04/12/2004 WORK SESSION ONLY ITEMS
WORK SESSION AGENDA
Clearwater City Council- 1 :00 P.M. - Monday, April 12, 2004
Service Awards
Convene as Community Redevelopment Agency (CRA)
1. Call to Order
2. Approval of Minutes: February 17, 2004
3. Appoint two Trustees of the CRA to serve as ex-officio members on the Downtown
Development Board.
4. Executive Director (Assistant City Manager) Verbal Reports
5. Other Business
6. Adjourn
Convene as Pension Trustees
1 . Call to Order
2. Approval of Minutes: March 15, 2004
3. Request for acceptance into membership: Sergio Fidelis, Amy Forrest, Tracie Black,
Clement Vericker, Shaun Beasley, George Agovino, Richard Callahan, Christopher Priest,
Guillermo Lopez, Jason Johnson, and Gregory Harvey.
4. Regular Pension(s) to be granted: Jeffery Klamo, Robert Miller, David Daiker, and Charles
Saporito.
5. Pension(s) to be vested: Dale R. Stoddard.
6. Other Business
7. Adjourn
Reconvene Work Session
PRESENTATIONS
1. Presentation - Annual Financial Report & Certificate of Achievement. (FN)
PUR PURCHASING
Approval of Purchases per Purchasing Memorandum:
1. M T Deason Company Inc., Birmingham, Alabama - Gas Material- Meters and Regulators
during the contract period: May 1, 2004 through April 30, 2005, in the amount of
$125,885.00. (CGS) (Consent)
2. American Meter Company, Avon Park, Florida - Gas Materials - Meters and Regulators
during the contract period: May 1, 2004 through April 30, 2005, in the amount of
$145,180.00. (CGS) (Consent)
ED/HSG ECONOMIC DEVELOPMENT/HOUSING
1. Authorize the City to initiate foreclosure proceedings at this time, and/or in the future if
warranted, on the property located at 1116 Howard Street, Clearwater for non-payment and
non-responsiveness of a City Housing Loan. (Consent)
04-12-04 Work Session Agenda
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Rev. 01-04/12/2004
IT INFORMATION TECHNOLOGY
1. Extend an existing lease agreement with Xerox Corporation, Tampa, FL from December 30,
2007 to May 31,2008 and increase the award from $640,000 to $890,000 for the lease of
11 additional digital copiers in accordance with Section 2.564 (1 )(d) Code of Ordinance -
Putnam County contract numbers 071398105 and 071736300. (Consent)
LIB LIBRARY
1. Approve operations agreement with Raven of Tampa, Inc. d/b/a Joffrey's Coffee Company
for a cafe in the new Main Library. (Consent)
PD POLICE
1. Pass Ordinance # 7280-04 on first reading, which will amend the City of Clearwater
Ordinance relating to fees for services provided by the Police Department.
2. Approve the Pinellas County Interlocal Mutual Aid Agreement concerning Traffic Accident
Investigations and Traffic Enforcement and adopt Resolution #04-08 authorizing the
appropriate officials be authorized to execute same.
PW PUBLIC WORKS
1. Approve the Work Order to PARSONS for design engineering services for the first two
digesters in the Digester Refurbishment phase of the Biosolids Treatment Implementation
project at the Northeast and Marshall Street AWTP facilities in the amount of $254,351 ,and
that the appropriate officials be authorized to execute same. (Consent)
2. Approve the final plat for "Downtown Lofts", located at 1 00 North Martin Luther King Junior
Avenue. (Consent)
3. Approve the final plat for "Laura Street Townhomes", located between Laura and Grove
Streets about 400 feet east of Myrtle Avenue. (Consent)
4. Approve a contract with Mount Carmel Community Development Corporation of Clearwater,
Inc. to sell the South Y2 of Lot 6 and all of Lot 7, GREENWOOD MANOR, for the total sum
of $18,000, and that the appropriate officials be authorized to execute same. (Consent)
5. Approve the applicant's request to vacate a portion of First Street North, a drainage and
utility easement lying within a vacated portion of First Street North and a utility easement
lying in a vacated portion of Chautauqua Boulevard, all more particularly described in
Exhibit "A" attached, located in Chautauqua Unit 1, Section A, and pass Ordinance # 7288-
04 on first reading, (VAC 2004-03 Dimmitt).
PLD PLANNING
1. Approve the New Construction chapter of the Downtown Design Guidelines. (Consent)
2. Presentation - Downtown Design Guidelines - New Construction.
CM ADMINISTRATION
ORLS OFFICIAL RECORDS/LEGISLATIVE SERVICES
1. Appoint Commission members as representatives on the Regional and Miscellaneous
Boards
04-12-04 Work Session Agenda
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Rev. 01-04/12/2004
CA LEGAL DEPARTMENT
1. Authorize settlement of legal action brought against Metal Culverts, Inc., to recover money
on account owed for gas consumption. (Consent)
2. Request for Authority to institute a civil action against David Foderingham to recover
$2,163.00 for damage to City property. (Consent)
Second Reading Ordinances
1. Adopt Ordinance # 7252-04 on second reading approving the Petition for Annexation for a
portion of the First Street East Road right-of-way (the southerly most 163 feet of the First
Street East Road right-of-way in Section 32, Township 28 South, Range 16 East).
2. Adopt Ordinance # 7281-04 on second reading approving the Initial City Future Land Use
Plan designation of Residential Suburban (RS) for a portion of the First Street East Road
right-of-way (the southerly most 163 feet of the First Street East Road right-of-way in
Section 32, Township 28 South, Range 16 East).
3. Adopt Ordinance # 7282-04 on second reading APPROVING the Initial City Zoning Atlas
designation of LOR, Low Density Residential, for a portion of the First Street East Road
right-of-way (the southerly most 163 feet of the First Street East Road right-of-way in
Section 32, Township 28 South, Range 16 East).
4. Adopt Ordinance # 7287-04 on second reading, approving the applicant's request to vacate
the 10-foot drainage and utility easement lying adjacent to and along the south side of the
100-foot Florida Power Corporation easement located on Lot 26, Elysium, Phase I (A.K.A.
2944 Chancery Lane). (VAC 2004-01 Freedman)
Other City Attorney Items
City Manager Verbal Reports
1. Communications and contingency plan for the events surrounding May 1 in downtown.
Council Discussion Items
1. Proposed policy for designating Memorials on City public property
2. Prohibited uses on Clearwater Beach
3. Pinellas Assembly Task Force Annexation Report and County Ordinance - Properties of
Municipal Importance
Other Council Action
Adjourn
Presentation(s) for Thursday Night
1. Proclamation - Municipal Clerks Week.
2. Neighborhood of the Quarter.
04-12-04 Work Session Agenda
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Rev. 01-04/12/2004
L.1.
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Interoffice Correspondence Sheet
TO:
Mayor and City Council
FROM:
Margie Simmons, Finance Director ~
COPIES:
Bill Horne, City Manager; Garry Brumback, Assistant City Manager;
Ralph Stone, Assistant City Manager; Pam Akin, City Attorney; Cyndie
Goudeau, City Clerk
Fiscal Year 2003 Comprehensive Annual Financial Report
SU BJ ECT:
DATE:
April 1 ,2004
Attached please find a copy of the City's comprehensive annual financial report (CAFR)
for the year ended September 30, 2003.
The report includes a "clean" unqualified opinion on the financial statements from the
City's external auditor, Grant Thornton LLP, beginning on page 1 of the report.
Also included in the report is the Management Letter associated with the City's financial
audit for the fiscal year ended September 30, 2003 (pages 153 through 158). This
letter contains the auditor's recommendations for improvements in the City's system of
internal controls. City staff believes that we have addressed and responded
appropriately to all recommendations and audit findings.
Our external auditor, Grant Thornton LLP, will be represented at the Council work
session on Monday, April 1 ih, at which time the CAFR will be officially presented to
you.
I am available to discuss the report at your convenience.
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earwater,
Florida
/k@r~~ ~nded
c!fY~mkr!oJ Poor!
COMPREHENSIVE
FINANCIAL
ANNUAL
REPORT
BRIAN AUNGST
Mayor-Commissioner
WHITNEY GRAY
Vice Mayor-Commissioner
HOYT HAMILTON
Commissioner
FRANK HIBBARD
Commissioner
BILL JONSON
Commissioner
BILL HORNE
City Manager
MARGARET L. SIMMONS, CPA
Finance Director
Prepared by: City of Clearwater Finance Department
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2003
TABLE OF CONTENTS
INTRODUCTORY SECTION: 2age
Title Page and List of Elected and Appointed Officials....................................................................................... i
Letter of Transmittal ....................................................................................................................................... ... vii
Certificate of Achievement for Excellence in Financial Reporting.................................................................... xi
Organizational Chart............................................................................................................................. ........... .xii
FINANCIAL SECTION:
Independent Auditor's Report. ............ ......... ......... ................... .................. ........... ........ ................ ............. ........ 1
Management's Discussion and Analysis. ............... .......... ....... ..................................... ................. ............ ........ 3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ................................................ ........................ ......... ...................................... 16
Statement of Activities........................................................................................................................... 17
Fund Financial Statements:
Balance Sheet - Governmental Funds.................................................................................................18
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets........... 19
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ...... 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities ....................................................................... 21
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual- General Fund ................................................................................................... 22
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual- Special Development Fund..............................................................................23
Statement of Net Assets - Proprietary Funds ............... ....................................................................... 24
Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ............. 28
Statement of Cash Flows - Proprietary Funds..................................................................................... 32
Statement of Fiduciary Net Assets - Fiduciary Funds ......................................................................... 36
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds....................................................... 37
Notes to Financial Statements .............. ........... .................. .............. ........... ........ .......... .......... ......... ............ 38
Required Supplementary Information - Pension Trust Funds:
Schedules of Funding Progress.............. ............. .................. ......................... ....... ......... .................. .... ......70
Schedules of Employer Contributions......................................................................................................... 71
Notes to Schedules of Required Pension Supplementary Information...................................................... 72
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds ................................................................... 76
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds ............ .................... ......................... .......... .............................. ............ 78
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - Community Redevelopment Agency Special Revenue Fund .............................. 81
Combining Statement of Net Assets - Nonmajor Enterprise Funds .........................................................84
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Nonmajor Enterprise Funds................................................................................................................... 85
Combining Statement of Cash Flows - Nonmajor Enterprise Funds......................................................... 86
Combining Statement of Net Assets -Internal Service Funds .................................................................. 90
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Intemal Service Funds.................. ......................................................................................................... 91
Combining Statement of Cash Flows - Internal Service Funds ................................................................ 92
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This Page Intentionally Left Blank
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City of Clearwater, Florida
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2003
TABLE OF CONTENTS (Continued)
Combining Statement of Fiduciary Net Assets ................................ ..... .................................... ..................96
Combining Statement of Changes in Fiduciary Net Assets .......................................................................97
Statement of Changes in Assets and Liabilities - Treasurer's Escrow Agency Fund ............................... 98
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules by Source ... .......... ....... ........ ................................... ........... .......................... 101
Schedule by Function and Activity ......................................................................................................102
Schedule of Changes by Function and Activity ..................................................................................103
Supplementary Information:
Continuing Disclosure - Gas System Revenue Bonds, Series 1996A, 1997A&B, and 1998..................106
Continuing Disclosure - Water & Sewer Revenue Bonds, Series 1993, 1998, and 2002...................... 110
Continuing Disclosure - Stormwater Revenue Bonds, Series 1999 and 2002 ....................................... 113
Continuing Disclosure -Infrastructure Sales Tax Revenue Bonds, Series 2001 ................................... 114
Continuing Disclosure -Improvement Revenue Refunding Bonds, Series 2001...................................114
Fire Services Program ............................ ....................................... ............................ ............................... 115
STATISTICAL SECTION:
Table I General Governmental Expenditures by Function - Last Ten Fiscal years......................................... 118
Table II General Revenues by Source - Last Ten Fiscal Years ........................................................................ 120
Table III Property Tax Levies and Collections - Last Ten Fiscal Years ............................................................. 122
Table IV Assessed and Estimated Property Valuations Last Ten Fiscal years................................................. 124
Table V Property Tax Rates - All Direct and Overlapping Governments-
Last Ten Fiscal Years .... ..... ................ .......... ............... ............. .............. .......... ...... .......... ........... ......... ....... 126
Table VI Principal Taxpayers . ....... .................. ..................................... ........... .......... .......................................... 128
Table VII Ratio of Net General Bonded Debt to Taxable Assessed Value and Net
Bonded Debt Per Capita - Last Ten Fiscal Years ....................................................................................... 129
Table VIII Ratio of Annual General Debt Service to Expenditures - General
Bonded Debt, General Revenue Certificates, and Mortgages
and Notes - Last Ten Fiscal Years ........................................................................................................130
Table IX Computation of Legal Debt Margin ....................................................................................................... 131
Table X Computation of Direct and Overlapping Debt.......................................................................................131
Table XI Revenue Bond Coverage:
Water and Sewer Revenue Bonds Coverages ...........................................................................................132
Gas Revenue Bonds Coverages ....... ............. .......... ....................... ..... ..................... ............ ...................... 133
Stormwater Revenue Bonds Coverages ......... ........................... ........................................... ......................134
Infrastructure Sales Tax Revenue Bonds Coverages ................................................................................. 134
Spring Training Facility Revenue Bonds Coverages ................................. .............. .............................. ...... 135
Improvement Revenue Refunding Bonds Coverages......... ............... .......... ............... ............. ................... 135
Table XII Property Values and Construction - Last Ten Fiscal years................................................................. 136
Table XIII Demographic Statistics - Last Ten Fiscal Years ..................................................................................137
Table XIV Miscellaneous Facts. .......................... ............... ................... .................... ........ .......... ........................... 138
SINGLE AUDIT I GRANTS COMPLIANCE SECTION:
Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit
of Financial Statements Performed in Accordance with Governmental Auditing Standards ............................141
Report on Compliance with Requirements Applicable to Each Major Program and Internal
Control Over Compliance in Accordance with OMB Circular A-133 ..................................................................143
Schedule of Expenditures of Federal Awards and State Financial Assistance for the Year
Ended September 30, 2003........... .................. ............. .............................. .............. ...... ................ ................... 146
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance....................................... 150
Schedule of Findings and Questioned Costs for the Year Ended September 30, 2003 .......................................151
Management Letter as Required by Rules of the Auditor General......................................................................... 153
Management Advisory Comments ............. '" ..... ..................................... .................. ........ ................ ............. .... .... 155
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CITY OF CLEARWATER
POST OFFICE Box 4748, CLEARWATER, FLORIDA 33758-4748
CrlY HALL, 112 SOUTH OSCEOlA AVE:--.lUE, CLEARWATER, FLORIDA 33756
TELEPHONE (727) 562-4040 FAX (727) 562-4052
CI1Y MANAGER
March 29, 2004
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, 2003.
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.
Grant Thornton, LLP, 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, 2003, 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, 2003, are fairly presented in
conformity with GAAP. The independent auditor's report is presented as the first component of the
financial section of the report.
The independent audit of the financial statements of the City was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal and state grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on
the fair presentation of the financial statements, but also on the audited government's internal controls
and compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the administration of federal and state awards. These reports are in the Single
Audit section of this report.
BRIAN J. AU!\:GST, MAYOR-CO~lMISSIO!\:ER
Hon HAMILTON, VICE MAYOR-COMMISSIONER WIIITf\:EY GI\AY, Cml~lISSIO:\EI\
FIV\NK HIBBARD, COMMISSIO!\:ER ..Ii BILLjOf\:SOf\:, COM~lISSIOf\:EI\
"EQUAL EMPLOYMENT AI'\D 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 Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the independent
auditors.
Profile of the City of Clearwater, Florida
Clearwater is located on the Pinellas Peninsula midway 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. However, Clearwater also enjoys a diversity of manufacturing,
service industries, high-tech companies, and a significant retirement population.
The City provides municipal services of police and fire protection; construction and maintenance of
streets, bridges, sidewalks, storm drainage, public parks, and recreation facilities; planning, zoning,
subdivision, and building code regulation and enforcement; redevelopment of commercial and
residential neighborhoods; supervised recreation programs; public libraries; water supply and
distribution; waste water collection, treatment, and disposal; natural gas distribution; solid waste
collection and recycling; stormwater management; marina, airpark, convention center, and 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 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 close to the City's fiscal year. The
appropriated budget is prepared by fund and by department within fund.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City operates.
Local Economy
The Tampa Bay metropolitan area continues to resist national trends, with housing and job markets
stronger than most of the nation. The Tampa Bay region has an employed labor force of
approximately 1.2 million, which is anticipated to grow at a rate of between 2 percent and 3 percent
each year for the next several years. The unemployment rate for September 2003 was at 4.5 percent
versus a national average of 6.1 percent. Business development interest in the City's downtown and
beach areas has increased significantly in recent years as property valuation increases reflect. We are
also beginning to see renewed interest in the City's markets for multi-family and residential housing.
