 12,659,930
Prepaid items 1,418,986 53,321 1,472,307
Inventories 525,053 1,815,427 2,340,480
Restricted assets:
Cash and investments - 79,841,269 79,841,269
Due from other governments - 350,942 350,942
Deferred charges 86,864 2,206,243 2,293,107
Net pension asset 5,355,148 1,757,135 7,112,283
Capital assets:
Land 79,113,502 31,280,681 110,394,183
III
Buildings 89,725,789 12,266,484 101,992,273
Improvements other than buildings 16,614,513 320,856,305 337,470,818
Machinery and equipment 18,238,309 2,619,003 20,857,312
Infrastructure 68,279,113 - 68,279,113
Construction in progress 5,189,267 12,201,126 17,390,393
Total assets 442,364,936 603,690,171 1,046,055,107
LIABILITIES
II
Accounts payable and other current liabilities 4,517,839 3,894,083 8,411,922
Accrued liabilities 1,248,137 365,294 1,613,431
Accrued interest payable 42,997 29,036 72,033
Due to other governments 750,495 - 750,495
Deposits 2,400 52,359 54,759
Unearned revenue and liens 725,406 22,836 748,242
Payable from restricted assets: I
Construction contracts payable - 1,601,604 1,601,604
Accrued interest payable - 3,134,526 3,134,526
Customers deposits - 6,110,560 6,110,560
Non-current liabilities due within one year:
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Compensated absences 4,674,198 1,155,852 5,830,050
Loans and leases payable 2,887,872 236,848 3,124,720
Revenue bonds payable 570,000 7,140,000 7,710,000
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Claims payable 2,219,200 - 2,219,200
Long-term debt and liabilities:
Unearned revenue - 187,113 187,113
Compensated absences 2,609,035 645,171 3,254,206
Other postemployment benefits 4,746,443 1,856,107 6,602,550
Loans and leases payable 5,834,337 571,031 6,405,368
Revenue bonds payable 10,326,116 225,669,378 235,995,494
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Claims payable 6,468,800 - 6,468,800
Total liabilities 47,623,275 252,671,798 300,295,073
NET ASSETS
Invested in capital assets, net of related debt 257,542,168 159,912,679 417,454,847
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Restricted for:
Capital projects 34,217,085 9,300,000 43,517,085
Debt service 498,733 21,718,703 22,217,436
Renewal and replacement - 16,442,909 16,442,909
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Grant programs 22,528,726 - 22,528,726
Impact fees - 7,577,571 7,577,571
Unrestricted 79,954,949 136,066,511 216,021,460 I
Total net assets $ 394,741,661 $ 351,018,373 $ 745,760,034
The notes to the financial statements are an integral part of this statement.
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r NM NS NS OM i MS MI MN On V S — — r r — NM NM
City of Clearwater,Florida
Statement of Activities
For the Year Ended September 30,2011
Program Revenues Net(Expense)Revenue and Changes in Net Assets
Operating Primary Government
Charges for Grants and Capital Grants& Governmental Business-Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government $ 16,183,344 $ 20,868,748 $ 664,592 $ - $ 5,349,996 $ - $ 5,349,996
Public safety 66,913,985 9,980,389 2,650,283 - (54,283,313) - (54,283,313)
Physical environment 3,868,026 147,364 173,870 22,669 (3,524,123) - (3,524,123)
Transportation 13,274,877 852,052 199,576 1,599,452 (10,623,797) - (10,623,797)
Economic environment 3,113,409 153,138 2,291,021 - (669,250) - (669,250)
Human services 181,483 - 211,144 - 29,661 - 29,661
Culture and recreation 30,606,145 5,491,343 1,871,375 1,143,478 (22,099,949) - (22,099,949)
Interest on long-term debt 1,216,684 - - - (1,216,684) - (1,216,684)
Total governmental activities 135,357,953 37,493,034 8,061,861 2,765,599 (87,037,459) - (87,037,459)
Business-type activities:
Water&Sewer Utility 61,010,369 59,809,781 - 3,756,337 - 2,555,749 2,555,749
Gas Utility 28,353,645 36,470,050 - - - 8,116,405 8,116,405
Solid Waste Utility 15,843,532 19,204,969 - - - 3,361,437 3,361,437
Stormwater Utility 12,234,015 15,221,962 - 1,300,438 - 4,288,385 4,288,385
(.0 Recycling 2,953,893 3,134,698 83,519 - - 264,324 264,324
Marine 4,136,104 4,387,419 - - - 251,315 251,315
Aviation 514,989 236,547 - 217,648 - (60,794) (60,794)
Parking System 3,866,976 4,676,831 - - - 809,855 809,855
Harborview Center 578,949 51,013 - - - (527,936) (527,936)
Clearwater Harbor Marina 657,452 325,286 50,000 15,251 - (266,915) (266,915)
Total business-type activities 130,149,924 143,518,556 133,519 5,289,674 - 18,791,825 18,791,825
Total primary government $ 265,507,877 $ 181,011,590 $ 8,195,380 $ 8,055,273 (87,037,459) 18,791,825 (68,245,634)
General revenues:
Taxes:
Property taxes 39,252,898 - 39,252,898
Sales taxes 13,384,678 - 13,384,678
Utility taxes 13,228,749 - 13,228,749
Communications services taxes 5,852,335 - 5,852,335
Other taxes 7,450,783 - 7,450,783
Investment earnings 2,965,357 3,496,865 6,462,222
Miscellaneous 125,448 - 125,448
Transfers 7,510,477 (7,510,477) -
Total general revenues and transfers 89,770,725 (4,013,612) 85,757,113
Change in net assets 2,733,266 14,778,213 17,511,479
Net assets--beginning 392,008,395 336,240,160 728,248,555
Net assets--ending $ 394,741,661 $ 351,018,373 $ 745,760,034
The notes to the financial statements are an integral part of this statement.
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City of Clearwater,Florida
Balance Sheet
Governmental Funds
September 30,2011
Special Capital Other Totals
General Development Improvement Governmental Governmental
Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 21,222,386 $ 4,684,981 $ 43,048,012 $ 17,804,422 $ 86,759,801
Receivables(net where applicable,of allowances
for estimated uncollectible amounts):
Accrued interest 145,685 154,207 2,129 92,117 394,138
Accounts and contracts 604,171 - - - 604,171 I
Mortgages,notes and other loans - - - 15,436,736 15,436,736
Rehabilitation advances - - - 10,677 10,677
Property taxes 207,603 13,221 - - 220,824
Utility taxes 963,733 - - - 963,733 I
Franchise fees 910,349 - - - 910,349
Other - - - 33,093 33,093
Due from other funds(deficit in pooled cash) - - 477,218 - 477,218 111
Due from other governmental entities-grants - - 335,500 520,995 856,495
Due from other governmental entities-other 1,941,148 1,539,215 - 75,253 3,555,616
Land held for resale - - - 4,703,371 4,703,371
Inventories,at cost 24,220 - - - 24,220 I
Prepaid items - - - 89,830 89,830
Advances to other funds - - - 974,267 974,267
Total assets $ 26,019,295 $ 6,391,624 $ 43,862,859 $ 39,740,761 $ 116,014,539 1
LIABILITIES
Accounts and contracts payable $ 468,599 $ - $ 866,250 $ 676,042 $ 2,010,891
Accrued payroll 1,091,036 - - 26,705 1,117,741 1
Due to other funds(deficit in pooled cash) - - - 89,830 89,830
Due to other governmental entities 38,392 663,460 - 48,643 750,495
Deposits 2,400 - - - 2,400
Construction escrows - - - 18,638 18,638 111
Deferred revenue 457,812 13,221 - 23,545 494,578
Advances from other funds - - - 2,874,267 2,874,267
Total liabilities 2,058,239 676,681 866,250 3,757,670 7,358,840
FUND BALANCES '
Nonspendable inventories and prepaid items 24,220 - - 89,830 114,050
Restricted - 1,209,880 29,148,468 31,632,564 61,990,912 I
Committed - 186,450 13,961,611 2,983,325 17,131,386
Assigned 855,550 4,318,613 - 3,085,353 8,259,516
Unassigned 23,081,286 - (113,470) (1,807,981) 21,159,835
Total fund balances 23,961,056 5,714,943 42,996,609 35,983,091 108,655,699 I
Total liabilities and fund balances $ 26,019,295 $ 6,391,624 $ 43,862,859 $ 39,740,761 $ 116,014,539
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The notes to the financial statements are an integral part of this statement.
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I City of Clearwater,Florida
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
September 30,2011
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1 Total fund balances of governmental funds $ 108,655,699
Capital assets used in governmental activities are not financial resources,therefore,
are not reported in the funds. The cost of the assets totals$458,747,225,and the
accumulated depreciation totals$181,586,732
I Total capital assets for governmental activities $ 277,160,493
Less: Land included in governmental funds as"Land Held for Resale" (4,703,371)
272,457,122
The net pension asset related to govemmental activities does not represent financial
I resources and is not reported in the funds. 5,355,148
Accrued general long-term debt interest expenses are not financial uses and,therefore,
are not reported in the funds. (42,997)
I Accrued property taxes are not financial resources in the current period and,therefore,
are reported as deferred revenues in the funds. 220,824
Accrued liens are not financial resources in the current period and,therefore,
are reported as deferred revenues in the funds. 188,609
I Accrued permit fees are not financial resources in the current period and,therefore,
are reported as deferred revenues in the funds. 61,600
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 50,903,812
Less: Capital assets included in total governmental capital assets above (15,245,146)
Less: Net pension asset included in total governmental net pension asset above (432,401)
I Add: Capital lease purchases payable included in total governmental below 7,178,478
Add: Compensated absences included in total governmental below 903,943
Add: Other post employment benefits included in total governmental below 652,134
Less: Adjustment to reflect the consolidation of internal service fund activities
I related to enterprise funds (4,554,027)
39,406,793
Long-term liabilities,including bonds payable,are not due and payable in the current
period and accordingly are not reported in the funds.
I Long-term liabilities at year-end consist of:
Bonds payable (10,660,000)
Less: Deferred charge on refunding(to be amortized as interest expense)
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Less: Deferred charge for issuance costs(to be amortized over life of debt) 86,864
I Add: Issuance premium(to be amortized as a reduction of interest expense) (236,116)
Capital lease purchases payable (8,722,209)
Other post employment benefits (4,746,443)
Compensated absences (7,283,233)
I (31,561,137)
Total net assets of governmental activities $ 394,741,661
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IThe notes to the financial statements are an integral part of this statement.
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City of Clearwater,Florida
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30,2011
Special Capital Other Total
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General Development Improvement Governmental Governmental
Fund Fund Fund Funds Funds
REVENUES
Taxes:
Property $ 37,418,067 $ 1,871,894 $ - $ - $ 39,289,961
Sales - 7,929,342 - - 7,929,342
Utility 13,228,749 - - - 13,228,749 I
Communications services 5,852,335 - 5,852,335
Other taxes 2,170,515 1,390,561 - - 3,561,076
Total taxes 58,669,666 11,191,797 - - 69,861,463
Franchise fees 9,993,670 - - 9,993,670
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Licenses,permits,and fees 1,616,408 747,739 - - 2,364,147
Intergovernmental:
Federal - - 693,115 3,438,818 4,131,933 '
State 10,958,780 - 995,121 785,361 12,739,262
Local 8,015,355 - 20,918 1,785,795 9,822,068
Total intergovernmental 18,974,135 - 1,709,154 6,009,974 26,693,263
Charges for services 12,930,492 - - 1,150,167 14,080,659
Fines and forfeitures 1,020,894 - - 617,341 1,638,235
Investment earnings 647,353 709,866 11,627 567,881 1,936,727
Miscellaneous 1,650,756 - 105,399 1,206,715 2,962,870
Total revenues 105,503,374 12,649,402 1,826,180 9,552,078 129,531,034
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EXPENDITURES
Current:
General government 12,793,975 - 303,188 1,944,576 15,041,739
Public safety 61,194,729 - 252,086 2,163,048 63,609,863
Physical environment 3,309,612 - 268,958 143,702 3,722,272
Transportation 5,836,366 - 2,516,867 182,979 8,536,212
Economic environment 1,222,991 - - 1,549,592 2,772,583
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Human services - - - 180,287 180,287
Culture and recreation 23,101,060 - 874,417 1,222,305 25,197,782
Debt service:
Principal - - - 9,510,054 9,510,054
Interest&fiscal charges - - - 856,431 856,431
Capital outlay - - 8,558,490 606,187 9,164,677
Total expenditures 107,458,733 - 12,774,006 18,359,161 138,591,900
Excess(deficiency)of revenues
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over/(under)expenditures (1,955,359) 12,649,402 (10,947,826) (8,807,083) (9,060,866)
OTHER FINANCING SOURCES(USES)
Transfers in 8,996,293 - 20,384,619 5,527,169 34,908,081
Transfers out (7,146,505) (13,431,547) (1,916,850) (7,709,488) (30,204,390)
Other long term debt issued - - 1,066,249 - 1,066,249
Total other financing sources(uses) 1,849,788 (13,431,547) 19,534,018 (2,182,319) 5,769,940
Net change in fund balances (105,571) (782,145) 8,586,192 (10,989,402) (3,290,926)
Fund balances-beginning 24,066,627 6,497,088 34,410,417 46,972,493 111,946,625
Fund balances-ending $ 23,961,056 $ 5,714,943 $ 42,996,609 $ 35,983,091 $ 108,655,699
The notes to the financial statements are an integral part of this statement.
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I City of Clearwater,Florida
Reconciliation of the Statement of Revenues,Expenditures,and
Changes in Fund Balances of Governmental Funds
I to the Statement of Activities
For the Year Ended September 30,2011
Net change in fund balances-total governmental funds $ (3,290,926)
Amounts reported for governmental activities in the Statement of Activities are different because:
I 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.
l Expenditures for capital assets $ 11,936,975
Less current year depreciation (11,129,378)
807,597
I 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. (4,150,226)
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:
I Revenue bond principal payments 9,090,000
Capital lease principal payments 420,054
9,510,054
I 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 (875,538)
I 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 (784,185)
Some expenses reported in the Statement of Activities do not require the use of current financial
I resources and therefore are not reported as expenditures in the governmental funds:
Current year change in compensated absences 128,727
Amortization of deferred charge on refunding (214,186)
I Amortization of issuance costs (88,000)
Amortization of bond discounts and premiums 1,570
Current year change in accrued interest expense 71,289
(100,600)
I Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds:
Current year change in property taxes receivable (37,063)
I Current year change in liens receivable 8,619
Current year change in permit fees receivable 16,600
The net revenues of internal service funds(funds used to charge the costs of certain activities
individual funds)for governmental activities are reported in the Statement of Activities but not Ito
in the governmental funds. 2,695,183
Total change in net assets of governmental activities $ 2,733,266
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IIIThe notes to the financial statements are an integral part of this statement.
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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 30,2011
Variance with
Budgeted Amounts Actual Final Budget
REVENUES Original Final Amounts Positive(Negative)
Taxes:
Property $ 37,271,490 $ 37,384,600 $ 37,418,067 $ 33,467
Utility taxes 12,858,380 13,358,380 13,228,749 (129,631)
Communications services 6,610,160 5,810,160 5,852,335 42,175
Other taxes 2,160,000 2,060,000 2,170,515 110,515 I
Total taxes 58,900,030 58,613,140 58,669,666 56,526
Franchise fees 10,575,000 10,105,000 9,993,670 (111,330)
Licenses,permits,and fees 1,455,000 1,555,000 1,616,408 61,408
Intergovernmental:
State 8,683,260 11,000,019 10,958,780 (41,239)
Local 7,708,900 7,708,900 8,015,355 306,455
Total intergovernmental 16,392,160 18,708,919 18,974,135 265,216
Charges for services 12,608,360 12,785,360 12,930,492 145,132
Fines and forfeitures 688,800 688,800 1,020,894 332,094
Investment earnings 1,240,000 840,000 647,353 (192,647)
Miscellaneous 684,000 1,095,207 1,650,756 555,549
Total revenues 102,543,350 104,391,426 105,503,374 1,111,948
EXPENDITURES I
General government
City Council 277,450 278,650 258,180 20,470
City Manager's Office 1,129,940 1,129,940 1,089,614 40,326
City Attorney's Office 1,538,740 2,206,740 1,766,242 440,498
Official Records&Legislative Services 962,750 1,011,350 955,461 55,889 ,
Public Communications 950,320 950,820 887,289 63,531
Finance 2,180,180 2,187,780 2,012,224 175,556
Human Resources 1,052,110 1,052,110 1,019,489 32,621
Non-Departmental 2,148,760 3,006,760 2,751,498 255,262
Engineering 58,104 58,696 56,808 1,888
Public Services 16,215 15,696 15,931 (235)
Planning 1,329,850 1,329,850 1,266,042 63,808
City Auditor's Office 185,080 185,880 185,800 80
Office of Management&Budget 289,500 290,700 291,080 (380)
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Total general government 12,118,999 13,704,972 12,555,658 1,149,314
Public safety
Police 36,221,700 37,162,099 36,205,672 956,427
Fire 21,557,260 22,709,760 21,996,210 713,550
Development&Neighborhood Services 3,096,510 3,113,110 3,069,008 44,102
Total public safety 60,875,470 62,984,969 61,270,890 1,714,079
Physical environment
Engineering 2,643,732 2,670,668 2,584,752 85,916
Public Services 737,773 714,186 724,860 (10,674) '
Total physical environment 3,381,505 3,384,854 3,309,612 75,242
Transportation
Engineering 4,371,154 4,385,226 4,263,155 122,071
Public Services 1,682,112 1,715,918 1,565,177 150,741
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Total transportation 6,053,266 6,101,144 5,828,332 272,812
Economic environment
Economic Development 1,347,210 1,347,310 1,236,602 110,708
Total economic environment 1,347,210 1,347,310 1,236,602 110,708
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Culture and recreation
Parks and Recreation 18,076,640 17,820,261 17,474,983 345,278
Library 5,047,920 5,123,420 4,898,160 225,260
Marine 525,540 618,540 576,037 42,503
Total culture and recreation 23,650,100 23,562,221 22,949,180 613,041
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Total expenditures(budgetary basis) 107,426,550 111,085,470 107,150,274 3,935,196
Excess of revenues over expenditures(budgetary basis) (4,883,200) (6,694,044) (1,646,900) 5,047,144
OTHER FINANCING SOURCES(USES)
Transfers in 8,256,740 8,837,205 8,996,294 159,089
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Transfers out (4,043,800) (6,860,736) (7,146,505) (285,769)
Total other financing sources(uses)(budgetary basis) 4,212,940 1,976,469 1,849,789 (126,680)
Excess(deficiency)of revenues and other financing sources (670,260) (4,717,575) 202,889 4,920,464
over expenditures and other financing uses(budgetary basis)
Encumbered purchase orders,beginning of year - - (1,164,011) (1,164,011)
I
Encumbered purchase orders,end of year - - 855,551 855,551
Excess(deficiency)of revenues and other financing sources (670,260) (4,717,575) (105,571) 4,612,004
over expenditures and other financing uses(GAAP basis)
Fund balances-beginning 24,066,627 24,066,627 24,066,627 -
Fund balances-ending $ 23,396,367 $ 19,349,052 $ 23,961,056 $ 4,612,004
The notes to the financial statements are an integral part of this statement.
24 1
I
I
City of Clearwater,Florida
I Statement of Revenues,Expenditures,and Changes in Fund Balances-
Budget and Actual(GAAP Basis)
Special Development Fund
For the Year Ended September 30,2011
I
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
IREVENUES
Taxes:
Property $ 1,864,560 $ 1,867,170 $ 1,871,894 $ 4,724
Sales 8,025,340 7,500,340 7,929,342 429,002
Other taxes 1,400,000 1,400,000 1,390,561 (9,439)
I Total taxes 11,289,900 10,767,510 11,191,797 424,287
Licenses, permits,and fees 170,000 764,000 747,739 (16,261)
Investment earnings 25,000 733,000 709,866 (23,134)
I Total revenues 11,484,900 12,264,510 12,649,402 384,892
EXPENDITURES
Total expenditures - - -
IExcess of revenues over expenditures 11,484,900 12,264,510 12,649,402 384,892
I OTHER FINANCING SOURCES(USES)
Transfers out (15,621,530) (13,431,547) (13,431,547) -
Total other financing sources(uses) (15,621,530) (13,431,547) (13,431,547) -
IExcess/(Deficiency)of revenues and other
sources over expenditures and other uses (4,136,630) (1,167,037) (782,145) 384,892
IFund balances-beginning 6,497,088 6,497,088 6,497,088 -
Fund balances-ending $ 2,360,458 $ 5,330,051 $ 5,714,943 $ 384,892
I
I
I
The notes to the financial statements are an integral part of this statement.
1 25
City of Clearwater,Florida
I
Statement of Net Assets
Proprietary Funds I
September 30,2011
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
I
ASSETS
Current assets:
Cash and investments $ 37,713,951 $ 24,496,101 $ 21,377,224
Accrued interest receivable 424,705 112,229 87,854
Accounts and contracts receivable:
Billed 3,342,676 1,038,939 1,048,001
Unbilled charges estimated 2,071,300 1,410,300 670,119
111
5,413,976 2,449,239 1,718,120
Less: Allowance for uncollectable accounts (110,613) (48,220) (34,028)
Total receivables,net 5,303,363 2,401,019 1,684,092
Other receivables 260,440 - 111
Due from other funds - - -
Due from other governmental entities 2,866,784 - -
Inventories,at cost 730,209 1,020,570 -
Prepaid expenses and other assets 11,223 - 16,113
Total current assets-unrestricted 47,050,235 28,290,359 23,165,283
Current assets-restricted:
Restricted cash and investments 10,568,272 2,598,624 998,850
Due from other governmental entities 350,942 - -
Total current assets-restricted 10,919,214 2,598,624 998,850
I
Total current assets 57,969,449 30,888,983 24,164,133
Noncurrent assets:
Restricted:
IRestricted cash and investments 51,509,571 300,000 -
Deferred charges 1,644,043 244,749 -
Other receivables 187,113 - -
Advance to other funds - - -
I
Net pension asset 721,866 387,093 402,112
Capital assets:
Land and other nondepreciable assets 13,635,555 336,684 1,041,913 I
Capital assets,net of accumulated depreciation 218,499,309 44,132,518 1,900,489
Total noncurrent assets 286,197,457 45,401,044 3,344,514
Total assets 344,166,906 76,290,027 27,508,647
I
I
The notes to the financial statements are an integral part of this statement.
26
1
I
I
Activities
I Funds Governmental
Activities-
Stormwater Other Internal Service
IUtility Funds Total Funds
$ 17,596,688 $ 11,844,289 $ 113,028,253 $ 51,914,402
1 84,439 88,825 798,052 214,115
822,986 87,751 6,340,353 -
I 1,272,100 310,881 5,734,700
2,095,086 398,632 12,075,053
-
(24,012) (2,904) (219,777) -
' 2,071,074 395,728 11,855,276 -
- 260,440 9,524
- - - 111,925
I 4,044,938 1,336,097 8,247,819 -
64,648 1,815,427 500,833
15,672 10,313 53,321 1,329,156
23,812,811 13,739,900 136,058,588 54,079,955
I1,780,002 9,300,000 25,245,748 -
- - 350,942 -1111
1,780,002 9,300,000 25,596,690 -
25,592,813 23,039,900 161,655,278 54,079,955
2,785,950 - 54,595,521 -
317,451 - 2,206,243
-111 - - 187,113 -
- 2,439,353
73,026 173,038 1,757,135 432,401
I 24,341,072 4,126,583 43,481,807 729,591
47,477,157 23,732,319 335,741,792 14,515,555
74,994,656 28,031,940 437,969,611 18,116,900
I100,587,469 51,071,840 599,624,889 72,196,855
1
I
I
I (Continued)
I 27
City of Clearwater,Florida
I
Statement of Net Assets
Proprietary Funds
September 30,2011
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
LIABILITIES
Current liabilities:
Accounts and contracts payable 1,370,634 1,744,710 431,233
Accrued payroll 139,215 63,260 77,365
Accrued interest payable 12,516 11,775 4,745
Due to other funds-deficit in pooled cash - - -
Deposits - - -
Unearned revenue and liens - - - i
Current portion of long-term liabilities:
Compensated absences 396,003 296,095 187,097
Revenue bonds 865,000 728,750 -
Notes,loan pool agreement and acquisition contracts 50,345 - 82,673
Due to other funds - - -
Claims payable - - -
Total current liabilities(payable from current assets) 2,833,713 2,844,590 783,113 I
Current liabilities(payable from restricted assets): 1,601,604
Construction contracts payable 1,601,604 - -
Accrued interest payable 2,359,166 54,108 -
I
Current portion of long-term liabilities,revenue bonds 4,325,000 66,250
-
Customer deposits 2,633,444 2,478,266 998,850
Total current liabilities payable from restricted assets 10,919,214 2,598,624 998,850
ITotal current liabilities 13,752,927 5,443,214 1,781,963
Noncurrent liabilities:
Compensated absences 221,041 165,273 104,433
Other postemployment benefits 643,220 298,369 433,986
I
Revenue bonds(net of unamortized discounts and
deferred amount on refunding) 173,989,825 13,962,938 -
Notes,loan pool agreement and acquisition contracts 130,513 - 173,143
I
Unearned revenue 187,113 - -
Advances from other funds - - -
Claims payable - - - I
Total non-current liabilities 175,171,712 14,426,580 711,562
Total liabilities 188,924,639 19,869,794 2,493,525
Net assets:
I
Invested in capital assets,net of related debt 67,080,518 29,711,264 2,686,586
Restricted for:
Revenue bond debt service and sinking fund requirements 18,122,734 66,250 -
I
Revenue bond renewal and replacement requirements 16,142,909 300,000 -
Water and sewer impact fees 7,262,590
-
Stormwater system fees - - -
Developer agreements - - -
Unrestricted 46,633,516 26,342,719 22,328,536
Total net assets $ 155,242,267 $ 56,420,233 $ 25,015,122
I
The notes to the financial statements are an integral part of this statement.
I
28
1
I
Activities
Funds Governmental
I Activities-
Internal Stormwater Other ernal Service
Utility Funds Total Funds
I
71,007 276,499 3,894,083 2,488,310
35,387 50,067 365,294 130,396
29,036
387,388 387,388
- 52,359 52,359 -
I - 22,836 22,836 701,861
151,101 125,556 1,155,852 580,129
I 96,250 - 1,690,000 -
55,519 48,311 236,848 2,416,440
- 20,271 20,271 91,654
- - - 2,219,200
I409,264 983,287 7,853,967 8,627,990
- - 1,601,604 -
I 721,252 3,134,526-
1,058,750 5,450,000
-
- - 6,110,560 -
' 1,780,002 - 16,296,690 -
8,627,
2,189,266 983,287 24,150,657
8,627,990
84,342 70,082 645,171 323,814
I182,098 298,434 1,856,107 652,134
37,716,615 - 225,669,378 -
' 206,984 60,391 571,031 4,762,038
- -
187,113
- 81,086 81,086 458,267
I - - - 6,468,800
38,190,039 509,993 229,009,886 12,665,053
40,379,305 1,493,280 253,160,543 21,293,043
I32,684,111 27,750,200 159,912,679 8,066,668
I 3,529,719 - 21,718,703
16,442,909
-
- - 7,262,590 -
314,981 - 314,981 -
' - 9,300,000 9,300,000 -
23,679,353 12,528,360 131,512,484 42,837,144
$ 60,208,164 $ 49,578,560 346,464,346 $ 50,903,812
I Adjustment to reflect consolidation of
internal service fund activities related to 4,554,027
enterprise funds
INet assets of business-type activities $ 351,018,373
1 29
I
I
City of Clearwater,Florida
I
Statement of Revenues,Expenses,and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30,2011
I
Business-type
Enterprise
I
Water
and Sewer Gas Solid Waste
Utility Utility Utility
IOperating revenues:
Sales to customers $ 59,215,034 $ 35,101,714 $ 18,797,495
Service charges to customers 470,887 1,139,989 84,683
I
User charges to customers - - -
Billings to departments - - -
Rentals - - - I
Total operating revenues 59,685,921 36,241,703 18,882,178
Operating expenses:
Personal services 10,056,587 4,585,370 5,922,224
I
Purchases for resale 7,616,248 14,349,030 13,343
Operating materials and supplies 2,623,291 234,872 363,273
Transportation 988,301 569,375 3,272,851 I
Utility service 3,081,043 88,496 90,573
Dumping charges - - 4,160,197
Depreciation 11,721,789 1,579,548 268,250
I
Interfund administrative charges 5,440,500 2,303,610 884,680
Other current charges:
Professional fees 1,685,586 266,346 60,370
Advertising - 537,865 6,742
I
Communications 178,376 78,577 57,209
Printing and binding - 11,006 1,464
Insurance 735,980 431,929 190,990 111 Repairs and maintenance 7,085,245 76,809 104,120
Rentals - 5,085 1,769
Miscellaneous 406,956 82,402 44,450
Data processing charges 406,160 314,060 142,090
I
Taxes - 1,999,438 -
Total other current charges 10,498,303 3,803,517 609,204
Total operating expenses 52,026,062 27,513,818 15,584,595
I
Operating income(loss) 7,659,859 8,727,885 3,297,583
I
I
The notes to the financial statements are an integral part of this statement.