Long-term Financial Planning
The volume and scope of projects either completed or begun during fiscal 2003 is unprecedented in
Clearwater's history and is expected to benefit the community for many years to come.
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Three major projects - the new Memorial Causeway Bridge, Main Library, and Community Sports
Complex - were all nearing completion at fiscal year-end. The new Memorial Causeway Bridge will be
a fixed, high-span "signature piece" bridge to replace the current drawbridge. Expected completion of
the bridge is fiscal 2004. The new 90,000-square-foot main library, overlooking the Intracoastal
Waterway in downtown Clearwater, is destined to become a focal point of downtown redevelopment.
Expected completion is also fiscal 2004. The Community Sports Complex includes a new Spring
Training facility for the Philadelphia Phillies major league baseball organization and construction was
completed prior to the 2004 Spring Training season opener.
Several projects also were completed in the North Greenwood community during fiscal 2003. These
included a new recreation and aquatics center, branch library, and Martin Luther King, Jr. Avenue
corridor enhancements.
Additionally, two new fire stations were opened; comprehensive plans were adopted to spur
redevelopment of the downtown, downtown waterfront, and beach; redevelopment of the Clearwater
Mall was nearing completion; and a state-of-the-art reverse osmosis water treatment plant was
completed.
Cash Management Policies and Practices
As more completely described in Note I - 0 - 1 of the notes to the financial statements, the City
employs a consolidated cash pool to facilitate short-term investment of liquid assets for all City funds.
The City believes that a conservative investment philosophy best serves the residents of Clearwater,
and that the return of the investment principal is more important than the return on the principal.
However, the City attempts to maximize the return, while maintaining a conservative philosophy, via
accurate cash flow forecasting and competitive selection of investments. The cash pool earned an
average rate of return of 3.32% on its investments during fiscal year 2003. Current year investment
income includes depreciation in the fair value of investments that will not be realized if the government
holds the investments to maturity as intended.
Risk Management
The City is self-insured within certain parameters for losses arising from claims for general liability,
auto liability, police professional liability, public officials' liability, property damage, and workers'
compensation. The transactions relating to the self-insurance program are accounted for in the Central
Insurance Fund, and are reported as an Internal Service Fund. The City is not self-insured with
respect to major medical coverage. Management believes that the amounts showing as claims payable
and the unreserved retained earnings are adequate to cover all reasonable projected losses arising
from events occurring on or prior to September 30, 2003. Additional information on the City's risk
management activity can be found in Note IV - A of the notes to the financial statements.
Pension and Other Postemployment Benefits
The Employees' Pension Plan and the Firemen's Pension Plan are single-employer defined benefit
pension plans that are self-administered by the City. Each year, independent actuaries engaged by the
pension plans calculate the amount of the minimum required contributions that the City must make to
each of the plans to ensure that the plans will be able to fully meet their obligations to retired
employees on a timely basis. City contributions for the year were in accordance with actuarially
determined funding requirements.
In addition, supplemental pensions exist for certified Police Officers and Firefighters under the
provisions of Florida Statutes Sections 175 and 185. These plans are funded solely from excise taxes
on certain insurance premiums covering property in Clearwater. The excise taxes are collected by the
state and remitted to the City. Both plans require benefits to be adjusted to equal fund assets provided
by the defined contributions.
Additional information on the City's pension plans can be found in Note IV - E of the notes to the
financial statements.
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Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for it's comprehensive annual financial report (CAFR) for
the fiscal year ended September 30, 2002. This was the twenty-fourth 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.
In addition, the City received the GFOA's Distinguished Budget Presentation Award for the fiscal year
2003 Budget document, the seventeenth 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. In addition, we thank the Graphic
Communications Division for the professional printing of this report. Sincere appreciation is also
extended to the City's external auditors, Grant Thornton, LLP, for their advice and assistance in the
preparation of this report. Finally, we would like to thank the City Council for their interest, continued
support, and leadership in planning and conducting the financial operations of the City in a progressive
and responsible manner.
Sincerely,
~B.~~
William B. Horne, II
City Manager
Lmft~~~ d(. ~
Margaret L. Simmons, CPA
Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Clearwater,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and [mancial reporting.
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President
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I Accountants and Business Advisors
Grant Thornton ~
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Report of Independent Certified Public Accountants
Honorable Mayor-Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
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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, 2003, 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 nonmajor governmental, nonmajor enterprise, internal service and
fiduciary funds presented as supplementary information in the accompanying combining and individual
fund financial statements as of and for the year ended September 30, 2003, 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.
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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 of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the basic financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
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In our opinion, based on our audit, 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 of Clearwater, Florida as of
September 30, 2003, and the respective changes in financial position and cash flows, where applicable,
thereof for the year then ended in conformity with accounting principles generally accepted in the United
States of America. In addition, in our opinion, the financial statements referred to above present fairly, in
all material respects, the respective financial position of each nonmajor governmental, nonmajor
enterprise, internal service, and fiduciary fund of the City of Clearwater, Florida as of September 30,
2003, 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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In accordance with Government Auditing Standards, we have also issued our report dated January 16,
2004 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 grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
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Suite 3850
101 E. Kennedy Blvd
ITampa, FL 33602-5152
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
I Grant Thornton LLP
US Member of Grant Thornton International
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The Management's Discussion and Analysis and the pension plan required supplementary information
on pages 3 through 14 and pages 70 through 72 are not a required part of the basic financial statements
but are supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section and statistical tables are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The introductory section and statistical tables 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.
The accompanying schedule of federal and state financial assistance for the year ended September 30,
2003 is presented for purposes of additional analysis as required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, Section
215.97, Florida Statutes and Chapter 10.550 rules of the Auditor General, and is not a required part of
the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
~~LLjJ
Tampa, Florida
January 16, 2004
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Management's Discussion and Analysis
Management's Discussion and Analysis provides the reader with a narrative overview and analysis of the financial
activities of the City for the fiscal year ended September 30, 2003. Management's Discussion and Analysis (MD & A)
should be read in conjunction with the City's Transmittal Letter, which begins on page vii of this report.
Financial Highlights
The City's assets exceeded its liabilities at the close of fiscal year 2003 by $449.6 million (net assets). Of this
amount, $153.4 million (unrestricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
The City's total net assets increased by $38.8 million (or 9.4%) during fiscal 2003. The governmental net assets
increased by $27.7 million (or 14.4%) while the business-type net assets increased by $11.1 million (or 5.1%).
A significant factor in the increase in governmental net assets was current year grants and donations of approximately
$8.8 million as detailed in the Government-wide Financial Analysis that follows.
The $11.1 million increase in business-type net assets is primarily due to contributions and grants from other
governments and developers of $9.4 million, along with rate increases for water & sewer, stormwater, and gas
utilities, as discussed in the following analysis of business-type activities, partially offset by a $2.6 million increase in
interest expense for new water & sewer and stormwater bond issues during fiscal 2002.
At September 30, 2003, the City's governmental funds reported combined ending fund balances of $87.7 million, a
decrease of $15.1 million (or 14.7%) in comparison with the prior year. Of this amount, $49.6 million (or 56.5%) is
available for spending at the government's discretion (unreserved fund balance). The decrease of $15.1 million in
governmental fund balances is primarily due to current year capital outlay expenditures for major construction
projects, including $9.4 million for the community sports complex and $9.7 million for the new main library.
At September 30, 2003, unreserved fund balance for the General Fund was $12.1 million, or 14.0% of total general
fund expenditures.
Total actual revenues for the General Fund approximated final budgeted revenues while total actual expenditures
were less than budgeted expenditures by $1.3 million, for a combined savings of $1.3 million.
Overview of the Financial Statements
This discussion and analysis (MO&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, 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.
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· 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 (known as the primary
governmenQ, but also the legally separate Downtown Development Board (DDB). The DDB, though legally separate,
is included as a discretely presented component unit because it was created by City ordinance and the City is thereby
able to impose its will on the organization. In addition it is the opinion of the City's management that exclusion of the
DDB from the City's financial statements would cause the financial statements to be incomplete. The Clearwater
Redevelopment Agency (CRA), though also legally separate, is reported as part of the primary government due to the
City Commission serving as the CRA's governing board, or as a blended component unit.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The fund financial statements provide detailed information about the City's major
funds - not the City as a whole. Fund accounting helps to ensure and demonstrate compliance with finance-related
legal requirements. Based on restrictions on the use of monies, the City has established many funds that account for
the multitude of services provided to residents. These fund financial statements focus on the City's most significant
funds: governmental, proprietary, and fiduciary.
Governmental funds
Governmental funds are used to report most of the City's basic services. These funds are used to account for
essentially the same functions reported as governmental activities in the government-wide financial statements. The
funds focus on the inflows and outflows of current resources and the balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains twelve individual governmental funds. Information is presented separately in the governmental
funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund
balances for the General, Special Development, and Capital Improvement funds, which are considered to be major
funds. Data from the other nine governmental funds are combined into a single aggregated columnar presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in
the supplementary information section of this report.
The City adopts annual appropriated budgets for the General, Special Development, and Community Redevelopment
Agency funds. A budgetary comparison statement has been provided for these funds to demonstrate budgetary
compliance.
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Proprietary funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to
account for the fiscal activities related to water and sewer, gas, solid waste and stormwater utilities, along with
recycling, marine, aviation, parking system, and convention center operations. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses
internal service funds to account for the City's building maintenance, custodial services, self-insurance program, risk
management program, employee group insurance, vehicle acquisition and maintenance, and various support
activities including data processing, legal, telecommunications, postal, and printing services. All of the City's internal
service funds predominantly benefit governmental activities and consequently have been aggregated and included
within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the Water and Sewer Utility, Gas
Utility, Solid Waste Utility, and Stormwater Utility enterprise funds, which are considered to be major funds of the City.
The remaining four non-major enterprise funds are combined into a single aggregated presentation in the proprietary
fund financial statements. Similarly, governmental activity internal service funds are aggregated into a single
presentation, as are business-type activity internal service funds. Individual fund data for the non-major enterprise
funds and the internal service funds is provided in the form of combining statements in the supplementary information
section of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reflected in the government-wide financial statements because the resources of the fiduciary funds are
not available to support the City's own programs. The accounting used for fiduciary funds is similar to proprietary
funds.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential for a full understanding of the
information provided in the government-wide and fund financial statements. The notes also present certain required
supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its
employees. .
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City's progress in funding its obligation to provide pension 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.
Government-Wide Financial Analysis
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 $450.5 million at the close of the fiscal year ended September 30, 2003.
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:
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Assets
Current and other assets
Capital assets
Total assets
Liabilities
Current and other liabilities
Long-term debt outstanding:
Due within one year
Due in more than one year
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
Assets
Current and other assets $
Total assets
Liabilities
Current and other liabilities
Long-term debt outstanding:
Due within one year
Due in more than one year
Total liabilities
Net assets:
Unrestricted
Total net assets $
City of Clearwater - Net Assets
Primary Government
Governmental Activities Business-type Activities Total
2003 2002 2003 2002 2003 2002
$ 183,987,172 $190,130,502 $ 138,060,189 $ 145,407,013 $ 322,047,361 $ 335,537,515
181,581,235 145,766,043 288,869,651 272,405,002 470,450,886 418,171,045
365,568,407 335,896,545 426,929,840 417,812,015 792,498,247 753,708,560
47,623,005 52, n1 ,504 11,072,082 9,672,629 58,695,087 62,444,133
14,476,646 10,075,522 8,557,403 7,730,461 23,034,049 17,805,983
83,916,133 81,185,447 1n,294,521 181,501,022 261,210,654 262,686,469
146,015,784 144,032,473 196,924,006 198,904,112 342,939,790 342,936,585
103,014,874 60,969,830 105,824,224 86,678,5n 208,839,098 147,648,407
53,938,944 63,794,806 33,412,704 38,382,264 87,351,648 102,1n,070
62,598,805 67,099,436 90,768,906 93,847,062 153,367,711 160,946,498
$ 219,552,623 $ 191 ,864,072 $ 230,005,834 $ 218,907,903 $ 449,558,457 $ 410,n1,975
Component Unit
Clearwater Downtown
Development Board
2003 2002
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409,479 $ 349,061
409,479 349,061
207,445 206,289
7,848 7,848
78,483 86,331
293,n6 300,468
115,703 48,593
115,703 $ 48,593
A large portion of the City's net assets (46.5%) reflects its investment in capital assets (e.g., land, 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 (19.4%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets ($153.4 million) may be used to meet the
government's ongoing obligations to citizens and creditors.
There was a $42.0 million increase in invested in capital assets, net of related debt for governmental activities, due to
a $35.8 million increase in governmental activities net capital assets, along with a decrease in related debt. The
increase of $35.8 million was primarily due to: construction in progress expenditures for a new spring training
community sports complex and a new main library; a donated recreation complex (Long Center); and a donated land
parcel as described in the Capital Assets discussion on page 12 of this report. Similarly invested in capital assets, net
of related debt for business-type activities increased by $19.1 million due to a $16.5 million increase in business-type
activities net capital assets and a reduction in related debt. The increase in net capital assets was due to various
utility system asset additions as detailed in the Capital Assets discussion on page 12 of this report.
Changes in Net Assets
The following tables reflect the changes in net assets for the years ended September 30, 2003, and September 30,
2002, for both the City and its discretely presented component unit:
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City of Clearwater, Florida - Changes in Net Assets
Primary Government
Govermental Activities Business-type Activities Totals
2003 2002 2003 2002 2003 2002
Revenues
Program revenues:
Charges for services $ 23,822,887 $ 22,832,952 $ 104,931,876 $ 98,504,808 $128,754,763 $ 121,337,760
Operating grants and contributions 8,266,931 6,111 ,789 14,699 8,281,630 6,111 ,789
Capital grants and contributions 5,206,733 9,787,351 9,406,042 4,300,651 14,612,775 14,088,002
General revenues:
Property taxes 33,927,390 30,322,411 33,927,390 30,322,411
Sales taxes 14,528,873 14,663,969 14,528,873 14,663,969
Franchise fees and utility taxes 24,521,066 25,359,362 24,521,066 25,359,362
Other taxes 3,974,357 4,294,408 3,974,357 4,294,408
Other 2,355,095 5,184,077 2,147,878 3,083,160 4,502,973 8,267,237
Total revenues 116,603,332 118,556,319 116,500,495 105,888,619 233,103,827 224,444,938
Expenses
General Government 11,353,210 11,646,741 11,353,210 11,646,741
Public Safety 47,428,586 45,135,649 47,428,586 45,135,649
Physical Environment 2,270,918 2,886,504 2,270,918 2,886,504
Transportation 8,878,325 10,120,224 8,878,325 10,120,224
Economic Environment 4,288,244 3,230,524 4,288,244 3,230,524
Human Services 571,088 555,395 571,088 555,395
Culture and Recreation 22,093,943 22,230,715 22,093,943 22,230,715
Interest on Long-term Debt 3,283,732 2,962,849 3,283,732 2,962,849
Water and Sewer Utility 40,825,196 37,470,508 40,825,196 37,470,508
Gas Utility 26,638,165 23,573,611 26,638,165 23,573,611
Solid Waste Utility 14,231,764 14,397,892 14,231,764 14,397,892
Stormwater Utility 7,021,639 5,458,556 7,021,639 5,458,556
Other 11,242,581 11,057,400 11,242,581 11,057,400
Total expenses 100,168,046 98,768,601 99,959,345 91,957,967 200,127,391 190,726,568
Increase in net assets before
transfers 16,435,286 19,787,718 16,541,150 13,930,652 32,976,436 33.718,370
Special item - donated
recreation comolex 5,810,046 5,810,046
Transfers 5,443,219 938,688 (5,443,219) (938,688)
Increase in net assets 27,688,551 20,726,406 11,097,931 12,991,964 38,786,482 33,718,370
Net assets - beginning 191,864,072 171,137,666 218,907,903 205,915,939 410,771,975 377,053,605
Net assets - ending $219,552,623 $ 191 ,864,072 $ 230,005,834 $218,907,903 $ 449,558,457 $410,771,975
Component Unit
Clearwater Downtown Development Board
2003 2002
Revenues
Program revenues:
Operating grants and contributions $
General revenues:
Property taxes
Other
Total revenues
Expenses
Downtown Development Board
Total expenses
Increase in net assets
Net assets - beginning
Net assets - ending $
$
65,189
63,716
205,218
7,299
277,706
172,045
7,488
243,249
210,596
210,596
67,110
48,593
115,703
$
191,277
191,277
51,972
(3,379)
48,593
The City's net assets increased $38.8 million during fiscal 2003 versus $33.7 million for fiscal 2002. Approximately
37% of this increase represents the degree to which increases in ongoing revenues have outstripped similar
increases in ongoing expenses. Approximately 35% is attributable to one-time capital grants and donations, while the
remainder is due to rate increases, increases in operating grants, and investment earnings, decreased by increases in
interest expense on long term debt.