I
30
I
I
I
I
I
Activities
I Funds Governmental
Activities-
Stormwater Other Internal Service
IUtility Funds Total Funds
$ 15,097,029 $ 4,486,700 $ 132,697,972 $ -
I 67,660 7,286 1,770,505 -
6,425,773 6,425,773
-
- - - 40,754,833
I - 1,813,201 1,813,201 -
15,164,689 12,732,960 142,707,451 40,754,833
I 2,786,769 3,450,701 26,801,651 10,392,395
- 2,768,262 24,746,883 4,535,075
351,207 191,517 3,764,160 603,689
I 828,708 594,054
377,543 6,253,289 287,843
3,637,655 530,640
- - 4,160,197 -
II 2,465,160 1,511,058 17,545,805 4,751,268
1,417,680 1,714,401 11,760,871 270,670
1,044,083 397,080 3,453,465 914,079
34,700 579,307 -
28,078 35,580 377,820 1,002,541
- 12,979 25,449 14,708
I 58,290 155,560 1,572,749 16,168,819
1,187,555 500,117 8,953,846 2,525,090
-
454,613 461,467 381,595
I 60,274 281,390 875,472 210,425
154,420 102,980 1,119,710 388,710
-
6,402 2,005,840 8,299
2,532,700 1,981,401 19,425,125 21,614,266
I10,382,224 12,588,937 118,095,636 42,985,846
4,782,465 144,023 24,611,815 (2,231,013)
I
I
I (Continued)
1 31
I
I
City of Clearwater,Florida 1
Statement of Revenues,Expenses,and Changes in Fund Net Assets
Proprietary Funds
I
For the Year Ended September 30,2011
Business-type
I
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Nonoperating revenues(expenses):
Investment earnings 1,663,119 551,070 449,138
I
Interest expense (8,632,229) (741,031) (16,001)
Amortization of bond issue costs (135,520) (27,440) -
Gain on exchange of capital assets - - -
Loss on exchange of capital assets (40,974) (730) - I
Other 123,860 228,347 322,791
Total nonoperating revenue(expenses) (7,021,744) 10,216 755,928
Income(loss)before contributions and transfers 638,115 8,738,101 4,053,511
Capital grants and contributions 3,756,337 - -
Transfers in 161,423 4,940 14,795
Transfers out (3,120,268) (1,795,149) (968,370)
I
Changes in net assets 1,435,607 6,947,892 3,099,936
Total net assets-beginning 153,806,660 49,472,341 21,915,186
I
Total net assets-ending $ 155,242,267 $ 56,420,233 $ 25,015,122
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
I
Change in net assets of business-type activities(page 19)
I
I
I
I
I
The notes to the financial statements are an integral part of this statement.
I
32
I
I
I
I
I
IActivities
Funds Governmental
Activities-
1 Stormwater Other Internal Service
Utility Funds Total Funds
I 434,372 399,166 3,496,865 1,065,851
(1,751,811) (54,364) (11,195,436) (223,225)
(27,242) - (190,202) -
1 - - -
(50,769) 220,121
(9,065) 769) (7,593)
57,273 212,353 944,624 159,425
(1,296,473) 557,155 (6,994,918) 1,214,579
I3,485,992 701,178 17,616,897 (1,016,434)
1,300,438 232,899 5,289,674 286,950
2,489 609,747 793,394 2,821,155
1 (1,028,557) (1,391,527) (8,303,871) (14,369)
3,760,362 152,297 15,396,094 2,077,302
I56,447,802 49,426,263 48,826,510
$ 60,208,164 $ 49,578,560 $ 50,903,812
I (617,881)
$ 14,778,213
I
I
I
I
I
I
I 33
I
City of Clearwater,Florida
Statement of Cash Flows
I
Proprietary Funds
For the Year Ended September 30,2011
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers $ 59,627,614 $ 35,453,280 $ 18,872,754
Cash received from other funds - - -
Cash payments to suppliers (17,739,324) (19,482,484) (4,730,801)
Cash payments to employees (10,200,245) (5,040,979) (5,904,900)
Cash payments to other funds (8,805,021) (2,382,187) (4,547,820)
I
Other revenues 123,860 228,347 322,791
Net cash provided by operating activities 23,006,884 8,775,977 4,012,024
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 161,422 4,940 14,795
Transfers to other funds 3,120,268 1,795,149
funds (3,120,268) ( ) (968,370)
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 (2,958,846) (1,790,209) (953,575)
ICASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt (52,984,150) (653,385) (123,160)
Interest paid (9,373,431) (752,901) (19,495)
Acquisition of capital assets (12,747,817) (3,652,641) (186,193)
Sale of capital assets - - -
Proceeds from issuance of debt 48,445,050 - -
Payment of bond issue costs (494,871) - -
Capital contributed by:
Other governmental entities 3,517,424 - -
I
Property owners 6,420 - -
Developers 232,493 - -
Net cash provided(used)by capital
and related financing activities (23,398,882) (5,058,927) (328,848) I
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 1,872,036 586,846 467,943
Net cash provided by investing activities 1,872,036 586,846 467,943
Net increase(decrease)in cash and cash equivalents (1,478,808) 2,513,687 3,197,544
Cash and cash equivalents at beginning of year 101,270,602 24,881,038 19,178,530 1
Cash and cash equivalents at end of year $ 99,791,794 $ 27,394,725 $ 22,376,074
Cash and cash equivalents classified as:
Cash and investments $ 37,713,951 $ 24,496,101 $ 21,377,224
Restricted cash and investments 62,077,843 2,898,624 998,850
Total cash and cash equivalents $ 99,791,794 $ 27,394,725 $ 22,376,074 I
The notes to the financial statements are an integral part of this statement. I
34
I
I
Activities
Funds Governmental
Activities-
Stormwater Other Internal Service
IUtility Funds Total Funds
I $ 15,060,817 $ 12,596,022 $ 141,610,487 $ -
- - 40,754,833
(3,275,178) (6,044,188) (51,271,975) (24,922,714)
I (2,787,240) (3,468,794) (27,402,158) (10,371,881)
(2,504,145) (2,365,342) (20,604,515) (1,513,656)
57,273 212,353 944,624 86,095
6,551,527 930,051 43,276,463 4,032,677
I
2,489 609,747 793,393 2,821,155
(1,028,557) (1,391,527) (8,303,871) (14,369)
387,388 387,388
- - (1,899,999)
I (1,026,068) (394,392) (7,123,090) 906,787
I (1,162,756) (61,279) (54,984,730) (2,910,022)
(1,754,202) (26,167) (11,926,196) (223,225)
(2,159,823) (1,078,248) (19,824,722) (5,175,379)
- - 220,121
I 289,687 - 48,734,737 2,707,070
(494,871)
I 1,408,782 338,420 5,264,626 -
6,420
- - 232,493 -
I (3,378,312) (827,274) (32,992,243) (5,381,435)
I 451,238 444,401 3,822,464 1,153,609
451,238 444,401 3,822,464 1,153,609
2,598,385 152,786 6,983,594 711,638
I19,564,255 20,991,503 185,885,928 51,202,764
$ 22,162,640 $ 21,144,289 $ 192,869,522 $ 51,914,402
I $ 17,596,688 $ 11,844,289 $ 113,028,253 $ 51,914,402
4,565,952 9,300,000 79,841,269 -
I $ 22,162,640 $ 21,144,289 $ 192,869,522 $ 51,914,402
(Continued)
I 35
I
I
City of Clearwater,Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30,2011
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Reconciliation of operating income(loss)to I
net cash provided by operating activities:
Operating income(loss) $ 7,659,859 $ 8,727,885 $ 3,297,583 1
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Other nonoperating revenue 123,860 228,347 322,791
Depreciation 11,721,789 1,579,548 268,250
Capitalized labor (273,489) (588,864) -
Construction in process reclassified as expense - - -
Change in assets and liabilities:
(Increase)decrease in accounts receivable (168,814) (319,841) (62,983)
(Increase)decrease in amount due from other governments 3,533,974 - - I
(Increase)decrease in inventory 127,881 (168,902) -
(Increase)decrease in prepaid expenses - - -
Increase(decrease)in accounts and contracts payable 189,165 1,901 115,500
Increase(decrease)in deposits payable 41,533 152,721 53,559
Increase(decrease)in unearned revenue - (881,743) -
(Increase)decrease in net pension asset 115,640 58,712 66,473
Increase(decrease)in accrued payroll (219,918) (83,121) (149,989)
Increase(decrease)in other postemployment benefits 155,404 69,334 100,840
Total adjustments 15,347,025 48,092 714,441
Net cash provided by operating activities $ 23,006,884 $ 8,775,977 $ 4,012,024
Noncash investing,capital and financing activities:
Capital assets transferred from General Government $ - $ - $ -
I
I
The notes to the financial statements are an integral part of this statement. i
I
36 I
I
I
1
1 Activities
Funds Governmental
I
Activities-
Stormwater Other Internal Service
Utility Funds Total Funds
I
I $ 4,782,465 $ 144,023 $ 24,611,815 $ (2,231,013)
1 57,273 212,353 944,624 159,425
2,465,160 1,511,058 17,545,805 4,751,268
- (862,353) -
(210,231) (210,231)
(103,872) (171,817) (827,327) (9,524)
I (437,558) 3,096,416
- (31,938) (72,959) (40,949)
(100) - (100) (79,475)
I (1,239) (750,414) (445,087) 1,526,237
-
18,967 266,780
15,912 (865,831) (63,806)
-
I 30,365 30,195 301,385 125,184
(75,981) (114,692) (643,701) (230,308)
45,245 66,404 437,227 125,638
I 1,769,062 786,028 18,664,648 6,263,690
$ 6,551,527 $ 930,051 $ 43,276,463 $ 4,032,677
I
$ - $ - $ - $ 279,975
I
I
I
I
37
1
I
City of Clearwater,Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30,2011
I
Pension
Trust Agency
Funds Fund
ASSETS
Cash and investments $ 3,502,986 $ 423,275
Managed investment accounts,at fair value:
Cash and cash equivalents 38,559,675 -
Government bonds 32,906,901 -
Agency bonds 15,470,253 -
Domestic corporate bonds 70,609,858 -
International equity securities 66,784,078 -
Domestic stocks 248,788,426 -
Mortgage backed bonds 68,049,561 -
Asset backed securities 759,343 -
Commodity exchange traded funds 1,238,215 -
Domestic equity mutual funds 42,680,473 -
International equity mutual funds 26,937,654 -
Real estate 24,816,012 -
Total managed investment accounts 637,600,449 -
Securities lending collateral 150,576,091 -
I
Receivables:
Interest and dividends receivable 2,113,057 1,508
Unsettled investment sales 12,540,708 -
Securities lending earnings receivable 44,292 -
Accounts receivable 32,696 -
Total receivables 14,730,753 1,508
Total assets 806,410,279 424,783
LIABILITIES
Accounts payable 798,159 -
Unsettled investment purchases 20,706,584 -
Obligations under securities lending 150,576,091 -
Other miscellaneous payables:
Downtown Development Board - 309,959
Special purpose funds - 7,640
Other - 107,184
Total miscellaneous payables - 424,783 Il
Total liabilities 172,080,834 424,783
NET ASSETS
Held in trust for pension benefits and other purposes 634,329,445 -
Total net assets $ 634,329,445 $ -
The notes to the financial statements are an integral part of this statement. I
38 I
City of Clearwater, Florida
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30,2011
I
Pension
Trust
Funds
ADDITIONS
Contributions:
Contributions from employer $ 17,652,617
Contributions from employer-state tax 1,962,592
Contributions from employees 6,049,656
Total contributions 25,664,865
Investment income:
Net depreciation in fair value of investments (15,383,359)
Interest 8,295,692
Dividends 6,847,665
(240,002)
1 Less investment expenses:
Investment management/custodian fees 3,827,420
Net income(loss)from investing activities (4,067,422)
Securities lending income:
Gross earnings 497,674
Gain on securities lending collateral 1,556,260
Rebate paid 131,722
Bank fees (220,091)
Net income from securities lending 1,965,565
Total additions 23,563,008
DEDUCTIONS
Benefits and withdrawal payments:
Benefits 32,914,832
Withdrawal payments 1,052,623
Total benefits and withdrawal payments 33,967,455
Income(loss)before administrative expenses (10,404,447)
Administrative expenses 201,339
Net increase(decrease) (10,605,786)
Net assets held in trust for pension benefits:
Beginning of year 644,935,231
End of year $ 634,329,445
The notes to the financial statements are an integral part of this statement.
' 39
City of Clearwater, Florida I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
Note I—Summary of Significant Accounting Policies I
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 108,000 and is located in the four-county Tampa-St. Petersburg-
Clearwater Metropolitan Statistical Area (MSA),which has an estimated population of 2,783,000.
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, 2011, 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 2011)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, 2011, are available from the DDB.
I
40 1
I
I
City of Clearwater, Florida
1 Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I 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),
I 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 27, 1999, (the Interlocal Agreement), executed and delivered among FGU and its members, which include
I 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,
I 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, 2011, FGU has 25 members. Separate
audited financial statements of FGU as of September 30, 2011, are available from FGU.
III
B. Basic Financial Statements Under the New Financial Reporting Model
I The City's Basic Financial Statements contain three components: government-wide financial statements,fund financial
statements, and notes to the financial statements.
I 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
I 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.
I 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.
1 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
I 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
1 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.
I Exceptions to this general rule are payments-in-lieu of taxes and other interfund services provided and used. Elimination of
these charges would distort the direct costs and program revenues reported for the various functions concerned.
I 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. 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
IIcategory)are summarized into a single column.
1 41
1
City of Clearwater, Florida
y ,
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
The City reports the following major governmental funds: I
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.
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
services 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 services 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, 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 Firefighters'
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.
42 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IlC. Measurement Focus, Basis of Accounting,and Financial Statement Presentation
I 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
I 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
I 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
I 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.
I 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.
I Taxes, franchise fees, 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.
D. Assets, Liabilities,and Net Assets or Equity
1. 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
I 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
I 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
I 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
I 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
I compensating balance. The fed funds rate range was 0.00% to 0.25% at September 30, 2011. 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 9, 2010, consolidated
cash pool investments are limited to the following: United States Government Securities, Certificates of Deposit in Local
IBanks, Repurchase Agreements, Savings Accounts in Local Banks, Federal Government Agency Securities, Municipal
i 43
1
City of Clearwater, Florida I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 T
Bonds issued by governmental entities within the state of Florida (other than City of Clearwater issues), and State of
Florida Bonds.All investments are reported at fair value.
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, 2011, the performance measure weighted
average was 0.76%. The actual pooled cash earnings performance before bank charges was 1.94%.
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
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. I
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".
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 3.40%. 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 2006 thru 2010), and 100% of the
receivable attributable to fiscal years 2005 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 I
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.
I
44
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IThe 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 5.1550 mills for the year ended September 30, 2011 was
the same rate that was levied in the preceding fiscal year.
IWater, gas, solid waste, stormwater, and recycling charges to customers are based on actual consumption. Consumption
is determined on a monthly cycle basis.The City recognizes the unbilled consumption as revenue as of September 30' .
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
Imajority 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.
I4. 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
Iwater and sewer systems; Gas Utility and Solid Waste Utility restricted customer deposits; and assets of the Water& Sewer
Utility, Gas Utility, and Stormwater Utility 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.
I5. 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).
Individual assets that cost less than $5,000, but that operate as part of a network system, may be capitalized in the
Iaggregate, using the group method. Additionally, higher thresholds for capitalization apply to the following categories: land
improvements, $50,000; buildings, building improvements, and utility systems, $100,000; intangible assets, $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 value at the date of donation. The costs of normal
I 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
I constructed. The total interest expense incurred by business-type activities during the current fiscal year was $11,195,436.
Interest expense amounts were netted against related project interest earnings of$290,337, $-0-, and $-0-, respectively, to
arrive at net capitalized interest of$70,158, $90,679, and $52,785 for water&sewer, gas, and stormwater system projects,
irespectively.
Property, plant, equipment, and intangible assets of the primary government are depreciated using the straight-line method
over the following estimated useful lives:
I . •
45
1
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
Assets Years
Buildings 10—40
Public domain infrastructure 20—40
Utility systems 18—40
Machinery&equipment 5— 15
Vehicles 5— 10
Intangible assets 5—20
1
6. Compensated absences I
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
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. I
8. Fund equity
The City has implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, for
the fiscal year ended September 30, 2011. The objective of this statement is to enhance the usefulness of fund balance
information by providing clearer fund balance classifications that can be more consistently applied. This statement
establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which the government is
bound to observe constraints imposed upon the use of the resources reported in the governmental funds. Each
classification of fund balance is based on the relative strength of the constraints that control how specific amounts can be
spent.
The order of spending follows the same hierarchy. Restricted resources are applied first when expenditures are incurred
for purposes for which either restricted or unrestricted (committed, assigned or unassigned) amounts are available.
46 1
I
I
City of Clearwater, Florida
1 Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then
unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund
balance classifications could be used.
1 Nonspendable fund balance represents amounts that cannot be spent, such as inventories, prepaid amounts, and
amounts that are legally or contractually required to remain intact.
I
Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution,
external resource providers, or through enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal vote of
Ithe City Council.
Assigned fund balance includes amounts that are intended to be used by the government for specific purposes but do not
Imeet the criteria to be classified as restricted or committed because they are supported by management's intent rather
than a formal action of the City Council.
Positive unassigned fund balance should only be reported in the General Fund. In all other funds, unassigned is limited to
negative residual fund balances.
jMinimum fund balance: Per City Council Policy a minimum General Fund unassigned balance of 8.0% of the subsequent
year's budgeted expenditures must be maintained as a contingency fund for unanticipated financial needs. In addition,
0.5% of the subsequent year's budgeted expenditures must be maintained to fund unanticipated retirements of employees
Iresiding in General Fund departments. Budgeted appropriations will maintain these minimum reserves of 8.5% of
subsequent year's budgeted expenditures, with excess reserves available for specific capital improvement projects or other
"one-time" needs.
IINote II—Stewardshi p,Compliance,and Accountabilit y
IA. 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
Iconsistent 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
Iencumbrances 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.
IThe 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
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
47
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
City Council may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another. 1
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, capital expenditures, 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. The CRA Fund Budget is adopted on a basis consistent with
GAAP, and all 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 Ill—Detailed Notes on All Funds
I
A. Deposits and investments I
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.
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. 1
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 Note (I)(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.
I
48 1
I
I
City of Clearwater, Florida
1 Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
1
I Carrying % of Weighted avg Moody's
Pooled Cash and Investments Amount Portfolio maturity(years) Rating
Cash and cash equivalents:
I Cash on hand $ 153,362 n/a n/a
Money Markets 23,921,378 7.1% n/a n/a
Total cash and cash equivalents 24,074,740 7.2%
I Investments:
Treasuries 2,249,921 0.7% 7 n/a
U.S. Agencies:
I Farmer Mac(FAMCA) 15,838,087 4.7% 2.16 Aaa
Government National Mortgage Assn (GNMA) 17,439,181 5.2% 3.05 Aaa
Federal Farm Credit Bank (FFCB) 17,338,956 5.2% 2.04 Aaa
i Federal Home Loan Bank(FHLB) 67,282,372 20.1% 3.60 Aaa
Federal Home Loan Mortgage Assn (FHLMC) 41,541,842 12.4% 2.78 Aaa
Federal Home Loan Mortgage Assn Zeroes 1,477,284 0.4% 10.97 Aaa
IFederal National Mortgage Assn (FNMA) 66,818,852 19.9% 5.77 Aaa
Federal National Mortgage Assn (FNMA)Zeroes 8,459,815 2.5% 9.57 Aaa
Dept of Housing and Urban Development(HUD) 5,387,947 1.6% 5.93 Aaa
I
Student Loan Marketing Association (SLMA) 6,839,000 2.0% 1.31 Aaa
Student Loan Marketing Association (SLMA) 4,367,965 1.3% 3.90 Bat
I Tennessee Valley Authority(WA) 5,398,393 1.6% 5.40 Aaa/NR
Tennessee Valley Authority(TVA)Zeroes 5,385,443 1.6% 4.13 Aaa/NR
Other Government Sponsored Agencies 15,589,657 4.6% 3.20 Aaa
1 Other Government Sponsored Agencies-Zeroes 424,962 0.1%
279,589,756 0.44 Aaa
Total U.S.Agencies 589,756 83.3%
Municipal bonds 9,992,804 3.0% 1.58 Aa2/Aa3/A3
I Municipal bonds 1,438,794 0.4% 10.90 Baal/NR
Total municipal bonds 11,431,598 3.4%
Asset Backed Bonds 9,050,998 2.7% 5.31 Aaa
I Collateralized mortgage obligations 9,072,973 2.7% 1.91 Aaa
Total investments 311,395,246 92.8%
Total pooled cash and investments $ 335,469,986 100.0% 3.85
I
I
I
49
I
Ci ty of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
I
Cash and investments as of September 30, 2011 are classified in the accompanying financial statements as follows:
Statement of net assets 09/30/11
Primary Government: I
Cash and investments $ 251,702,456
Restricted cash and investments 79,841,269
Fiduciary Funds:
Cash and investments-pension funds 3,502,986
Cash and investments-agency fund 423,275
Total cash and investments per CAFR $ 335,469,986 1
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 four years or less, except for temporary situations due to market conditions and/or cash needs when
the average maturity may exceed four years but shall not exceed five 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.
Pension Plan Assets
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 (I)(D)(1)for a discussion of allowable investments under the pension plans.
Employees Pension Plan
At year-end, the Employees' Pension Plan cash and investment balances were as follows:
50 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
Carrying %of Weighted avg S&P
Employees' Pension Plan Cash and Investments Amount Portfolio maturity(years) Rating
Cash and cash equivalents:
I Cash and cash equivalents-pooled cash $ 781,117 0.1% n/a n/a
Cash in managed investment accounts 37,408,464 6.1% n/a n/a
Total cash and cash equivalents 38,189,581
Investments:
Government bonds 15,623,039 2.6% Aaa
Government bonds 566,761 0.1% Aa2
Government bonds 2,680,844 0.4% 9 1 A-
111 Government bonds 5,452,399 0.9% Al
Government bonds 954,576 0.2% A3
Government bonds 2,314,679 0.4% Baal/Nr
I Treasuries-index linked 1,688,005 0.3% 23.1 AAA
U.S. agencies 5,813,022 1.0% AGY
U.S. agencies 3,823,373 0.6% Aaa
U.S. agencies 397,090 0.1% 10.7 Aal
I U.S.agencies 252,042 0.0% Al
U.S. agencies 891,262 0.1% Baal/Nr
Domestic corporate bonds 7,582,210 1.2% Aal/Aa2/Aa3
I Domestic corporate bonds 19,685,611 3.2% Al/A2/A3
Domestic corporate bonds 31,348,863 5.1%
10.2 Baal/Baa2/Ba3
Domestic corporate bonds 3,985,798 0.7% Bal/Ba2/Ba3
Domestic corporate bonds 531,000 0.1% B1/B2/B3
I Domestic corporate bonds 3,701,235 0.6% NR
Asset backed bonds 759,343 0.1% 11.9 NR
Domestic stocks 241,368,780 39.5% n/a n/a
I International equity securities 66,784,078 10.9% n/a n/a
Mortgage backed bonds 66,787,964 10.9% 24.3 AGY/Aaa
Commodity exchange traded notes 1,238,215 0.2% n/a n/a
I International equity mutual funds 25,612,532 4.2%
38,066,505 6.2%
n/a n/a
Domestic equity mutual funds n/a n/a
Real Estate/Timber 24,816,012 4.1%
Total investments 572,725,238
Total cash and investments $ 610,914,819 100.0%
IInterest 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:
IThe 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, 2011, the
IPlan had $8,218,033 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
1 51
I
Ci ty of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
of the downgrades and the planned courses of action related to these securities on a timely basis, consistent with the I
policy's individual manager guidelines.
Concentration of Credit Risk-Employees' Pension Plan: I
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 Investment Currency Fair Value
Common Stock Hong Kong Dollar 6,087,382 Common Stock Qatar Rial 499,255
Common Stock South Korea Won 5,205,924 Common Stock Kuwait Dinar 445,413
Common Stock Brazil Real 4,306,889 Common Stock Morocco Dirham 438,071
Common Stock Euro 3,563,300 Common Stock Egypt Pound 374,441
Common Stock Chinese Yan Renminibi 3,234,801 Common Stock Colombia Peso 357,310
Common Stock Taiwan Dollars 2,822,710 Common Stock U.A.E. Emirati Dirham 345,073
Common Stock India Rupee 2,770,921 Common Stock Canadian Dollar 251,824
Common Stock South Africa Rand 2,616,898 Common Stock Saudi Arabia Saudi Riyal 232,496
III
Common Stock Mexico Pesos 2,539,082 Common Stock Vietnam Dong 225,154
Common Stock United Kingdom UK Pound 2,084,629 Common Stock Jordan Dinar 225,154
Common Stock Japanses Yen 1,755,563 Common Stock Panama Panamian Balboa 217,812
Common Stock Thailand Bath 1,724,651 Common Stock Oman Rial 215,365
Common Stock Russian Ruble 1,594,941 Common Stock Nigeria N'aira 190,891
Common Stock Malaysia Ringgit 1,461,999 Common Stock Kenya Shilling 190,891
Common Stock Indonesia Rupiah 1,247,977 Common Stock Croatia Kuna 185,997
Common Stock Singapore Dollar 1,160,063 Common Stock Romania N'ew Leu 181,102 II
Common Stock Norwegian Krone 1,029,211 Common Stock Australian Dollar 151,971
Common Stock Chile Peso 980,903 Common Stock Peru nuevo sol 151,734
Common Stock Poland Zloty 895,642 Common Stock Mauritius Rupee 137,050
Common Stock Turkey Liras 883,485 Common Stock British Pound 97,893
Common Stock Czeck Rep Koruna 756,998 Common Stock Botswana Pula 34,263
Common Stock Philippines Peso 696,145 Common Stock Ghana Cedi 19,579
Common Stock Swiss Franc 549,255 Common Stock Bulgaria Lev 9,789
Common Stock Swedish Krona 536,422 Common Stock Latvia Lat 2,447
Common Stock Hungary Forint 509,912
Total $ 56,196,678
I
52 1
1
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I . .
Firefighters'Relief and Pension Plan
At year-end, the Firefighters' Relief and Pension Plan cash and investment balances were as follows:
ICarrying %of Weighted avg Moody's
Amount Portfolio maturity(years) Rating
I Cash and cash eauivalents:
Cash and cash equivalents $ 2,719,676 42.5% n/a n/a
Total cash and cash equivalents 2,719,676
I Investments:
U.S. agency-Federal Home Loan Mortgate Corp. (FHLMC) 500,380 7.8% 1.88 Aaa
U.S. agency-Federal Agricultural Mortgage Corp. (FAMCA) 1,171,012 18.3% 4.03 Aaa
U.S. agency-Federal Home Loan Bank(FHLB) 2,001,977 31.3% 8.19 Aaa
I Total investments 3,673,369
$
Total managed cash and investments 6,393,045 100.0%
1 Interest Rate Risk—Firefighters' Relief and Pension Plan:
As a means of limiting exposure to fair value losses arising from rising interest rates, the Firefighters' Relief and Pension
IPlan 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—Firefighters' Relief and Pension Plan:
The Firefighters' 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.
I Concentration of Credit Risk—Firefighters' Relief and Pension Plan:
The Firefighters' 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
Iindividual issuers or agencies due to the relatively small portfolio of this closed pension plan.