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Governmental Activities
Governmental activities net assets increased by $27.7 million from $191.9 million as of September 30, 2002, to
$219.6 million as of September 30, 2003. This increase due to governmental activities accounted for 71 % of the total
increase in net assets for the City. Key elements of this increase are as follows:
· An 11.9% increase in property tax revenues from $30.3 million to $33.9 million, due to a 7.3% increase in
taxable assessed values, as well as a 4.5% current year increase in the City millage rate.
· A current year contribution of $3 million from the Florida Department of Transportation towards construction of
the new Memorial Causeway Bridge. During fiscal 2002 a $5 million contribution was received from Pinellas
County towards construction of the new bridge.
· Current year receipt of title to a donated recreation complex, the Long Center, in the amount of $5.8 million,
reflected as a special item on the Statement of Activities.
The cost of all Governmental activities this year was $100.2 million. However, as shown on the Statement of
Activities, the amount that the City's taxpayers ultimately financed for these activities through taxes was only $62.9
million because some of the cost was paid for by those who directly benefited from the programs ($23.8 million) or by
other governments and organizations that subsidized certain programs with grants and contributions ($13.5 million).
. Expenses
. Revenues
Expenses and Program Revenues - Governmental Activities
For the Year Ended September 30, 2003
$50
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
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Revenues by Sources - Governmental Activities
For the Year Ended September 30, 2003
Property taxes
30%
Sales taxes
12%
Capital grants and
contributions
4%
Franchise fees and utility
taxes
22%
Operating grants and
contributions
7%
Other taxes
Other 3%
2%
Charges for services
20%
Business-type Activities
Net assets for business-type activities increased from $218,907,903 to $230,005,834. This increase totaled $11.1
million, reflecting a 5.1 % increase in business-type activities net assets and 28% of the total increase in net assets for
the City. This increase was $1.9 million less than the fiscal year 2002 increase in net assets of $13.0 million.
Total revenues increased by $10.8 million, or 10.2% versus the prior year. The increase resulted from a $6.4 million
increase in charges for services, primarily due to stormwater system and water and sewer system rate increases; in
addition to increased gas system sales, due to a 11 % increase in customer accounts, as well as favorable market
conditions related to a cold winter and relatively high gas prices. Also contributing to the $10.8 million increase in
revenues was a $5.1 million increase in capital grants and contributions, primarily due to capital grants received for
stormwater and water and sewer system improvements. These increases were partially offset by a $0.9 million
decrease in investment earnings due to a significant decline in interest rates.
Total expenses increased by $8.0 million from $92.0 million in fiscal 2002 to $100.0 million for fiscal 2003. Significant
factors contributing to this $8.0 million increase were increases in interest expense for the water and sewer utility
system ($2.6 million) and the stormwater utility system ($0.8 million) due to fiscal 2002 revenue bond issues.
Additionally, gas utility purchases for resale increased by $2.9 million over fiscal 2002 partially due to increased sales
as well as increases in prices for gas purchased for resale. Also contributing to the increase in expenses was an
increase in water and sewer system repairs and maintenance expense of $1.4 million versus fiscal 2002.
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$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Expenses and Program Revenue - Business-type Activities
For the Year Ended September 30, 2003
Water and Sewer
Utility
Gas Utility
Solid Waste Utility Stormwater Utility
Other
Revenues by Source - Business-type Activities
For the Year Ended September 30,2003
Charges for
services
90%
Other
2%
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8%
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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,
unreseNed 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, 2003, reflect a combined fund balance of $87.7
million versus $102.8 million for the prior year, a decrease of $15.1 million. A total of $49.6 million, or 56%, of this
represents unreseNed fund balance, which is available for spending at the government's discretion. The remainder of
the fund balance is reseNed to indicate that it is not available for new spending because it has already been
committed 1) to liquidate construction contracts and purchase orders of the prior period ($17.2 million); 2) to pay debt
service ($6.5 million); 3) for advances due from other funds ($2.0 million); or 4) for specific program purposes per
grant restrictions and related loan agreements ($12.5 million).
The General Fund is the chief operating fund of the City. At September 30, 2003, unreserved fund balance of the
General Fund totaled $12.1 million, with the remainder of the $14.7 million in fund balance reserved to indicate it has
already been committed for purchase orders of the prior period ($0.6 million) and for advances due from other funds
($2.0 million). As a measure of the general fund's liquidity it is useful to compare unreserved fund balance to total
fund expenditures. Unreserved fund balance represents 14.0% of total general fund expenditures (GAAP basis
before transfers) for the current fiscal year.
The fund balance of the City's General Fund increased by $1.0 million during the current fiscal year. This increase
was the composite result of total actual expenditures less than budgeted expenditures by $1.3 million, partially offset
by a $0.2 million excess of actual operating transfers out versus budgeted. The expenditure "savings" were spread
across numerous departments.
The fund balance of the Special Development Fund increased from $6.9 million to $10.5 million during the current
fiscal year. Key factors in the increase included the return of $1.5 million of excess funding provided to the "Town
Lake" stormwater retention pond project and $0.5 million of excess funding provided to the Community Sports
Complex Development project. The remainder of the $3.6 million increase was primarily attributable to decreased
funding of capital projects versus the previous year. Current year transfers to capital projects totaled $12.6 million
versus $15.2 million for fiscal 2002.
The Capital Improvement Fund has a total fund balance of approximately $34.5 million. The fund had a minimal
current year decrease in fund balance of $64,914.
The fund balances for Other (non-major) Governmental Funds decreased from $45.7 million to $28.1 million during
the current fiscal year. This was primarily due to capital outlay expenditures for the community sports complex ($9.4
million) and the new main library ($9.7 million).
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial statements,
but in more detail. The City reports the Water and Sewer Utility Fund, the Gas Utility Fund, the Solid Waste Utility
Fund, and the Stormwater Utility fund as major funds.
The Water and Sewer Utility Fund realized a $1.5 million increase in net assets versus a $2.4 million increase for the
prior year. Operating revenues increased 3.9% over the previous year, partially offset by a 3.3% increase in operating
11
expenses. A rate increase effective October 1, 2002 contributed to the increase in operating revenues. Operating
income of $4.5 million was negated by $6.2 million in interest expense on long term debt, partially offset by $1.0
million in investment earnings. The net loss before contributions and transfers of ($0.6) million was offset by $3.9
million in capital grants and contributions that must be used for capital purposes. Finally, transfers out of $1.7 million
resulted in a net increase in net assets of $1.5 million.
The Gas Utility Fund realized a $2.4 million increase in net assets versus a $2.6 million increase for the prior year.
Operating revenues increased by 12.2% over the prior year. However the increase in operating revenues was entirely
offset by a 14.7% increase in operating expenses versus the prior year, including a 26.8% increase in purchases for
resale.
The Solid Waste Utility Fund realized a $1.2 million increase in net assets versus a $1.5 million increase for the prior
year. Operating revenues decreased by 0.8% while operating expenses increased by 1.8%.
The Stormwater Utility Fund realized an increase in net assets of approximately $4.6 million. Operating revenues
increased by 25.2%, primarily due to rate increases of approximately 35.0% effective January 1, 2002, and 16.8%
effective October 1, 2002. The increase in operating revenues was partially offset by a 17% increase in operating
expenses.
Unrestricted net assets and changes in net assets of the proprietary funds for fiscal years 2003 and 2002:
Unrestricted Net Assets Change in Net Assets
Fund 2003 2002 2003 2002
Water and Sewer Utility $ 25,347,874 $ 19,788,491 $ 1 ,536,839 $ 2,401,311
Gas Utility 8,664,372 9,498,817 2,405,321 2,623,123
Solid Waste Utility 10,025,860 6,426,639 1 ,244,130 1,517,507
Stormwater Utility 7,376,541 7,888,733 4,590,723 4,066,075
Other funds 12,439,195 10,873,333 1,175,890 2,352,206
Totals $ 63,853,842 $ 54,476,013 $ 10,952,903 $ 12,960,222
General Fund Budgetary Highlights
Differences between the original budget for General Fund expenditures and the final amended budget were relatively
minor ($311,600 decrease). Key elements of this decrease are as follows:
. $400,690 decrease in non-departmental budgeted expenditures, due to the distribution of union contractual
salary increases and defined contribution pension increases that were originally budgeted at the non-
departmental level, partially offset by various related departmental increases.
. $118,180 decrease in planning department budgeted expenditures, due to a planned annexation program in
the amount of $60,180 that was not implemented, and an additional $65,000 of operating savings that was
transferred to the Special Programs special revenue fund to fund a special program project "Special Planning
Design and Evaluation".
Total actual revenues for the General Fund exceeded final budgeted revenues by $14,016 and total actual
expenditures were less than budgeted expenditures by $1.3 million. The budget savings occurred over numerous
expenditure categories.
Capital Asset and Debt Administration
Capital Assets
Capital assets include land, buildings and building improvements, improvements other than buildings, and machinery
and equipment. Capital assets also include infrastructure assets added since October 1, 2001. Infrastructure assets
acquired prior to fiscal 2002 will be added when the City retroactively implements the infrastructure portion of the new
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financial reporting model in fiscal 2006. The infrastructure asset category includes long-lived capital assets, typically
stationary in nature, such as roads, sidewalks, and bridges. At September 30, 2003, the City had investments in
capital assets totaling $470,450,886 (net of accumulated depreciation).
City of Clearwater, Florida - Capital Assets"
Governmental Activities Business-type Activities Total
2003 2002 2003 2002 2003 2002
land $ 45,288,886 $ 41,609,748 $ 26,013,359 $ 19,181,869 $ 71,302,245 $ 60,791,617
Buildings 39,432,666 29,039,587 16,089,369 14,566,372 55,522,035 43,605,959
Improvements Other than 36,742,325 37,783,839 198,633,462 188,195,941
Buildings 235,375,787 225,979,780
Machinery and 27,505,002 24,705,847 3,842,388 3,255,711
Eauipment 31,347,390 27,961,558
Infrastructure 2,171,728 1,076,247 2,171,728 1,076,247
Construction in progress 30,440,628 11,550,775 44,291 ,073 47,205,107 74,731,701 58,755,882
Total $ 181,581,235 $ 145,766,043 $ 288,869,651 $ 272,405,000 $ 470,450,886 $ 418,171,043
" Net of accumulated depreciation
Net capital assets for the City's governmental activities increased from $145.8 million to $181.6 million, reflecting an
increase of $35.8 million for the current fiscal year. Key components of this increase include:
. A total of $11.6 million in construction in progress expenditures towards construction of a new community
sports complex to include a spring training stadium for the Philadelphia Phillies major league baseball
organization.
. Expenditures of $9.4 million towards construction of a new main library, currently classified as construction in
progress.
. An increase of $5.8 million in buildings due to the fiscal 2003 receipt of the donated Long Center recreation
complex to be owned and operated by the City.
. An increase of $1.9 in land representing the acquisition of 4.34 acres of land previously known as Bayview
Park.
Net capital assets for the City's business-type activities increased by $16.5 million from $272.4 million to $288.9
million during the current fiscal year. Included in this increase were water and sewer system improvements and
buildings in the amounts of $10.8 million and $2.2 million, respectively, primarily due to planned system improvements
funded from the Water and Sewer Revenue Bonds, Series 2002. These improvements include expansion of the
reclaimed water program; continued renewal and replacement as needed of the water, wastewater collection, and
water pollution control systems; and upgrading of the water pollution control system to meet regulatory requirements.
Also contributing to the increase in net capital assets for business-type activities were land additions for the
stormwater system, including the purchase of the Kapok Mobile Home Park land in the amount of $3.5 million and the
transfer of land from governmental activities in the amount of $1.3 million for the "Town Lake" stormwater retention
pond.
Additional information on the City's capital assets can be found in Note III (C) on pages 47-48 of this report.
Long-term debt
The City's total long-term debt decreased by $7.7 million, from $291.9 million to $284.2 million, or a decrease of 2.7%
for the current fiscal year. Key factors in this decrease included:
· Revenue bond principal debt service payments in the amount of $11.9 million per debt service schedules,
partially offset by a $2.5 million capital appreciation increase in the Water and Sewer Refunding Revenue
Bonds, Series 1998 (capital appreciation bonds in the amount of $43.6 million).
· An increase of $1.5 million in claims payable due to a $1.7 million increase in actuarial reserves for workers
compensation claims, partially offset by a $0.2 million decrease in actuarial reserves for general liability and
automobile liability claims.
13
The City's bonded debt as of September 30, 2003, consists entirely of revenue bonds (secured solely by specified
revenue sources) with no general obligation debt or special assessment debt outstanding. Governmental activities
revenue bonds totaled $67.4 million while business-type activities totaled $182.4 million.
All revenue bond issues of the City have received an insured rating of either AAA by Standard & Poor's or Fitch, or
Aaa by Moody's.
The City's Charter limits legal indebtedness to twenty percent of the assessed valuation of non-exempt real estate.
The current debt limitation is in excess of $1.0 billion, which is significantly in excess of the City's legal indebtedness
at September 30, 2003.
Additional information on the City's long-term debt can be found in Note III (F) on pages 53-56 of this report.
Economic Factors And Year 2004 Budgets and Rates
Factors considered in preparing the City of Clearwater's budget for fiscal year 2004 included:
· The unemployment rate for the Tampa Bay metropolitan area for September 2003 was 4.5%, an increase of
0.1 % from the 4.4% rate for September 2002. The national rate for September 2003 was 6.1 % versus 5.6%
for September 2002.
· Total taxable assessed values for the City of Clearwater increased 9.6% for fiscal 2004.
· Health insurance costs for City employees are budgeted to increase 23% over the fiscal 2003 budget,
resulting in a $1.3 million cost increase for the General Fund.
· Property and liability insurance costs are budgeted to increase by 27%, or $1.1 million Citywide.
· Budgeted Water and Sewer utility revenues for 2004 reflect a 7% rate increase effective October 1, 2003,
while fiscal 2004 budgeted Stormwater utility revenues reflect a 12% rate increase effective October 1, 2003.
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 its
finances 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 The City of Clearwater,
Finance Department, 100 S. Myrtle Avenue, Clearwater, Florida 33756-5520.
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I Basic Financial Statements
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II 15
City of Clearwater, Florida I
Statement of Net Assets
September 30, 2003 I
Primary Government Component Unit
Clearwater
Downtown
Governmental Business-type Development Ii
Activities Activities Total Board
ASSETS
Cash and cash equivalents $ 133,476,038 $ 27,828,580 $ 161,304,618 $ 204,972 I
Restricted cash and investments 13,940,625 13,940,625
Investments 1,475,635 1,475,635
Total receivables (net) 49,012,877 8,726,352 57,739,229 204,507
Internal balances (26,137,910) 13,599,875 (12,538,035) I
Due from other governments 4,922,172 446,962 5,369,134
Prepaid items 623,851 3,999 627,850
Inventories 236,489 969,825 1,206,314
Deferred charges 553,953 1,419,826 1,973,779 I
Net pension asset 19,824,067 6,008,467 25,832,534
Restricted assets:
Cash and cash equivalents 51,052,722 51,052,722
Investments 9,530 9,530 I
Internal balances 12,538,035 12,538,035
Due from other governments 1,515,391 1,515,391
Capital assets: I
Land 45,288,886 26,013,359 71 ,302,245
Buildings 39,432,666 16,089,369 55,522,035
Improvements other than buildings 36,742,325 198,633,462 235,375,787
Machinery and equipment 27,505,002 3,842,388 31,347,390 I
Infrastructure 2,171,728 2,171,728
Construction in progress 30,440,628 44,291,073 74,731,701
Total assets 365,568,407 426,929,840 792,498,247 409,479
LIABILITIES I
Accounts payable and other current liabilities 5,381,768 2,343,559 7,725,327 2,938
Accrued liabilities 1,590,982 500,051 2,091,033
Accrued interest payable 729,033 68,649 797,682 I
Due to other governments 1 ,136,340 135,000 1,271 ,340
Deposits 3,160 134,532 137,692
Deferred revenue and liens 38,781,722 4,194 38,785,916 204,507
Payable from restricted assets: I
Construction contracts payable 1,945,459 1,945,459
Accrued interest payable 1,886,637 1,886,637
Customers deposits 4,054,001 4,054,001
Non-current liabilities due within one year: I
Compensated absences 625,283 137,280 762,563
Loans and leases payable 4,108,085 595,302 4,703,387 7,848
Revenue bonds payable 6,065,178 7,824,821 13,889,999
Claims payable 3,678,100 3,678,100 I
Long-term debt and liabilities:
Compensated absences 5,690,700 1,249,391 6,940,091
Loans and leases payable 7,563,332 1,479,541 9,042,873 78,483 ,I
Revenue bonds payable 61,383,719 174,565,589 235,949,308
Claims payable 9,278,382 9,278,382
Total liabilities 146,015,784 196,924,006 342,939,790 293,776
NET ASSETS I
Invested in capital assets, net of related debt 103,014,874 105,824,224 208,839,098
Restricted for:
Capital projects 14,720,927 4,296,878 19,017,805
Debt service 6,467,996 9,855,408 16,323,404 I
Renewal and replacement 13,251,951 13,251,951
Employees' pension benefits 19,824,067 6,008,467 25,832,534
Other purposes 12,925,954 12,925,954 I
Unrestricted 62,598,805 90,768,906 153,367,711 115,703
Total net assets $ 219,552,623 $ 230,005,834 $ 449,558,457 $ 115,703
The notes to the financial statements are an integral part of this statement. I
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City of Clearwater, Florida I
Balance Sheet
Governmental Funds
September 30, 2003 I
Special Capital Other Totals
General Development Improvement Governmental Governmental
Fund Fund Fund Funds Funds I
ASSETS
Cash on hand and in banks $ 21,475 $ $ $ 100 $ 21,575
Equity in pooled cash and investments 10,563,006 8,369,379 67,989,184 19,137,352 106,058,921
Receivables (net where applicable, of allowances I
for estimated uncollectible amounts):
Accounts and contracts 281,393 281,393
Mortgages, notes and other loans 7,500 9,696,154 9,703,654 I
Improvement liens 35,880 35,880
Rehabilitation advances 69,014 69,014
Property taxes 34,978,151 2,234,781 37,212,932 I
Other 1,448,617 259,728 1,708,345
Due from other funds 2,088 2,088
Due from other funds (deficit in pooled cash) 750,675 750,675
Due from other governmental entities 2,224,350 2,278,610 419,212 4,922,172 I
Investments 1,475,635 1,475,635
Land held for resale 998,342 998,342
Inventories, at cost 15,998 15,998 I
Advances to other funds 2,000,000 2,000,000
Total assets $ 51,532,990 $ 12,890,270 $ 68,777,827 $ 32,055,537 $ 165,256,624
LIABILITIES I
Accounts and contracts payable $ 134,666 $ $ 2,255,739 $ 2,230,896 $ 4,621,301
Accrued payroll 1,398,853 15,421 1,414,274
Due to other funds 24,925 31,968,548 120,402 32,113,875 I
Due to other funds (deficit in pooled cash) 679,092 679,092
Due to other governmental entities 6,099 193,179 215 199,493
Deposits 3,160 3,160
Construction escrows 510,372 510,372 I
Deferred revenue 35,247,346 2,234,781 87,289 37,569,416
Deferred assessment liens 35,880 35,880
Advances from other funds 24,925 361,204 386,129 I
Total liabilities 36,839,974 2,427,960 34,260,167 4,004,891 77,532,992
FUND BALANCES
Reserved for: I
Encumbrances 618,417 14,520,675 2,021,592 17,160,684
Debt service requirements 6,467,996 6,467,996
Advances and notes 2,000,000 7,500 9,506,257 11,513,757 I
Grant programs 3,030,431 3,030,431
Unreserved, reported in:
General fund 12,074,599 12,074,599
Special revenue funds 10,454,810 4,744,343 15,199,153 I
Debt service funds 30,434 30,434
Capital projects funds 19,996,985 2,249,593 22,246,578
Total fund balances 14,693,016 10,462,310 34,517,660 28,050,646 87,723,632 I
Total liabilities and fund balances $ 51,532,990 $ 12,890,270 $ 68,777,827 $ 32,055,537 $ 165,256,624
The notes to the financial statements are an integral part of this statement. I
18 I
I
I
City of Clearwater, Florida
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
September 30, 2003
I
I
Total fund balances of governmental funds
Capital assets used in governmental activities are not financial resources, therefore,
are not reported in the funds. The cost of the assets was $264,143,147, and the
accumulated depreciation is $82,561,912.
Total capital assets for governmental activities
Less: Land included in governmental funds as "Land Held for Resale"
I
I
I
The net pension asset related to governmental activities does not represent financial
resources and is not reported in the funds.
Accrued general long-term debt interest expenses are not financial uses and, therefore,
are not reported in the funds.
Accrued arbitrage rebate payable expenses are not financial uses and, therefore,
are not reported in the funds.
Special assessment liens receivable are not financial resources in the current period
and, therefore, are reported as deferred revenues in the funds.
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
Less: Capital assets included in total governmental capital assets above
Less: Net pension asset included in total governmental net pension asset above
Add: Capital lease purchases payable included in total govemmental below
Add: Compensated absences included in total governmental below
Add: Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds
I
I
J
I
I
Interest revenues are not recognized in the current period because the resources are
not available, therefore, are not reported in the funds.
Long-term liabilities, including bonds payable, are not due and payable in the current
period and accordingly are not reported in the funds.
Long-term liabilities at year-end consist of:
Bonds payable
Less: Deferred charge on refunding (to be amortized as interest expense)
Less: Deferred charge for issuance costs (to be amortized over life of debt)
Less: Issuance discount (to be amortized as interest expense)
Add: Issuance premium (to be amortized as a reduction of interest expense)
Capital lease purchases payable
Compensated absences
'I
I
I
I
Total net assets of governmental activities
I
The notes to the financial statements are an integral part of this statement.
I
I
19
$ 181,581,235
(998,342)
28,776,208
(17,324,285)
(2,092,892)
8,431,658
501,006
(358,979)
(66,914,826)
386,595
553,952
46,321
(966,985)
(11,671,416)
(6,315,985)
$ 87,723,632
180,582,893
19,824,067
(729,033)
(936,847)
35,880
17,932,716
1,659
(84,882,344)
$ 219,552.623
I
City of Clearwater, Florida I
Statement of Revenues, Expenditures, and Changes In Fund Balances
Governmental Funds I
For the Year Ended September 30, 2003
Special Capital Other Total I
General Development Improvement Governmental Governmental
Fund Fund Fund Funds Funds
REVENUES I
Taxes:
Property taxes $ 31,890,991 $ 2,036,399 $ $ $ 33,927,390
Franchise fees 7,139,648 7,139,648
Utility taxes 10,362,861 10,362,861 I
Licenses, permits, and fees 3,852,704 985,503 4,838,207
Intergovernmental:
Sales tax 5,867,258 8,661,615 14,528,873
Communications services tax 7,018,557 7,018,557 I
Other intergovernmental 8,809,392 1,281,729 824,675 9,137,215 20,053,011
Charges for services 9,999,606 471,755 10,471,361
Fines and forfeitures 1 ,493,228 584,405 2,077,633
Interest income 539,066 720,600 95,619 953,557 2,308,842 I
Miscellaneous 651,235 401,679 2,044,644 3,097,558
Total revenues 87,624,546 13,685,846 1 ,321 ,973 13,191 ,576 115,823,941
EXPENDITURES I
Current:
General government 10,195,640 344,549 45,833 10,586,022 I
Public safety 46,077,098 95,642 1 ,988,784 48,161,524
Physical environment 2,130,815 15,118 143,317 2,289,250
Transportation 6,100,511 572,363 6,672,874
Economic environment 1,764,219 49,710 2,493,394 4,307,323 I
Human services 449,179 127,128 576,307
Culture and recreation 19,298,976 1,181,141 1,771,484 22,251,601
Debt service:
Principal 6,921,305 6,921,305 I
Interest & fiscal charges 3,142,184 3,142,184
Bond issuance costs 4,335 4,335
Capital outlay 12,431 ,203 19,840,504 32,271 ,707 I
Total expenditures 86,016,438 14,689,726 36,478,268 137,184,432
Excess (deficiency) of revenues
over / (under) expenditures 1 ,608,108 13,685,846 (13,367,753) (23,286,692) (21 ,360,491)
OTHER FINANCING SOURCES (USES) I
Transfers in 5,000,086 2,488,401 13,998,386 7,754,600 29,241,473
Transfers out (7,618,557) (12,595,171 ) (1,346,993) (3,025,587) (24,586,308) I
Sale of capital assets 925,000 925,000
Long term debt issued 651 ,446 651 ,446
Total other financing sources (uses) (2,618,471 ) (10,106,770) 13,302,839 5,654,013 6,231,611
Net change in fund balances (1,010,363) 3,579,076 (64,914) (17,632,679) (15,128,880) I
Fund balances - beginning 15,703,379 6,883,234 34,582,574 45,683,325 102,852,512
Fund balances - ending $ 14,693,016 $ 10,462,310 $ 34,517,660 $ 28,050,646 $ 87,723,632 I
I
The notes to the financial statements are an integral part of this statement.
20 I
I
I
I
City of Clearwater, Florida
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2003
I
I
Net change in fund balances - total govemmental funds
I
Amounts reported for govemmental activities in the Statement of Activities are different because:
I
Govemmental funds report capital outlays as expenditures while govemmental activities report
depreciation expense to allocate those costs over the life of the assets. This is the amount by
which capital outlays exceeded depreciation in the current period.
Expenditures for capital assets
Less current year depreciation
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.
Loan proceeds provide current financial resources to govemmental funds; however issuing debt
increases long-term liabilities in the Statement of Net Assets. In the current year these amounts are:
Capital lease proceeds
I
Some expenditures and other financing sources (uses) of the governmental funds are deferred
and amortized in relation to the related debt in the Statement of Activities:
Issuance costs for revenue bonds issued during prior year
I
I
Repayment of long term debt principal is an expenditure in the governmental funds, however the
repayment reduces long-term liabilities in the Statement of Net Assets. Current year amounts are:
Revenue bond principal payments
Capital lease principal payments
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
I
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore are not reported as expenditures in the govemmental funds.
Current year change in compensated absences
Amortization of deferred charge on refunding
Amortization of issuance costs
Amortization of bond discounts and premiums
Current year change in accrued arbitrage rebate payable
Current year change in accrued interest expense
I
I
Special assessment revenues are deferred until collected in the governmental funds. The
revenues collected in the current year were prior year revenues in the Statement of Activities.
Current year change in interest revenues that will not be collected for several months after the
fiscal year and are not accrued in the governmental funds.
I
The net revenues of internal service funds (funds used to charge the costs of certain activities
to individual funds) for govemmental activities are reported in the Statement of Activities but not
in the govemmental funds.
Total net assets of governmental activities
I
I
The notes to the financial statements are an integral part of this statement.
I
21
$ 40,921,178
(6,317,134)
5,596,132
1 ,325,173
(92,435)
(27,587)
(95,283)
184,465
(936,847)
15,738
$ (15,128,880)
34,604,044
(619,731)
(651,446)
4,335
6,921,305
2,999,964
(951,949)
(50,921 )
(10,339)
$
572,169
27,688,551
City of Clearwater, Florida I
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Non-GAAP Budgetary Basis)
General Fund I
For the Year Ended September 30,2003
Variance with
Budgeted Amounts Final Budget
Actual Positive I
Original Final Amounts (Negative)
REVENUES
Taxes:
Property taxes $ 31,385,360 $ 31,881,700 $ 31,890,991 $ 9,291 I
Franchise fees 6,891,660 7,066,660 7,139,648 72,988
Utility taxes 9,958,970 10,365,070 10,362,861 (2,209)
Licenses, permits, and fees 3,282,610 3,637,610 3,852,704 215,094
Intergovernmental: I
Sales tax 5,850,000 5,826,000 5,867,258 41,258
Communications services tax 8,123,940 7,058,940 7,018,557 (40,383)
Other intergo~ernmental 9,108,270 8,667,000 8,809,392 142,392
Charges for services 10,275,930 9,932,270 9,999,606 67,336 I
Fines and forfeitures 1,574,130 1,509,290 1 ,493,228 (16,062)
Interest income 869,900 869,900 539,066 (330,834)
Miscellaneous 867.550 796.090 651.235 (144.855)
Total revenues 88,188,320 87,610,530 87,624,546 14,016 I
EXPENDITURES
Current:
General government
City Commission 263,850 263,850 236,454 27,396 I
City Manager's Office 698,720 707,140 674,135 33,005
City Attorney's Office 1,354,850 1,411,790 1,397,318 14,472
Official Records & Legislative Services 1,109,170 1,115,650 1,017,588 98,062
Public Communications 890,600 893,320 786,203 107,117
Finance 1,942,630 1 ,892,300 1,816,354 75,946 I
Human Resources 1,212,310 1,216,540 1,167,626 48,914
Non-Departmental 2,215,560 1,814,870 1 ,576,239 238,631
Public Works Administration 79,469 80,143 78,800 1,343
Planning 1,158,920 1,040,740 1,017,659 23,081
City Auditor's Office 128,790 128,790 128,068 722 I
Office of Management & Budget 284,970 284,970 280,951 4,019
Total general government 11,339,839 10,850,103 10,177,395 672,708
Public safety
Police 28,069,480 28,106,180 28,113,728 (7,548) I
Fire 15,078,030 15,023,850 14,932,909 90,941
Development & Neighborhood Services 2,782,963 2,857,975 2,822,192 35,783
Total public safety 45,930,473 45,988,005 45,868,829 119,176
Physical environment
Public Works Administration 2,145,678 2,163,854 2,127,615 36,239 I
Total physical environment 2,145,678 2,163,854 2,127,615 36,239
Transportation
Public Works Administration 6,143,063 6,195,103 6,091,350 103,753
Total transportation 6,143,063 6,195,103 6,091,350 103,753
Economic environment I
Economic Development 1,537,180 1,617,960 1,544,691 73,269
Development & Neighborhood Services 192,857 198,055 195,576 2,479
Total economic environment 1,730,037 1,816,015 1,740,267 75,748
Human services I
Equity Services 482,650 485,580 446,679 38,901
Total human services 482,650 485,580 446,679 38,901
Culture and recreation
Parks and Recreation 14,941,850 14,897,270 14,648,907 248,363
Library 4,033,620 4,113,930 4,040,605 73,325 I
Marine & Aviation 486,280 412,030 473,601 J61,571)
Total culture and recreation 19,461,750 19,423,230 19,163, 113 60,117
Total expenditures (budgetary basis) 87,233,490 86,921,890 85,615,248 1 ,306,642
Excess of revenues over expenditures (budgetary basis) 954,830 688,640 2,009,298 1 ,320,658 I
OTHER FINANCING SOURCES (USES)
Transfers in 4,440,370 5,000,810 5,000,086 (724)
Transfers out (6,003,100) (7,809,450) (7,618,557) 190,893
Total other financing sources (uses) (budgetary basis) (1 ,562,730) (2,808,640) (2,618,471 ) 190,169 I
Excess (deficiency) of revenues and other financing sources
over expenditures and other financing uses (budgetary basis) (607,900) (2,120,000) (609,173) 1 ,510,827
Encumbered purchase orders, beginning of year (1,019,607) (1,019,607)
Encumbered purchase orders, end of year 618,417 618,417
Excess (deficiency) of revenues and other financing sources I
over expenditures and other financing uses (GAAP basis) (607,900) (2,120,000) (1,010,363) 1,109,637
Fund balances - beginning 15,703,379 15,703,379 15,703,379
Fund balances - ending $ 15,095,479 $ 13,583,379 $ 14,693,016 $ 1,109,637
The notes to the financial statements are an integral part of this statement. I
22
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
City of Clearwater, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (GAAP Basis)
Special Development Fund
For the Year Ended September 30, 2003
The notes to the financial statements are an integral part of this statement.
23
City of Clearwater, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2003
Water
and Sewer
Utility
ASSETS
Current assets:
Cash on hand and in banks
Equity in pooled cash and investments
Accounts and contracts receivable:
Billed
Unbilled charges estimated
$
400 $
11,901,971
2,382,150
1,221,500
3,603,650
(257,404)
3,346,246
2,517,801
446,962
502,014
3,999
18,719,393
Less: Allowance for uncollectable accounts
Total receivables, net
Due from other funds
Due from other govemmental entities
Inventories, at cost
Prepaid expenses and other assets
Total current assets - unrestricted
Current assets - restricted:
Restricted equity in pooled cash and investments
Investments
Total current assets - restricted
Total current assets
10,193,625
10,193,625
28,913,018
Noncurrent assets:
Restricted:
Equity in pooled cash and investments
Due from other funds
Investments
Due from other governmental entities
Interest receivable
Deferred charges
Advances to other funds
Net pension asset
Capital assets:
Land and other nondepreciable assets
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
38,219,391
5,037,015
1,515,391
817,828
2,312,588
41,997,231
146,493,651
236,393,095
265,306,113
The notes to the financial statements are an integral part of this statement.