IForeign Currency Risk—Firefighters' Relief and Pension Plan:
The Firefighters' Relief and Pension Plan investment policy does not permit investment in foreign fixed income or equity
securities.
I
Police Supplemental Pension Plan
At year-end,the Police Supplemental Pension Plan cash and investment balances were as follows:
1 53
I
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
Carrying %of Weighted avg Moody's
Amount Portfolio maturity(years) Rating
Cash and cash eauivalents:
Cash in bank $ 2,193 0.0% n/a n/a
Cash in managed investment accounts 595,239 4.4% n/a n/a
I
Total cash and cash equivalents 597,432
Investments:
Treasuries 3,094,276 22.8% 8.14 AAA
U.S. agencies 620,096 4.6% 2.78 AAA
Domestic corporate bonds 217,960 1.6% AA2/AA3
Domestic corporate bonds 556,720 4.1% 5.82 A1/A2/A3
Domestic corporate bonds 158,519 1.2% Baal/NR
International equity securities 2,436,149 18.0% n/a n/a
Domestic stocks 5,874,074 43.3% n/a n/a
Total investments 12,957,794
Total managed cash and investments $ 13,555,226 100.0%
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 Barclays
Government/Credit Bond Index subject to quarterly review. Additionally, no issues, Treasury, or Corporate Bonds may be
purchased with more than 15 years to maturity.
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 any one or more of the recognized national 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 Statutes; 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 stock position of
the equity portfolio to no more than 3 percentage points in excess of the S&P 500. Additionally, any sector position of the
equity portfolio may not exceed the S&P 500 sector weighting by more than 10 percentage points. Investments in fixed
income securities of a single issuer with the exception of the U.S. Government and its agencies may not exceed 5 percent
of the fixed income portfolio's value.
Foreign Currency Risk—Police Supplemental Pension Plan:
Risk of loss arises from changes in currency exchange rates. The Police Supplemental Pension Plan investment policy 1
does not have a formal policy to limit foreign currency risk, other than a guideline of that no more than 25% of the portfolio
may be invested in foreign assets. The Plan has no current exposure to foreign currency risk.
I
54
1
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IFirefighters Supplemental Pension Plan
At year-end, the Firefighters Supplemental Pension Plan cash and investment balances were as follows:
111
Carrying %of Weighted avg Moody's
I Amount Portfolio maturity(years) Rating
Cash and cash equivalents:
Cash in managed investment accounts $ 555,972 5.4% n/a n/a
I Total cash and cash equivalents 555,972
Investments:
Treasuries 290,669 2.8% 11.80 Aaa
Municipal obligations 185,094 1.8% 1 98 Aa3/A1/A2
i Municipal obligations 56,559 0.6% N/R
Domestic corporate bonds 88,315 0.9% Aaa
Domestic corporate bonds 243,320 2.4% 8.70 Aa2/Aa3
I Domestic corporate bonds 1,621,675 15.8% Al/A2/A3
Domestic corporate bonds 888,631 8.7% Baal/Baal
Domestic stocks 1,545,572 15.1% n/a n/a
Mortgage backed bonds 1,261,597 12.3% 22.90 n/a
I Domestic equity mutual funds 2,177,819 21.3% n/a n/a
International equity mutual funds 1,325,122 12.9% n/a n/a
Total investments 9,684,373
Total managed cash and investments $ 10,240,345 100.0%
I
Interest Rate Risk—Firefighters Supplemental Pension Plan:
I 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 135% of the duration of the Barclay's
Capital Aggregate Bond Index.
I
Credit Risk—Firefighters Supplemental Pension Plan:
1 The Firefighters Supplemental Pension Plan investment policy limits credit risk by restricting equity investments to
securities that are fully and easily negotiable. Investments in corporations whose stock has been publicly traded for less
than one year are limited to 15% of the equity portfolio. Investment in equity securities whose market capitalization is less
Ithan $2 billion dollars shall be limited to 25% of the total equity portfolio. The average credit quality of the bond portfolio
shall be"A"or higher, and those securities rated below"BBB"shall not exceed 15% of the entire fixed income portfolio.
IConcentration 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 5% 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 25%of the investment manager's total portfolio.
I
55
I
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
Foreign Currency Risk—Firefighters Supplemental Pension Plan: II
Risk of loss arises from changes in currency exchange rates. The Firefighters Supplemental Pension Plan requires that no
more than 25% of the plan's total assets may be invested in foreign equity securities, commingled or mutual funds. Direct I
investment in foreign companies is limited to those traded on a national exchange and/or American Depository Receipts
(ADR's).
B. Receivables I
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$15,436,736 reported on the Governmental Funds balance sheet includes
$15,339,361 of long-term loans receivable that are not expected to be collected within the next fiscal year.
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:
I
Receivables,net of applicable allowances for uncollectible accounts(amounts in thousands):
Franchise
Taxes Fees Interest Accounts Notes Other Total
General fund $ 1,367 $ 910 $ 146 $ 604 $ - $ - $ 3,027
Special Development 59 - 154 - - - 213
Capital Improvement - - 2 - - - 2
Non-major governmental funds - - 92 - 15,711 44 15,847
Internal service funds - - 214 - 9 223
Total governmental 1,426 910 608 604 15,711 53 19,312
Less:Allowance for uncollectible (241) - - - (274) - (515)
Net governmental receivables $ 1,185 $ 910 $ 608 $ 604 $ 15,437 $ 53 $ 18,797
Water and Sewer Utility $ - $ - $ 425 $ 5,414 $ - $ 187 $ 6,026
Gas Utility - - 112 2,449 - 260 2,821
Solid Waste Utility - - 88 1,718 - - 1,806
Stormwater Utility - - 84 2,095 - - 2,179
Non-major enterprise funds - - 89 399 - - 488
Total business-type - - 798 12,075 - 447 13,320
Less:Allowance for uncollectible - - - (220) - - (220)
Net business-type receivables $ - $ - $ 798 $ 11,855 $ - $ 447 $ 13,100
C. Capital assets
Capital asset activity for the year ended September 30, 2011:
I
56 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
I Beginning Transfers/ Ending
Governmental Activities: Balance Increases Decreases Reclassifications Balance
Non-depreciable capital assets:
Land $ 79,591,523 $ 3,170,014 $ 3,648,035 $ - $ 79,113,502
I Construction in progress 10,470,092 6,024,401 11,305,226 - 5,189,267
Total non-depreciable capital assets 90,061,615 9,194,415 14,953,261
-
84,302,769
Depreciable capital assets:
Buildings 119,205,052 10,540,941 485,171 129,260,822
Improvements other than buildings 26,408,745 2,688,476 29,097,221
Machinery and equipment 73,300,978 7,066,159 3,666,525 (17,961) 76,682,651
Infrastructure 136,512,849 2,890,913 - - 139,403,762
I Total depreciable capital assets 355,427,624 23,186,489 4,151,696 (17,961) 374,444,456
Less accumulated depreciation for:
Buildings (35,767,798) (4,124,477) (357,242) - (39,535,033)
I Improvements other than buildings (11,379,670) (1,103,038) (12,482,708)
Machinery and equipment (54,628,086) (6,480,867) (2,661,019) 3,592 (58,444,342)
Infrastructure (66,618,651) (4,505,998) (71,124,649)
Total accumulated depreciation (168,394,205) (16,214,380) (3,018,261) 3,592 (181,586,732)
Net depreciable capital assets 187,033,419 6,972,109 1,133,435 (14,369) 192,857,724
Net governmental activities capital assets $ 277,095,034 $ 16,166,524 $ 16,086,696 $ (14,369) $ 277,160,493
I
I Beginning Transfers/ Ending
Business-type activities: Balance Increases Decreases Reclassifications Balance
Non-depreciable capital assets:
Land $ 31,280,681 $ - $ - $ - $ 31,280,681
I Construction in progress 22,271,022 9,741,365 19,811,261 - 12,201,126
Total non-depreciable capital assets 53,551,703 9,741,365 19,811,261 43,481,807
Depreciable capital assets:
I Buildings 25,240,694 528,478 - - 25,769,172
Improvements other than buildings 498,691,733 29,473,600 528,165,333
Machinery and equipment 9,640,497 601,962 605,543 17,961 9,654,877
Total depreciable capital assets 533,572,924 30,604,040 605,543 17,961 563,589,382
I Less accumulated depreciation for:
Buildings (12,592,154) (910,534) (13,502,688)
Improvements other than buildings (191,267,606) (16,041,422) - - (207,309,028)
Machinery and equipment (6,975,246) (593,849) (536,813) (3,592) (7,035,874)
Total accumulated depreciation (210,835,006) (17,545,805) (536,813) (3,592) (227,847,590)
Net depreciable capital assets 322,737,918 13,058,235 68,730 14,369 335,741,792
Net business-type activities capital assets $ 376,289,621 $ 22,799,600 $ 19,879,991 $ 14,369 $ 379,223,599
I
i 57
I
City of Clearwater, Florida
Y ,
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General govemrrent $ 757,736
Public safety 1,621,054
Physical environment 158,705
Transportation,including depreciation of general infrastructure assets 4,463,067
Econonic environrrent 22,956
Culture and recreation 4,105,860
Capital assets held by the governmental internal service funds are charged 5,085,002
to the various functions based on their usage of the assets
Total depreciation expense-govemmental activities $ 16,214,380
Business-type activities:
Water and sewer utility $ 11,721,789
Gas utility 1,579,548
Solid waste utility 268,250
Stomvvater utility 2,465,160
Recycling utility 145,174
Marine operations 106,285
Aviation operations 202,991
Parking system operations 228,535
Harborview Center operations 506,743
Clearwater Harbor Marina operations 321,330
Total depreciation expense-business type activities $ 17,545,805
Construction commitments I
At September 30,2011, material outstanding construction commitments were as follows:
Construction
Commitments
Project Fund Outstanding
Facilities Upgrades&Improvements Water&Sewer Utility enterprise fund $ 6,318,236
Reclaimed Water Distribution System Water&Sewer Utility enterprise fund $ 6,121,924
Reverse Osmosis Plant Expansion-Reservoir#2 Water&Sewer Utility enterprise fund $ 3,267,269
Replacement of Belt Filter Presses Water&Sewer Utility enterprise fund $ 3,068,096
Water Pollution Control Repair&Replacement Water&Sewer Utility enterprise fund $ 2,745,312
Storm Pipe System Improvements Stormwater Utility enterprise fund $ 1,811,963
Sanitary Sewer Renewal&Replacement Water&Sewer Utility enterprise fund $ 1,807,188
Downtown Streetscape Phase II Water&Sewer Utility enterprise fund $ 1,758,477
Wastewater Treatment Plant Bypass&Northeast Pump Water&Sewer Utility enterprise fund $ 1,169,397
Odor Control Water&Sewer Utility enterprise fund $ 1,162,140
Reverse Osmosis Plant Expansion-Reservoir#1 Water&Sewer Utility enterprise fund $ 757,686
Alligator Creek Watershed Project Stormwater Utility enterprise fund $ 589,591
I
North Greenwood Recreation Center Renovations Capital Improvement capital projects fund $ 552,765
Traffic Calming Capital Improvement capital projects fund $ 513,506
Total Construction Commitments $ 31,643,550
I
58
1
I
City of Clearwater, Florida
III
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
D. Interfund receivables, payables,and transfers
1 1. Interfund balances
As discussed in Note III-A, individual fund deficits in the consolidated cash pool, if any, have been reclassified as of
I September 30, 2011, 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.
As of September 30, 2011, the Clearwater Harbor Marina enterprise fund reported a cash pool deficit in the amount of
$387,388 and the Notes and Mortgages debt service fund reported a cash pool deficit of$89,830.
The amounts of the reclassified cash pool deficits, if any, as well as the current portion of other individual fund interfund
I payable and receivable balances are classified as Due from/to Other Funds. The long-term portions of other interfund
balances are classified as Advances to/from Other Funds.
I Fund Due from Due to Adances to Advances from
Other Funds Other Funds Other Funds Other Funds
Special Revenue Funds:
Special Programs $ - $ - $ 974,267 $ -
Community Redevelopment Agency 2,874,267
Debt Service Fund:
I Notes and Mortgages - 89,830 - -
Capital Project Fund:
Capital Improvement 477,218 - - -
II Enterprise Fund:
Airpark Operations 20,271 81,086
Clearwater Harbor Marina - 387,388 - -
I Internal Service Funds:
Administrative Services -91,654 458,267
Central Insurance 111,925 - 2,439,353 -
I $ 589,143 $ 589,143 $ 3,413,620 $ 3,413,620
I Descriptions of interfund loans as of September 30, 2011:
Three interfund loans from the Special Programs special revenue fund to the Community Redevelopment Agency special
revenue fund in the amounts of $350,000, $298,827 and $325,440, respectively, related to the purchase, remediation, and
I development of downtown parcels. These loans are interest-free and are to be repaid upon sale of the developed parcels.
Because the first principal payment is not due within one year,these loans,which total$974,267, are classified as an advance.
An internal loan from the Central Insurance Fund to the Community Redevelopment Agency special revenue fund in the
1 amount of $1,900,000 to underwrite the acquisition, closing costs and site demolition costs related to the acquisition of the
Economy Inn and surrounding properties in the East Gateway area for redevelopment purposes. The loan provides for
interest-only payments at the cash-pool rate through fiscal year 2012, and level debt service (principal and interest)from fiscal
year 2013 through fiscal year 2018. Because the first principal payment is not due within one year, the entire loan is classified
1 as an advance.
1 59
I
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
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, 2012.
The current portion of this loan ($20,271) is classified as due to/from other funds, while the long-term portion ($81,086) is
classified as an advance.
An internal ten-year loan from the Central Insurance Fund to the Administrative Services Fund for 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. Current portion of this
loan ($91,654) is classified as due to/from other funds,while the long-term portion ($458,267) is classified as an advance.
2. Interfund transfers
Intel-fund transfers for the year ended September 30, 2011, consisted of the following:
Transfers to General Fund from:
Capital Improvements Fund $ 122,531
Water&Sewer Utility Enterprise Fund 2,960,850
Gas Utility Enterprise Fund 1,700,000
Solid Waste Utility Enterprise Fund 968,370
Stormwater Utility Enterprise Fund 738,870
Nonmajor governmental funds 1,614,145
Nonmajor enterprise funds 348,070
Internal service funds 543,457
Total 8,996,293
Transfers to Capital Improvements Fund from:
General Fund 5,082,286
Special Development Fund 13,431,547
Capital Improvements Fund 45,859
Nonmajor governmental funds 1,824,927
Total 20,384,619
Transfers to Nonmajor governmental funds from:
General Fund 1,980,459
Nonmajor governmental funds 3,546,710
Total 5,527,169
Transfers to Water&Sewer Utility Enterprise Fund from:
Nonmajor governmental funds 156,633
Internal service funds 4,789
Total 161,422
Transfers to Stormwater Utility Enterprise Fund from:
Nonmajor governmental funds 2,489
Transfers to Gas Utility Enterprise Fund from:
Nonmajor governmental funds 150
Internal service funds 4,790
Total 4,940
Transfers to Solid Waste Utility Enterprise Fund from:
Nonmajor governmental funds 10,006
Internal service funds 4,789
Total 14,795
I
60 1
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City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I Transfers to Nonmajor enterprise funds from:
Gas Utility Enterprise Fund 95,149
Nonmajor governmental funds 514,598
Total 609,747
I Transfers to Internal service funds from:
General Fund 83,760
Water&Sewer Utility Enterprise Fund 159,418
I Capital Improvements Fund 1,748,460
Stormwater Utility Enterprise Fund 289,687
Nonmajor governmental funds 39,830
Nonmajor enterprise funds 500,000
I Total 2,821,155
$ 3
Total interfund transfers 38,522,629
I 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. Other non-routine interfund transfers occurring
II during the current fiscal year included a transfer of$414 thousand from the General Fund to the Community Redevelopment
Agency(CRA)Special Revenue Fund, representing proceeds from the sale of tax credits contributed to the CRA.Also, a total
of $500 thousand was transferred from the CRA Special Revenue Fund to the CRA Capital Projects Fund, reflecting a
I contribution towards the Clearwater Harbor Marina boat slips construction project. A related $500 thousand transfer from the
CRA Capital Projects Fund to the Clearwater Harbor Marina Enterprise Fund represented a contribution to the enterprise
fund. Consequently the Clearwater Harbor Marina Fund transferred $500 thousand to the Central Insurance Internal Service
Fund to reimburse it for prior years contributions to the boat slips construction project. Additionally, a total of$377 thousand
I was transferred from the Special Programs Special Revenue Fund to the General Fund, reflecting the return of residual prior
years funding for various special programs that were closed during the current year. A total of$1.8 million was transferred
from the CRA Capital Projects Fund to the Capital Improvements Fund representing a contribution to the Downtown
Streetscapes Phase II construction project. Additionally, a total of $441 thousand was transferred by the Special Programs
I Fund to various funds, representing the return of unused residual funding for prior years retirement incentives. Current year
transfers to the Garage Internal Service Fund for the purchase of fleet vehicles included $2.0 million from the Capital
Improvements Fund, $159 thousand from the Water and Sewer Utility Fund, and $290 thousand from the Stormwater Utility
I Fund. Finally, during fiscal 2011 the Administrative Services Fund contributed a total of$14,369 in capital assets to several
enterprise funds.
E. Leases
1 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
I 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.
ICapitalized equipment subject to lease purchase financing as of September 30,2011:
Governmental Business-type
Activities Activities
Equipment $ 17,047,127 $ 1,254,364
Less: Accumulated Depreciation (7,126,786) (360,096)
ITotal $ 9,920,341 $ 894,268
1 61
City of Clearwater, Florida
da
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
The future minimum lease payments under capital lease purchase agreements are as follows as of September 30,2011: 1
Governmental Business-type
Year Ending Sept.30 Activities Activities
2012 $ 3,104,964 $ 257,669 1
2013 2,391,936 228,943
2014 1,732,987 183,584
2015 1,227,796 125,542
2016 677,126 57,076
2017 87,241 2,662
9,222,050 855,476
Deduction of the amount of imputed interest necessary to (499,840) (47,597)
reduce net minimum lease payments to present value
$ 8,722,210 $ 807,879
I
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, 2011,totaled$367,796.
F. Long-term debt
1. Revenue Bonds I
$14,810,000 in 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 the used by the Philadelphia Phillies major league baseball
team; serial bonds due in annual installments of $570,000 due March 1, 2012, to
$295,000 due March 1, 2022, with maximum principal of $845,000 due March 1, 2021;
interest at 3.50% 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. $10,660,000
Total revenue bonds for governmental activities 10,660,000
$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 in the amount of
$1,305,000 due December 1, 2011, interest at 4.00%. 1,305,000
1
$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, 2011, to $260,000
due December 1, 2018, interest at 3.10%to 4.00%. 1,825,000
$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. 26,430,000
$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
62 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I 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
Ibonds in the amount of$59,780,000 due December 1, 2039. 67,715,000
$41,700,000 Water and Sewer Revenue Refunding Bonds, Series 2009B; issued to
advance refund the City's Water and Sewer Refunding Revenue Bonds, Series 1998;
I serial bonds due in annual installments of $3,695,000 at December 1, 2011 to
$5,150,000 due December 1, 2018; interest at 5.00%. 34,975,000
I $47,025,000 Water and Sewer Revenue Refunding Bonds, Series 2011; issued to
partially refund the City's Water and Sewer Revenue Bonds, Series 2002; serial bonds
due in annual installments of $1,370,000 at December 1, 2012, to $3,175,000 due
December 1, 2030, interest at 2.00% to 5.00%; 4.50% term bonds in the amount of
I $6,850,000 due December 1, 2032. 47,025,000
$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
I installments of$185,000 due September 1, 2012, to $1,575,000 due September 1, 2026,
interest at 3.00%to 4.375%. 7,660,000
I $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 $240,000 due September 1,
2012, to $325,000 due September 1, 2025, interest at 3.50% to 4.375%; and 4.375%
Iterm bonds in the amount of$2,400,000 maturing on September 1, 2027. 6,020,000
$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
I 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, 2012, through
September 1, 2017; interest at 4.00%. 2,220,000
I $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$555,000 due November 1, 2011, to $965,000 due November 1,
I 2023; interest at 3.50% 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. 20,850,000
I $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 $370,000, due November 1, 2011, to $865,000 due
November 1, 2032, interest at 3.00%to 4.75%. 12,405,000
I $6,925,000 Stormwater System Revenue Refunding Bonds, Series 2005; issued to
partially advance refund the Stormwater Revenue Bonds, Series 1999; serial bonds due
I in annual installments of$230,000 due November 1, 2011, to$470,000 due November 1,
2029, interest at 3.125%to 4.50%. 6,325,000
Total revenue bonds for business-type activities 234,755,000
ITotal revenue bonds $245,415,000
1 63
I
City of Clearwater, Florida I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
2. Restrictive covenants and collateral requirements
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, Series 2006, and Series 2009A; and the Water and Sewer Revenue
Refunding Bonds, Series 2003, Series 2009B, and Series 2011; 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, Series 2005, and Series 2007 are limited obligations of the City
Y 9 � 9 tY
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.
t
The Stormwater System Revenue Bonds, Series 2002 and 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
111
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 2005 Reserve Requirements has been
satisfied with Reserve Fund Surety Bonds.
I
64 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IAnnual debt service requirements to maturity for revenue bonds are as follows:
I Year Ending Governmental Activities
Principal Interest Business-type Activities
September 30 Principal Interest
2012 $ 570,000 $ 505,986 $ 7,140,000 $ 10,369,045
2013 590,000 485,096 7,490,000 10,625,990
I2014 610,000 462,744 7,815,000 10,319,751
2015 635,000 438,606 8,095,000 9,990,268
2016 660,000 412,376 8,495,000 9,629,165
I 2017-2021 3,820,000
1,640,000 1,506,116 39,110,000 42,257,145
2022-2026 802,567 37,580,000 34,161,754
2027-2031 2,135,000 298,447 41,450,000 24,691,415
I 2032-2036 - 40,760,000 14,763,856
2037-2041 36,820,000 3,992,624
2042-2046 - - - -
Totals $ 10,660,000 $ 4,911,938 $ 234,755,000 $170,801,013
1
3. Pledged revenues
IState 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,
I 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 provided 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
I 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 $15,571,938. Principal and interest paid for the current year and total revenue received were $1,075,586
and $1,098,523, respectively.
IWater 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,
I 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:
I $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.
I $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.
I $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.
I
1 65
I
Ci ty of Clearwater, Flori da I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
$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.
$47.0 million in Water and Sewer Revenue Refunding bonds issued in September 2011. Proceeds from the bonds
provided financing to refund and redeem the outstanding principal maturing after December 1, 2011 of the City's Water and
Sewer Revenue Bonds, Series 2002.
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 $320,983,829. Principal and interest paid for the current
year and total net revenue were $14,562,434 and $21,168,627, respectively. An additional $48,545,000 of principal was
paid to defease the 2002 bonds effective September 7, 2011.
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$62,128,735. Principal and interest paid for the current year
and total net revenue were$2,868,641 and $7,739,271, respectively.
111
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. ,
66 1
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I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IAnnual 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$22,443,449. Principal and interest paid for the current year
and total net revenue were$1,473,051 and $11,086,850, respectively.
4. Advance refunding of bonds
I On September 7, 2011, the City issued $47,025,000 at par value of Water and Sewer Revenue Refunding Bonds, Series
2011, for the purpose of redeeming on December 1, 2011, $48,545,000 of outstanding Water and Sewer System Revenue
Bonds, Series 2002, maturing after December 1, 2011. This refunding transaction resulted in an aggregate debt service
1 reduction of$4,516,730 and a net present value savings of$2,859,151.
The following schedule reflects the outstanding principal on refunded bonds as of September 30:
IBusiness-type Activities:
Water and Sewer System Revenue Bonds, Series 2002 $ 48,545,000
I Total Business-type Activities 48,545,000
Total $ 48,545,000
5. Changes in long-term liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Revenue bonds payable $ 19,750,000 $ - $ (9,090,000) $ 10,660,000 $ 570,000
I Add(subtract)deferred amounts:
For issuance premiums (discounts) 237,685 (1,568) 236,117 -
On refunding (214,185) - 214,185 - -
Net revenue bonds payable 19,773,500 - (8,877,383) 10,896,117 570,000
Lease purchase contracts(a) 8,278,966 3,773,319 (3,330,075) 8,722,210 2,887,872
Compensated absences(b) 7,382,570 4,004,883 (4,104,219) 7,283,234 4,674,198
Other postemployment benefits(c) 3,836,620 1,766,241 (856,418) 4,746,443 -
II Claims payable(d) 8,095,000 3,613,433 (3,020,433) 8,688,000 2,219,200
Governmental activity
Long-term liabilities $ 47,366,656 $ 13,157,876 $ (20,188,528) $ 40,336,004 $ 10,351,270
Business-type activities:
IRevenue bonds payable $ 243,125,000 $ 47,025,000 $ (55,395,000) $ 234,755,000 $ 7,140,000
Less deferred amounts:
For issuance premiums (discounts) 496,947 2,890,861 (230,272) 3,157,536 -
II On refunding (4,213,128) (1,615,096) 725,066 (5,103,158) -
Net revenue bonds payable 239,408,819 48,300,765 (54,900,206) 232,809,378 7,140,000
Lease purchase contracts 629,960 433,972 (256,053) 807,879 236,848
Compensated absences(b) 1,799,009 1,016,919 (1,014,905) 1,801,023 1,155,852
Other postemployment benefits 1,418,880 848,789 (411,562) 1,856,107 -
Unearned revenue 187,113 187,113
Business-type activity
Long-term liabilities $ 243,443,781 $ 50,600,445 $ (56,582,726) $ 237,461,500 $ 8,532,700
1 67
City of Clearwater, Florida
y ,
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
(a) Governmental activities lease purchase contract additions of $3,773,319 includes $2,707,070 attributable to internal service
funds and $1,066,249 attributable to governmental funds. The lease purchase contracts reduction of $3,330,075 includes
$2,910,022 for internal service funds and$420,053 for governmental funds.
(b) Compensated absences are paid by the fund where salaries are incurred, which is primarily the General Fund for
governmental activities.
(c) Other postemployment benefits costs are allocated to and paid by funds based on their percentage of full time
equivalent employees.
(d) The Central Insurance Fund, an internal service fund, accrues for estimated claims and pays claims for all
departments.
G. 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 to the water system; assets remaining at September 30, 2011, are: I
Cash and Investments $ 1,572,981
Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions to the sewer system; assets remaining at September 30, 2011, are:
Cash and Investments 5,689,609
Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing I
the issuance of Water and Sewer Revenue Bonds consisted of the following at September 30,2011:
Water and Sewer Revenue Bonds Debt Service:
Cash and Investments 20,482,532
Water and Sewer Revenue Bonds Renewals and Replacements:
Cash and Investments 16,320,991 1
Water and Sewer Revenue Bonds Construction:
Cash and Investments 15,378,286
Assets of the Water and Sewer Utility Fund consisting of amounts Due from Other Governments for
advances to the Florida Department of Transportation for utility relocations related to improvements to
State Road 55(U. S. Highway 19) 350,942 '
Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted,
consisting entirely of Cash and Investments at September 30,2011 2.633.444
111
Total restricted assets—Water and Sewer Utility Fund $62,428.785
I
68 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
111 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, 2011:
Gas System Revenue Bonds
I Debt Service:
Cash and Investments $ 120,358
Renewals and Replacements:
I Cash and Investments 300,000
Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2011:
Cash and Investments 2.478,266
ITotal restricted assets—Gas Utility Fund $2,898,624
I3. Solid Waste Utility Fund
Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in the amount of
$998,850 at September 30, 2011, and consisted entirely of Cash and Investments.