24
Gas
Utility
700 $
2,058,963
1,129,498
1,143,900
2,273,398
(68,668)
2,204,730
5,257,284
448,793
9,970,470
1,491,578
1 ,491 ,578
11,462,048
300,001
291 ,577
1,269,244
351,034
35,848,407
38,060,263
49,522,311
I
I
I
Business-type
Enterprise
I
Solid Waste
Utility
I
200
7,523,840
I
928,740
600,001
1,528,741
(38,478)
1,490,263
1,873,231
I
I
10,887,534
I'
797,013
I
797,013
11,684,547
1
I
I
1,335,768
I
1,041,913
2,456,505
4,834,186
16,518,733
I
I
I
I
II
I
I
I
I Activities
Funds Governmental
I Activities.
Stormwater Other Internal Service
Utlllty Funds Total Funds
I
$ $ 23,067 $ 24,367 $ 1,900
I 2,707,506 3,683,516 27,875,796 27,322,059
485,n2 346,620 5,272,780
755,000 119,823 3,840,224
I 1,240,n2 466,443 9,113,004
(19,239) (2,863) (386,652)
1,221,533 463,580 8,726,352
I 3,126,561 5,409,960 18,184,837 1,895,803
446,962
19,018 969,825 220,491
I 3,999 618,058
7,055,600 9,599,141 56,232,138 30,058,311
I 1 ,441 ,456 16,817 13,940,489
136 136
1 ,441 ,456 16,953 13,940,625
I 8,497,056 9,616,094 70,172,763 30,058,311
I 12,533,466 51,052,858
1,020 7,500,000 12,538,035
9,394 9,394
I 1,515,391
5,793
309,938 483 1,419,826
4,012,876
I 473,297 617,570 6,008,467 2,092,892
24,867,598 2,046,656 70,304,432 696,681
I 18,500,296 15,266,360 218,565,219 16,627,604
56,685,615 25,440,463 361,413,622 23,435,846
65,182,671 35,056,557 431,586,385 53,494,157
I
I
(Continued)
I
I 25
City of Clearwater, Florida
Statement of Net Assets (Continued)
Proprietary Funds
September 30, 2003
I
I
Business-type
Enterprise
I
Water
and Sewer
Utility
LIABILITIES
Current liabilities:
Accounts and contracts payable
Accrued payroll
Accrued interest payable
Due to other funds
Due to other funds - deficit in pooled cash
Due to other govemmental entities
Deposits
Deferred revenue and liens
Current portion of long-term liabilities:
Compensated absences
Revenue bonds
Notes, loan pool agreement and acquisition contracts
Claims payable
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Construction contracts payable
Accrued interest payable
Current portion of long-term liabilities, revenue bonds
Customer deposits
Total current liabilities payable from restricted assets
Total current liabilities
747,329
184,291
40,691
135,000
Noncurrent liabilities:
Compensated absences
Revenue bonds (net of unamortized discounts and
deferred amount on refunding)
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Claims payable
Total non-current liabilities
43,621
1,095,833
134,169
2,380,934
1,632,874
1,141,182
5,479,167
1,940,402
10,193,625
12,574,559
397,005
117,780,070
325,966
118,503,041
131,077,600
79,473,208
9,846,014
12,951,951
4,296,878
2,312,588
25,347,874
134,228,513 $
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for:
Revenue bond debt service and sinking fund requirements
Revenue bond renewal and replacement requirements
Water and sewer impact fees
Employees' pension benefits
Unrestricted
Total net assets
$
Gas
Utility
922,921
100,153
27,958
30,655
600,417
1,682,104
120,410
54,583
1,316,585
1 ,491,578
3,173,682
278,995
25,910,212
26,189,207
29,362,889
9,925,806
300,000
1,269,244
8,664,372
20,159,422 $
Adjustment to reflect the consolidation of intemal service fund activities related to enterprise funds
Net assets of business-type activities
The notes to the financial statements are an integral part of this statement.
26
Solid Waste
Utility
I
369,282
106,903
I
82,474
I
36,355
I
50,719
I
645,733
I
18,268
797,014
815,282
1,461,015
I
I
330,865
99,068
742,263
I
I
1,172,196
2,633,211
I
2,523,894
I
1,335,768
10,025,860
13,885,522
I
I
I
I
I
I
Activities
I Funds Governmental
Activities .
Stormwater Other internal Service
Utility Funds Total Funds
I
38,517 265,510 2,343,559 250,095
I 40,101 68,603 500,051 176,708
68,649
59,602 142,076 364,812
I 71 ,583 71,583
135,000
134,532 134,532
I 4,194 4,194 1,212,306
13,573 13,076 137,280 49,599
47,500 8,274 1,752,024
I 198,071 212,343 595,302 2,703,946
3,678,100
337,762 837,717 5,884,250 8.435,566
I 312,585 1,945,459
606,371 406 1,886,637
I 522,500 16,547 6,072,797
4,054,001
1 ,441 ,456 16,953 13,958,894
I 1,n9,218 854,670 19,843,144 8,435,566
I 123,531 118,995 1,249,391 451,407
I 30,821,534 53,n3 174,565,589
496,854 557,653 1,479,541 5,727,712
4,059,602 4,801,865 824,882
I 9,278.382
31,441,919 4,790,023 182,096,386 16,282,383
33,221,137 5,644,693 201,939,530 24,717,949
I 24,111,696 16,345,705 132,380,309 8,892,627
I 9,394 9,855,408
13,251,951
4,296,878
I 473,297 617,570 6,008,467 2,092,892
7,376.541 12,439,195 63,853,842 17,790,689
$ 31,961,534 $ 29,411,864 229,646,855 $ 28, n6,208
I 358,979
$ 230,005,834
I
I 27
I
I
City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2003
I
I
Operating revenues:
Sales to customers
Service charges to customers
User charges to customers
Billings to departments
Rentals
Total operating revenues
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
$ 38,639,890 $ 28,226,159 $ 15,696,878
485,228 1,534,805 96,645
I
I
I
I
39,125,118 29,760,964 15,793,523
7,283,595 4,053,181 4,428,453
6,103,150 13,494,849 149
1,840,133 128,982 330,421
690,357 492,089 2,655,739
1,591,969 74,587 60,635
4,893,497
4,972,309 1,427,298 225,112
5,113,190 1,861,820 1,143,710
1,760,814 206,474 10,073
570,771 5,230
127,429 140,344 53,496
4,295
241,670 140,775 140,810
4,054,401 239,493 66,472
58,826 4,103
352,817 110,668 36,289
406,250 319,100 135,430
1,764,641
44,759 68,541 19,833
6,988,140 3,623,928 471,736
34,582,843 25,156,734 14,209,452
4,542,275 4,604,230 1,584,071
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Operating expenses:
Personal services
Purchases for resale
Operating materials and supplies
Transportation
Utility service
Dumping charges
Depreciation
Interfund administrative charges
Other current charges:
Professional fees
Advertising
Communications
Printing and binding
Insurance
Repairs and maintenance
Rentals
Miscellaneous
Data processing charges
Taxes
Provision for estimated uncollectable accounts
Total other current charges
Total operating expenses
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Operating income (loss)
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The notes to the financial statements are an integral part of this statement.
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Activities
I Funds Governmental
Activities -
Stormwater Other Internal Service
I Utility Funds Total Funds
I $ 8,412,567 $ 2,617,478 $ 93,592,972 $
41,605 191,162 2,349,445
5,345,623 5,345,623
I 32,725,173
2,843,774 2,843,774
8,454,172 10,998,037 104,131,814 32,725,173
I 1,679,833 2,634,616 20,079,678 7,225,078
2,423,824 22,021,972 2,025,601
I 145,729 313,174 2,758,439 710,300
492,830 314,360 4,645,375 175,785
334,811 2,062,002 440,140
I 4,893,497
1,046,521 1,245,245 8,916,485 3,644,365
1,337,020 1,284,910 10,740,650 225,590
I 505,665 1,689,027 4,172,053 529,256
27,789 603,790 100
16,077 64,996 402,342 1,305,636
I 9,041 13,336 49,462
44,130 154,975 722,360 14,921,266
365,062 154,518 4,879,946 1,486,562
I 177,772 240,701 318,777
59,875 77,730 637,379 193,342
67,730 113,750 1,042,260 455,850
I 15,938 1,780,579 5,707
13,236 17,314 163,683
1,071,775 2,502,850 14,658,429 19,265,958
I 5,773,708 11,053,790 90,776,527 33,712,817
2,680,464 (55,753) 13,355,287 (987,644)
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I (Continued)
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City of Clearwater, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets (Continued)
Proprietary Funds
For the Year Ended September 30, 2003
I
Business-type
Enterprise
Water
and Sewer Gas Solid Waste
Utility Utility Utility
Nonoperating revenues (expenses):
Earnings on investments 1,035,821 307,861 238,889
Interest expense (6,166,544) (1,413,358) (54,180)
Amortization of bond discount and issue costs (77 ,336) (121,986)
Gain (loss) on exchange of assets (45,857) (832)
Other 82,324 302,924 181,000
Total nonoperating revenue (expenses) (5,171,592) (925,391 ) 365,709
Income before contributions and transfers (629,317) 3,678,839 1,949,780
Capital grants and contributions 3,912,704
Transfers in 880
Transfers out (1,746,548) (1,274,398) (705,650)
2,166,156 (1,273,518) (705,650)
Changes in net assets 1,536,839 2,405,321 1,244,130
Total net assets - beginning 132,691,674 17,754,101 12,641,392
Total net assets - ending $ 134,228,513 $ 20,159,422 $ 13,885,522
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Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities (page 17)
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The notes to the financial statements are an integral part of this statement.
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Activities
Funds Governmental
Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
174,806 390,501 2,147,878 845,052
(1,227,527) (162,176) (9,023,785) (314,164)
(17,360) (991 ) (217,673)
(29,991 ) (9,708) (86,388) 79,578
31,395 217,118 814,761 238,599
(1,068,677) 434,744 (6,365,207) 849,065
1,611,787 378,991 6,990,080 (138,579)
4,925,142 568,196 9,406,042 67,722
625,050 625,930 788,054
(1,946,206) (396,347) (6,069,149)
2,978,936 796,899 3,962,823 855,776
4,590,723 1,175,890 10,952,903 717,197
27,370,811 28,235,974 28,059,011
$ 31,961,534 $ 29,411,864 $ 28,776,208
145,028
$ 11,097,931
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City of Clearwater, Florida I
Statement of Cash Flows
Proprietary Funds I
For the Year Ended September 30, 2003
Business-type
Enterprise
Water I
and Sewer Gas Solid Waste
Utility Utility Utility
CASH FLOWS FROM OPERATING I
ACTIVITIES
Cash received from customers $ 38,926,767 $ 29,711,982 $ 15,752,879
Cash received from other funds I
Cash payments to suppliers (14,342,310) (16,468,694) (5,392,147)
Cash payments to employees (7,747,777) (4,583,105) (4,636,724)
Cash payments to other funds (6,992,323) (3,057,141) (4,129,185) I
Other revenues 82,324 302,924 166,301
Net cash provided by operating activities 9,926,681 5,905,966 1,761,124
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES I
Transfers from other funds 880
Transfers to other funds (1,746,548) (1,274,398) (705,650)
Grant revenue 14,699 I
Receipt of cash on loans to/from other funds 476,508
Payment of cash on loans to/from other funds (1,470,236) (269,833)
Net cash provided (used) by I
noncapital financing activities (3,216,784) (797,010) (960,784)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES I
Principal payments on debt (5,542,468) (630,000) (39,371 )
Interest paid (2,334,747) (1,422,331 ) (58,295)
Acquisition of fixed assets (16,644,212) (2,920,125) (221,822) I
Sale of fixed assets
Proceeds from issuance of debt 97,555 102,961
Payment of bond issue costs 85,959
Capital contributed by: I
Other governmental entities 3,804,317
Property owners 5,024
Developers 103,363 I
Net cash used by capital and
related financing activities (20,425,209) (4,972,456) (216,527)
CASH FLOWS FROM INVESTING I
ACTIVITIES
Interest on investments 1,257,017 307,861 238,889
Proceeds from investment sales & maturities 2,916,713 I
Net cash provided by investing activities 4,173,730 307,861 238,889
Net increase (decrease) in cash and cash equivalents (9,541,582) 444,361 822,702
Cash and cash equivalents at beginning of year 69,856,969 3,406,881 7,498,351 I I
Cash and cash equivalents at end of year $ 60,315,387 $ 3,851,242 $ 8,321,053
Cash and cash equivalents classified as: I
Cash on hand and in banks $ 400 $ 700 $ 200
Equity in pooled cash and investments 11,901,971 2,058,963 7,523,840
Restricted equity in pooled cash and investments 48,413,016 1,791,579 797,013 I
Total cash and cash equivalents $ 60,315,387 $ 3,851,242 $ 8,321,053
The notes to the financial statements are an integral part of this statement. I
32
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I
I Activities
Funds Governmental
I Activities -
Stormwater Other Internal Service
Utility Funds Total Funds
I $ 8,148,608 $ 10,951,644 $ 103,491 ,880 $
I 32,725,173
(891,346) (5,874,319) (42,968,816) (19,319,966)
(1,740,275) (2,725,634) (21,433,515) (7,524,724)
(1,965,672) (1,665,022) (17,809,343) (1,164,234)
I 31,396 217,118 800,063 238,599
3,582,711 903,787 22,080,269 4,954,848
I 625,050 625,930 848,054
(1,946,207) (396,347) (6,069,150)
I 14,699
30,310 71,583 578,401 1,374,666
(621,278) (1,798,650) (4,159,997) (1,500,327)
I (2,537,175) (1,498,364) (9,010,117) 722,393
I (299,369) (164,255) (6,675,463) (2,621,292)
(1,129,960) (162,295) (5,107,628) (314,164)
I (7,239,289) (1,043,322) (28,068,nO) (4,418,099)
242,462
215,898 333,456 749,870 2,727,228
119,418 205,3n
I 4,905,737 562,796 9,272,850
19,406 24,430
I 103,363
(3,408,159) (473,620) (29,495,971) (4,383,865)
I
547,039 390,501 2,741,307 845,052
I 2,916,713
547,039 390,501 5,658,020 845,052
(1,815,584) (6n,696) (10,767,799) 2,138,428
I 18,498,012 4,400,652 103,660,865 25,185,531
$ 16,682,428 $ 3,722,956 $ 92,893,066 $ 27,323,959
I $ $ 23,067 $ 24,367 $ 1,900
2,707,506 3,683,516 27,875,796 27,322,059
I 13,974,922 16,373 64,992,903
$ 16,682,428 $ 3,722,956 $ 92,893,066 $ 27,323,959
I (Continued)
33
I
City of Clearwater, Florida
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2003
Reconciliation of operating Income (loss) to
net cash provided by operating activities:
Operating income (loss)
$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Other revenue from nonoperating section
of income statement
Depreciation
Non-cash land rental expense
Provision for uncollectible accounts
Capitalized labor and interest
Construction in process reclassified as expense
Change in assets and liabilities:
(Increase) in accounts receivable
(Increase) in amount due from other governments
(Increase) decrease in inventory
Decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable
Increase in deposits payable
(Decrease) in deferred revenue
(Increase) in net pension asset
Increase in accrued payroll
Total adjustments
Net cash provided by operating activities $
Noncash Investing, capital and financing activities:
Gain (loss) on exchange of assets $
Asset contributions from general government $
Asset contributions to general government $
Contributed assets per radio lease agreement $
Amortization of bond issue costs $
Amortization of discount on bond issuance $
Amortization of deferred loss on defeasance of debt $
Increase in net pension asset $
I
Business-type
Enterprise
I
Water
and Sewer
Utility
Solid Waste
Utility
I
Gas
Utility
I
4,542,275 $
I
4,604,230 $
1,584,071
I
82,324 302,924 166,301
4,972,309 1,427,298 225,112
44,759 68,541 (1,335)
( 112,528) (391,389)
891,011
(235,233) (196,448) (52,169)
(14,865)
31,507 46,808
892
47,104 90,340 14,722
51,747 147,466 32,693
(391,281 ) (224,592) (222,398)
16,660 30,788 14,127
5,384,406 1,301,736 177,053
9,926,681 $ 5,905,966 $ 1,761,124
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(45,857) $ (832) $
$ $
$ $
$ $
(78,446) $ (20,310) $
(52,848) $ (25,849) $
(225,048) $ (75,827) $
391,281 $ 224,592 $ 222,398
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The notes to the financial statements are an integral part of this statement.
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I Activities
Funds Governmental
Activities -
I Stormwater Other Internal Service
Utility Funds Total Funds
I
I $ 2,680,464 $ (55,753) $ 13,355,287 $ (987,644)
I
31,396 217,118 800,063 238,599
I 1,046,521 1,245,245 8,916,485 3,644,365
103,498 103,498
13,236 (917) 124,284
I (503,917)
220,000 1,111,011
(305,566) (40,458) (829,874)
I (14,865)
7,390 85,705 (34,916)
892 921,027
I (42,898) (478,613) (369,345) 1,473,063
8,493 240,399
(11,198) (11,198)
I (85,976) (106,155) (1,030,402) (356,186)
25,534 15,137 102,246 56,540
902,247 959,540 8,724,982 5,942,492
I $ 3,582,711 $ 903,787 $ 22,080,269 $ 4,954,848
I $ (29,991 ) $ (9,708) $ (86,388) $
86,568
I $ $ 5,400 $ 5,400 $ 7,722
$ $ $ $ (6,990)
$ $ $ $ 1,101,825
$ (17,360) $ (257) $ (116,373) $
I $ (25,172) $ (728) $ (104,597) $
$ $ (965) $ (301,840) $
$ 85,976 $ 106,155 $ 1,030,402 $ 356,186
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City of Clearwater, Florida
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2003
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Pension
Trust Agency
Funds Fund
ASSETS
Cash on hand and in banks $ 18,084 $
Equity in pooled cash and investments 8,949,488 219,776
Managed investment accounts 451,144,256
Securities lending collateral 27,627,316
Interest and dividends receivable 695,309
Securities lending earnings receivable 4,312
Accounts receivable 86,986
Total assets 488,525,751 219,776
LIABILITIES
Accounts payable 433,831
Obligations under securities lending 27,627,316
Deposits:
Property owners 21,944
Developers 10,708
Total deposits 32,652
Other miscellaneous payables:
Special purpose funds 7,559
Other 179,565
Total miscellaneous payables 187,124
Totalllabllltles 28,061,147 219,776
NET ASSETS
Held in trust for pension benefits and other purposes 460,464,604
Total net assets $ 460,464,604 $
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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 Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2003
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Pension
Trust
Funds
ADDITIONS
Contributions:
Contributions from employer $ 5,860,852
Contributions from employees 5,310,610
State of Florida 1 ,465,940
Total contributions 12,637,402
Investment Income:
Net appreciation in fair value of investments 56,818,382
Interest 6,765,991
Dividends 1 ,881 ,471
65,465,844
Less investment expenses:
Investment management I custodian fees 1 ,879,513
Net Income from Investing activities 63,586,331
Securities lending Income:
Gross eamings 115,269
Rebate paid (78,898)
Bank fee (12,729)
Net Income from securities lending 23,642
Total additions 76,247,375
DEDUCTIONS
Benefits and withdrawal payments:
Benefits 17,648,994
Withdrawal payments 581,818
Total benefits and withdrawal payments 18,230,812
Income before administrative expenses 58,016,563
Administrative expenses 198,056
Net Increase 57,818,507
Net assets held in trust for pension benefits:
Beginning of year 402,646,097
End of year $ 460,464,604
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The notes to the financial statements are an integral part of this statement.
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37
City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Note I - Summary of Significant Accounting Policies
The City of Clearwater, Florida (the City) was incorporated in 1923 per- Chapter 9710, Special Laws of Florida, as
amended. The City is a Florida municipal corporation governed by a five member City Commission including a mayor-
commissioner. The City has an estimated population of 109,700 and is located in the four-county Tampa-St.
Petersburg-Clearwater Metropolitan Statistical Area (MSA), which has an estimated population of 2,535,000.
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 proprietary 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.
In June 1999, the GASB unanimously approved "Basic Financial Statements and Management Discussion and
Analysis for State and Local Governments" (Statement #34). This statement results in the most significant change in
governmental financial reporting in over twenty years and is scheduled for a phased implementation (based on the
size of the government) starting with fiscal years ending 2002. As part of this Statement, there are new reporting
requirements for governments' infrastructure (roads, bridges, etc). The requirements permit an optional four-year
delay for retroactive implementation of the infrastructure reporting requirements to fiscal 2006. The City elected to
implement the basic model in fiscal year 2002 and to defer implementation of the retroactive infrastructure reporting to
fiscal year 2006.
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 in reporting
the primary government (including blended component units), discretely presented component units, the reporting
entity, and related organizations.
Blended Component Units - Component units that meet the criteria for blended presentation in accordance with
GASB Statement Number 14 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 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 Commission 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 special revenue fund.
Discretely Presented Component Units - Component units that meet the criteria for discrete presentation in
accordance with GASB Statement Number 14 are presented in a separate component units column in the
government-wide financial statements in order to clearly distinguish the balances and transactions of the component
unit from those of the primary government. The discretely presented component unit listed below is reported
separately in the financial statements and in the related notes and required supplementary information. The
Clearwater Downtown Development Board (DDB) was created by authority of Florida Statutes 70-635 and 77-637,
and City Ordinance 5347-93, but is legally separate from the City and governed by a separate board. The DDB was
created by City ordinance and the City is thereby able to impose its will on the organization. Additionally the exclusion
of the DDB's activities from the City's financial statements would, in the opinion of the City's management, cause the
financial statements to be incomplete. Consequently the DDB is reported in a separate column in the government-
wide financial statements as a discretely presented component unit of the financial reporting entity, in accordance with
GASB Statement No. 14. The DDB's financial statements have been incorporated into the City's comprehensive
annual financial report as a governmental discretely presented component unit. Separate financial statements for the
DDB can be obtained from the City's Finance Department located at 100 S. Myrtle Avenue, Clearwater, Florida.
38
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
B. Basic Financial Statements Under the New Financial Reporting Model
The City's Basic Financial Statements contain three components: government-wide financial statements, fund
financial statements, and notes to the financial statements.
1. Government-wide financial statements. The government-wide financial statements report information on all of
the nonfiduciary activities of the primary government and its component units using the accrual basis of accounting,
which is similar to the accounting used by private-sector businesses. For the most part, the effect of interfund activity
has been removed from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent
on fees and charges for support. Likewise, the primary government is reported separately from the legally separate
component unit for which the primary government is financially accountable.
The statement of net assets presents information on all of the assets and liabilities of the City. The difference
between assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether
the financial position of the City is improving or deteriorating.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. The operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-
specific grants. Taxes and other items not properly included among program revenues are reported instead as
general revenues. All revenues and expenses are reported as soon as the underlying transaction has occurred,
regardless of when cash is received or paid.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are payments-in-Iieu of taxes and other quasi-external charges between enterprise
funds and various other functions of the government. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
2. Fund financial statements. Separate financial statements are provided for governmental funds, proprietary
funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The
fund financial statements are, in substance, very similar to the financial statements presented in the previous financial
reporting model. A new emphasis is on the major funds in either the governmental or business-type categories.
Major individual governmental funds and major individual enterprise funds are reported as separate columns in the
fund financial statements. Non-major funds (by category) are summarized into a single column.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Special Development fund is a special revenue fund used to account for impact fees, property taxes for road
improvements, local option gas taxes, infrastructure taxes, and other revenues which are restricted legally or by City
Commission 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.
39
City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
The City reports the following major proprietary funds:
The Water and Sewer Utility enterprise fund is used to account for the financing, construction, operation, and
maintenance of the water and sewer services of the City from charges made to users of the service.
The Gas Utility enterprise fund is used to account for the financing, construction, operation, and maintenance of the
gas service of the City from charges made to the users of the service.
The Solid Waste Utility enterprise fund is used to account for the financing, construction, operation, and maintenance
of the solid waste service of the City from charges made to the users of the service.
The Stormwater Utility enterprise fund is used to account for the financing, construction, operation, and maintenance
of the stormwater management system of the City from charges assessed against each developed property.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with the
proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales
and service, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Additionally, the City reports the following fund types:
Internal service funds account for fleet management, information technology, telephone, graphics, employee relations,
facilities management, radio communications, insurance, and risk management services provided to other City
departments on a cost reimbursement basis. The Garage, Administrative Services, General Services, and Central
Insurance funds primarily benefit governmental funds and are consequently included as governmental activities.
Pension trust funds account for the financial operation and condition of the Employees' Pension Plan, the Firemen's
Relief and Pension Plan, the Police Supplemental Pension Plan, and the Firefighters Supplemental Pension Plan.
The Treasurer's Escrow Agency Fund accounts for the receipt, custody, and expenditure of monies held temporarily
in an agency capacity for other parties.
The pension trust funds and the agency fund are fiduciary funds used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not included in the government-wide financial statements
because the resources of these funds are not available to support the City's own programs.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund
included within the fiduciary fund financial statements also uses the accrual basis of accounting but does not have a
measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they
are collected within 90 days of the end of the current fiscal year. 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.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered
susceptible to accrual and so have been recognized as revenues of the current fiscal period for the governmental
funds. All other revenue items are considered to be measurable and available only when cash is received by the City.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
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
investments. The City utilizes the consolidated cash pool to account for cash and investments of all City funds other than
those that are required by ordinance to be physically segregated. The consolidated cash pool concept allows each
participating fund to benefit from the economies of scale and improved yield that are inherent to a larger investment pool.
Formal accounting records detail the individual equities of the participating funds. The cash pool utilizes a single
checking account for all City receipts and disbursements.
Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional
funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each
fund's equity account is considered a cash equivalent regardless of the maturities of investments held by the pool.
All individual fund cash equity in a deficit (overdraft) position with respect to the consolidated cash pool is reclassified
at year-end to short-term interfund payables to the Capital Improvement Fund. The Capital Improvement Fund is the
fund selected by management to reflect the offsetting interfund receivables in such cases.
The City has an agreement with its depository bank to provide that all excess cash is swept daily and automatically
into an overnight money market account which pays interest at 14 basis points (0.14%) less than the daily federal
funds rate (1.00% at September 30, 2003), with no requirement for a minimum compensating balance. This account
is collateralized through the State of Florida Public Deposits Program.
Under City Charter and the current Investment Policy, adopted by the City Commission on September 7, 1995,
consolidated cash pool investments are limited to the following: United States Government Securities, Certificates of
Deposit in Local Banks, Repurchase Agreements, Savings Account in Local Banks, Federal Government Agency
Securities, Municipal Bonds (other than City of Clearwater issues), State of Florida Bonds, and Municipal Bonds
issued by counties in Florida.
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 measure standard has been established. The performance measure
chosen is a weighted average of: the overnight interest rate; and three month, six month, one year, and three year
Treasury rates respectively. For the fiscal year ended September 30, 2003, the performance measure weighted average
was 1.39%. The actual pooled cash earnings performance, before bank charges, was 3.32%.
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 which apply 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 stocks, bonds, and notes of corporations listed on one
or more of the recognized national stock exchanges.
2. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either "due to/from other funds" (i.e. the current portion of interfund loans) or "advances
to/from other funds" (Le. 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".
41
City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account
in applicable governmental funds to indicate that they are not available for appropriation and are not expendable
available financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable
less than 60 days are included in the trade accounts receivable allowance for uncollectibles at the five-year average
loss experience rate of 5.04%. 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 2002 thru 1998), and
100% of the receivable attributable to fiscal years 1997 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
commission 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 J the City does not record revenue for advance collections.
Uncollected taxes receivable at year-end are recorded, with an appropriate allowance for estimated uncollectible
amounts. The net amount deemed to be collectible but not current (not expected to be collected within sixty days
after the close of the fiscal year) is shown as deferred revenue in the appropriate fund. Additionally, taxes assessed
for the following fiscal year are recorded as a receivable and as deferred revenue in accordance with Governmental
Accounting Standards Board Statement No. 33.
All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities
accounted for in the Special Development Fund, are recorded in the General Fund. Property tax revenues are
recognized in the General Fund and the required transfers to the appropriate debt service or pension fund are
recorded as operating transfers from the General Fund.
The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill
limitation is authorized if approved by referendum. The tax rate of 5.7530 mills for the year ended September 30,
2003, was an increase from the September 30, 2002, rate of 5.5032 mills.
3. Inventories and prepaid items
Inventories of proprietary funds are stated at cost and valued on the first-in first-out (FIFO) basis. In governmental funds,
the majority of inventory items are accounted for under the purchases method, which provides that expenditures are
recognized when the inventory item is purchased. The only governmental fund inventory that is accounted for under the
consumption method is the General Fund inventory of items for resale at the fishing pier. Under the consumption
method, the expenditure is recognized when the inventory item is sold (or consumed).
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements.
4. Restricted assets
Certain resources of the City's enterprise funds are classified as restricted assets. Restricted assets include: Water and
Sewer improvement charges restricted by the authorizing ordinances to the construction of additions and improvements
to the water and sewer systems; and assets of the Water & Sewer Utility, Gas Utility, Stormwater Utility, and Parking
System funds restricted under the provisions of authorizing ordinances for revenue bonds to the payment of future
revenue bond debt service, system construction, and renewals and replacements.
5. Capital assets
Capital assets, which include property, plant, equipment, and certain infrastructure assets, (e.g. roads, bridges, and
similar items) are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. However infrastructure assets are only reported for the current fiscal year. The City has chosen to
defer implementation of retroactive infrastructure reporting to fiscal year 2005/2006 per the implementation
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
of GASB Statement #34. Capital assets are defined by the City as assets with an initial individual cost of more than
$5,000 (amount not rounded) and an estimated useful life in excess of five years. Individual assets that cost less than
$5,000, but that operate as part of a network system, will be capitalized in the aggregate, using the group method, if
the estimated average useful life of the individual asset is five years or more. Additionally, higher thresholds for
capitalization apply to the following categories: land improvements, $50,000; buildings, building improvements, and
utility systems, $100,000; and infrastructure, $500,000. Capital assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of capital assets of business-type activities is included as part of the capitalized value of
the assets constructed. The total interest expense incurred by business-type activities during the current fiscal year
was $8,361,416. Of this amount, ($660,128), $87,065, and ($89,306) were included as part of the cost of capital
assets under construction in connection with water & sewer, gas, and stormwater system projects, respectively.
Property, plant, and equipment of the primary government, as well as the component units, as applicable, are
depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings & building improvements 10-40
Public domain infrastructure 20-40
Utility system infrastructure 25-40
Land improvements 5-50
"Machinery & equipment 5-33
Vehicles 5-10
6. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Generally
employees may accumulate vacation time not exceeding 360 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 360 hours and one-half of
accumulated unused sick leave not exceeding 1,560 hours (Le. maximum pay-out of 780 hours). The City accrues for all
earned but unused vacation pay up to the "cap" of 360 hours, 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 by the governmental funds where the
employee vacation and sick leave are eamed.
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.
8. Fund equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
43
City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
Note \I - Stewardship, Compliance, and Accountability
A. Budgets and budgetary accounting
Annual budgets are legally adopted for the General Fund, Special Development Special Revenue Fund, and the
Community Redevelopment Agency Special Revenue fund. The City of Clearwater observed the following procedures in
establishing the budgets for the General Fund and Special Development Fund, as reflected in the financial statements:
On June 14, 2002, the City Manager submitted to the Clearwater City Commission proposed budgets for the fiscal year
commencing October 1, 2002 and ending September 30, 2003. Public Hearings were held on September 5, 2002, and
September 19, 2002, at the Clearwater Commission Chambers to obtain citizen comments. On September 19, 2002,
official budgets were legally adopted by Ordinance No. 7012-02. Subsequent quarterly budget amendments were
adopted on April 3, 2003, (Ordinance 7097-03) and July 17, 2003 (Ordinance 7149-03). The final amended budget was
adopted October 2, 2003 (Ordinance 7171-03). The budget for the Special Development Fund is adopted on a basis
consistent with GAAP, and appropriations lapse at year-end. Appropriations for open encumbered purchase orders at
year-end in the General Fund do not lapse, but rather continue until liquidated or otherwise cancelled by City
Commission action. On the General Fund budgetary comparison statements, actual expenditures have been adjusted to
include end-of-year encumbrances and to exclude beginning-of-year encumbrances to provide for a meaningful
comparison. Except for the treatment of encumbrances and certain transactions relating to interfund loans, the General
Fund Budget is adopted on a basis consistent with GAAP, and all non-encumbered appropriations lapse at year-end.
The level of budgetary control established by the legislative body, the level on which expenditures may not legally
exceed appropriations, is the individual fund. In accordance with provisions of Ordinance 5025-90 and with Section
2.519(4) of the 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 Commission. Upon
detailed written request by the City Manager, the City Commission may by ordinance transfer part or all of any
unencumbered appropriation balance from one fund to another.