I
I4. Stormwater Utility Fund
Assets restricted under the provisions of the ordinances for the issuance of revenue bonds consisted of
the following at September 30,2011:
I Stormwater Revenue Bonds—Series 2002
Debt Service: Cash and Investments $2,468,610
Stormwater Revenue Bonds—Series 2004
I Debt Service: Cash and Investments 1,464,840
Stormwater Refunding Revenue Bonds—Series 2005
Debt Service: Cash and Investments 317,521
IFees 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, 2011:
Cash and Investments 314,981
Total restricted assets—Stormwater Utility Fund $4.565.952
I5. Parking System Fund
Assets in the Parking System restricted under the provisions of a development agreement between
I L.O.M., Inc. and the City of Clearwater as of September 30,2011:
Equity in Pooled Cash and Investments $9,300,000
Total restricted assets—Parking System Fund $9,300,000
I
1 69
1
City of Clearwater, Florida
tY ,
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
H. Fund Balances Classification
Special Capital Non-Major
General Development Improvement Govemmental
Fund Fund Fund Funds
Non Spendable:
Inventories $ 24,220 $ - $ - $ -
Prepaid iterrs - - - 89,830
Restricted for:
General govemment 745,072
Public safety - - 2,524,404 2,357,747
Physical environment - 6,253 525,000 1,012,553
Transportation - 1,184,303 17,310,951 95,711
Economic environment - 26,356,588
Hunan services 360,945
Culture and recreation - 19,324 8,788,113 162,218
Debt service reserve - - - 541,730
Committed to:
General government - - 2,980,830 331,574
Public safety - - 611,047 2,339,016
Physical environment - - 233,813 - I
Transportation - 186,450 5,664,929 -
Economic environment - - - 47,771
Human services - - - 1,391
Culture and recreation - - 4,470,992 263,573
IAssigned to:
General governmnt 144,803 - - 360,998
Public safety 506,724 - (43,432) 1,484,184
Physical environment - - - 367,809
I
Transportation 6,751 - - 3,321
Economic environment 57,111 - - 582,755
Hunan services - - - 131,618
Culture and recreation 140,161 99,176 43,432 154,668
Infrastructure capital projects - 4,219,437 - -
Unassigned 23,081,286 (113,470) (1,807,981)
Total Fund Balances 23,961,056 5,714,943 42,996,609 35,983,091
Note IV-Other Information
A. Risk management I
The City is self-insured within certain parameters for losses arising from claims for general liability, auto liability, police
I
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'
II
compensation coverage to the statutory limit, with self-insured retention of $500,000. The property damage excess
coverage is $45,000,000 with a $100,000 ($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. I
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, 2011, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires
I
70
1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I 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 2010 and 2011 were:
Self
Insurance
I Balance at September 30, 2009 $ 7,989,000
Current year claims and changes in estimates 2,060,194
Claim payments (1,954,194)
I Balance at September 30, 2010 8,095,000
Current year claims and changes in estimates 3,613,433
Claim payments (3,020,433)
IBalance at September 30, 2011 $ 8,688,000
B. Statements of cash flows
I 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 City's consolidated pool of cash and investments. Since fund equities in this cash management pool have the
I 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.
IC. Use of estimates
I 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.
1 D. Employee retirement systems and pension plans
1 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
I successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963, and certain
nonclassified (primarily managerial) employees. The Firefighters' 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.
IThe 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 2.75% 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
I 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
1 71
I
City of Clearwater, Florida I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011 1
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 1.5%. 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-
I
vested termination. There are seven other benefit payment options that are computed to be the actuarial equivalent of the
normal benefit. Covered employees contribute 8% of their compensation. It is the City's 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.
I
The Firefighters' 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
I
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. Effective with the fiscal year ended September 30,2007, the Firefighters'
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 most recent actuarial valuation date, January 1, 2011 for the Employees' Pension Plan and January 1, 2010 for I
the Firefighters' Relief and Pension Plan, the membership of the plans was as follows:
Employees' Firefighter's Relief I
Pension Plan and Pension Plan
Retirees and beneficiaries currently receiving benefits 956 39
Terminated employees entitled to benefits but not yet receiving them 68 -
Active employees 1,508 -
Total number of participants 2,532 39
For the fiscal year ended September 30, 2011, the covered payroll for the Employees' Pension Fund was $70,428,120. The
City's total payroll for the same period was $86,356,575. Annual pension cost and contributions information for the last three
fiscal years for both the Employees' Pension Plan and the Firefighters' Relief and Pension Plan follows:
I
I
72 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
IEmployees' Pension Plan
Year Annual Net
Ended Pension Employer Percent Pension
I Sept 30 Cost(a) Contributions Contributed Asset
2009 $ 9,022,632 $ 10,318,483 114% $ 15,327,127
2010 $ 22,799,051 $ 15,886,314 (b) 70% $ 8,414,390
I2011 $ 18,730,913 $ 17,428,806 93% $ 7,112,283
a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2011, are based on
actuarial valuations as of January 1, 2010. Since the City's contributions are made during its fiscal year (which
I 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.
I (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.
l Year Firefighters' Relief and Pension Plan
Annual
Ended Pension Employer Percent
I Sept 30 Cost - Contributions Contributed
-
2009 (a) $ $
2010 $ - $ - -
1 2011 $ - $ - -
IEffective with the fiscal year ended September 30, 2007, the Firefighters' 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 biennial valuations show an actuarial need for such.
IThe Employees' Pension Plan net pension asset at September 30, 2011, totaled $7,112,283. It was comprised of the
following components:
I Annual required contributions(ARC) $ 18,332,319
Interest on the net pension asset (631,079)
Adjustment to annual contribution 1,029,673
I Annual pension cost 18,730,913
Fiscal 2011 employer contributions 17,428,806
Decrease in net pension asset (1,302,107)
I Net pension asset beginning of year 8,414,390
Net pension asset end of year $ 7,112,283
The net pension asset for the Employees' Pension Plan, representing excess contributions as calculated per GASB 27
Irequirements, is identical in amount to the plan "credit balance" as disclosed in prior years. A total of $5,355,148 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 $1,757,135
attributable to proprietary funds is reflected in the proprietary fund financial statements on the accrual basis of accounting.
1 73
City of
I
y Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
1
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.
The Employees' Pension Plan has invested in real estate and timber limited partnership funds. The strategies of these
funds are long term and illiquid in nature. As a result, investors are subject to redemption restrictions which generally limit II distributions and restrict the ability of limited partners to exit a partnership investment prior to its dissolution. These
investments partnerships are valued using their respective net asset value (NAV), and are audited annually. The most
significant input into the NAV of such an entity is the fair value of its investment holdings. These holdings are valued by the
general partners on a quarterly or semi-annual basis, in conjunction with management and investment advisors, and
I
consultation with valuation specialists. The management assumptions are based upon the nature of the investment and the
underlying business. The valuation techniques vary based upon investment type and involve a certain degree of expert
judgment. All timber acquisitions are valued per an independent expert third party appraisal within one year of acquisition
and similar independent third party appraisals of fair value are conducted at least every three years thereafter.
As of September 30, 2011, neither the Employees' Pension Plan nor the Firefighters' 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 most recent actuarial valuation date, January 1, 2011 for the Employees'
Pension Plan and January 1, 2010 for the Firefighters' Relief and Pension Plan, are as follows:
Employees' Pension Plan
(1) Assumed rate of return on investments of 7.5%.
I
(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.
I
(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.
Firefighters' Relief and Pension Plan I
(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.
I
(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.
I(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.
It is the City's policy to fund pension costs accrued as determined on an actuarial basis. Annual required contributions I
(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
Iin 1979 and subsequent years, which have had the effect of either increasing or decreasing the actuarial liability, are being
74
I
City of Clearwater, Florida
I
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I amortized over a 30-year period from their effective dates in accordance with State law. The amortization method is level
dollar closed.
I Annual required contributions (ARC) for the Firefighters' 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
I 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
I current year. Since the plan currently has only inactive members, the funding method could be presently be described as
either aggregate or entry-age normal, both of which normally converge after the end of the active participant phase. Under
the non-standard cost method used for funding of this plan, 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
I accrued liabilities, consequently information about funded status and funding progress is presented using the entry age
actuarial cost method. This information is intended to serve as a surrogate for the funded status and the funding progress
of the plan.
I As of January 1, 2011, the most recent actuarial valuation date, the Employees' Pension Plan was 97.1 percent funded.
The actuarial accrued liability for benefits was $665.7 million, and the actuarial value of assets was $647 million, resulting
in an unfunded actuarial accrued liability (UAAL) of$18.7 million. The covered payroll (annual payroll of active employees
I covered by the plan)was$76.5 million, and the ratio of the UAAL to the covered payroll was 24.5 percent.
As of January 1, 2010, the most recent actuarial valuation date, the Firefighters' Relief and Pension Plan was 104.7
percent funded. The actuarial accrued liability for benefits was $6.8 million, and the actuarial value of assets was $7.1
I million, resulting in $317 thousand of funding in excess of the actuarial accrued liability. 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
I 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
I Employer Contributions, which provide similar multiyear trend information on required employer contributions versus the
actual amount contributed.
I2. Police Supplemental Pension Fund
I 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
I contributions, totaled $816,513 for the year ended September 30, 2011, 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 4.3% of current
year covered payroll. The fair value of cash and investments at September 30, 2011, totaled $13,555,226.
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
175
I
City of Clearwater, Florida I
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
1
of the plan, are allocated to participants on the basis of the total number of shares to which each participant is entitled. Each I
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
I
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.
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, 2011, the payroll of the covered officers'was $19,188,064; the City's total payroll for
the same period was$86,356,575.
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.
111
3. Firefighters Supplemental Pension Fund
I
A su pp lemental defined contribution pension plan exists for all eligible firefighters, which i s funded by earma rk ed 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 $1,134,079 in the year ended September 30, 2011, 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
I
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 9.3%of current year covered payroll. The
fair value of cash and investments at September 30,2011,totaled $10,240,345.
As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number of
I
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.
I
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, 2011, the covered payroll was $12,157,942; the City's total payroll for the same
I
period was$86,356,575.
I
76 1
I
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I4. Pension Plan Financial Statements
ISeparate financial statements are provided in the Notes per the guidance of GASB Statement No. 34 as follows:
IStatement of Fiduciary Net Assets: Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
IEmployees' Firefighters' Supplemental Supplemental
ASSETS
Cash and investments $ 781,117 $ 2,719,676 $ 2,193 $ -
' Managed investment accounts,at fair value:
Cash and cash equivalents 37,408,464 595,239 555,972
Government bonds 29,280,303 - 3,094,276 532,322
I Agency bonds 11,176,788 3,673,369 620,096 -
Domestic corporate bonds 66,834,718 933,199 2,841,941
International equity securities 66,784,078 - - -
I Domestic stocks 241,368,780 - 5,874,074 1,545,572
Mortgage backed bonds 66,787,964 1,261,597
Asset backed securities 759,343 - - -
II
-
Commodity exchange-traded funds 1,238,215 -
Domestic equity mutual funds 38,066,505 -
2,436,149 2,177,819
International equity mutual fund 25,612,532 - - 1,325,122
Real estate 24,816,012 - - -
ITotal managed investment accounts 610,133,702 3,673,369 13,553,033 10,240,345
Securities lending collateral 150,576,091 - - -
Receivables:
I Interest and dividends 1,963,084 51,392 46,815 51,766
Unsettled investment sales 12,540,708
-
-
Securities lending earnings 44,292 - - -
I Due from others 32,696
14,580,780
- - -
Total receivables 80,780 51,392 46,815 51,766
Total assets 776,071,690 6,444,437 13,602,041 10,292,111
-
I LIABILITIES
Accounts payable 798,159
Unsettled investment purchases 20,706,584 - - -
-
I
-
Obligations under securities lending 150,576,091
Total liabilities 172,080,834
- -
-
NET ASSETS
INet assets held in trust for pension benefits $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111
I
1 77
I
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
1
Statement of Changes in Fiduciary Net Assets: Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters' Supplemental Supplemental
ADDITIONS
Contributions:
Contributions from employer $ 17,652,617 $ - $ - $ - I
Contributions from employer-state tax 12,000 - 816,513 1,134,079
Contributions from employees 6,049,656 - - -
Total contributions 23,714,273 - 816,513 1,134,079
Investment income(loss):
I
Net appreciation(depreciation)in
fair value of investments (14,962,927) 4,929 (77,486) (347,875)
Interest 7,661,711 254,764 173,533 205,684
Dividends 6,596,112 - 190,706 60,847
(705,104) 259,693 286,753 (81,344)
Less investment expenses: I
Investment management/custodian fees 3,665,089 - 79,129 83,202
Net income(loss)from investing activities (4,370,193) 259,693 207,624 (164,546)
Securities lending income:
Gross earnings 497,674 - - -
Gain on securities lending collateral 1,556,260 - - -
Rebate paid 131,722 - - -
I
Bank fees (220,091) - - -
Net income from securities lending 1,965,565 - - -
Total additions(losses) 21,309,645 259,693 1,024,137 969,533
I
DEDUCTIONS
Benefits and withdrawal payments:
Benefits 29,922,846 726,918 1,652,629 612,439
Withdrawal payments 1,052,623 - - -
Total benefits and withdrawal payments 30,975,469 726,918 1,652,629 612,439
Income(loss)before administrative expenses (9,665,824) (467,225) (628,492) 357,094
Administrative expenses 173,685 - 18,271 9,383
I
Net increase(decrease) (9,839,509) (467,225) (646,763) 347,711
Net assets held in trust for pension benefits:
Beginning of year 613,830,365 6,911,662 14,248,804 9,944,400
End of year $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111
1
5. 401(a)defined contribution plan
For all management employees not covered under either of the defined benefit pension plans, the City provides pension
I
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
I
78 1
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City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I 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.
I The International City Management Association Retirement Corporation (ICMA-RC), the trustee for the defined annuity,
offers participants a variety of investment options.
The City's total payroll for the fiscal year ended September 30, 2011 was $86,356,575. The Plan members' payroll for the
I same period totaled $4,938,119. The City's contribution, per the above contribution rates, totaled $416,086. The assets,
reported at fair value based on quoted market prices,totaled $4,519,663 at September 30, 2011.
I6. 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.
I 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.
Consequently, these assets are no longer reported in the accompanying financial statements, in compliance with
IIIGovernmental Accounting Standards Board Statement No. 32.
E. Post-employment Benefits Other Than Pension
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
I 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
I $1,000 of term life insurance for retirees who retired before October 1, 2008. The term life insurance benefit provision was
also established, and may be amended, by action of the City Council. The City does not issue stand-alone financial
statements for these programs.
I 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, 2011, the estimated retiree contributions for
I health insurance premiums totaled $1,349,679. 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 an "other post-employment benefit" (OPEB) obligation of the City. The City is currently funding this OPEB
Iobligation on a pay-as-you-go basis. For the year ended September 30, 2011, the City estimated it subsidized $1,241,795
of health care costs for retirees and their covered dependents, and $26,185 of 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
I 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.
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I 79
City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
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 Plan, including both the implicit rate subsidy for health
insurance and the term life insurance benefit:
Annual required contribution $ 2,591,067
Interest on net OPEB obligation 225,987
Adjustment to annual required contribution (202,024)
Annual OPEB cost(expense) 2,615,030
Contributions made (1,267,980)
Increase in net OPEB obligation 1,347,050
Net OPEB obligation-beginning of year 5,255,500
Net OPEB obligation-end of year $ 6,602,550
The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2011, are based on an
actuarial valuation as of January 1, 2010.
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, 2011, are presented below. Data is only presented for four fiscal years due
to the implementation of GASB Statement 45 and the related disclosure effective with the 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 $2,629,200 24.4 % $3,782,700
9/30/2010 $2,699,090 45.4 % $5,255,500
9/30/2011 $2,615,030 48.5% $6,602,550
As of September 30, 2011, the accrued liability for benefits was $30,243,885, all of which was unfunded. The covered '
payroll (annual payroll of active employees covered by the plan)was $83.4 million and the ratio of the unfunded actuarial
liability(UAL)to covered payroll was 36.3%.
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, 2011 actuarial valuation, the entry age normal actuarial cost method was used, with an increasing
normal cost pattern consistent with the salary increase assumptions. The annual required contribution (ARC) reflects a 27-
year, closed level percent of expected payroll amortization method. The actuarial assumptions included a 4.3% investment
rate of return and 4.0% projected salary increases. Annual medical costs are assumed to increase 0.00% in the first year of
valuation, with future annual increases assumed to grade uniformly from 8.5% to 5% over a seven year period and remain
at 5%thereafter. I
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City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
The actuarial valuation of the Plan as of January 1, 2010, reflected changes in actuarial methods as follows: the actuarial
cost method was changed from the unit credit, level dollar method to the entry age, normal method; and the amortization
I method was changed from 30 years, level dollar open amortization, to 28-year closed level percent of expected payroll.
Both of these changes resulted from a change in the actuary for the Plan. The January 1, 2010 actuarial valuation also
included a change in the assumption for investment rate of return from 4.0% to 4.3%. The actuarial roll-forward for
September 30, 2011 financial disclosures, included a change in the assumed increase in annual medical costs from 9% in
I year 1 to 0%, with future annual increases assumed to grade uniformly from 8.5% 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
I 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
I 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, 2011 was 32 days. If a
I 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
the market value of such loaned security and the market value of the related collateral. At September 30, 2011, there was no
failure by a borrower to return a loaned security.
ICash "open" collateral is invested in a short-term investment pool, the Core USA Collateral Section, which had an average
weighted maturity of 32 days as of September 30, 2011. 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.
I 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 year 2011.
I 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
I 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 following is a summary of securities on loan and their collateral:
ISecurities Collateralized by Cash Securities Collateralized by Non-Cash
Security Type Fair Value Cash Collateral Fair Value Non-Cash Collateral
I U.S Equity $ 116,946,839 $ 122,274,004 $ 560,624 $ 586,950
- -
U.S Corporate Fixed 6,360,487 6,561,123
U.S Government Fixed 16,633,289 17,045,615 - -
U.S.Agencies 1,623,584 1,668,428 - -
I Global Equities 2,823,644 3,026,921 -
Total $ 144,387,843 $ 150,576,091 $ 560,624 $ 586,950
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1 81
City of Clearwater, Florida ,
y ,
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
On the statement of fiduciary net assets, a securities lending asset of$150,576,091 was reported that represents the fair
value of the investments made with cash collateral at September 30, 2011. In addition, a securities lending obligation of
$150,576,091 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 presents the net income associated with the
securities lending transactions of$1,965,565. Included in this net income is a gain on securities collateral of$1,556,260,
which represents the reversal of an unrealized loss that was previously recognized during the fiscal year ended September
30, 2008. The fiscal 2008 unrealized loss represented a temporary deficiency of cash collateral versus the fair value of
securities collateralized by cash. This deficiency has been eliminated allowing the reversal of the unrealized loss in the
current year.
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.
Pollution Remediation Claims Liabilities ,
Pursuant to GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation Obligations, the City is
required to analyze known polluted sites to determine future component cost outlays, including estimation where required,
for pollution remediation. At September 30, 2010, total GASB 49 accruals equaled $659,506, of which $133,217 was
accrued for initial site assessment and support at a site acquired by the Community Redevelopment Agency (a Special
Revenue Fund), $491,166 in the Gas Utility Fund (a major proprietary fund)for legal assistance and for a five year project
to analyze and treat contaminated soils at the former manufactured gas plant site (see the Soil and groundwater
contamination site note below) and $35,123 in the Airpark Fund (a non-major proprietary fund) for contamination cleanup
from a fuel spill.
During fiscal year 2011 additions to estimates and commitments totaled $574,177 with payments on commitments totaling
$354,236. At September 30, 2011, accruals totaled $879,447 consisting of$382,763 for assessment and remediation at
two sites for the Community Redevelopment Agency, $45,921 for remediation at the Airpark and $450,763 for assessment
and remediation at the Gas Plant site.
111 The City has eighteen other sites that have known contamination from petroleum products, metals, chlorine or coal tar.
This includes the additions of a Stormwater Utility Fund site that is under evaluation for the Florida Department of
Environmental Protection (FDEP) and a Water and Sewer Utility Fund site for which the FDEP is reviewing assessment
data. 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 six sites are under monitoring plans or are awaiting responses from the FDEP on data submitted by the
City. Any additional cleanup costs for these sites cannot be estimated at this time.
A No Further Action Site Rehabilitation Completion Order(NFASRC)was received from the FDEP for the one site awaiting
this order as of September 30, 2010.
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City of Clearwater, Florida
I
' Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
I ST ndwer aio s
The oil an City grou is the owner atcont of propeminatrty n located at 400 Myrtle Street, Clearwater, Pinellas County, Florida ("Property"). The
Property occupies approximately six acres and is currently used by the City Gas Division as its administrative offices and
operating facility. The City operated a manufactured gas plant at the Property from approximately 1929 to 1960. Following
I the discovery in June 1990 of soil and groundwater impacts at the Property allegedly resulting from the prior operation of
the manufactured gas plant, 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
I remedial actions.
Contamination assessment activities were initiated at the Property in 1995. On April 17, 1996, the City executed an
Intergovernmental Agreement with FDEP, governing the scope of assessment and remediation work performed at the
I Property. The material terms and conditions of the Intergovernmental Agreement require the City to perform contamination
assessment activities to delineate the area and vertical extent of soil and groundwater impacts and, if necessary, to
remediate such impacts to the extent required by Florida law.
I Field activities to delineate the extent of impacts were performed from 1995 to 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
I 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
I 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
I 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.
I 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. All
activities related to the Myrtle Avenue dewatering project were documented in the "Supplemental Site Assessment Report
I -North Myrtle Ave Roadway Corridor"dated March 2007.
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 existing deep wells, as long as they remain unaffected by the contaminants of
concern on the site. In May 2009, FDEP issued a status report on all Manufactured Gas Plant sites in Florida. In the
report it referenced the January 17, 2008 letter and reaffirmed FDEP's agreement to forego additional on-site vertical
delineation if the City continues to monitor the perimeter wells on the facility. On June 22, 2009, the perimeter monitoring
I wells were tested and the results were reported to FDEP. On February 3, 2010, FDEP issued a letter that formally
accepted Clearwater Gas System's Contamination Assessment Report (CAR) and required no further site assessment
activities. Furthermore, the DEP is requiring CGS to re-sample all monitoring wells on the site within 60 days of the
IFebruary 3, 2010 letter.
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City of Clearwater, Florida
Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
In May 2010, CGS issued a Request for Proposal (RFP)to prepare a Feasibility Study, for DEP approval, that would offer
a long-term corrective action plan for the gas plant site. Arcadis, Inc. was selected to conduct the Feasibility Study;
however, two months into the project the City's Environmental Attorney, Bill Pence, recommended an alternate method of
site remediation. He proposed that the City work with the University of Waterloo (Canada) to treat the contaminated soils
with sodium persulfate, a chemical oxidant, which would stop the off-site groundwater impacts that are currently
experienced on the Pinellas County Health Department site. Chemical oxidation is accepted as a very effective method of
dealing with Manufactured Gas Plant residuals. This project was approved by the City Council in January 2011. The
project is scheduled to last approximately 5 years at an estimated cost of$425,000.
In addition, the City has pursued insurance claims under certain insurance policies covering the Property for the period of
time from June 1961 through July 1986. On September 17, 2001, the City agreed to reduce its claim against Southern
American Insurance Company ("SAIC"), the sole remaining excess carrier with the City, at an undiscounted value of
$300,000. 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 second distribution payment of $174,000 was issued to the City. Finally, in
December 2009, the City received a payment of$30,000 for a total collection amount of$300,000. In summary, the City
has recovered $787,500 on all of its outstanding insurance claims.
From 1993 through September 30, 2011, the City spent $948,742 on the MGP 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, 2010, the rate, which is set by the Pinellas County Board of
County Commissioners (BOCC), was $3.2959 per 1,000 gallons. The rate effective October 1, 2011 is $3.4277 per 1,000
gallons. The cost of water purchased from the County during fiscal years 2010 and 2011 was $8,010,603 and $7,616,248,
respectively.
Contractual Commitment—Parking System
Under the terms of a put agreement dated October 29, 2010, related to a development agreement between the City and
L.O.M., Inc. (developer)for development of a condominium retail/commercial project including a parking garage, the City is
obligated to purchase the parking garage component of the project for$9,300,000 from the lender if the developer defaults
under the terms of the financing agreement within five years of the project completion. The City has segregated and
restricted $9.3 million of Parking System enterprise funds per the terms of this put agreement.
1
Grant Revenues
During the current fiscal year and prior fiscal years, the City received revenues and contributions related to grants from 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. I
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:
84 1
I
City of Clearwater, Florida
I Notes to the Basic Financial Statements
For the Year Ended September 30, 2011
I
111 Original Amount Amount
Issue Outstanding Outstanding
IDescription/Purpose Amount at 9/30/10 at 9/30/11
Drew Gardens Refunding Bonds/residential rental facility $ 3,425,000 $ 2,475,000 $ 2,380,000
IThe 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.
I. Subsequent Event
IOn February 2, 2012 the City issued $19,365,000 at par value of Stormwater System Revenue Refunding Bonds, Series
2012, to redeem, effective March 5, 2012, $20,295,000 principal of Stormwater Revenue Bonds, Series 2002, maturing after
November 1, 2011. The City paid a 1% call premium in the amount of$202,950. The redeemed bonds included serial bonds
Idue in annual installments of$580,000 due November 1, 2012, to $965,000 due November 1, 2023, interest at 3.625% to
4.750%; and 4.75%term bonds in amounts of$3,205,000, $5,115,000 and $2,985,000 due on November 1, 2026, 2030, and
2032, respectively.
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Page 1 of 3 I
City of Clearwater, Florida
Defined Benefit Pension Plans
I
Required Supplementary Information-Unaudited
Schedules of Funding Progress:
I
Employees Pension Plan
I
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)
1/1/2006 $ 525,573,824 $ 563,597,580 $ 38,023,756 93% $ 76,010,269 50% I
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%
1/1/2010 $ 618,444,906 $ 638,109,349 $ 19,664,443 97% $ 80,443,199 24%
1/1/2011 $ 646,956,800 $ 665,701,475 $ 18,744,675 97% $ 76,505,599 25%
I
Firefighters' Relief and Pension Plan
Actuarial Actuarial Actuarial Unfunded AAL
Valuation Value of Accrued Liability Unfunded Funded Covered as a Percentage
I
Date Assets (AAL)-Entry Age AAL Ratio Payroll * of Covered Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
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
1/1/2010** $ 7,069,681 $ 6,752,633 $ (317,048) 105% $ - n/a
I
*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
I
valuations. Consequently there was no valuation done on 1/1/2009 and 1/1/2011.
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Page 2 of 3
I
City of Clearwater, Florida
IDefined Benefit Pension Plans
Required Supplementary Information -Unaudited
ISchedules of Employer Contributions:
IEmployees' Pension Plan
Year Annual (a)
I Ended Required Percent
Sept. 30, Contribution _ Contributed
2006 $ 11,614,495 64% (b)
I 2007 $ 13,180,855 78% (b)
2008 $ 10,805,681 96% (b)
2009 $ 8,451,471 122%
I 2010 $ 22,150,490 72% (b)
2011 $ 18,332,319 95% (b)
(a)The actuarially determined contribution requirements for the City's fiscal year ended September 30,2010,are
I
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
I investments for a period of one year.
(b)The actual contribution is less than the annual required contribution due to a"drawdown"of the net pension asset.
IFirefighters' Relief and Pension Plan
Year Annual
I
Ended Required Percent
Sept. 30, Contribution Contributed
2006 $ 1,397,390 100%
I 2007 $ 1,467,259 100%
2008 $ (a) n/a
2009 $ - n/a
I 2010 $ - n/a
2011 $ n/a
I (a)Effective with the fiscal year ended September 30,2007,the Firefighters'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.
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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 Firefighters'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 requirement for the Employees' Pension Plan for the City's fiscal year ended September 30,2011,
are based on an actuarial valuation as of January 1, 2010. 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.
Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2010, 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%
Effective with the fiscal year ended September 30, 2007, the Firefighters' Relief and Pension Plan, with no remaining active members
(only retirees), was fully funded per the requirements of the governing Ordinance. The City is electing to perform actuarial valuations
biennially for the fully funded plan.Significant actuarial assumptions utilized in the actuarial valuation as of January 1, 2010:
Firefighters'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 Firefighters' 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.
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City of Clearwater,Florida
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Other Post-Employment Benefits
Required Supplementary Information-Unaudited
ISchedule of Employer Contributions:
I Fiscal
Year Annual
OPEB Estimated Percentage Net OPEB
Ending Cost Contributions(1) Contributed Obligation
September 30,2009 $ 2,629,200 $ 642,600 24.44% $ 3,782,700
September 30,2010 $ 2,699,090 $ 1,226,290 45.43% $ 5,255,500
ISeptember 30,2011 $ 2,615,030 $ 1,267,980 48.49% $ 6,602,550
(1)Since there is no funding,these are the estimated benefit payments.
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1 Schedule of Funding Progress:
Actuarial Actuarial Accrued Unfunded AAL
I Actuarial Value of Liability(AAL)-
Assets Projected Unit Credit Unfunded Funded Covered as a Percentage
Valuation AAL Ratio Payroll of Covered Payroll
Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
I October 1,2008 $ - $ 23,215,500 $ 23,215,500 0.00% $ 83,100,000 27.94%
January 1,2010 $ $ 32,823,521 $ 32,823,521 0.00% $ 80,987,124 40.53%
January 1,2010* $ - $ 30,243,885 $ 30,243,885 0.00% $ 83,389,105 36.27%
I * Developed per actuarial roll-forward for fiscal year ended September 30,2011,using the January 1,2010 actuarial valuation and census
data and reflecting lower than assumed increases in Per Capita Costs and Premiums.
ISignificant changes affecting the presented trend information include:The actuarial valuation of the OPEB Plan as of January 1,2010,for
fiscal year ended September 30,2010,reflected changes in actuarial methods and assumptions as follows:the actuarial cost method was
I changed from unit credit,level dollar method to the entry age,normal method;the amortization method was changed from 30 years,level dollar
open amortization,to 28-year closed level percent of expected payroll,and the assumption for investment rate of return was changed from 4.0%to
4.3%.These changes occurred at the recommendation of the plan's new actuary.Additionally,due to changes in medical insurance plan options
and resulting migration of retirees to the Base option effective January 1,2011,the Per Capita Cost trend increase,for the actuarial roll-forward for
September 30,2011,was modified from 9%to 0%for year one,with future annual increases assumed to grade uniformly from 8.5%to 5%over
Iseven years,remaining at 5%thereafter.
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Nonmajor Governmental Funds
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Special Revenue Funds
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Special revenue funds are used to account for specific revenues that are legally restricted to expenditures
Ifor particular purposes.
Special Programs Fund —to account for grants and contributions, the use of which is restricted for certain
programs.
ICommunity Redevelopment Agency Fund—to account for receipt, custody, and expenditure of property tax
increment funds associated with related redevelopment projects.
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Local Housing Assistance SHIP Trust Fund — to account for monies allocated to the City under the State
Local Housing Assistance SHIP grant program.
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Pinellas County Local Housing Assistance Trust Fund —to account for monies allocated to the City under
the Pinellas County Local Housing Assistance grant program.
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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 I
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
Y
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.
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' Capital Projects Funds
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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.
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Community Redevelopment Agency Capital Projects Fund—to provide separate accounting records for the
1 acquisition or construction of capital improvement projects for the Clearwater Community Redevelopment
Agency.
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City of Clearwater, Florida
Combining Balance Sheet
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Nonmajor Governmental Funds
September 30,2011
I
Special Revenue Funds
SHIP Pinellas County
Community Local Housing Local Housing
Special Redevelopment Assistance Assistance
Programs Agency Trust Trust Total
ASSETS
Cash and investments $ 11,076,437 $ 1,213,771 $ 284,080 $ 507,164 $ 13,081,452
Receivables:
Accrued interest 52,478 33,953 833 2,614 89,878
Mortgage notes 7,373,912 - 7,150,978 911,846 15,436,736 �,
Rehab advances 10,001 - 676 - 10,677
Other 8,548 23,545 - - 32,093
Due from other govemments-grants 472,024 - - - 472,024
Due from other govemments-other 75,253 - - - 75,253
Land held for resale 84,701 4,618,670 - - 4,703,371
Prepaid items - - - - -
Advances to other funds 974,267 - - - 974,267
Total assets $ 20,127,621 $ 5,889,939 $ 7,436,567 $ 1,421,624 $ 34,875,751
LIABILITIES
Accounts and contracts payable $ 264,027 $ 43,608 $ 8,390 $ 265 $ 316,290
Accrued payroll 26,705 - - - 26,705
Due to other governmental entities 643 48,000 - - 48,643
Construction escrows 11,515 7,123 - 18,638
Due to other funds(deficit in pooled cash) - - - - -
Advances from other funds - 2,874,267 - - 2,874,267
Deferred revenue - 23,545 - - 23,545
Total liabilities 302,890 2,989,420 15,513 265 3,308,088
FUND BALANCES
Nonspendable - - - - -
Restricted 13,771,014 4,618,670 7,421,054 1,421,359 27,232,097
Committed 2,983,325 - - - 2,983,325
Assigned 3,070,392 - - - 3,070,392
Unassigned - (1,718,151) - - (1,718,151)
Total fund balances 19,824,731 2,900,519 7,421,054 1,421,359 31,567,663
Total liabilities and fund balances $ 20,127,621 $ 5,889,939 $ 7,436,567 $ 1,421,624 $ 34,875,751
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The notes to the financial statements are an integral part of this statement.
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Debt Service Funds Capital
I Spring Project
Training Fund Total
Notes Facility Community Nonmajor
I and
Mortgages Revenue Redevelopment Governmental
Bonds Total Agency Funds
I $ - $ 490,520 $ 490,520 $ 4,232,450 $ 17,804,422
2,239 2,239 - 92,117
-
-
- - 15,436,736
- 10,677
-
-
- - - 1,000 33,093
48,971 48,971 - 520,995
-
-
-
- -
75,253
4,7 03,371
-
89,830 - 89,830 - 89,830
I - - 974,267
631,
$ 89,830 $ 541,730 $
631,560 $ 4,233,450 $ 39,740,761
$ $ - $ - $ 359,752 $ 676,042
- --
26,705
-
- - - - 48,643
-
_
- - 18,638
89,830 89,830 89,830
- - - 2,874,267
- - - - 23,545
1
89,830 89,830 359,752 3,757,670
I 89,830 89,830 89,830
541,730 541,730 3,858,737 31,632,564
- - - - 2,983,325
- - - 14,961 3,085,353
I (89,830) (89,830) (1,807,981)
541,730 541,730 3,873,698 35,983,091
$ 89,830 $ 541,730 $ 631,560 $ 4,233,450 $ 39,740,761
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City of Clearwater,Florida I
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
Nonmajor Governmental Funds
I
For the Year Ended September 30,2011
Special Revenue Funds
SHIP Pinellas County
Community Local Housing Local Housing
Special Redevelopment Assistance Assistance
Programs Agency Trust Trust Total
REVENUES I
Intergovernmental:
Federal $ 3,438,818 $ - $ - $ - $ 3,438,818
State 188,374 - 96,983 - 285,357
Local 215,266 982,879 - - 1,198,145
Charges for services 1,150,167 - - - 1,150,167
Fines and forfeitures 617,341 - - - 617,341
Investment earnings 288,186 163,348 - 15,035 466,569
Miscellaneous 1,084,914 70,508 48,708 - 1,204,130
Total revenues: 6,983,066 1,216,735 145,691 15,035 8,360,527
EXPENDITURES
Current:
General government 1,944,576 - - - 1,944,576
Public safety 2,163,048 - - - 2,163,048
Physical environment 143,702 - - - 143,702
Transportation 182,979 - - - 182,979
Economic environment 613,057 397,615 84,680 2,870 1,098,222
Human services 180,287 - - - 180,287
Culture and recreation 1,222,305 - - - 1,222,305
Debt service:
I
Principal - - - - -
Interest&fiscal charges - - 4,299 - 4,299
Capital outlay 248,595 - - - 248,595
Total expenditures 6,698,549 397,615 88,979 2,870 7,188,013
Excess(deficiency)of revenues
over/(under)expenditures 284,517 819,120 56,712 12,165 1,172,514
OTHER FINANCING SOURCES(USES) I
Transfers in 372,488 2,612,756 - - 2,985,244
Transfers out (1,352,943) (2,453,166) (58,662) (68,453) (3,933,224)
Total other financing sources(uses) (980,455) 159,590 (58,662) (68,453) (947,980)
Net change in fund balances (695,938) 978,710 (1,950) (56,288) 224,534
Fund balances-beginning 20,520,669 1,921,809 7,423,004 1,477,647 31,343,129
Fundbalances-ending $ 19,824,731 $ 2,900,519 $ 7,421,054 $ 1,421,359 $ 31,567,663
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The notes to the financial statements are an integral part of this statement.
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iDebt Service Funds Capital
Spring Project
I Improvement Training Fund Total
Revenue Notes Facility Community Nonmajor
Refunding and Revenue Redevelopment Governmental
Bonds Mortgages Bonds Total Agency Funds
II
Is - $ - $ - $ - $ - $ 3,438,818
500,004 500,004 785,361
- - 587,650 587,650 1,785,795
- - - - - 1,150,167
- - - - 617,341
-
90,444 10,868 101,312 567,881
- - - - 2,585 1,206,715
90,444 - 1,098,522 1,188,966 2,585 9,552,078
I - 1,944,576
- - 2,163,048
- - - - - 143,702
- - -
- 182,979
451,370 1,549,592
- - 180,287
- - - - - 1,222,305
1 8,540,000 420,054 550,000 9,510,054 - 9,510,054
292,054 34,192 525,886 852,132 - 856,431
357,592 606,187- - -
8,832,054 454,246 1,075,886 10,362,186 808,962 18,359,161
(8,741,610) (454,246) 22,636 (9,173,220) (806,377) (8,807,083)
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- 454,246 - 454,246 2,087,679 5,527,169
(7,959) - - (7,959) (3,768,305) (7,709,488)
I (7,959) 454,246 446,287 (1,680,626) (2,182,3191
(8,749,569) - 22,636 (8,726,933) (2,487,003) (10,989,402)
I 8,749,569 - 519,094 9,268,663 6,360,701 46,972,493
$ $ $ 541,730 $ 541,730 $ 3,873,698 $ 35,983,091
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I 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 30,2011
iVariance with
Budgeted Amounts Final Budget
I Actual
A Positive
Original Final mounts (Negative)
REVENUES
I Intergovernmental-Local $ 1,013,627 $ 1,191,035 $ 982,879 $ (208,156)
Investment earnings 100,000 150,000 163,348 13,348
Miscellaneous 70,018 71,394 70,508 (886)
ITotal revenues 1,183,645 1,412,429 1,216,735 (195,694)
EXPENDITURES
I Current-Economic environment 280,002 569,502 397,615 171,887
Total expenditures 280,002 569,502 397,615 171,887
Excess of revenues over expenditures 903,643 842,927 819,120 (23,807)
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OTHER FINANCING SOURCES(USES)
Transfers in 900,538 871,244 2,612,756 1,741,512
ITransfers out (1,804,181) (1,714,171) (2,453,166) (738,995)
Total other financing sources(uses) (903,643) (842,927) 159,590 1,002,517
I Excess of revenues and other sources
over expenditures and other uses 978,710 978,710
IFund balances-beginning 1,921,809 1,921,809 1,921,809 -
Fund balances-ending $ 1,921,809 $ 1,921,809 $ 2,900,519 $ 978,710
$
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IThe notes to the financial statements are an integral part of this statement.
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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.
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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
1 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.
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Clearwater Harbor Marina Fund - to account for the financing, operation, and maintenance of the City's
downtown boat slips from boat slip rentals.
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1 101
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City of Clearwater,Florida
Combining Statement of Net Assets
Nonmajor Enterprise Funds
September 30,2011
Recycling Marine
Utility Operations
ASSETS
Current assets:
Cash and investments $ 4,685,853 $ 235,975
Accrued interest receivable 19,593 855
Accounts and contracts receivable:
Billed 81,676 -
Unbilled charges estimated 310,881 -
392,557 -
Less: Allowance for uncollectable accounts (2,904) -
Total receivables,net 389,653 -
Due from other governmental entities - -
Inventories,at cost - 64,648
Prepaid expenses and other assets 10,313 -
Total current assets-unrestricted 5,105,412 301,478
Current assets-restricted:
Restricted cash and investments - -
Total current assets-restricted - -
Total current assets 5,105,412 301,478
Noncurrent assets:
Net pension asset 90,541 55,927
Capital assets:
Land and other nondepreciable assets - 719,961
Capital assets,net of accumulated depreciation 484,015 471,268
Total noncurrent assets 574,556 1,247,156
Total assets 5,679,968 1,548,634
LIABILITIES
Current liabilities:
Accounts and contracts payable 30,581 45,147
Accrued payroll 14,966 12,165
Due to other funds-deficit in pooled cash - -
Deposits - 24,749
II
Unearned revenue and liens - -
Current portion of long-term liabilities:
Compensated absences 22,631 53,895
Notes,loan pool agreement and acquisition contracts 48,311 -
Due to other funds - -
Total current liabilities 116,489 135,956
Noncurrent liabilities:
Compensated absences 12,632 30,083
Other postemployment benefits 86,427 62,394
Notes,loan pool agreement and acquisition contracts 60,391 -
Advances from other funds - -
Total non-current liabilities 159,450 92,477
Total liabilities 275,939 228,433
Net assets:
Invested in capital assets,net of related debt 375,313 1,191,229
Restricted for:
Developer agreement - -
Unrestricted 5,028,716 128,972
Total net assets $ 5,404,029 $ 1,320,201 I
The notes to the financial statements are an integral part of this statement.
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Aviation Parking Harborview Clearwater
IOperations System Center Harbor Marina Total
I $ 530,870 $ 5,637,518 $ 754,073 $ 11,844,289-
1,839 62,368 3,282 888 88,825
- - 188 5,887 87,751
- - - = 310,881
-
- 188 5,887 398,632
--
-
(2,904)
- - 188 5,887 395,728
I 100,000 - 1,236,097 1,336,097
- - 64,648
- -
- - 10,313
632,709 5,699,886 757,543 13,739,900
I - 9,300,000 - - 9,300,000
9,300,000 - 9,300,000
632,709 14,999,886 757,543 1,242,872 23,039,900
1 2,254 24,316 - - 173,038
1,499,340 981,282 926,000 - 4,126,583
I 1,564,058 3,574,035 5,021,790 12,617,153 23,732,319
3,065,652 4,579,633 5,947,790 12,617,153 28,031,940
3,698,361 19,579,519 6,705,333 13,860,025 51,071,840
I61,577 21,810 108,701 8,683 276,499
829 19,497 - 2,610 50,067
- - 387,388 387,388
-
2,011
-
52,359
16,929 5,907 22,836
-
2,228 44,859 - 1,943 125,556
- - 48,311
20,271 20,271
84,905 105,106 108,701 432,130 983,287
I 1,243 25,040 _ 1,084 70,082
5,414 122,477 21,722 298,434
- - - 60,391
I 81,086 - - 81,086
87,743 147,517 22,806 509,993
172,648 252,623 108,701 454,936 1,493,280
I3,063,398 4,555,317 5,947,790 12,617,153 27,750,200
9,300,000 - - 9,300,000
462,315 5,471,579 648,842 787,936 12,528,360
1 $ 3,525,713 $ 19,326,896 $ 6,596,632 $ 13,405,089 $ 49,578,560
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City of Clearwater,Florida
Combining Statement of Revenues,Expenses,and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Year Ended September 30,2011
Recycling Marine
Utility Operations
Operating revenues:
Sales to customers $ 1,574,631 $ 2,905,530
Service charges to customers 7,286 -
User charges to customers 1,552,781 190,389
Rentals - 1,231,386
Total operating revenues 3,134,698 4,327,305
Operating expenses:
Personal services 1,099,531 871,711
III
Purchases for resale 342,288 2,425,169
Operating materials and supplies 98,785 43,421
Transportation 459,733 14,388 I
Utility service 10,209 211,892
Depreciation 145,174 106,285
Interfund administrative charges 576,010 200,980
Other current charges:
Professional fees 54,847 36,490
Advertising 16,995 11,424 1
Communications 5,646 14,474
Printing and binding 89 -
Insurance 42,890 35,010
Repairs and maintenance 17,056 43,833
Rentals 1,077 1,320
Miscellaneous 11,336 78,201
Data processing charges 35,010 27,260
Taxes - 4,231
Total other current charges 184,946 252,243
Total operating expenses 2,916,676 4,126,089
Operating income(loss) 218,022 201,216
Nonoperating revenues(expenses):
Investment earnings 93,460 5,986
Interest expense (4,409) -
Other 83,519 60,114
Total nonoperating revenue(expenses) 172,570 66,100
Income(loss)before contributions and transfers 390,592 267,316
Capital grants and contributions - -
Transfers in 4,710 -
Transfers out (122,470) (213,720)
Changes in net assets 272,832 53,596
Total net assets-beginning 5,131,197 1,266,605
Total net assets-ending $ 5,404,029 $ 1,320,201
The notes to the financial statements are an integral part of this statement.
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1 Aviation Parking Harborview Clearwater
Operations System Center Harbor Marina Totals
I $ 6,539 $ - $ - $ - $ 4,486,700
- - - - 7,286
4,666,491 - 16,112 6,425,773
I 229,986 44,320 307,509 1,813,201
236,525 4,666,491 44,320 323,621 12,732,960
I56,350 1,255,570 - 167,539 3,450,701
805 2,768,262
- -
-
2,872 37,749 - 8,690 191,517
I1,628 116,484 487 1,334 594,054
42,252 57,776 11,311 44,103 377,543
202,991 228,535 506,743 321,330 1,511,058
1 20,461 902,590 4,160 10,200 1,714,401
16,463 277,446 4,054 7,780 397,080
I 300 5,981 34,700
15,127 333 35,580
12,890 - - 12,979
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25,050 38,440 14,170 155,560
125,590 247,823 49,974 15,841 500,117
452,216 - - 454,613
I 14,543 173,986 3,324 281,390
2,110 33,300 5,300 102,980
2,171 - 6,402
- -
184,056 1,251,228 56,199 52,729 1,981,401
510,610 3,849,932 578,900 606,730 12,588,937
(274,085) 816,559 (534,580) (283,109) 144,023
I9,787 273,138 16,795 - 399,166
(1,929) - - (48,026) (54,364)
I 22 10,340 6,693 51,665 212,353
7,880 283,478 23,488 3,639 557,155
(266,205) 1,100,037 (511,092) (279,470) 701,178
I 217,648 15,251 232,899
95,149 9,888 500,000 609,747
(11,880) (543,457) - (500,000) (1,391,527)
1 34,712 566,468 (511,092) (264,219) 152,297
3,491,001 18,760,428 7,107,724 13,669,308 49,426,263
i $ 3,525,713 $ 19,326,896 $ 6,596,632 $ 13,405,089 $ 49,578,560
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City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2011
Recycling Marine
Utility Operations
CASH FLOWS FROM OPERATING I
ACTIVITIES
Cash received from customers $ 2,968,523 $ 4,332,097
Cash payments to suppliers (575,145) (3,070,121)
Cash payments to employees (1,107,408) (867,640)
Cash payments to other funds (1,084,279) (91,132)
III
Other revenues 83,519 60,114
Net cash provided(used)by operating activities 285,210 363,318
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 4,710 -
Transfers out to other funds (122,470) (213,720)
Receipt of cash on loans to/from other funds - -
Net cash provided(used)by
noncapital financing activities (117,760) (213,720)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal payments on debt (61,279) -
Interest paid (4,144) -
Acquisition of capital assets (6,502) (49,875) 1
Capital contributed by other governmental entities - -
Net cash provided (used)by capital
and related financing activities (71,925) (49,875) 1
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 101,219 5,347
Net cash provided by investing activities 101,219 5,347
Net increase(decrease)in cash and cash equivalents 196,744 105,070 1
Cash and cash equivalents at beginning of year 4,489,109 130,905
Cash and cash equivalents at end of year $ 4,685,853 $ 235,975
Cash and cash equivalents classified as:
Cash and investments $ 4,685,853 $ 235,975
Restricted cash and investments - -
Total cash and cash equivalents $ 4,685,853 $ 235,975
The notes to the financial statements are an integral part of this statement.
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Aviation Parking Harborview Clearwater
1 Operations System Center Harbor Marina Totals
I $ 236,525 $ 4,682,572 $ 44,565 $ 331,740 $ 12,596,022
(175,779) (1,250,064) (64,456) (908,623) (6,044,188)
(56,006) (1,266,093) - (171,647) (3,468,794)
I (49,249) (1,114,231) (5,647) (20,804) (2,365,342)
22 10,340 6,693 51,665 212,353
(44,487) 1,062,524 (18,845) (717,669) 930,051
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I 95,149 9,888 - 500,000 609,747
(11,880) (543,457) (500,000) (1,391,527)
- - - 387,388 387,388
1 83,269 (533,569) - 387,388 (394,392)
- - - - (61,279)
(1,929) - - (20,094) (26,167)
1 (88,439) (767,416) (166,016) (1,078,248)
254,104 - - 84,316 338,420
I163,736 (767,416) - (101,794) (827,274)
I9,999 310,326 17,510 - 444,401
9,999 310,326 17,510 - 444,401
1 212,517 71,865 (1,335) (432,075) 152,786
318,353 14,865,653 755,408 432,075 20,991,503
1 $ 530,870 $ 14,937,518 $ 754,073 $ - $ 21,144,289
I $ 530,870 $ 5,637,518 $ 754,073 $9,300,000 - $ 11,844,289
- 9,300,000
$ 530,870 $ 14,937,518 $ 754,073 $ - $ 21,144,289
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City of Clearwater, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2011
Recycling Marine I
Utility Operations
I
I
Reconciliation of operating income(loss)to net
cash provided(used)by operating activities: I
Operating income(loss) $ 218,022 $ 201,216
Adjustments to reconcile operating income(loss)
to net cash provided (used)by operating activities:
Other nonoperating revenue 83,519 60,114
Depreciation 145,174 106,285
Change in assets and liabilities:
(Increase)decrease in accounts receivable (166,175) -
(Increase)decrease in inventory - (31,938)
Increase(decrease)in accounts and contracts payable 12,547 18,778
Increase (decrease)in deposits - 4,792
Increase(decrease)in unearned revenue - -
(Increase)decrease in net pension asset 13,047 6,484
Increase(decrease)in accrued payroll (41,027) (13,934)
Increase(decrease)in other postemployment benefits 20,103 11,521
Total adjustments 67,188 162,102
Net cash provided (used)by operating activities $ 285,210 $ 363,318
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IAviation Parking Harborview Clearwater
Operations System Center Harbor Marina Totals
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$ (274,085) $ 816,559 $ (534,580) $ (283,109) $ 144,023
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I 22 10,340 6,693 51,665 212,353
202,991 228,535 506,743 321,330 1,511,058
I - - 245 (5,887) (171,817)
- - - - (31,938)
26,241 1,532 2,054 (811,566) (750,414)
I - 169 - 14,006 18,967
15,912 15,912
-
534 10,130 - - 30,195
1 (1,452) (49,109) - (9,170) (114,692)
1,262 28,456 5,062 66,404
1 229,598 245,965 515,735 (434,560) 786,028
$ (44,487) $ 1,062,524 $ (18,845) $ (717,669) $ 930,051
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IInternal Service Funds
I 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.
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IGarage 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
Isimultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is financed
by the Garage Fund.
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Administrative Services Fund - to account for various support activities including information technology,
1 printing, mailing, and telephone services. The cost for these services is charged to user departments based
on the cost of providing units of service.
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I 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.
111
ICentral 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'
I 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.
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City of Clearwater,Florida
Combining Statement of Net Assets
Internal Service Funds
September 30,2011
I
Administrative General Central
Garage Services Services Insurance Total
ASSETS
Current assets:
Cash and investments $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402
Accrued interest receivable 20,434 32,547 6,125 155,009 214,115
Other receivables 9,524 - - - 9,524
Due from other funds - - - 111,925 111,925
Inventories,at cost 500,833 - - - 500,833
Prepaid expenses and other assets 309,344 37,645 - 982,167 1,329,156
Total current assets 5,998,941 7,696,026 1,460,257 38,924,731 54,079,955
Noncurrent assets:
Advances to other funds - - - 2,439,353 2,439,353
Net pension asset 106,889 292,020 21,349 12,143 432,401
Capital assets: -
Land and other nondepreciable assets 729,591 - - - 729,591
Capital assets,net of accumulated depreciation 10,633,676 3,813,694 68,185 - 14,515,555
Total noncurrent assets 11,470,156 4,105,714 89,534 2,451,496 18,116,900
Total assets 17,469,097 11,801,740 1,549,791 41,376,227 72,196,855
LIABILITIES
Current liabilities:
Accounts and contracts payable 434,561 175,388 39,800 1,838,561 2,488,310
Accrued payroll 29,308 62,368 32,649 6,071 130,396
Unearned revenue 701,861 - - - 701,861
Current portion of long-term liabilities:
Compensated absences 112,118 290,300 136,635 41,076 580,129
Notes,loan pool agreement and acquisition contracts 2,170,459 245,981 - - 2,416,440
Due to other funds - 91,654 - - 91,654
Claims payable - - - 2,219,200 2,219,200
Total current liabilities(payable from current assets) 3,448,307 865,691 209,084 4,104,908 8,627,990
Noncurrent liabilities:
Compensated absences 62,581 162,040 76,266 22,927 323,814
Other postemployment benefits 143,341 299,558 180,184 29,051 652,134
Notes,loan pool agreement and acquisition contracts 4,169,537 592,501 - - 4,762,038
Advances from other funds - 458,267 - - 458,267
Claims payable - - - 6,468,800 6,468,800
Total noncurrent liabilities 4,375,459 1,512,366 256,450 6,520,778 12,665,053
Total liabilities 7,823,766 2,378,057 465,534 10,625,686 21,293,043
NET ASSETS
Invested in capital assets,net of related debt 5,023,271 2,975,212 68,185 - 8,066,668
Unrestricted 4,622,060 6,448,471 1,016,072 30,750,541 42,837,144
Total net assets $ 9,645,331 $ 9,423,683 $ 1,084,257 $ 30,750,541 $ 50,903,812
The notes to the financial statements are an integral part of this statement.
112 1
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I City of Clearwater, Florida
Combining Statement of Revenue,Expenses,and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended September 30,2011
I
Administrative General Central
I Garage Services Services Insurance Total
Operating revenues
Billings to departments $ 11,515,068 $ 8,842,272 $ 4,714,266 $ 15,683,227 $ 40,754,833
II Operating expenses:
Personal services 2,469,155 4,653,559 2,746,847 522,834 10,392,395
Purchases for resale 4,535,075 - - - 4,535,075
I Operating materials and supplies 148,349 115,174 336,995 3,171 603,689
Transportation 96,603 189,701 1,539 287,843
Utility service 119,988 - 410,652 - 530,640
Depreciation 3,882,457 846,744 17,908 4,159 4,751,268
1 Interfund administrative charges 266,670 4,000 270,670
Other current charges:
Professional fees 633,471 223,172 - 57,436 914,079
I Communications 17,192 950,979 30,781 3,589 1,002,541
Printing and binding 14,708 14,708
Insurance
I Premiums 38,680 25,170 33,190 12,503,346 12,600,386
Claims incurred 3,568,433 3,568,433
Repairs and maintenance 531,677 1,037,286 942,764 13,363 2,525,090
Rentals 1,870 373,137 6,038 550 381,595
I Miscellaneous 34,768 74,897 20,668 80,092 210,425
Data processing charges 109,390 184,560 83,030 11,730 388,710
Taxes 8,299 - - - 8,299
I Total other current charges 1,375,347 2,883,909 1,116,471 16,238,539 21,614,266
Total operating expenses 12,797,041 8,599,989 4,818,574 16,770,242 42,985,846
Operating income(loss) (1,281,973) 242,283 (104,308) (1,087,015) (2,231,013)
I Nonoperating revenues(expenses)
Investment earnings 96,287 165,925 30,097 773,542 1,065,851
Interest expense (195,148) (27,837) (240) - (223,225)
I Gain on sale of capital assets 220,121 220,121
Loss on disposal of capital assets (5,954) (1,639) (7,593)
Other 151,870 1,328 6,221 6 159,425
I Total nonoperating revenue(expenses) 273,130
(1, 133,462 34,439 773,548 1,214,579
Income(loss)before contributions and transfers 008,843) 375,745 (69,869) (313,467) (1,016,434)
Capital grants and contributions 286,950 - - - 286,950
I Transfers in 2,200,846 36,511
(14,369) 38 583,760 2,821,155
Transfers out (14,369)
Change in net assets 1,478,953 397,887 (69,831) 270,293 2,077,302
ITotal net assets-beginning 8,166,378 9,025,796 1,154,088 30,480,248 48,826,510
Total net assets-ending $ 9,645,331 $ 9,423,683 $ 1,084,257 $ 30,750,541 $ 50,903,812
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The notes to the financial statements are an integral part of this statement.