As established by administrative policy, department directors may transfer money from one operating code to another
within a program without a formal written amendment. Formal requests for budget amendments from department
directors are required for transfers in capital expenditures, transfers, and reserves. Thus, certain object classifications
within departmental and/or program budget appropriations are subject to administratively imposed controls, in
addition to the legal controls imposed by City Commission action described above.
The Community Redevelopment Agency Fund annual budget is adopted by the trustees of that agency in accordance
with state law. The current year budget was officially adopted on June 18, 2002. The budget is adopted on a basis
consistent with GAAP, the level of budgetary control is the total fund, and appropriations lapse at year-end.
Budget amounts presented in the accompanying financial statements reflect all amendments adopted by the City
Commission and the governing boards of component units. 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.
The Clearwater City Commission also adopts budgets for the Enterprise Funds, all Internal Service Funds, the Capital
Projects Funds, the Special Programs Fund, and the Local Housing Assistance Trust Fund. Budgetary comparisons for
the Enterprise and Internal Service funds are not required by NCGA Statement No. 1 for the general purpose financial
statements and are not included in this report. Budgets for the Capital Projects Funds, the Special Programs Fund, and
the 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 Commission adopted budgets are integrated into the formal accounting system to allow for monthly
comparison of projected and actual experience in all funds for which budgets are adopted.
The annual budget for the Clearwater Downtown Development Board (DDB), a discretely presented component unit
of the City, is adopted by the members of the DDB's board in accordance with state law. The current year budget
was officially adopted on September 10, 2002. Separate financial statements for the DDB can be obtained from the
City's Finance Department located at 100 S. Myrtle Avenue, Clearwater, Florida.
44
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
B. Reclassification of prior year balances
Effective October 1 , 2002, the City reclassified the Garage and Administrative Services internal service funds from
business-type activities to governmental activities for government-wide reporting. This resulted in the reclassification
of $12,621,515 in net assets from business-type activities to governmental activities as of October 1, 2002.
Note III - Detailed Notes on All Funds
A. Deposits and Investments
Investments with original maturities of three months or less are considered to meet the definition of cash equivalents.
The majority of the investments in which the City's proprietary funds have equity are held by the City's consolidated pool
of cash and investments. Since fund equities in this cash management pool have the general characteristics of demand
deposits in that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior
notice or penalty, each fund's equity account is considered a cash-equivalent regardless of the maturities of investments
held by the pool. Funds with deficit (overdraft) positions within the consolidated pool report the deficits as interfund
payables to the City's Capital Improvement Fund.
Governmental Accounting Standards Board (GASB) Statement Number 3 requires certain disclosures for deposits and
investments, including management's determination of custodial credit risk, defined as follows:
For deposits, the bank balance must be categorized as follows:
Category 1: Insured or collateralized with securities held by the City or its agent in the City's name.
Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in
the City's name.
Category 3: Uncollateralized.
For investments other than deposits, the following categories apply:
Category 1 : Insured or registered, or held by the City or its agent in the City's name.
Category 2: Uninsured and unregistered, held by the counterparty's (purchasing agent's) trust department or
agent in the City's name.
Category 3: Uninsured and unregistered, held by the counterparty, its trust department, or agent, but not in the
City's name.
As described above, the City's depository banking agreement provides for the investment of all excess cash daily into
a collateralized repurchase agreement, whereby all deposits deemed to be collected are automatically deposited.
City deposits consist of relatively small cash balances held by Debt Service Trustees and Employee Retirement
Custodians. The bank balances equal the carrying amount for these deposits, and management's classification of
custodial credit risk is indicated in the table below. Because these amounts are part of the trustee's and custodian's
composite account, they are classified along with investments on the balance sheet.
Managed mutual funds and securities lending collateral are not susceptible to classification by risk category and are
disclosed but not categorized pursuant to GASB Statement 3. Management has classified all other investments into
Category 1. The carrying value for all investments is fair value in accordance with GASB Statement 31.
45
City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Summary of deposits and investments, including management's assessment of custodial credit risk, follows:
Investment
Fair Deposit Credit Credit
Value Risk Category Risk Category
I. Cash On Hand and In Banks $ 47,842 1
II. Consolidated Cash Pool and Component
Unit Deposits and Investments:
Cash in Banks 5,605,849 1
U.S. Treasury Notes and Bills 26,005,830 1
U.S. Agency Securities 199,192,689 1
Money Market Mutual Funds 6,000,000 n/a
Accrued Interest on Investments 1,778,215 n/a
Less Outstanding Checks at 9/30103 (2,958,224) n/a
Total Cash Pool and Component Unit Equity * 235,624,359
(includes Fiduciary funds cash pool assets)
III. Construction and Debt Service Deposits
and Investments:
Money Market Mutual Funds 610,450 n/a
Corporate Bonds 874,715 1
1 ,485,165
IV. Employee Retirement Deposits and Investments:
Money Market Accounts 7,120,068 1
Domestic Equity Securities 183,470,317 1
Government Bonds 40,287,718 1
Agency Bonds 280,340 1
Domestic Corporate Bonds 22,119,183 1
Mortgage Backed Bonds 3,725,883 1
Asset Backed Bonds 4,872,389 1
International Equity Mutual Funds 35,926,545 n/a
Stock Mutual Funds 44,790,954 n/a
Fixed Income Mutual Funds 108,568,943 n/a
Securities Lending Collateral 27,627,316 n/a
Total Employee Retirement Investments 478,789,656
Total Deposits and Investments, All Funds $ 715,947,022
* At September 30, 2003, the carrying amount of the primary government's deposits totaled $2,442,655 and the bank
balance was $5,399,993. The carrying amount of the component unit's deposits totaled $204,972, while the bank
balance was $205,856. Total bank balance for primary government and the discretely presented component unit was
$5,605,849.
B. Receivables
Receivables as of year end for the City's individual major funds and nonmajor, internal service, and fiduciary funds in the
aggregate, including the applicable allowances for uncollectible accounts, are segregated on the fund financial
statements. The Mortgages, Notes, and Other Loans amount of $9,703,654 reported on the Governmental Funds
balance sheet includes $9,506,257 of long-term loans receivable that are not expected to be collected in the next year.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
C. Capital assets
Capital asset activity for the year ended September 30, 2003 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets, not being depreciated:
Land $ 41,609,748 $ 3,679,328 $ 190 $ 45,288,886
Construction in progress 11 ,550,775 25,031,143 6,141,290 30,440,628
Total capital assets, not being depreciated 53,160,523 28,710,471 6,141 ,480 75,729,514
Capital assets, being depreciated:
Buildings 41,126,144 11,958,952 394,008 52,691 ,088
Improvements other than buildings 53,170,708 2,106,951 201,003 55,076,656
Machinery and equipment 72,519,291 8,776,646 2,875,587 78,420,350
Infrastructure 1,076,247 1,149,293 2,225,540
Total capital assets, being depreciated 167,892,390 23,991,842 3,470,598 188,413,634
Less accumulated depreciation for:
Buildings (12,086,557) (189,647)
Improvements other than buildings (15,386,869) (116,653)
Machinery and equipment (47,813,444) (2,380,156)
Infrastructure -
Total accumulated depreciation (75,286,870) (2,686,456)
Total capital assets, being depreciated, net 92,605,520 784,142
Governmental activities capital assets, net $ 145,766,043 $ 42,740,814 $ 6,925,622 $ 181,581,235
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land $ 19,181,869 $ 6,831,490 $ $ 26,013,359
Construction in progress 47,205,107 17,618,870 20,532,904 44,291 ,073
Total capital assets, not being depreciated 66,386,976 24,450,360 20,532,904 70,304,432
Capital assets, being depreciated:
Buildings 20,425,340 2,290,235 22,715,575
Improvements other than buildings 293,385,180 18,027,743 311,412,923 .
Machinery and equipment 5,932,440 1 ,171 ,452 450,202 6,653,690
Total capital assets, being depreciated 319,742,960 21,489,430 450,202 340,782,188
Less accumulated depreciation for:
Buildings (767,238)
Improvements other than buildings (7,590,222)
Machinery and equipment (559,025)
Total accumulated depreciation (8,916,485)
Total capital assets, being depreciated, net 12,572,945
Business-type activities capital assets, net $ 272,405,000 $ 37,023,305 $20,558,654 $ 288,869,651
47
City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
Depreciation expense was charged to functions I programs of the primary government as follows:
Governmental activities:
General government
Public safety
Physical environment
Transportation, including depreciation of general infrastructure assets
Culture and recreation
Capital assets held by the government's governmental internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities
Business-type activities:
Water and sewer utility
Gas utility
Solid waste utility
Stormwater utility
Other
Total depreciation expense - business-type activities
Construction commitments
At September 30, 2003, material outstanding construction commitments were as follows:
Proiect
Reclaimed water distribution system
Community sports complex
Community sports complex
New main library
New main library
Sanitary coli. & transmission renewal & rep!.
Northwest fire station
Various street resurfacings
Pelican Walk parking garage
Kapok flood resolution
Water supply and treatment
New Citywide financial system
Clearwater Mall fire station
Sewer system pump station replacement
Garden Av. & S Beach pkg garage ctrl eqmt
Airpark improvements
Manhole and gravity line repairs
North Greenwood corridor enhancements
Total Construction Commitments
Fund
Water & Sewer Utility enterprise fund
Capital Improvement construction fund
Community Sports Complex bond construction fund
Sales Tax Revenue bond construction fund
Capital Improvement construction fund
Water & Sewer Utility enterprise fund
Capital Improvement construction fund
Capital Improvement construction fund
Parking System enterprise fund
Stormwater Utility enterprise fund
Water & Sewer Utility enterprise fund
Administrative Services internal service fund
Capital Improvement construction fund
Water & Sewer Utility enterprise fund
Parking System enterprise fund
Marine & Aviation enterprise fund
Water & Sewer Utility enterprise fund
Capital Improvement construction fund
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$ 849,864
1,250,342
42,106
2,639,587
1 ,535,235
3,644,365
$ 9,961,499
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$ 4,972,309
1 ,427,298
225,112
1,046,521
1,245,245
$ 8,916,485
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Commitments
Outstanding
$ 7,430,679
5,893,623
1,706,502
1,258,459
1,242,227
1,937,718
1,749,000
1,663,297
1,400,000
1,023,038
821 ,486
720,000
625,144
615,141
590,654
580,609
533,326
522.466
$ 30 313 369
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
D. Interfund receivables, payables, and transfers
1. Interfund balances
As discussed in Note III-A, individual fund deficits in the consolidated cash pool have been reclassified as of
September 30, 2003, as interfund loans from the Capital Improvement Fund, which was selected by management for
this purpose. This reclassification results in a corresponding reduction in the cash equity in the Capital Improvement
Fund, offset by an increase in interfund receivables.
The amounts of the reclassified cash pool deficits, as well as other individual fund interfund payable and receivable
balances (current), at September 30,2003, were as follows:
Due from Other Funds
Deficit in Other
Pooled Cash Receivables
$ $
Fund
General Fund
Special Revenue Fund:
Community Redevelopment Agency
Debt Service Fund:
Spring Training Facility Revenue Bonds
Capital Project Fund:
Capital Improvement
Enterprise Funds:
Water and Sewer Utility
Gas Utility
Solid Waste Utility
Recycling Utility
Stormwater Utility
Marine and Aviation
Parking System
Harborview Center
Internal Service Funds:
Garage
Administrative Services
General Services
Central Insurance
750,675 2,088
7,554,816
5,257,284
1,873,231
1 ,087,539
3,127,581
1,143,773
10,653,239
25,409
1,050,696
194,980
650,127
750,675 $ 32,620,763
$
Individual interfund advances (long-term) at September 30, 2003, follow:
Advances to
Other Funds
2,000,000
Fund
General Fund
Special Revenue Fund:
Community Redevelopment Agency
Enterprise Funds:
Solid Waste Utility
Marine and Aviation
Parking System
Internal Service Funds:
Administrative Services
Central Insurance
$
$
Due to Other Funds
Deficit in Other
Pooled Cash Payables
$ $ 24,925
419,695
259,397
120,402
31,968,548
82,474
59,602
71 ,583
2,088
362,724
$ 750,675 $ 32,620,763
Advances from
Other Funds
$ 24,925
361,204
742,263
59,602
4,000,000
824,882
4,012,876
6,012,876
$ 6,012,876
49
City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Descriptions of long-term interfund loans as of September 30. 2003:
An interfund loan at the cash pool interest rate from the Central Insurance Fund to the Community Redevelopment
Agency Fund for the purchase of a land parcel for resale to a developer. The initial loan amount was $1,171,328 and
commenced during the fiscal year ended September 30, 2000. The loan is to be repaid when the development project is
completed.
An internal twenty year loan from the Central Insurance Fund to the Solid Waste Utility Fund for the construction of
administrative, container maintenance, and truck wash facilities, in addition to a paved yard for use by all cost centers of
the Solid Waste Fund. The loan provides for 20 annual payments of $82,474 together with interest at the cash-pool rate,
due on September 30 of each year, commencing September 30,1994. The cost of the construction was $1,686,759.
An internal five-year construction loan in the amount of $298,011 from the Central Insurance Fund to the Marine and
Aviation Fund for construction of two aircraft T-hangars and one corporate hangar at Clearwater Airpark. The loan
provides for payments due on September 30 of each year, bearing interest at the cash-pool interest rate and
commencing September 30, 2001.
Internal loans of $2,000,000 each from the General Fund and the Central Insurance Fund, at the cash-pool interest
rate, to the Parking Fund to fund a contingency reserve per the terms of a development agreement. The Parking
Fund is contributing an additional $2,000,000 to fund a total contingency of $6,000,000 for the repurchase of a land
parcel if the proposed development does not occur by March 2006. The loans commenced September 30, 2002.
An internal five-year loan from the Central Insurance Fund to the Administrative Services Fund for the purchase and
installation of a new Utility Customer Service system. The loan provides for five annual payments of $300,000 plus
interest at the cash-pool rate, due on September 30 of each year. The loan commenced September 30, 1999 with
the first annual principal payment due September 30, 2000.
An internal ten-year loan from the Central Insurance Fund to the Administrative Services Fund for the purchase and
installation of fiber optic cable and termination equipment. The loan provides for ten annual payments of $91,653.50
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, 2004.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
2. Interfund transfers
Interfund transfers for the year ended September 30, 2003, consisted of the following:
Transfers to General Fund from:
Capital Improvements Fund $ 253,396
Water & Sewer Utility Enterprise Fund 1,600,410
Gas Utility Enterprise Fund 1,271,980
Solid Waste Utility Enterprise Fund 705,650
Stormwater Utility Enterprise Fund 226,880
Nonmajor governmental funds 715,350
Nonmajor enterprise funds 226,420
Total 5,000,086
Transfers to Special Development Fund from: 988,401
Capital Improvements Fund
Stormwater Utility Enterprise Fund 1,500,000
Total 2,488,401
Transfers to Capital Improvements Fund from: 3,313,998
General Fund
Special Development Fund 8,665,850
Nonmajor governmental funds 2,018,538
Total 13,998,386
Transfers to Nonmajor governmental funds from: 3,413,194
General Fund
Special Development Fund 3,929,321
Capital Improvements Fund 67,968
Gas Utility Enterprise Fund 2,418
Nonmajor governmental funds 291,699
Nonmajor enterprise funds 50,000
Total 7,754,600
Transfers to Gas Utility Enterprise Fund from:
General Fund 880
Total 880
Transfers to Nonmajor enterprise funds from:
General Fund 625,050
Total 625,050
Transfers to internal service funds from:
General Fund 265,435
Capital Improvements Fund 37,228
Water & Sewer Utility Enterprise Fund 146,138
Stormwater Utility Enterprise Fund 219,326
Nonmajor enterprise funds 119,927
Total 788,054
Total interfund transfers $ 30,655,457
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.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
E. Leases
The City purchases various equipment for governmental and business-type activities under lease purchase financing
agreements. The equipment is purchased with cash and subsequently provided as collateral via a "lease purchase"
financing arrangement, typically for a five-year term. Obligations under these lease purchase agreements are recorded
at the present value of their future minimum lease payments as of date of inception. Purchase of the assets is recorded
as a cash outflow and the subsequent receipt of the financing proceeds is recorded as "proceeds from issuance of debt"
for Statement of Cash Flows reporting.