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City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30,2011
Administrative General Central
Garage Services Services Insurance Total
I
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from other funds $ 11,515,068 $ 8,842,272 $ 4,714,266 $ 15,683,227 $ 40,754,833
Cash payments to suppliers (5,781,680) (2,517,401) (1,734,161) (14,889,472) (24,922,714)
Cash payments to employees (2,501,150) (4,644,011) (2,699,490) (527,230) (10,371,881)
Cash payments to other funds (613,832) (523,625) (346,967) (29,232) (1,513,656)
Other revenues 78,540 1,328 6,221 6 86,095 I
Net cash provided(used)by operating activities 2,696,946 1,158,563 (60,131) 237,299 4,032,677
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 2,200,846 36,511 38 583,760 2,821,155
Transfers out to other funds - (14,369) - - (14,369) i
Payment of cash on loans to/from other funds - (91,653) - (1,808,346) (1,899,999)
Net cash provided(used)by
noncapital financing activities 2,200,846 (69,511) 38 (1,224,586) 906,787
CASH FLOWS FROM CAPITAL AND Ii
RELATED FINANCING ACTIVITIES
Principal payments on debt (2,735,847) (161,465) (12,710) - (2,910,022) 1
Interest paid (195,148) (27,837) (240) - (223,225)
Acquisition of capital assets (4,424,289) (751,090) - - (5,175,379)
Sale of capital assets 220,121 - - - 220,121
Proceeds from issuance of debt 2,101,989 605,081 - - 2,707,070
Net cash provided(used)by capital
and related financing activities (5,033,174) (335,311) (12,950) - (5,381,435)
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on investments 104,988 173,342 32,070 843,209 1,153,609
Net cash provided by investing activities 104,988 173,342 32,070 843,209 1,153,609 I
Net increase(decrease)in cash and cash equivalents (30,394) 927,083 (40,973) (144,078) 711,638
Cash and cash equivalents at beginning of year 5,189,200 6,698,751 1,495,105 37,819,708 51,202,764
Cash and cash equivalents at end of year $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402
Cash and cash equivalents classified as:
I
Cash and investments $ 5,158,806 $ 7,625,834 $ 1,454,132 $ 37,675,630 $ 51,914,402
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The notes to the financial statements are an integral part of this statement.
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114 1
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I City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30,2011
IAdministrative General Central
Garage Services Services Insurance Total
I
IReconciliation of operating income(loss)to net
cash provided(used)by operating activities:
IOperating income(loss) $ (1,281,973)$ 242,283 $ (104,308)$ (1,087,015)$ (2,231,013)
Adjustments to reconcile operating income(loss)
to net cash provided(used)by operating activities:
Other nonoperating revenue 151,870 1,328 6,221 6 159,425
Depreciation 3,882,457 846,744 17,908 4,159 4,751,268
I Change in assets and liabilities:
(Increase)decrease in accounts receivable (9,524) (9,524)
(Increase)decrease in inventory (40,949) - - - (40,949)
(Increase)decrease in prepaid expenses (81,329) (27,798) - 29,652 (79,475)
I Increase(decrease)in accounts and contracts payable 172,195 86,458 (27,309) 1,294,893 1,526,237
Increase(decrease)in unearned revenue (63,806) (63,806)
(Increase)decrease in net pension asset 31,198 55,457 32,084 6,445 125,184
I Increase(decrease)in accrued payroll (75,672) (108,969) (29,582) (16,085) (230,308)
Increase(decrease)in other postemployment benefits 12,479 63,060 44,855 5,244 125,638
Total adjustments 3,978,919 916,280 44,177 1,324,314 6,263,690
1 Net cash provided(used)by operating activities $ 2,696,946 $ 1,158,563 $ (60,131)$ 237,299 $ 4,032,677
I Noncash investing,capital and financing activities:
Capital assets transferred from General Government $ 279,975 $ $ $ $ 279,975
II
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1 Fiduciary Funds
nt for resources that are managed in a trustee capacity or as an agent for
Fiduciary Funds are used to account g p ty g
Iother parties or funds.
I
Employees' Pension Fund - to account for the financial operation and condition of the major employee
Iretirement system.
1 Firefighters' Relief and Pension Fund -to account for the financial operation and condition of the Firefighters'
Relief and Pension Plan, closed to new members in 1962, and containing 39 retired members with no active
Imembers. 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
Pp p
IIpension plan funded by the State for sworn police officers.
1 Firefighters Supplemental Pension Fund - to account for the financial operation and condition of a
supplemental pension plan funded by the State for firefighters.
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I Treasurer's Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held
temporarily in trust for other parties.
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City of Clearwater,Florida
Combining Statement of Fiduciary Net Assets I
Fiduciary Funds
September 30,2011
Defined Benefit Defined Contribution I
Pension Trust Fund: Pension Trust Fund:
Police Firefighters
Employees' Firefighters Supplemental Supplemental Totals
ASSETS
Cash and investments $ 781,117 $ 2,719,676 $ 2,193 $ - $ 3,502,986
Managed investment accounts,at fair value:
Cash and cash equivalents 37,408,464 - 595,239 555,972 38,559,675
Government bonds 29,280,303 - 3,094,276 532,322 32,906,901 1
Agency bonds 11,176,788 3,673,369 620,096 - 15,470,253
Domestic corporate bonds 66,834,718 - 933,199 2,841,941 70,609,858
International equity securities 66,784,078 - - - 66,784,078
Domestic stocks 241,368,780 - 5,874,074 1,545,572 248,788,426
Mortgage backed bonds 66,787,964 - - 1,261,597 68,049,561 I
Asset backed securities 759,343 - - - 759,343
Commodity exchange-traded funds 1,238,215 - - - 1,238,215
Domestic equity mutual funds 38,066,505 - 2,436,149 2,177,819 42,680,473
International equity mutual funds 25,612,532 - - 1,325,122 26,937,654
Real estate 24,816,012 - - - 24,816,012
Total managed investment accounts 610,133,702 3,673,369 13,553,033 10,240,345 637,600,449
Securities lending collateral 150,576,091 - - - 150,576,091
Receivables:
Interest and dividends 1,963,084 51,392 46,815 51,766 2,113,057
Unsettled investment sales 12,540,708 - - - 12,540,708
Securities lending earnings 44,292 - - - 44,292
Due from others 32,696 - - - 32,696
Total receivables 14,580,780 51,392 46,815 51,766 14,730,753
Total assets 776,071,690 6,444,437 13,602,041 10,292,111 806,410,279 II
LIABILITIES
Accounts payable 798,159 - - - 798,159
1
Unsettled investment purchases 20,706,584 - - - 20,706,584
Obligations under securities lending 150,576,091 - - - 150,576,091
Total liabilities 172,080,834 - - - 172,080,834
NET ASSETS
Net assets held in trust for pension benefits $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111 $ 634,329,445
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The notes to the financial statements are an integral part of this statement.
III
118 1
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City of Clearwater,Florida
I
Combining Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30,2011
I
Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firefighters Supplemental Supplemental Totals
ADDITIONS
I Contributions:
Contributions from employer $ 17,652,617 $ $ $ $ 17,652,617
Contributions from employer-state tax 12,000 - 816,513 1,134,079 1,962,592
1 Contributions from employees 6,049,656 6,049,656
Total contributions 23,714,273 816,513 1,134,079 25,664,865
Investment income:
I Net appreciation(depreciation)in investments fair value (14,962,927)
7,661,711 4,929 (77,486) (347,875) (15,383,359)
Interest 254,764 173,533 205,684 8,295,692
Dividends 6,596,112 - 190,706 60,847 6,847,665
(705,104) 259,693 286,753 (81,344) (240,002)
I Less investment expenses:
Investment management/custodian fees 3,665,089 79,129 83,202 3,827,420
-
Net income(loss)from investing activities (4,370,193) 259,693 207,624 (164,546) (4,067,422)
ISecurities lending income:
Gross earnings 497,674 - - - 497,674
Gain on securities lending collateral 1,556,260 - - - 1,556,260
I Rebate paid 131,722 131,722
Bank fees (220,091) (220,091)
Net income from securities lending 1,965,565 - - - 1,965,565
1111 Total additions 21,309,645 259,693 1,024,137 969,533 23,563,008
DEDUCTIONS
I Benefits and withdrawal payments:
Benefits 29,922,846 726,918 1,652,629 612,439 32,914,832
Withdrawal payments 1,052,623 - - - 1,052,623
1 Total benefits and withdrawal payments 30,975,469 726,918 1,652,629 612,439 33,967,455
Income(loss)before administrative expenses (9,665,824) (467,225) (628,492) 357,094 (10,404,447)
I Administrative expenses 173,685 18,271 9,383 201,339
Net increase(decrease) (9,839,509) (467,225) (646,763) 347,711 (10,605,786)
I Net assets held in trust for pension benefits:
Beginning of year 613,830,365 6,911,662 14,248,804 9,944,400 644,935,231
End of year $ 603,990,856 $ 6,444,437 $ 13,602,041 $ 10,292,111 $ 634,329,445
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The notes to the financial statements are an integral part of this statement.
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City of Clearwater, Florida
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended September 30,2011
I
Balance Balance
October 1, September 30,
2010 Additions Deductions 2011
TREASURER'S ESCROW FUND I
ASSETS 1
Cash and investments $ 427,893 449,943 454,561 $ 423,275
Accrued interest receivable 1,916 3,104 3,512 1,508 III
Total Assets $ 429,809 453,047 458,073 $ 424,783 i
LIABILITIES
Other miscellaneous payables:
I
Downtown Development Board $ 314,240 451,421 455,702 $ 309,959
Special purpose funds 7,640 1,059 1,059 7,640 1
Other 107,929 567 1,312 107,184
Total Liabilities $ 429,809 453,047 458,073 $ 424,783 1
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The notes to the financial statements are an integral part of this statement.
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Supplementary
Information
121
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, 2011, contract rates applied to 196 customer accounts and impacted 10.7% 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 lasses 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 I implementation, adjustments
made to the Phase II rates were implemented October 1, 1996, and additional adjustments (Phase Ill)
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. I
The rate ordinance containing the Phase II and Phase Ill 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. I
122 1
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IN OM S 1 • ON - r i - - MI r r - M rr MI it
CLEARWATER GAS SYSTEM
NATURAL GAS RATE BILLING FACTORS
FOR AUGUST 1, 2011 -SEPTEMBER 30, 2011 BASED ON AAPROVED GAS ADJUSTMENT FACTORS
Intern. Contract
Firm Natural Gas Rate Schedules NG Rate NG Rate
RS SMF MMF LMF SGS MGS LGS RAC GAC LAC SL SL w/M& NGV NSS IS CNS
Reliuht '
Applicable Annual Therm Range NA(1- NA(4+ NA(4+ NA(4+ 0- 18,000- 100,000 NA(1- NA(0- NA(150 NA NA NA NA 100,000 NA
or Other Rate Determinant 3 Units) Units) Units) Units) 17,999 99,999 &up 3 Units) 149 tons) tons&+) &up ()
0
Monthly Customer Charge $10.00 $25.00 $40.00 $95.00 $25.00 $40.00 $95.00 $10.00 $25.00 $40.00 $20.00 $20.00 By Contract $50.00 $250.00 By Contract w
(For Central Pasco Territory) ($18.00) ($40.00) ($70.00) ($160.00) ($40.00) ($70.00) ($160.00) ($18.00) ($40.00) ($70.00) ($30.00) ($30.00) (By Contract) ($75.00) ($400.00) (By Contract) 3
if not prey if not prey if not prey if not prey c
Non-Fuel Energy Charge/Therm billed billed billed billed
CO
Non-Fuel Energy Charge $0.48 $0.48 $0.48 $0.48 $0.46 $0.40 $0.34 $0.20 $0.15 $0.10 $0.20 $0.35 By Contract $0.46 $0.28 By Contract
G
Energy Conservation Adj.(ECA) 0.12 0.12 0.12 0.12 0.12 0.12 0.12 NA NA NA NA NA NA NA NA NA C W n
Regulatory Imposition Adj.(RIA) 0.02 0.02 0.02 0.02 0.02 0.02 0.02 NA NA NA NA NA NA NA NA NA .a CD C.<
Usage&Inflation Adj.(UIA) 0.02 0.02 0.02 0.02 0.05 0.05 0.05 NA NA NA NA NA NA NA NA NA CD (1) y
C
Total Non-Fuel Energy Charge $0.64 $0.64 $0.64 $0.64 $0.65 $0.59 $0.53 $0.20 $0.15 $0.10 $0.20 $0.35 By Contract $0.46 $0.28 By Contract e 0 m n
Purchased Gas Adjustment (PGA) $0_78 $0.78 $0.78 $0.78 $0.78 $0.78 $0_78 $0.78 $0_78 $0.78 $0_78 $0_78 0.70 0.78 0.70 0.70 3 A p31
N NC> 2
W Total Energy Charge/Therm $1.42 $1.42 $1.42 $1.42 $1.43 $1.37 $1.31 $0.98 $0.93 $0.88 $0.98 $1.13 0.70 1.24 0.98 0.70 0 Cl) y
+ Non-Fuel + Non-Fuel al CD Er
Minimum Monthly Bill $10.00 $25.00 $40.00 $95.00 $25.00 $40.00 $95.00 $10.00 $25.00 $40.00 $20.00 $20.00 By Contract $50.00 $250.00 Customer ter"
(For Central Pasco Territory) ($18.00) ($40.00) ($70.00) ($160.00) ($40.00) ($70.00) ($160.00) ($18.00) ($40.00) ($70.00) ($30.00) ($30.00) (By Contract) ($75.00) ($400.00) charge+ O CO ,y
@premise @premise @premise + FAC + FAC + FAC + FAC + Non-Fuel Non-Fuel Therm 3 Q. CD C
Therm Rate fotRate for Contract co N 3 g
Contract# #of Therms O 0 0.ow
of Therms g V L D)
Comparesto LP/Gallon Rate of $ 1.30 $ 1.30 $ 1.30 $ 1.30 $ 1.31 $ 1.25 $ 1.20 $ 0.90 $ 0.85 $ 0.81 $ 0.90 $ 1.03 $ 0.64 $ 1.13 s 0.90 CD
with 6.0%Franchise $ 1.38 $ 1.38 $ 1.38 $ 1.38 $ 1.39 $ 1.33 $ 1.27 $ 0.95 $ 0.90 $ 0.85 $ 0.95 $ 1.10 $ 0.68 $ 1.20 $ 0.95 C
CD
Orange from 1/06 Therm Rate ($0.84) ($0.84) ($0.84) ($0.84) ($0.72) ($0.72) ($0.72) ($0.90) ($0.90) ($0.90) ($0.90) ($0.85) ($1.08) ($0.91) ($0.76) ($0.76) co
%Change from 1/06 Therm Rate -37.2% -37.2% -37.2% -37.2% -33.5% -34.4% -35.5% -47.9% -49.2% -50.6% -47.9% -42.9% -60.7% -42.3% -43.7% -521% 0
Utility Tax Note: Q'
fn
Fuel Rate per Therm 10/01/1973 $0.069 50.069 $0.069 $0.069 $0.069 $0.069 50.069 50.069 $0.069 50.069 $0.069 $0.069 $0.069 $0.069 $0.055 $0.069
Non-Utility Taxable Fuel/Therm $0.711 $0.711 50.711 $0.711 $0.711 $0.711 $0.711 $0.711 $0.711 $0.711 $0.711 $0.711 50.631 $0.711 50.645 50.631
BTU FACTOR=THERMS/100 CUBIC FEET(CCF)
10/2010 11/2010 12/2010 01/2011 02/2011 03/2011 04/2011 05/2011 06/2011 07/2011 08/2011 09/2011 annual Average
Firm Service Rates 1.040 1.038 1.038 1.040 1.037 1.037 1.037 1.036 1.036 1.036 1.035 1.036 1.037
Interruptible Service Rates 1.019 1.018 1.018 1.020 1.017 1.017 1.017 1.016 1.015 1.015 1.015 1.015 1.017
Page 3 of 5 I
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. I
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 I
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 & I
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
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 25 entities.
In addition, the City has entered into a Gas Supply& Transportation Agreement with Peoples Gas System (PGS), dated I
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 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.
I
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 1
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
Phase II (FTS-1) Phase III (FTS-2) Total
MMBtu Per Day MMBtu Per Day MMBtu
Contract Period 2/01/07- 1/31/17 12/9/91 -2/28/15 Per Day
October 170,438 41,788 212,226
Nov-Mar 1,543,069 268,931 1,812,000
1
April 216,570 53,430 270,000
May-Sept 711,756 206,244 918,000 I
Total Annual 2,641,833 570,393 3,212,226
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Page4of5
I City of Clearwater,Florida
Continuing Disclosure—Gas System Revenue Bonds
Series 2004,2005,and 2007
ISupplementary Information
IService Area
I The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of
Clearwater. CGS operates over 830 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
ICounty. 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
I 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.
I
CGS has been serving customers in the Clearwater area for over 88 years(since 1923) when operations
I 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.
IClearwater Gas System serves over 19,807 customers in a 330 square mile service territory, which
includes 20 municipalities as well as the unincorporated areas of northern Pinellas County and western
I
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
IMexico 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
I extends from the Gulf of Mexico on the West inland about 20 miles to just east of State Road 41 and
Land 0' 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
Inorthwestern-most points.
I 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
Icustomers who make up 88.79%of our customer base.
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Page5of5 I
City of Clearwater, Florida
Continuing Disclosure-Gas System Revenue Bonds
Series 2004,2005, and 2007
Supplementary Information
As of September 30, 2011 the System's active natural gas customers were located as shown in the I
following table:
Location Meters Percentage 1
Belleair 421 2.37%
Belleair Beach 167 0.94%
Belleair Bluffs 26 0.15%
Belleair Shores 24 0.14%
Clearwater 6,605 37.21%
Dunedin 1,090 6.14%
Indian Rocks Beach 95 0.54%
III
Indian Shores 71 0.40%
Largo 883 4.97%
New Port Richey 316 1.78%
North Redington Beach 12 0.07%
Oldsmar 101 0.57%
Port Richey 12 0.07% '
Redington Beach 57 0.32%
Redington Shores 35 0.20%
Safety Harbor 566 3.19%
I
Tarpon Springs 1,426 8.03%
Unincorporated Areas Pasco 2,693 15.17%
Central Pasco 393 2.21%
Unincorporated Areas Pinellas 2,759 15.54%
Total 17,752 100.00%
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, 2011:
Peak Monthly %of Gross
II
Customer Name Therms Revenues
Morton Plant Hospital 133,437 3.92%
Metal Industries 78,579 1.89%
I
Ajax Paving Industries 76,454 1.85%
Angelica Textile Service 55,179 1.78%
Mease Hospital 65,437 1.64%
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, 2011:
Average No. Gas Gas
Customers Volume Sales
Interruptible 15 24.79% 15.97%
Residential 15,569 16.58% 23.77%
Commercial 2,110 58.62% 60.25% I
Therms Revenues
Interruptible 5,290,440 $ 4,837,766
Residential 3,538,490 7,199,693
Commercial 12,509,250 18,246,008
Totals 21,338,180 $ 30,283,467
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I Page 1 of 3
City of Clearwater, Florida
Continuing Disclosure—Water and Sewer Revenue Refunding Bonds
Series 2003,2009B and 2011; and Revenue Bonds Series 2002,2006,and 2009A
I
Supplementary Information
IHistorical Financial Information
Water System:
I Source and Volume of Water Pumped
(in million gallons per day, averaged over the fiscal year)
I FY City Wells County Total
2006 4.093 9.999 14.092
2007 3.570 9.090 12.660
I 2008
2009 3.075 8.844 11.919
3.738 7.781 11.519
2010 4.105 6.820 10.760
2011 4.946 6.371 11.317
I
Historical Growth in Number of Water Customers
I (all figures are as of September of the year indicated)
Year Water Customers
I 2006 40,467
2007 40,407
2008 40,131
2009 39,935
I
2010 39,971
2011 41,391
ITen Largest Water Customers
Fiscal Year Ending September 30, 2011
Water Used Revenues
Name of User (in 100 Cubic Feet) Produced
1. City of Clearwater 75,745 $ 695,065
2. Church of Scientology FSO Inc. 109,925 547,100
3. Morton Plant Hospital 61,500 382,256
I 4. Pinellas County Schools 35,455 309,101
5. IMT-Capital Macarthur Park Aptmnts LLC 38,436 200,469
6. Crystal Beach Capital LLC 31,995 192,166
I
7. Pinnacle Management Corp. 39,246 187,477
8. Clearwater Housing Authority 35,468 169,246
1 9. Sandpearl Resort LLC 30,476 153,133
10. Brenntag Mid-South, Inc. 25,947 143,935
ITotal 484.193 $2.979.946
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Page 2 of 3 I
City of Clearwater, Florida
Continuing Disclosure—Water and Sewer Revenue Refunding Bonds
Series 2003,2009B and 2011; and Revenue Bonds Series 2002,2006,and 2009A
Supplementary Information
Sewer System:
Average Sewage Flow Historical Growth in Number of Sewer Customers
I
(as of September of the year indicated)
Fiscal Annual Ave. Daily Fiscal II Year Flow In MGD Year Sewer Customers
2006 13.8 2006 33,279
2007 13.6 2007 33,255
2008 14.0 2008 33,146
2009 13.6 2009 33,084
2010 14.3 2010 33,041
2011 14.8 2011 33,063
I
Ten Largest Sewer Customers
Fiscal Year Ending September 30, 2011
I
Sewer Used Revenues
Name of User (in 100 Cubic Feet) Produced
1. Church of Scientology 98,502 $ 549,221
2. Pinellas County Schools 34,709 408,302
3. Morton Plant Hospital 55,945 405,557
4. City of Clearwater 32,110 371,119
5. Pinnacle Management Corp 39,246 210,234
6. IMT-Capital Macarthur Park Aptmnts LLC 38,436 205,852
7. Clearwater Housing Authority 35,079 203,505
8. Crystal Beach Capital LLC 31,995 195,690
I
9. Publix Supermarkets 11,197 176,047
10. Bre/Clearwater Owner LLC 30.148 174.304
407,367 $2.899,831
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
II
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 2011 there were no changes to the three-tiered rate structure for water or
sewer usage.
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IPage 3 of 3
City of Clearwater, Florida
Continuing Disclosure-Water and Sewer Revenue Refunding Bonds
Series 2003,2009B and 2011; and Revenue Bonds Series 2002,2006,and 2009A
Supplementary Information
I
Residential and October 1, October 1, October 1, October 1, October 1,
Nonresidential Water Rates 2007 2008 2009 2010 2011
ISize of Meter Gallons
Minimum- Under 1 inch 12.75 13.65 14.58 15.60 16.30
1 inch 29.75 31.85 34.02 36.40 38.04
1.5 inch 425.00 455.00 486.00 520.00 543.40
2 inch 990.25 1,060.15 1,132.38 1,211.60 1,266.12
3 or 2 inch manifold 1,525.75 1,633.45 1,744.74 1,866.80 1,950.81
I 4 inch
6 inch 2,936.75 3,144.05 3,358.26 3,593.20 3,754.89
7,543.75 8,076.25 8,626.50 9,230.00 9,645.35
8 inch 12,750.00 13,650.00 14,580.00 15,600.00 16,302.00
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,
2007 2008 2009 2010 2011
ISize of Meter Gallons
Minimum- Under 1 inch 4.54 4.86 5.20 5.56 5.81
1 inch 13.63 14.58 15.60 16.69 17.44
1.5 inch 68.17 72.94 78.05 83.51 87.27
2 inch 190.86 200.22 218.52 233.82 244.34
3 or 2 inch manifold 377.19 403.59 431.84 462.07 482.86
4 inch 727.13 778.03 832.49 890.76 930.84
6 inch 2,195.00 2,348.65 2,513.06 2,688.97 2,809.97
Sewer Rates October 1, October 1, October 1, October 1, October 1,
I
2007 2008 2009 2010 2010
Size of Meter Gallons
I Minimum- Under 1 inch 17.52 18.75 20.07 21.48 22.44
1 inch 40.88 43.75 46.83 50.12 52.36
1.5 inch 584.00 625.00 669.00 716.00 748.00
I 2 inch 1,360.72 1,456.25 1,558.77 1,668.28 1,742.84
3 or 2 inch manifold 2,096.56 2,243.75 2,401.71 2,570.44 2,685.32
4 inch 4,035.44 4,318.75 4,622.79 4,947.56 5,168.68
6 inch 10,366.00 11,093.75 11,874.75 12,709.00 13,277.00
I8 inch 17,520.00 18,750.00 20,070.00 21,480.00 22,440.00
Per 1,000 gallons of water used over 5.84 6.25 6.69 7.16 7.48
that allowed in minimum
IAdditional Indebtedness
Additional indebtedness was incurred for capital improvements to the water and sewer systems or for the
I lease purchase of capital equipment in the amount of$144,285. The issuance of the Series 2011 revenue
refunding bonds to partially refund the 2002 revenue bonds resulted in a net decrease to indebtedness of
$1,520,000.
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City of Clearwater,Florida I
Continuing Disclosure—Stormwater System Revenue Bonds
Series 2002,2004,and 2005
Supplementary Information I
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
I
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 1
October 1, 2001 $4.54
January 1, 2002 $6.13
IOctober 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
I
October 1, 2008 $11.14
October 1, 2009 $11.80
October 1, 2010 $12.51 I
October 1, 2011 $13.04
October 1, 2012 $13.59
Single-family homes, multifamily units, condominium units, apartments and mobile homes are
I
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, I
2007 2008 2009 2010 2011
Net Operating Revenues(Excluding
Depreciation) $5,688,934 $5,681,465 $5,750,323 $7,471,323 $7,247,625
Interest Income and other Non-
Operating Revenues(Expenses) 608,038 550,935 787,426 1,045,752 491,646
Total Net Revenues $6,296,972 $6,232,400 $6,537,749 $8,517,075 $7,739,271
Maximum Annual Debt Service $2,889,994 $2,889,994 $2,889,994 $2,889,994 $2,889,994
I
Coverage 2.19 2.16 2.27 2.95 2.68
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I
City of Clearwater,Florida
' Fire Services Program
Supplementary Information
I
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, 2011, 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, 2011 are summarized
below.
1
Total Revenue Received from Pinellas County Fire Protection Authority $ 2,152,918
Total Fire Service Expendituresfor Fiscal Year Ended September 30, 2011 $ 18,072,247
The Fire rvices Program does not currently utilize an equipment reserve.
a
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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
Schedule 2a Changes in Net Assets
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.
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 Ratios of Outstanding Debt by Type
' Schedule 10 Ratios of General Bonded Debt Outstanding
Schedule 11 Direct and Overlapping Governmental Activities Debt
Schedule 12 Legal Debt Margin Information
111 Schedule 13 Pledged-Revenue Coverage
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CITY OF CLEARWATER, FLORIDA
STATISTICAL SECTION (CONTINUED) I
I
Economic and Demographic Information
I
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
I
Operating Information
1
These schedules contain service and infrastructure data to help the reader understand how the
Iinformation 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
I
Schedule 17 Operating Indicators by Function/Program
Schedule 18 Capital Assets Statistics by Function/Program
1
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Sources: Unless otherwise noted, the information in this section is derived from the City's I
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.
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- - - - - i - - - r i - - - - • - - -
Schedule 1
City of Clearwater,Florida
Net Assets by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Primary Government
Governmental activities
Invested in capital assets,net of related debt a $ 60,970 $ 103,015 $ 133,711 $ 143,505 $ 182,474 $ 205,079 $ 218,384 $ 240,550 $ 249,043 $ 257,542
Restricted 63,795 53,939 50,801 34,668 41,204 41,543 39,020 42,681 49,682 57,245
Unrestricted 67,099 62,599 61,163 92,739 100,234 108,262 114,247 103,556 93,283 79,955
Total governmental activities net assets $ 191,864 $ 219,553 $ 245,675 $ 270,912 $ 323,912 $ 354,884 $ 371,651 $ 386,787 $ 392,008 $ 394,742
ca Business-type activities
Invested in capital assets,net of related debt $ 86,679 $ 105,824 $ 136,964 $ 146,476 $ 156,728 $164,246 $170,735 $158,129 $165,704 $ 159,913
Restricted 38,382 33,413 37,108 35,354 35,054 35,775 39,635 41,333 44,332 55,038
Unrestricted 93,847 90,769 67,723 71,655 77,435 84,021 83,681 120,461 126,204 136,067
Total business-type activities net assets $ 218,908 $ 230,006 $ 241,795 $ 253,485 $ 269,217 $ 284,042 $ 294,051 $ 319,923 $ 336,240 $ 351,018
Primary government
Invested in capital assets,net of related debt $ 147,649 $ 208,839 $ 270,675 $ 289,981 $ 339,202 $ 369,325 $ 389,119 $ 398,679 $ 414,747 $ 417,455
Restricted 102,177 87,352 87,909 70,022 76,258 77,318 78,655 84,014 94,014 112,283
Unrestricted 160,946 153,368 128,886 164,394 177,669 192,283 197,928 224,017 219,487 216,022
Total primary government net assets $ 410,772 $ 449,559 $ 487,470 $ 524,397 $ 593,129 $ 638,926 $ 665,702 $ 706,710 $ 728,248 $ 745,760
a Fiscal 2003 and 2004 increases in governmental activities invested in net assets, net of related debt were due to the construction of a spring training community sports complex($28.9
million), a new main library($17.2 million),donation of a recreation center complex($5.8 million)and construction of two new fire stations($3.6 million)over the two-year period.The fiscal
2006 increase was due to the implementation of the retroactive infrastructure component of GASB Statement#34,resulting in the addition of$36.3 million of governmental activities capital
assets.
Note:The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2002.
Schedule 2
City of Clearwater, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
Page 1 of 3
Fiscal Year
(amounts in thousands)
Expenses
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental activities:
General 9 overnment $ 11,647 $ 11,353 $ 11,772 $ 11,945 $ 13,203 $ 13,169 $ 14,342 $ 13,515 $ 15,966 $ 16,183
Public safety 45,136 47,429 51,454 56,456 60,178 68,636 66,582 64,977 69,457 66,914
Physical environment 2,886 2,271 2,684 2,826 3,098 3,027 2,730 4,266 4,941 3,868
Transportation 10,120 8,878 12,510 12,001 13,898 13,694 12,322 9,595 13,760 13,275
Economic environment 3,231 4,288 3,225 3,395 3,321 3,142 4,534 3,924 4,155 3,113
Human services 555 571 555 530 444 448 440 402 97 182
w Culture and recreation 22,231 22,094 25,402 28,875 32,636 32,872 37,688 28,740 30,610 30,606
rn
Interest on long-term debt 2,963 3,284 3,013 2,699 2,373 2,248 1,998 1,850 1,446 1,217
Total governmental activities expenses 98,769 100,168 110,615 118,727 129,151 137,236 140,636 127,269 140,432 135,358
Business-type activities:
Water and sewer utility 37,470 40,825 41,995 43,852 48,592 49,840 52,015 54,520 57,229 61,010
Gas utility 23,574 26,638 29,152 33,394 36,947 33,579 35,944 29,285 31,200 28,354
Solid waste utility 14,398 14,232 15,096 15,615 16,013 16,172 16,036 14,801 15,618 15,844
Stormwater utility 5,459 7,022 8,250 8,768 9,013 9,465 11,070 11,775 10,937 12,234
Recycling 2,084 2,165 2,388 2,574 2,579 2,895 3,207 2,518 2,759 2,954
Marine 2,848 3,060 3,249 3,801 4,303 4,366 4,696 4,025 3,868 4,136
Aviation 336 211 299 350 468 382 417 743 388 515
Parking system 3,075 3,281 3,617 3,846 3,976 3,427 3,521 3,752 4,302 3,867
Harborview center 2,714 2,525 2,418 2,552 2,618 2,664 2,800 2,345 984 579
Clearwater Harbor Marina - - - - - - 23 474 473 657
Total business-type activities expenses 91,958 99,959 106,464 114,752 124,509 122,790 129,729 124,238 127,758 130,150
Total primary government expenses $ 190,727 $ 200,127 $ 217,079 $ 233,479 $ 253,660 $ 260,026 $ 270,365 $ 251,507 $ 268,190 $ 265,508
1111111 alil MI M - W = • MI MI • • • MI i • • • OM
• r i i i • - MO - • M MI - On - - NM OM
Schedule 2(continued)
City of Clearwater, Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
Page 2 of 3
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Program revenues
Charges for services:
General governmenta b $ 11,741 $ 12,268 $ 12,961 $ 13,585 $ 14,628 $ 14,508 $ 21,639 $ 21,679 $ 21,484 $ 20,869
Public safety 7,747 7,960 7,742 7,500 8,222 8,444 9,803 10,291 8,966 9,980
Physical environment 93 180 76 119 150 123 91 249 331 147
Transportation 59 126 159 163 235 261 194 397 857 852
Economic environment 124 91 87 164 110 107 108 211 124 153
Human services 6 - - - - -
Culture and recreation 3,070 3,191 4,344 4,753 5,296 5,574 5,318 5,334 5,174 5,491
Operating grants and contributions 6,224 8,267 6,605 6,273 7,181 9,687 9,123 8,542 7,561 8,062
Capital grants and contributions 9,787 5,207 3,129 15,058 3,405 11,748 7,632 3,169 1,315 2,766
Total governmental activities 38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872 45,812 48,320
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 55,801 59,810
Gas utility 26,890 30,064 33,001 37,469 43,160 38,906 40,902 39,079 36,622 36,470
Solid waste utility 16,090 15,960 16,403 16,541 16,816 17,301 17,512 17,847 18,422 19,205
Stormwater utility 6,767 8,485 9,526 10,319 11,138 11,885 12,770 13,493 14,717 15,222
Recycling 2,171 2,427 2,649 2,784 2,740 3,204 3,411 2,227 2,695 3,135
Marine 2,735 2,949 3,072 3,721 4,075 4,323 4,798 4,031 4,064 4,387
Aviation 144 176 187 205 213 224 227 216 332 237
Parking system 4,097 4,003 4,418 4,752 4,981 4,655 4,166 5,007 4,358 4,677
Harborview center 1,872 1,661 1,654 1,646 1,842 1,846 2,032 1,641 440 51
Clearwater Harbor Marina - - - - - - - 50 44 325
Operating grants and contributions - 14 420 59 59 83 83 83 187 133
Capital grants and contributions 4,301 9,406 5,591 6,138 6,639 6,382 1,086 2,609 11,060 5,290
Total business type activities 102,806 114,352 120,064 128,940 140,822 139,190 139,098 140,248 148,742 148,942
program revenues
Total primary government
program revenues $ 141,651 $ 151,648 $ 155,167 $ 176,555 $ 180,049 $ 189,642 $ 193,006 $ 190,120 $ 194,554 $ 197,262
Schedule 2(continued)
City of Clearwater,Florida
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
Page 3 of 3
Fiscal Year
(amounts In thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Net(Expenses)/Revenue
Govemmental activities $(59,924) $(62,872) $(75,512) $(71,112) $ (89,924) $(86,784) $ (86,728) $ (77,397) $ (94,620) $ (87,038)
Business-type activities 10,848 14,393 13,600 14,188 16,313 16,400 9,369 16,010 20,984 18,792
Total primary government net(expense)/revenue $(49,076) $(48,479) $(61,912) $(56,924) $ (73,611) $(70,384) $ (77,359) $ (61,387) $ (73,636) $ (68,246)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property $ 30,322 $ 33,927 $ 37,157 $ 41,588 $ 48,076 $ 53,717 $ 50,347 $ 46,893 $ 44,040 $ 39,253
Sales 14,664 14,529 15,263 16,351 17,155 16,079 15,675 13,850 13,253 13,385
Franchise° 7,087 7,140 7,505 8,226 9,435 9,505 - - - -
Utility 10,402 10,363 10,237 10,611 11,264 11,410 11,533 12,021 13,574 13,229
Communications services 7,870 7,019 6,790 6,883 6,854 6,784 7,316 6,398 6,107 5,852
W Other taxes b 4,294 3,974 4,435 5,183 5,523 5,779 8,154 7,581 7,773 7,451
Co
Investment earnings 4,859 2,188 3,231 2,648 5,352 7,402 5,837 8,635 5,015 2,965
Miscellaneous 213 168 758 151 396 131 437 113 128 125
Special items` - 5,810 10,047 - - - - - - -
Transfers 376 5,443 4,515 4,707 3,658 6,948 4,196 _ (2,958) 9,951 7,511
Total govemmental activities 80,087 90,561 99,938 96,348 107,713 117,755 103,495 92,533 99,841 89,771
Business-type activities:
Investment earnings 3,083 2,148 1,987 2,210 4,341 5,373 4,313 6,904 5,284 3,497
Transfers (376) (5,443) (4,515) (4,707) (3,658) (6,948) (4,196) 2,958 (9,951) (7,511)
Total business-type activities 2,707 (3,295) (2,528) (2,497) 683 (1,575) 117 9,862 (4,667) (4,014)
Total primary government $ 82,794 $ 87,266 $ 97,410 $ 93,851 $ 108,396 $116,180 $103,612 $ 102,395 $ 95,174 $ 85,757
Change In Net Assets
Governmental activities $ 20,163 $ 27,689 $ 24,426 $ 25,236 $ 17,789 $ 30,971 $ 16,767 $ 15,136 $ 5,221 $ 2,733
Business-type activities 13,555 11,098 11,072 11,691 16,996 14,825 9,486 25,872 16,317 14,778
Total primary government change in net assets $ 33,718 $ 38,787 $ 35,498 $ 36,927 $ 34,785 $ 45,796 $ 26,253 $ 41,008 $ 21,538 $ 17,511
°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.
b 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.
U
• • MI IIIMI • I MI • M I MO ® 1.1 I all I MI
Schedule 2a
City of Clearwater, Florida
Program Revenues by Function/Program
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
(amounts in thousands)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Function/Program
Governmental activities:
General government $ 11,843 $ 12,340 $ 13,090 $ 13,605 $ 14,697 $ 14,514 $ 21,640 b $ 21,681 $ 21,512 $ 21,533
Public safety 9,046 9,661 9,009 9,207 9,275 11,763 12,784 13,284 12,309 12,631
Physical environment 1,052 1,118 796 448 1,274 704 695 304 360 344
Transportation 6,261 3,982 2,003 14,056 a 2,300 10,491 6,628 1,852 2,024 2,651
Economic environment 2,802 4,028 2,629 2,425 2,708 3,298 2,844 3,327 1,982 2,444
Human services - 6 - - - - - - - 211
Culture and recreation 7,841 6,161 7,576 7,874 8,973 9,682 9,317 9,424 7,625 8,506
Subtotal governmental activities 38,845 37,296 35,103 47,615 39,227 50,452 53,908 49,872 45,812 48,320
Business-type activities:
c Water and sewer utility 40,051 43,120 46,357 47,656 52,264 56,071 52,807 55,291 63,426 63,566
Gas utility 26,890 30,064 33,001 37,469 43,160 38,906 40,902 39,078 36,672 36,470
Solid waste utility 16,090 15,974 16,823 16,541 16,816 17,301 17,512 17,847 18,422 19,205
Stormwater utility 8,262 13,411 11,158 14,061 14,343 12,559 12,941 14,478 15,682 16,523
Recycling 2,171 2,427 2,649 2,843 2,799 3,287 3,493 2,310 2,779 3,218
Marine 2,735 2,953 3,750 3,721 4,128 4,323 4,810 4,031 4,064 4,387
Aviation 638 739 253 251 489 242 335 365 491 454
Parking system 4,097 4,003 4,418 4,752 4,981 4,655 4,266 5,157 4,364 4,677
Harborviewcenter 1,872 1,661 1,655 1,646 1,842 1,846 2,032 1,641 440 51
Clearwater Harbor Marina - - - - - - - 50 2,402 391
Subtotal business-type activities 102,806 114,352 120,064 128,940 140,822 139,190 139,098 140,248 148,742 148,942
Total primary government $141,651 $151,648 $155,167 $176,555 $180,049 $189,642 $193,006 $190,120 $194,554 $ 197,262
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.
Schedule 3
City of Clearwater,Florida
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 `
General Fund:
Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 24
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned - - - - - - - - - 856
Unassigned - - - - - - - - - 23,081
Reserved 3,019 2,618 2,762 3,064 2,941 3,476 3,500 3,168 1,164
Unreserved 12,684 12,075 13,077 15,575 21,479 23,580 17,564 19,171 22,903 -
'f'
0 Total General Fund $ 15,703 $ 14,693 $ 15,839 $ 18,639 $ 24,420 $ 27,056 $ 21,064 $ 22,339 $ 24,067 $ 23,961
All Other Governmental Funds:
Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 90
Restricted - - - - - - - - - 61,991
Committed - - - - - - - - - 17,131
Assigned - - - - - - - - - 7,404
Unassigned - - - - - - - - - (1,921)
Reserved 50,531 a 35,555 29,421 30,040 35,363 48,722 36,641 37,259 29,970 -
Unreserved,reported in:
Special revenue funds 11,336 15,199 15,325 17,340 19,608 18,656 16,426 16,899 13,944 -
Debt service funds 1,802 30 28 2,248 64 90 113 136 7,726 -
Capital project funds 23,481 22,247 17,796 25,462 27,746 19,225 40,685 b 36,757 36,240 -
Total all other governmental funds $ 87,150 $ 73,031 $ 62,570 $ 75,090 $ 82,781 $ 86,693 $ 93,865 $ 91,051 $ 87,880 $ 84,695
a The increase in fiscal 2002 reserved fund balance is primarily due to an increase in fund balance reserved for encumbrances from$7.1 million in fiscal 2001 to$35.0 million
in fiscal 2002,as a result of major construction projects including the new main library and new Memorial Causeway Bridge.Also contributing was a$10.5 million increase
in fund balance reserved for advances and notes,related to interfund loans to the parking fund for a proposed beach parkin garage,along with increased reserves for
housing assista n ce mortgage n t receivables.b
The fiscal 2008 unreserved fund balance increase for capital projects is due to funding of capital projects in advance of project expenditures.
GASB Statement No.54 was implemented in 2011 and reflects new fund balance classification for 2011. The new classifications have not been restated for 2010 and prior.
-i - - - r -r - II- - - - -■ - - - - - - -
NMI MI - 1 M w NM r - NM I r MN N N - 1 - NM
Schedule 4
City of Clearwater,Florida
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Governmental Funds:
Property taxes $ 30,323 $ 33,927 $ 37,157 $ 41,588 $ 48,076 $ 53,717 $ 50,347 $ 46,579 $44,097 $ 39,290
Sales taxes 8,458 8,662 9,120 9,978 10,705 9,931 9,863 8,574 7,987 7,929
Utility taxes 10,402 10,363 10,237 10,611 11,264 11,410 11,533 12,020 13,574 13,229
Communications services taxes' 7,870 7,019 6,790 6,883 6,854 6,784 6,747 6,966 6,107 5,852
Other taxes 2,667 2,780 2,891 3,002 3,016 3,015 3,669 4,167 3,613 3,561
Franchise fees 7,087 7,140 7,505 8,226 9,435 9,505 9,254 10,204 10,540 9,994
Licenses,permits,and fees 2,232 2,908 3,168 3,656 4,780 4,441 2,719 1,918 1,766 2,364
Intergovernmental revenues 26,969 25,070 22,089 36,704 25,407 34,622 31,473 27,972 25,400 26,693
Charges for services 10,429 10,471 12,198 12,570 14,669 14,806 14,895 14,933 14,803 14,081
Fines and forfeitures 2,264 2,078 1,742 1,263 1,557 1,401 1,298 1,478 1,101 1,638
Investment earnings 3,810 2,309 2,491 1,756 3,784 5,400 4,101 5,768 3,360 1,937
Miscellaneous 4,966 3,097 3,257 2,813 2,089 4,173 4,961 1,880 1,709 2,963
Total revenues 117,477 115,824 118,645 139,050 141,636 159,205 150,860 142,459 134,057 129,531
Expenditures
Total Governmental Funds:
Current:
General government 10,546 10,586 11,189 11,328 12,590 13,357 14,170 13,633 15,676 15,042
Public safety 45,921 48,162 50,303 55,405 57,265 65,099 64,636 64,242 64,734 63,610
Physical environment 2,839 2,289 2,498 2,737 3,035 2,964 2,673 4,085 3,777 3,722
Transportation 8,941 6,673 9,702 9,604 10,267 11,162 9,950 7,768 9,128 8,536
Economic environment 3,268 4,307 3,239 3,392 3,324 3,175 4,213 3,166 3,089 2,773
Human services 566 576 562 530 442 453 437 405 100 180
Culture and recreation 20,740 22,252 24,228 25,011 28,544 29,939 30,317 27,114 25,883 25,198
Debt service:
Principal 1,751 6,921 7,483 7,345 7,257 7,192 7,414 7,825 11,670 9,510
Interest&issuance costs 2,820 3,146 2,922 2,610 3,029 b 1,999 1,728 1,617 1,339 856
Capital outlay 19,594 32,272 19,859 10,252 9,834 24,126 21,970 22,312 10,145 9,165
Total expenditures 116,986 137,184 131,985 128,214 135,587 159,466 157,508 152,167 145,541 138,592
Excess(deficiency)of revenues
over(under)expenditures 491 (21,360) (13,340) 10,836 6,049 (261) (6,648) (9,708) (11,484) (9,061)
Other Financing Sources(Uses)
Total Governmental Funds:
Transfers in 23,324 29,241 29,854 28,205 35,258 47,334 42,481 38,956 52,481 34,908
Transfers out (23,180) (24,586) (26,750) (24,160) (29,850) (40,779) (39,023) (31,312) (42,440) (30,204)
Sale of capital assets - 925 720 - 120 - - - - -
Land held for resale from general government - - - - 1,000 - - - - -
Long term debt issued 15,363 651 201 439 895 254 4,370 525 - 1,066
Proceeds of refunding bonds 11,345 - - - - - - - - -
Premium on revenue bonds issued 481 - - - - - - - - -
Payment to refunded bond escrow agent (10,271) - - - - - - - - -
Total other financing sources(uses) 17,062 6,231 4,025 4,484 7,423 6,809 7,828 8,169 10,041 5,770
Net Change in Fund Balances $ 17,553 $ (15,129) $ (9,315) $ 15,320 $ 13,472 $ 6,548 $ 1,180 $ (1,539) $(1,443) $ (3,291)
Debt service as a percentage of noncapital expenditures 4.7% 10.5% 14.1% 8.7% 8.5% 6.9% 6.8% 7.4% 9.6% 8.2%
' Effective October 1,2001,the Florida Legislature repealed the public service utility tax on telecommunications and created a simplified tax structure for communications services.
b The increase in fiscal 2006 interest and issuance costs is due to$742 thousand of arbitrage rebate on the 2001 Infrastructure Sales Tax revenue bonds.
Schedule 5
City of Clearwater,Florida
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Assessed Value a Less:
Government Homestead Total Estimated Assessed
and Assessment Less: Taxable Total Actual Value as a
Fiscal Residential Commercial Industrial Institutional Personal Other Cap Tax Exempt Assessed Direct Taxable Percentage of
Year Property Property Property Property Property Property Differential' Property Value Rate` Value Actual Value
2002 $ 4,612,494 $ 1,397,947 $ 99,579 $ 995,983 $ 699,503 $ 53,481 $ 435,066 $ 1,735,495 $ 5,688,426 5.5032 $ 6,692,266 85.0%
2003 5,290,897 1,450,805 109,852 1,018,670 629,591 56,319 722,765 1,728,291 6,105,078 5.7530 7,182,445 85.0%
2004 6,043,611 1,537,612 116,822 1,083,186 616,883 63,746 966,830 1,801,765 6,693,265 5.7530 7,874,429 85.0%
2005 6,923,863 1,714,684 131,518 1,201,463 604,747 62,339 1,246,779 1,923,108 7,468,727 5.7530 8,786,738 85.0%
2006 8,325,134 1,902,627 153,035 1,329,219 605,102 70,665 1,690,208 2,045,343 8,650,231 5.7530 10,176,742 85.0%
N 2007 10,967,910 2,294,492 178,987 1,499,434 637,308 67,478 2,767,035 2,222,329 10,656,245 5.2088 12,536,759 85.0%
2008 11,359,752 2,385,943 187,557 1,500,633 640,387 72,913 2,691,298 2,307,132 11,148,755 4.6777 13,116,182 85.0%
2009 9,965,589 2,353,563 192,940 1,586,882 645,460 89,686 1,721,773 2,951,357 10,160,990 4.7254 11,954,106 85.0%
2010 8,163,897 2,346,462 185,353 1,156,811 657,933 95,259 907,087 2,878,136 8,820,492 5.1550 10,377,049 85.0%
2011 7,069,236 2,043,813 162,529 999,884 630,044 112,864 472,793 2,679,167 7,866,410 5.1550 9,254,600 85.0%
a Properties are assessed at approximately 85%of market value to reflect cost of sales,personal property included in market value,etc.
b Florida Statutes,193.155,provides for an annual cap on assessment increases for"Homestead properties"(properties qualifying for Homestead exemption).
The cap is the lower of 3%of the assessed value of the property or the percentage change in the Consumer Price Index for All Urban Consumers.
`Rate is per$1,000 of assessed value
MI V V - M 11111 EN r r - N MS MI M en In 11111 r NM
I
1 Schedule 6
City of Clearwater, Florida
I Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per$1,000 of assessed value)
I
City Direct Rates Overlapping Rates
I Pinellas Pinellas Emergency Downtown
Fiscal GOB Debt Total Pinellas County Transit Medical Other Development
Year Operating Service Direct County Schools District Services Districts Board a
I
2002 5.5032 0.0000 5.5032 6.1410 8.4870 0.6501 0.6600 1.6562 1.0000
I
2003 5.7530 0.0000 5.7530 6.1410 8.4490 0.6319 0.6600 1.6562 1.0000
I2004 5.7530 0.0000 5.7530 6.1410 8.2430 0.6319 0.6600 1.6562 1.0000
I2005 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
I2007 5.2088 0.0000 5.2088 5.4700 8.2100 0.6074 0.6300 1.6378 1.0000
I2008 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 0.9651
I2010 5.1550 0.0000 5.1550 4.8108 8.3460 0.5601 0.5832 1.5106 0.9651
I2011 5.1550 0.0000 5.1550 4.8730 8.3400 0.5601 0.5832 1.4410 b 0.9651
ISource: Pinellas County Property Appraiser
a A separate taxing district established by referendum which affects only downtown properties.
Ib "Other"includes Pinellas County Planning Council 0.0125;Juvenile Welfare Board 0.7915;
SW Florida Water Management District 0.3770; Pinellas Anclote River Basin 0.2600.
I
I 143
I
Schedule 7
I
City of Clearwater, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal
I
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
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 1
2004 38,430,718 38,277,689 99.60 124,999 38,402,688 99.93 1
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
I
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 1
2009 48,093,238 47,964,265 99.73 184,499 48,148,764 100.12 I
2010 45,553,661 43,912,287 96.40 126,862 44,039,149 96.68 1
2011 40,551,363 39,163,100 96.58 - 39,163,100 96.58
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
collections-to-date percentage of the tax levy-to-date shown above may be greater than 100% of the tax levy for a
given year.
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Schedule 8a
I City of Clearwater, Florida
Principal Real Property Taxpayers
Current Year and Nine Years Ago
1 2011 2002
Percentage of Percentage of
Total City Total City
I Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
I REAL PROPERTY
Bellweather Prop. LP Ltd. $ 119,557,610 1 1.37% $ 89,035,400 1 1.24%
Taylor, John S. III 42,685,000 2 0.49% 26,993,400 3 0.38%
Waters Edge One LLC 39,852,324 3 0.46%
ICentro NP Clearwater Mall 37,037,311 4 0.42%
Sand Key Association Ltd. 36,500,000 5 0.42% 23,485,800 7 0.33%
Sandpearl Resort LLC 34,835,916 6 0.40%
Standard Grand Reserve LLC 31,000,000 7 0.35%
IZOM Bayside Arbors Ltd. 27,162,890 8 0.31% 19,140,700 10 0.27%
Weingarten Nostat Inc. 25,674,800 9 0.29%
Duff,Andrew R Tre 25,500,000 10 0.29%
ICalifornia State Teachers 27,543,800 2 0.38%
Excel Realty Trust Inc 25,084,500 4 0.35%
Branch Sunset Assoc, LTD 24,959,200 5 0.35%
Clearwater Land Co. 23,813,600 6 0.33%
ISt Joe Co 23,325,100 8 0.33%
Northwood Plaza 22,685,800 9 0.32%
tTotal $ 419,805,851 4.80% $ 306,067,300 4.27%
ISource: Pinellas County Property Appraiser
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Schedule 8b
I
City of Clearwater, Florida
Principal Personal Property Taxpayers
Current Year and Nine Years Ago
2011 2002
Percentage of Percentage of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PERSONAL PROPERTY
Progress Energy(1) $ 73,077,158 1 14.60% $ 50,840,960 3 8.54%
Verizon Florida LLC(2) 55,551,272 2 11.10% 91,755,880 1 15.40%
Bright House Networks LLC(3) 15,845,948 3 3.17% 13,130,500 4 2.20% 1
Publix Super Market 11,168,220 4 2.23%
Monin Inc 7,936,032 5 1.59% 1
Instrument Transformers 7,651,786 6 1.53% 5,656,530 5 0.95%
Sandpearl Resort LLC 5,872,397 7 1.17% I
Hilton Clearwater Beach Resort 5,608,606 8 1.12%
Florida Gas Transmission 4,788,895 9 0.96%
Bausch&Lomb Inc 4,468,863 10 0.89% 4,498,760 6 0.76%
GTE Americast 55,287,090 2 9.28%
TW Entertainment Advance/N 3,726,020 7 0.63%
American Tool&Mold, Inc. 3,462,840 8 0.58%
Adam's Mark 3,351,170 9 0.56%
Sheraton Sand Key 3,220,670 10 0.54%
Total $ 191,969,177 38.35% $ 234,930,420 39.44%
Notes: (1)Progress Energy was Florida Power in 2002
(2)Verizon Florida, Inc.was GTE in 2002
(3)Bright House Networks was Time Warner Entertainment in 2002
Source: Pinellas County Property Appraiser
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NM M 1111111 MI IIII1 MI 11111 11111 M 1 IN MI 1 4 NS 1ln US MI
Schedule 9
City of Clearwater, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts in thousands,except per capita)
Governmental Activities Business-Type Activities
Spring Training
General Public Service Sales Tax Facility Water/Sewer Gas Stormwater Public Service Total Percentage
Fiscal Obligation Tax Revenue Revenue Intergovernmental Loans Capital Revenue Revenue Revenue Tax Revenue Capital Primary of Personal Per
Year Bonds Bonds Bonds Revenue Bonds Payable Leases Bonds Bonds Bonds Bonds Leases Government Income(a) Capita(a)
2002 $ - $ 11,256 $ 46,445 $ 14,810 $ - $ 12,239 $ 130,417 $ 28,630 $ 31,960 $ 104 $1,792 $ 277,653 7.96% 2,531
2003 - 10,925 41,345 14,645 - 11,671 127,505 28,000 31,835 80 2,075 268,081 7.48% 2,436
2004 - 10,590 36,075 14,185 - 10,672 123,690 28,040 45,695 55 2,358 271,360 7.37% 2,460
2005 - 10,241 30,615 13,720 - 9,891 119,441 27,755 45,755 29 2,330 259,777 6.98% 2,344
• 2006 - 9,885 24,955 13,245 - 11,047 141,524 26,930 44,830 - 1,906 274,322 6.87% 2,480
v
2007 - 9,565 19,080 12,755 - 10,840 136,955 23,015 43,845 - 1,366 257,421 6.12% 2,330
2008 - 13,000 12,975 12,255 - 10,560 132,290 18,240 42,830 9,135 932 252,217 5.52% 2,288
2009 - 12,545 6,620 11,740 - 9,230 190,415 17,470 41,780 9,135 660 299,595 6.41% 2,726
2010 - 8,540 - 11,210 - 8,279 185,730 16,695 40,700 - 630 271,784 5.71% 2,524
2011 - - - 10,660 - 8,722 179,275 15,900 39,580 - 808 254,945 5.52% 2,365
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(a)See Schedule 14 for personal income and population data.These ratios are calculated using personal income from two fiscal years prior,as noted on Schedule 14.
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Schedule 10
I
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)
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 1
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 1
2010 - 8,540 - 8,540 0.08% 79
-
2011
-
I
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. I
(a) See Schedule 5 for property value data.
(b) Population data can be found in Schedule 14. 1
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Schedule 11
City of Clearwater, Florida
Direct and Overlapping Governmental Activities Debt
As of September 30, 2011
(amounts in thousands)
I
Estimated
I Estimated
Percentage Share of
Debt Overlapping
Governmental Unit Outstanding Applicable a Debt
Debt repaid with property taxes $ - n/a $ -
Other debt
Pinellas County School District State Bonds b 27,400 13.5% 3,703
Pinellas County School District Capital Leases 18,692 13.5% 2,526
Subtotal, overlapping debt 6,229
City direct debt 19,382
Total direct and overlapping in debt $ 25,611
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.
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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
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 1
2006 1,631,179 247,706 1,383,473 15.19
2007 2,028,832 230,639 1,798,193 11.37 1
2008 2,128,847 224,224 1,904,623 10.53
2009 1,942,045 271,594 1,670,451 13.98
2010 1,672,462 248,800 1,423,662 14.88
2011 1,573,282 232,771 1,340,511 14.80
Legal Debt Marqin Calculation for Fiscal Year 2010: I
Assessed valuation of non-exempt real estate $ 7,866,410
Debt Limit(20%of assessed valuation per City Charter) 1,573,282
Debt applicable to limit:
Revenue bonds $ 245,415
Capital leases 9,530
Less:Amount set aside for repayment
of bonded debt (22,174)
232,771
Legal debt margin $ • 1,340,511
I
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.
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Schedule 13
I City of Clearwater, Florida
Pledged-Revenue Coverage
Last Ten Fiscal Years
I (amounts in thousands)
Page 1 of 2
Less: Net
I Fiscal Gross Operating Available Debt Service
Year Revenues Expenses Revenues Principal Interest Coverage
Infrastructure Sales Tax Bonds(a)
2002 8,458 - 8,458 - 1,984 4.26
I 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 (a) 1.42
I 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
1 2010 7,987 7,987 6,620 132 1.18
2011 - 0.00
Spring Training Facility Bonds(b)
I 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
I 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
I 2010 1,105 1,105 530 544 1.03
2011 1,105 1,105 550 526 1.03
I Public Service Tax/Improvement Revenue Bonds
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
I 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
I 2008 18,280 - 18,280
18,987 330 450
438 23.44
2009 18,987 340 24.40
2010 19,680 - 19,680 355 425 25.23
I2011 19,081 - 19,081 8,540 291 (d) 2.16
(a)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
I discretionary infrastructure sales surtax pursuant to Section 212.055(2), Florida Statutes,as
amended. Interest for 2006 includes arbitrage rebate of$742,000.
(b)Pledged revenues for the Spring Training Facility Revenue Bonds include payments received
I 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.
I (c)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
I communications services taxes.
(d)Principal payment in 2011 includes an additional principal payment in the amount of$8,170,000
on February 1,2011 to redeem all outstanding principal as of that date.
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I
Schedule 13(continued)
City of Clearwater, Florida I
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
I
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
2010 58,220 37,358 20,862 4,685 9,310 1.49
2011 61,473 40,304 21,169 4,935 9,627 1.45
Gas Utility Revenue Bonds
2002 27,218 20,665 6,553 610 1,495 3.11 3.01 I
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 ii
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
2010 40,515 28,517 11,998 775 704 8.11 5.75
2011 37,021 25,934 11,087 795 678 7.53 5.16
Stormwater Utility Revenue Bonds
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 13,270 7,038 6,232 1,015 1,845 2.18
1
2009 14,231 7,684 6,547 1,050 1,814 2.29
2010 15,283 6,766 8,517 1,080 1,782 2.98
2011 15,656 7,917 7,739 1,120 1,741 2.70
(a)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.
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ISchedule 14
City of Clearwater, Florida
I Demographic and Economic Statistics
Last Ten Fiscal Years
IPersonal
Income Per Capita Annual Average
1 (thousands of Personal Median School Unemployment
Year Population (a) dollars) Income(b) Age(c) Enrollment(d) Rate(e)
I2002 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
1 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
1 2006 110,602 4,117,712 37,230 44.2 15,696 2.9
I2007 110,469 4,374,683 39,601 44.5 15,500 3.8
2008 110,251 4,650,056 42,177 44.5 15,482 5.5
2009 109,907 4,776,778 43,462 45 14,975 10.1
2010 107,685 4,758,062 44,185 45.3 14,704 12.4
1 2011 107,805 4,619,983 42,855 46.3 14,375 10.8
I (a) Source is the University of Florida, Bureau of Economic and Business Research: April 1, 2011 estimate
for current year and Florida Statistical Abstract for prior years.
I (b) Data is from per capita personal income for Pinellas County for two years prior. Source is the University
of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract.
I (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.
I (e) Source for fiscal years 2001 thru 2009 is the University of Florida, Bureau of Economic and Business
Research, Florida Statistical Abstract, Annual Averages of the indicated fiscal year. Source for fiscal 2011
is the US Dept of Labor, Bureau of Labor Statistics, Tampa Metro Area, average for year ended
1 September 2011.
I Note: Data is the latest published annual data available for an unspecified point in each year, not specifically
September 30.
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Schedule 15
City of Clearwater, Florida
Principal Employersa,
Current Year and Nine Years Ago
2011 b 2002° I
Percentage Percentage
of Total of Total
County County
Employer Employees Rank Employment Employees Rank Employment
1
Pinellas County School District 17,060 1 4.37% ,
Bay Pines VA Medical Center 4,581 2 1.17%
City of St. Petersburg 3,178 3 0.81%
Pinellas County Board of County Commissioners 2,693 4 0.69%
Pinellas County Sheriff 2,646 5 0.68%
All Children's Hospital 2,600 6 0.67%
Morton Plant Hospital 2,600 7 0.67%
Raymond James Financial 2,500 8 0.64%
St. Petersburg College 2,478 9 0.63%
Bayfront Medical Center 2,100 10 0.54%
Total Employmentb 390,562 1
a Data is for Pinellas County. City data is not available. I
b Source: Florida Research and Economic Database and Pinellas County Department of Economic Development.
° Data for 2002 is not available. 1
d Includes part-time personnel budgeted.
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Schedule 16
I City of Clearwater, Florida
Full-time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
I
Full-time Equivalent Employees as of September 30
I 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Function/Program
General government 301.9 287.0 286.4 287.3 307.5 322.0 327.3 321.6 346.6 326.6
IPublic safety
Fire 199.7 200.0 202.0 202.0 215.0 221.0 212.0 212.0 211.0 205.0
IPolice 408.4 397.6 399.9 405.9 407.9 407.9 393.9 389.9 370.9 344.0
Physical environment 36.0 36.0 36.0 36.0 38.7 38.7 34.0 33.5 28.5 27.5
ITransportation 72.0 73.0 73.0 71.0 74.3 74.3 69.0 67.5 57.5 53.5
Economic environment 52.3 64.3 67.3 67.1 69.5 66.5 64.5 62.5 11.0 11.0
IHuman services 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.0 - -
Culture and recreation
I Library 81.4 83.4 95.9 95.9 94.9 93.9 88.4 78.3 73.2 73.2
Parks&Rec 209.6 217.0 241.9 235.4 239.8 240.8 221.8 203.7 191.1 184.1
I Water&Sewer Utility 166.0 170.0 169.0 169.0 175.0 175.0 168.0 169.0 164.0 166.0
Gas Utility 90.0 90.0 90.0 90.0 90.0 90.0 90.0 84.0 77.0 77.0
I Solid Waste Utility 109.5 106.0 107.5 109.5 112.0 112.0 112.0 112.0 112.0 112.0
Stormwater Utility 38.0 40.0 40.0 46.0 46.0 46.0 46.0 47.0 46.0 47.0
I Recycling 24.5 23.5 23.5 23.5 22.5 22.5 22.5 22.3 22.3 22.3
Marine 32.8 35.9 35.9 36.4 32.6 18.1 18.6 18.8 17.1 16.1
I Clearwater Harbor Marina 5.6 5.6
Aviation 1.0 2.4 2.4 1.9 1.9 1.9 1.9 1.7 1.4 1.4
I Parking System 9.6 14.8 20.8 20.8 20.8 20.7 20.7 20.7 31.6 31.6
1,83
Total 1,836.7 1,844.9 1,895.5 1,900.7 1,951.4 1,954.3 1,893.6 1,846.5 1,766.8 1,703.9
ISource:City of Clearwater Office of Management and Budget
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Schedule 17
City of Clearwater,Florida
Operating Indicators by Function/Program
Last Eight Fiscal Years*
Fiscal Year Ended Sept 30:
2004 2005 2006 2007 2008 2009 2010 2011
Function/Program
General government
Planning
Commercial building permits issued 1,905 1,822 1,858 2,009 1,639 1,353 1,367 1,405
Residential building permits issued 6,482 7,486 6,759 5,332 4,774 4,274 4,794 5,113
Public safety
Police
Average officer training hours 141 a 150 a 55 105 78 83 51 75
Total volunteer training hours 1,229 1,017 932 1,023 1,001 735 39 37
Fire
Percentage of fire responses under 7.5 minutes 92% 91% 90% 91% 92% 96% 90% 92%
Physical environment
Square feet of sidewalks repaired/constructed 53,528 37,039 48,458 88,028 64,201 47,076 53,157 45,169
Transportation
Miles of roadway resurfaced 13 12 10 14 10 10 5 8
Economic environment
Code enforcement cases brought to compliance 9,439 8,701 9,762 8,794 9,300 8,553 6,029 5,719
Human services
cn City employees that mentor in area schools 28 30 38 34 24 20 22 18
rn
Culture and recreation
Library system
Library visits 854,004 975,547 902,135 979,544 976,987 864,350 860,044 834,082
Circulation 1,164,424 1,190,577 1,193,637 1,121,480 1,181,184 1,161,059 1,147,428 1,120,536
Parks and recreation
Recreation center visitations 1,098,407 1,106,216 623,500 967,817 1,050,782 868,445 724,769 759,807
Athletic program visitations 266,276 511,620 515,100 414,805 643,995 546,446 547,492 515,665
Water and Sewer Utility
Water customers 40,235 40,178 40,467 40,407 40,131 39,935 39,971 41,391
Volume of water pumped(million gallons/day) 13.15 14.18 14.09 12.66 11.92 11.52 10.76 11.32
Sewer customers 33,234 33,305 33,279 33,255 33,146 33,084 33,041 33,063
Miles of sewers cleaned 168 169 166 16 89 176 208 215
Gas Utility
Number of customers 18,454 18,548 19,035 19,470 19,527 19,527 19,581 19,807
Solid Waste Utility
Solid waste tonnage collected and disposed 130,914 128,080 132,741 130,308 123,018 112,851 110,905 112,936
Stormwater Utility
Number of equivalent residential units 98,621 97,669 97,297 98,513 97,986 98,436 99,536 100,125
Recycling Utility
Marketable tons recycled 14,443 14,324 14,433 14,492 14,006 12,114 9,564 9,250
*Note:Only eight years of data are available.Fiscal 2011 is estimated if not available.No operating indicators
are available for marine,aviation,parking,Clearwater Harbor Marina,and Harborview Center functions.
a Training hours for fiscal 2004 and 2005 included grant-funded training for Homeland Security.
an or all as r r r - - r r err an - - am - as it
I
ISchedule 18
City of Clearwater, Florida
Capital Asset Statistics by Function/Program
ILast Ten Fiscal Years
As of September 30
I 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Function/Program
Public safety
I Fire
Stations 7 7 8 8 8 8 8 8 8 8
Police
Stations 9 9 9 10 10 10 9 6 5 6
ITransportation
Paved streets(miles) 304 304 305 305 305 305 305 313 314 315
I Culture and recreation
Library system
Volumes in collection(thousands) 546 557 557 570 565 590 601 606 606 601
I Parks and recreation
Parks acreage 1,370 1,370 1,370 1,374 1,400 1,400 1,400 1,400 1,427 1,427
Recreational paths(miles) 7 7 7 13 14 16 16 16 16 16
Playgrounds 31 31 31 32 33 33 29 29 29 27
I Baseball and softball fields 36 36 35 35 35 35 32 32 32 32
Soccer and football fields 17 17 17 24 25 25 20 20 20 20
Recreation centers 11 12 12 7 7 7 7 7 6 5
I Water&Sewer Utility
Water mains(miles) 559 559 567 567 568 571 575 593 592 592
Sanitary sewer mains(miles) 363 363 363 363 365 368 362 362 363 363
I Daily treatment capacity
(millions of gallons) 29 29 29 29 29 29 29 29 29 29
Gas Utility
I Gas mains(miles) 669 686 729 753 786 816 814 821 826 830
Stormwater Utility
Stormwater mains(miles) 147 147 147 147 148 156 146 148 148 148
I Marine
Boat slips 209 209 209 209 209 209 209 207 207 207
Clearwater Harbor Marina
IBoat slips 126 126
Aviation
Airpark spaces 177 177 177 177 177 177 177 177 177 177
IParking system
Parking spaces 3,538 3,615 3,653 3,686 3,636 3,322 3,382 3,497 3,297 2,475 '
I 'The decrease in parking spaces for fiscal 2011 was loss of Sand Key and some management decision to not charge for certain lots.
ISources: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.
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IGrants Compliance
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M H M Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
I Clearwater, FL 33762
Phone: 727.572.1400 • 813.879.1400
Fax: 727.571.1933
' www.mhm-pc.com
1
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditin2 Standards
' Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
We have audited the accompanying 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, 2011, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated March 30, 2012. 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 in the accompanying combining and individual fund
statements and schedules as of and for the year ended September 30, 2011, 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.
1 Internal Control Over Financial Reporting
' Management of the City is responsible for establishing and maintaining effective 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
opinions 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 deficiency in internal control 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 and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
1 of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented,or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies,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.
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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 other matters that we reported to
management of the City in a separate letter dated March 30, 2012.
This report is intended solely for the information and use of the Mayor, City Council, and management,
others within the organization and applicable federal and state awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.
March 30, 2012
Clearwater,Florida
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I MHM Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
I ® Clearwater, FL 33762
Phone: 727.572.1400 . 813.879.1400
Fax: 727.571.1933
II I www.mhm-pc.com
IReport on Compliance with Requirements that Could Have a Direct and Material Effect on Each
Major Program and on Internal Control Over Compliance in Accordance with OMB Circular
A-133 and Chapter 10.550,Rules of the Auditor General of the State of Florida
Honorable Mayor and City Councilmembers
ICity of Clearwater, Florida:
Compliance
IWe have audited the City of Clearwater, Florida's (the "City") compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
1 Compliance Supplement and the requirements described in the State of Florida Department of Financial
Services State Projects Compliance Supplement, that could have a direct and material effect on each of
the City's major federal programs and state financial assistance projects for the year ended September 30,
I 2011. The City's major federal programs and state financial assistance projects are identified in the
summary of auditors' 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
Imanagement. Our responsibility is to express an opinion on the City's compliance based on our audit. r
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
I 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-I33, Audits of
States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor
I General of the State of Florida. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the
Auditor General—Local Governmental Entity Audits, 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 or state financial assistance
I 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 i
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not
Iprovide a legal determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
I above that could have a direct and material effect on each of its major federal programs and state financial
assistance projects for the year ended September 30, 2011.
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Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over I
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 and to test and report on internal
control over compliance in accordance with OMB Circular A-133 and Chapter 10.550 Rules of the
Auditor General of the State of Florida, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state financial assistance project on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program or state financial assistance project will not be prevented,or
detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, 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 Mayor, City Council, and management,
the State of Florida Office of the Auditor General and applicable federal and state awarding agencies and
pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties.
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March 30,2012
Clearwater, Florida
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ICity of Clearwater, Florida
Schedule of Expenditures of Federal Awards
I and State Financial Assistance Projects
For the Year Ended September 30,2011
FY 2011
Federal Grantor/ Federal
I Pass-through Grantor/ CFDA Share of
Program Title Number Grant I.D.Number Expenditures
FEDERAL AWARDS
U.S.Department of Housing and Urban Development:
Community Development Block Grant-Entitlement 14.218 B-03-MC-12-0002 $ 505
14.218 B-08-MC-12-0002 57,382
14.218 B-09-MC-12-0002 537,259
14.218 Program Income
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ARRA-Neighborhood Stabilization Program 3 14.218 B-11-MN-12-0031 33,380
iARRA-Community Development Block Grant Recovery(CDBG-R) 14.253 B-09-MY-12-0002 78,393
706,919
I Home Investment Partnerships Program 14.239 M-06-MC-12-0230 275,223
14.239 M-07-MC-12-0230 403,849
14.239 M-08-MC-12-0230 90,237
14.239 M-09-MC-12-0230 53,695
I 14.239 Program Income 35,389
14.239 858,393
I Economic Development Initiative-Special Project,Neighborhood Initiative
and Miscellaneous Grants-Steetscape 2007 14.251 B-08-SP-FL-0089 4,634
-Steetscape 2008 14.251 B-08-SP-FL-0088 98,000
I -Steetscape 2009 14.251 B-09-SP-FL-0103 237,500
14.251 340,134
I Passed through Florida Suncoast Housing Partners
Passed through Pinellas County
Neighborhood Stabilization Program 2 14.256 83,939
Total U.S.Department of Housing and Urban Development 1,989,385
U.S.Department of the Interior:
I Fish and Wildlife Service
Passed through Florida Fish and Wildlife Commission
Sport Fish Restoration Program-Bay Esplande Boat Ramp 15.605 FWC Contract 09018 324,261
ISportfishing and Boating Safety Act-Downtown Boat Slips 15.622 50 CFR Part 86 117,972
Passed through Florida Dep of Environmental Protection
I Clean Vessel Act-Pumpout Vessel 15.616 DEP Agreeement MV051 CVA 11-614 49,875
Clean Vessel Act-Pumpout Vessel Operation,Maintenance&Repair 15.616 DEP Agreeement MV051 CVA 11-615 788
I15.616 50,663
Total U.S.Department of the Interior-Fish and Wildlife Service 492,896
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U.S.Department of Justice:
Federal Forfeiture Sharing 16.000 FL0520300 208,991
Office of Victims of Crimes
Services for Trafficing Victims-Human Trafficing Task Force 16.320 2006-VT-BX-0007 109,634
Services for Trafficing Victims-Human Trafficing Task Force 16.320 2010-VT-BX-0022 3,774
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16.320 113,408
Bureau of Justice Assistance
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Edward Byrne Memorial Justice Assistance Grant Program-Digital
Camera&Motorcycle Helmets 16.738 2010-DJ-BX-1597 86,205
Total U.S.Department of Justice 408,604 I
U.S.Department of Transportation: i
Federal Highway Administration
Passed through Florida Department of Transportation:
ARRA-Highway Planning and Construction-East Ave Bike Lanes 20.205 FPN 424399-1-58-01 268,235
Total U.S.Department of Transportation 268,235
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U.S.Department of Treasury: I
Federal Forfeiture Sharing 21.000 FL0520300 77,849
Total U.S.Department of Treasury 77,849
IU.S.Environmental Protection Agency:
Congessionally mandated Projects-Sanitary Sewer Extension 66.202 XP-95455010-0 223,669
Office of Solid Waste and Emergency Response
ARRA-Brownfields Assessment and Cleanup Cooperative Agreements 66.818 2B-95427409-0 130,792
Total U.S.Environmental Protection Agency 354,461
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U.S.Department of Energy: I
ARRA-Energy Efficiency and Conservation Block Grant Program(EECBG) 81.128 DE-SC0002363 128,670
Passed through Florida Office of Energy
ARRA-State Energy Programs 81.041 ARS007 (DE-EE0000241) 384,000
Total U.S.Department of Energy 512,670
Corporation For National and Community Services:
Passed through FL Commission on Community Services
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Americorps-2010 94.006 Grant 06AFHFL0010008 32,823
Americorps-2011 94.006 120,478
Total Corporation for National and Community Services 153,301
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Total Federal Financial Assistance $ 4,257,401
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City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
I and State Financial Assistance Projects-Continued
For the Year Ended September 30,2011
FY 2011
I State Grantor/ State
Pass-through Grantor/ CSFA Share of
Program Title Number Grant I.D.Number Expenditures(a)
STATE FINANCIAL ASSISTANCE
IFlorida Executive Office of the Governor,Office of
Tourism,Trade,and Economic Development
Brownfield Grant 31.011 OT98-097 $ 12,706
Total Florida Executive Office of the Governor 12,706
Florida Department of Environmental Protection:
I Water Protection and Sustainability Program-
Morningside Reclaimed Water 37.066 Agreement 05CON000049 78,540
Skycrest Reclaimed Water 37.066 Agreement 07CON000033 107,271
ITotal Florida Department of Environmental Protection 185,811
Florida Department of Community Affairs:
Florida Housing Finance Corporation
I State Housing Initiative Partnership Program(SHIP) 52.901 n/a 166,156
Total Florida Department of Community Affairs 166,156
Florida Department of Transportation:
IAviation Development Grants-
Install New Security Fencing and Camera: 55.004 FPN:415770-1-94-01,Contract APF54 10,496
IFBO Building Modification at Airpark 55.004 FPN:412431-1-94-01;Contract ANW13 35,633
Multi Plane Hangers 55.004 FPN:414342-1-94-01;Contract AOU60 78,272
1 Airpark Runway Repairs 55.004 FPN:418124-1-94-01;Contract APS66 100,000
Total Florida Department of Transportation 224,401
I Florida Department of Revenue:
Phillies Stadium 73.016 500,004
Total Florida Department of Revenue 500,004
ITotal State Financial Assistance $ 1,089,078
Total Expenditures of Federal Awards
Iand State Financial Assistance Projects $ 5,346,479
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City of Clearwater, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Financial Assistance Projects
For the Year Ended September 30, 2011
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 1
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 I
U.S. HUD Community Development Block Grant 14.218 $269,088
U.S. HUD Home Investment Partnerships Program 14.239 $543,901
Florida Housing Finance Corporation, State Housing
Initiative Partnership Program 52.901 $110,499
NOTE 5—Loans Outstanding '
The City had the following loan balances outstanding at September 30, 2011. The current year additions
related to the loans are included in the Schedule of Federal Awards and State Financial Assistance.
14.218 Community Development Block Grant $ 2,313,511
14.239 Home Investment Partnership 5,060,402
52.901 State Housing Initiative Partnership 7,150,978
$ 14,524.891
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CITY OF CLEARWATER, FLORIDA
' Schedule of Findings and Questioned Costs
Year Ended September 30,201 1
' Section I—Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
' • Significant deficiency(ies) identified that are
not considered to be material weaknesses? Yes X None reported
1 Noncompliance material to financial statements noted? Yes X No
Federal and State Awards
Internal control over major programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that are
Inot considered to be material weaknesses? Yes X None reported
Type of auditors' report issued on compliance
for major programs: Unqualified
Any audit findings disclosed that are required
to be reported in accordance with Section 510(a)
Circular A-133? Yes X No
Identification of major programs/projects:
Federal Programs CFDA Number
U.S. Department of Housing and Urban Development:
Economic Development Initiative— Special Project, 14.251
Neighborhood Initiative and Miscellaneous
Streetscape 2007, 2008 and 2009
U.S. Department of the Interior: 15.605
Fish and Wildlife Service Passed through Florida Fish and
Wildlife Commission Sport Fish Restoration Program—
Bay Esplande Boat Ramp
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CITY OF CLEARWATER,FLORIDA
Schedule of Findings and Questioned Costs
Year Ended September 30, 2011
Federal Programs-Continued CFDA Number
U.S. Environmental Protection Agency: 66.818
Office of Solid Waste and Emergency Response
Brownfields Assessment and Cleanup Cooperative
Agreements -ARRA
U.S. Department of Energy: 81.041
Passed through Florida Office of Energy—State
Energy Programs- ARRA
State Programs CSFA Number
Florida Department of Transportation: 55.004
Aviation Development Grants
Florida Department of Revenue: 73.016
Phillies Stadium
The threshold for distinguishing Type A and Type B programs was $300,000 for federal programs and
$300,000 for state projects.
Auditee qualified as low-risk auditee? X Yes No
Section II—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.
There were no findings required to be reported in accordance with Government Auditing Standards.
Section III—Federal and State Award Findings and Questioned Costs
This section identifies significant deficiencies, material weaknesses, and material instances of
noncompliance, including questioned costs,related to the audit of major federal awards and state financial
assistance projects, as required to be reported by OMB Circular A-133 and Chapter 10.550, Rules of the
Auditor General.
There were no findings required to be reported in accordance with OMB Circular A-133 and Chapter
10.550, Rules of the Auditor General.
Section IV—Summary of Prior Audit Findings
There were no audit findings reported in the Schedule of Findings and Questioned Costs in the prior year.
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I MHM Mayer Hoffman McCann P.C.
An Independent CPA Firm
KRMT Tampa Bay Division
13577 Feather Sound Drive, Suite 400
I ® Clearwater, FL 33762
Phone: 727.572.1400 • 813.879.1400
Fax: 727.571.1933
www.mhm-pc.com
I
1 Management Letter
I Honorable Mayor and City Councilmembers
City of Clearwater, Florida:
We have audited the accompanying financial statements of the governmental activities, the business-type
Iactivities, 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 30,2011,and have issued our report thereon dated March
30,2012. 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 in the accompanying combining and individual
fund statements and schedules as listed in the table of contents.
I 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,
I and Non-Profit Organizations and Chapter 10.550,Rules of the Auditor General. We have issued our 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, Report on Compliance
I with Requirements that Could Have a Direct and Material Effect on each Major Program and on Internal
Control Over Compliance in accordance with OMB Circular A-133 and Chapter 10.550,Rules of the Auditor
General of the State of Florida and the related Schedule of Findings and Questioned Costs. Disclosures in
those reports and schedule,which are dated March 30, 2012,should be considered in conjunction with this
Imanagement letter.
Additionally,our audit was conducted in accordance with Chapter 10.550,Rules of the Auditor General which
I governs the conduct of local government entity audits performed in the State of Florida.This letter includes the
following information, which is not included in the aforementioned auditors' reports:
1 > 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.Corrective actions have been taken to address findings
I and recommendations made in the preceding annual financial audit report as noted in the
accompanying Appendix A to this Management Letter.
> Section 10.554(1)(i)2.,Rules of the Auditor General,requires our audit include a review of the
I 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 not in compliance with Section 218.415,Florida Statutes.
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> 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.In connection with ,
our audit,the recommendations are noted in the accompanying Appendix A to this Management
Letter.
> Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of
provisions of contracts or grant agreements,or abuse that have occurred or are likely to have
occurred,that have an effect on the financial statements that is less than material but more than
inconsequential. In connection with our audit, we did not have any such findings. I
> Section 10.554(1 Xi)5., Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on the
financial statements, considering both quantitative and qualitative factors: (1) violations of
provisions of contracts or grant agreements,fraud,illegal acts,or abuse and(2)deficiencies in
internal control that are not significant deficiencies. In connection with our audit, we did not
have any such recommendations. I
> 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.
This information has been disclosed in the notes to the financial statements.
> Section 10.554(1)(i)7.a.,Rules of the Auditor General,requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described in
Section 218.503(1), Florida Statutes and identification of the specific condition(s) met. In
connection with our audit, we determined that the City did not meet any of the conditions
described in Section 218.503(1),Florida Statutes.
> Section 10.554(1)(i)7.b.,Rules of the Auditor General,requires that we determine whether the I'!
annual financial report for the City for the fiscal year ended September 30,2011,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, 1
201 1. In connection with our audit, we determined that these two reports were in agreement.
• 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 the 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 the Mayor,City Council,management,and others within
the organization,and is not intended to be and should not be used by anyone other than these specified parties.
Lin .. �,c�� , C.
March 30, 2012 1
Clearwater, Florida
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Appendix A
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CITY OF CLEARWATER, FLORIDA
1 Appendix A—Management Letter Comments
September 30,2011
1 Current Year Recommendations:
1 2011-01:Capital Assets—Construction in Progress
Observation: During the audit of construction in progress(CIP) and capital assets, it was discovered that a
1 transfer of funds from the community redevelopment agency(CRA)capital project fund to the City's capital
improvement fund for a portion of the Cleveland Street Streetscape project was inadvertently included as an
addition to CIP during the year end close out process for governmental capital assets.This was the result of not
properly reconciling the fund expenditures to the additions to CIP for the year end government-wide entry.As
a result, CIP additions were overstated by approximately $1.8 million.
Recommendation: We recommend that each fund with capital outlay expenditures be properly reconciled to
the supporting documentation to avoid inclusion of erroneous amounts.
Management Response: Management concurs and will implement the appropriate processes and procedures
1 to ensure that each fund with capital outlay expenditures is properly reconciled to the supporting
documentation to avoid inclusion of erroneous amounts.
Follow Up on Prior Year Recommendations:
1 2010 Comments:
Not Implemented In Process Implemented
2010-01 Capital Assets X
2010-02 Payroll X
2010-03 Information Technology X
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