Capitalized equipment subject to lease purchase financing as of September 30, 2003:
Governmental
Activities
Business-type
Activities
Equipment
Less: Accumulated Depreciation
Total
$ 20,581,648
(7,980,698)
$ 12,600,950
$ 3,066,721
(957,513)
$ 2,109,208
The future minimum lease payments under capital lease purchase agreements are as follows as of September 30, 2003:
Governmental Business-type
Year Ending Sept. 30 Activities Activities
2004 $ 4,465,094 $ 660,299
2005 3,668,291 630,857
2006 2,384,968 461,656
2007 1,180,477 267,254
2008 604,457 158,326
2009 70,016 39,581
12,373,303 2,217,973
Deduction of the amount of imputed interest necessary to
reduce net minimum lease payments to present value (701,887) (143,130)
$ 11,671,416 $ 2,074,843
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, 2003, totaled $246,634.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Long-term debt
1. Revenue Bonds
$46,445,000 Infrastructure Sales Tax Revenue Bonds, Series 2001, with $5,270,000 of
principal due December 1, 2003, to $6,620,000 due December 1, 2009; interest at
4.00% to 5.00%.
$11,470,000 Improvement Revenue Refunding Bonds, Series 2001, due in annual
installments of $360,000 due February 1, 2004, to $820,000 due February 1, 2026;
interest at 3.00% to 5.25%. $80,174 of the bonds outstanding as of September 30,
2003, are reported in the Parking System Enterprise Fund per the financing of parking
system assets. Please reference the revenue bonds for business-type activities below.
$14,810,000 Spring Training Facility Revenue Bonds, Series 2002, due in annual
installments of $460,000 due March 1, 2004, to $470,000 due March 1, 2031, with a
maximum principal of $845,000 due March 1, 2021; interest at 2.00% to 5.38%.
Total revenue bonds for governmental activities
$53,445,000 Water and Sewer Refunding Revenue Bonds, Series 1993; serial bonds
due in annual installments of $5,715,000 due December 1, 2003 and $5,370,000 due
December 1, 2004, interest at 5.00% to 5.10%; 5.50% term bonds in the amount of
$1,160,000 due December 1, 2011; and 5.625% term bonds in the amount of
$1,760,000 due December 1, 2018.
$43,642,690 Water and Sewer Refunding Revenue Bonds, Series 1998, capital
appreciation bonds with total maturity amount of $81,785,000; due in annual installments
from December 1, 2004 to December 1, 2018; ranging from $460,000 to $5,875,000; with
interest at 4.20% to 5.22%. The balance outstanding as of September 30, 2003, includes
capital appreciation bond accreted interest of $11,177,081.
$58,680,000 Water and Sewer Revenue Bonds, Series 2002; serial bonds due in annual
installments of $860,000 due December 1, 2003, to $2,420,000 due December 1, 2024,
interest at 3.25% to 5.00%; 5.00% term bonds in the amount of $11,050,000 due
December 1, 2028; and 5.00% term bonds in the amount of $13,665,000 due December
1 , 2032.
$8,815,000 Gas System Revenue Bonds, Series 1996A; serial bonds due in annual
installments of $95,000 due September 1, 2004, to $270,000 due September 1, 2014,
interest at 5.00% to 5.75%; 5.75% term bonds in the amounts of $905,000 and
$1,460,000 maturing on September 1, 2017 and September 1, 2021, respectively; and
5.80% term bonds in the amount of $4,465,000 maturing on September 1 , 2026.
$14,605,000 Gas System Revenue Bonds and Gas System Revenue Refunding Bonds,
Series 1997 A & Series 1997B; serial bonds due in annual installments of $525,000 due
September 1, 2004, to $785,000 due September 1, 2013, interest at 4.25% to 5.00%;
5.25% term bonds in the amount of $790,000 maturing September 1, 2017; and 5.30%
term bonds in the amount of $4,560,000 maturing September 1,2027.
$8,020,000 Gas System Revenue Refunding Bonds, Series 1998; serial bonds due in
annual installments of $35,000 due September 1, 2004, to $50,000 due September 1,
2012, interest at 4.00% to 4.60%; additional serial bond annual installments ranging from
$620,000 to $755,000 from September 1, 2015 to September 1, 2019, interest at 4.75%
to 4.90%; 4.70% term bonds in the amount of $645,000 maturing September 1 , 2014; and
5.00% term bonds in the amount of $3,410,000 maturing on September 1, 2023.
$7,500,000 Stormwater System Revenue Bonds, Series 1999, with $130,000 of
principal due November 1, 2003, to $490,000 due November 1, 2029, interest at 4.25% to
5.75%.
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$ 41 ,345,000
10,924,826
14.645.000
66.914.826
14,005,000
54,819,771
58,680,000
8,270,000
11,870,000
7,860,000
7,150,000
City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
$24,685,000 Stormwater Revenue Bonds, Series 2002; serial bonds due in annual
installments of $440,000 due November 1, 2003, to $965,000 due November 1, 2023,
interest at 3.00% 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.
$11,470,000 Improvement Revenue Refunding Bonds, Series 2001, due in annual
installments of $360,000 due February 1, 2002, to $820,000 due February 1, 2026,
interest at 3.00% to 5.25%. A total of $11,255,958 of the bonds has been allocated to the
general government activities per above while the following amount has been allocated to
the Parking System Enterprise Fund.
Total revenue bonds for business-type activities
Total revenue bonds
24,685,000
80.174
187.419.945
Si254.334.771
2. Restrictive covenants and collateral requirements
The Infrastructure Sales Tax Revenue Bonds are limited obligations of the City payable solely from and secured by a
lien upon and a pledge of the City's share of the proceeds derived by Pinellas County from the levy and collection of
the one-cent discretionary infrastructure sales tax pursuant to Section 212.055(2), Florida Statutes, as amended (the
Sales Tax Revenues) and, until applied in accordance with the provisions of the Ordinance, all moneys, including
investments thereof, in the funds and accounts established by the Ordinance, other than the Rebate Fund (collectively
the "Pledged Revenues"). The pledge of the Sales Tax Revenues does not constitute a lien upon any property of the
City. The covenants of the ordinance authorizing the bonds include, among other things, an obligation of the City to
do all things necessary on its part to continue the levy and collection of the Sales Tax Revenues at the maximum rate
permitted by and in compliance with Chapter 166, Part II, Florida Statutes, as amended, Chapter 212, Part I, Florida
Statutes, as amended, and other applicable provisions of law (the "Act"), and any successor provision of the law. The
City further covenants to proceed diligently to perform legally and effectively all steps required on its part in the levy
and collection of the Sales Tax Revenues and shall exercise all legally available remedies to enforce such collections
now or hereafter available under State law.
The Improvement Revenue Refunding Bonds are limited obligations of the City payable solely from and secured by a
lien upon and a pledge of the Public Service Tax as authorized by Section 166.231, Florida Statutes, as amended.
The pledge of the Public Service Tax does not constitute a lien upon any property of the City. The covenants of the
ordinance authorizing the bonds include, among other things, an obligation of the City to do all things necessary on its
part to continue the levy and collection of the Public Service Tax at the rate permitted by and in compliance with
Section 166.231, Florida Statutes, and Article III, Chapter 44, Code of Ordinances of the Issuer, and any successor
provision of law. The Public Service tax is a revenue of the General Fund.
The Spring Training Facility Revenue Bonds are special, limited obligations of the City, payable solely from and
secured by a lien upon and pledge of the (i) payments received by the City from the State of Florida pursuant to
Section 212.20, Florida Statutes (State Payments); and (ii) payments received by the City from Pinellas County,
Florida pursuant to the Interlocal Agreement dated December 1, 2000 (County payments). The pledge of the State
Payments and County Payments does not constitute a lien upon any property of the City. Furthermore, neither the
City, Pinellas County, the State of Florida, nor any political subdivision thereof has pledged its faith or credit or taxing
power to the payment of the bonds.
The Water and Sewer Refunding Revenue Bonds, Series 1993 and Series 1998, and the Water and Sewer Revenue
Bonds, Series 2002, 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.
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The Gas System Revenue Bonds, Series 1996A; Gas System Revenue Bonds Series 1997 A; Gas System Revenue
Refunding Bonds, Series 1997B; and Gas System Revenue Refunding Bonds, Series 1998; are limited obligations of
the City payable solely from and secured by a lien upon and pledge of the net revenues of the City's gas system
(System). The pledge of the System's net revenues does not constitute a lien upon any property of the City. The
covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix,
establish, revise from time to time whenever necessary, maintain and collect always, such fees, rates, rentals and
other charges for the use of the product, services and facilities of the System which will always provide revenues in
each year sufficient to pay, and out of such funds pay, 100% of the cost of operations and maintenance of the system
in such year and all reserve and other payments provided for in the ordinances authorizing the bonds, along with one
hundred twenty five percent (125%) of the bond service requirement due in such year on all outstanding bonds.
The Stormwater System Revenue Bonds, Series 1999; and the Stormwater Revenue Bonds, Series 2002; 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.
Annual debt service requirements to maturity for revenue bonds are as follows:
Revenue Bonds
Governmental Activities Business-type Activities
Principal Interest Principal Interest
$ 6,065,179 $ 2,796,166 $ 5,185,012 $ 8,798,192
6,273,477 2,534,986 5,400,129 8,546,648
6,491,170 2,235,993 5,661,286 8,242,209
6,685,000 1,945,793 5,908,385 8,019,911
6,935,000 1,674,198 6,064,869 7,787,207
17,575,000 5,231,712 34,892,056 34,709,873
5,590,000 3,694,071 44,038,018 25,508,757
5,925,000 2,173,099 29,010,190 16,200,679
4,030,000 845,203 26,735,000 9,724,785
1,345,000 110,859 24,525,000 3,080,978
$ 66,914,826 $ 23,242,080 $187,419,945 $130,619,239
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Year Ending
September 30
2004
2005
2006
2007
2008
2009-2013
2014-2018
2019-2023
2024-2028
2029-2033
Totals
City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
3. Advance refunding of bonds
In prior fiscal years, the City entered into various advance-refunding transactions related to certain of its bonded debt.
A portion of the proceeds of the refunding bond issues was placed in trust and used to purchase securities of the United
States Government and related agencies at various interest rates and maturities sufficient to meet all debt service
requirements of the refunded debt, of which $17,130,000 was outstanding at September 30,2003. These assets are
administered by trustees and are restricted to use for retirement of the refunded debt. The liability for the refunded
bonds and the related securities and escrow accounts are not included in the accompanying financial statements as the
City defeased its obligation for payment of the refunded bonded debt upon completion of the refunding transactions.
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4. Changes in long-term liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Revenue bonds payable $ 72,510,958 $ $ (5,596,132) $ 66,914,826 $ 6,065,178
Add (subtract) deferred amounts:
For issuance premiums (discounts) 1,105,129 (184,465) 920,664
On refunding (414,182) 27,587 (386,595)
Net revenue bonds payable 73,201,905 (5,753,010) 67,448,895 6,065,178
Lease purchase contracts 12,239,209 3,383,184 (3,950,976) 11,671,417 4,108,085
Compensated absences 6,203,130 726,965 (614,112) 6,315,983 625,283
Claims payable 11 ,440,278 5.078,380 (3,562,176) 12,956,482 3,678.100
Governmental activity
Long-term liabilities $103.084.522 $ 9.188.529 $ (13.880.274) $ 98.392.777 $14.476.646
Business-type activities:
Revenue bonds payable $191,110,823 $ 2,517,990 $ (6,208,868) $187,419,945 $ 7,824,821
Less deferred amounts:
For issuance discounts (1,591,062) 105,334 (1,485,728)
On refunding (3,845,647) 301,840 (3,543,807)
Net revenue bonds payable 185,674,114 2,517,990 (5,801,694) 182,390,410 7,824,821
Lease purchase contracts 1 ,792,038 765,204 (482,399) 2,074,843 595,302
Compensated absences 1,382,056 141,439 (136,824) 1 ,386,671 137,280
Business-type activity
Long-term liabilities $188.848.208 $ 3.424.633 $ (6.420.917) $185.851.924 $ 8.557 .403
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
The following schedule reflects the outstanding principal on refunded bonds as of September 30:
Governmental Activities:
Utility Revenue Certificates, 1975
Utilities Tax and Bridge Revenue Bonds, Series 1977
Utilities Tax Bonds, Series 1977
Special Obligation bonds, Series, 1978A
Utility Revenue Bonds, 1978
Total Governmental Activities
Business-type Activities:
Total Business-type Activities
Total
$
600,000
1,350,000
2,380,000
10,000
12,790,000
17,130,000
$ 17,130,000
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City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
G. Segment Information
Generally accepted accounting principles require segment disclosure for non major enterprise funds with revenue bonds
outstanding. The following condensed statements are presented for the Parking System enterprise fund to satisfy this
disclosure requirement.
Condensed Statement of Net Assets
Assets:
Current assets $
Due from other funds
Restricted assets
Deferred charges
Net pension asset
Capital assets
Total assets
Liabilities:
Current liabilities
Current liabilities payable from restricted assets
Noncurrent liabilities
Compensated absences
Revenue bonds payable
Notes, loan pool agreement and acquisition contracts
Advances from other funds
Total noncurrent liabilities
Total liabilities
Net assets:
Invested in capital assets (net of related debt)
Restricted assets
Unrestricted
Total net assets $
Condensed Statement of
Revenues, Expenses, and Changes
In Net Assets
Operating revenues
Depreciation expense
Other operating expenses
Operating income
Nonoperating revenues (expenses):
Earnings on investments
Interest expense
Other
Transfers out to other funds
Change in net assets
Beginning net assets
Ending net assets
Parking
System
$ 3,975,121
(226,443)
(2,887,182)
861 ,496
306,918
(155,831 )
26,686
(119,927)
919,342
10,544,396
$ 11 ,463,738
Parking
System
1 ,866,739
3,153,239
7,526,347
483
172,476
3,340,516
16,059,800
225,225
16,953
34,809
53,773
265,302
4,000,000
4,353,884
4,596,062
2,835,670
181,870
8,446,198
11,463,738
Parking
System
Condensed Statement of Cash Flows
Net cash provided (used) by:
Operating activities $
Noncapital financing activities
Capital and related financing activities
Investing activities
Net increase (decrease)
Beginning cash and cash equivalents
Ending cash and cash equivalents $
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1 .185,362
(1,659,000)
(330,741)
306,918
(497,461)
2,380,573
1 ,883,112
2. Gas Utility Fund
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, 2003:
Gas System Revenue Bonds
Debt Service:
Equity in Pooled Cash and Investments
Renewals and Replacements:
Equity in Pooled Cash and Investments
Assets of the Gas Utility Fund representing Customers' Deposits at September 30, 2003:
Equity in Pooled Cash and Investments
Total restricted assets - Gas Utility Fund
3. Solid Waste Utility Fund
Restricted assets in the Solid Waste Utility Fund designated for construction represent customer deposits in the amount of
$797,013 at September 30, 2003, and consisted entirely of Equity in Pooled Cash and Investments.
City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
H. Restricted assets
1. Water and Sewer Utility Fund
Assets in the Water and Sewer Utility Fund restricted for construction include:
Water Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions and improvements to the water system; assets remaining at
September 30, 2003, are:
Equity in Pooled Cash and Investments $
Due from Other Funds
Sewer Improvement charges, the use of which is restricted by the authorizing ordinance to the
construction of additions and improvements to the sewer system; assets remaining at
September 30, 2003, are:
Equity in Pooled Cash and Investments
Due from Other Funds
Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances
authorizing the issuance of Water and Sewer Revenue Bonds consisted of the following at
September 30, 2003:
Water and Sewer Revenue Bonds Debt Service:
Equity in Pooled Cash and Investments
Water and Sewer Revenue Bonds Renewals and Replacements:
Equity in Pooled Cash and Investments
Due from Other Funds
Water and Sewer Revenue Bonds Construction:
Equity in Pooled Cash and Investments
Assets of the Water and Sewer Utility Fund restricted by agreement with other governmental entities
for improvements to the water and reclaimed water systems and the Northeast Water Pollution
Control facility at September 30, 2003:
Due from Other Funds
Due from Other Governmental Entities
Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore
restricted, consisting entirely of Equity in Pooled Cash and Investments at September 30, 2003
Total restricted assets - Water and Sewer Utility Fund
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799,712
614,498
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3,497,166
759,692
16,568,192
8,098,646
3,660,054
17,508,898
2,771
1,515,391
1.940.402
$54.965.422
$ 174,994
300,000
1.316.585
$ 1 .791 .579
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
4. Stormwater Utility Fund
Assets in the Stormwater Utility Fund restricted under the provisions of the ordinances for the
issuance of revenue bonds consisted of the following at September 30, 2003:
Stormwater System Revenue Bonds - Series 1999
Debt Service: Equity in Pooled Cash and Investments
Construction: Equity in Pooled Cash and Investments
Stormwater Revenue Bonds - Series 2002
Debt Service: Equity in Pooled Cash and Investments
Construction: Equity in Pooled Cash and Investments
Contributions from the Special Development Fund include proceeds restricted by City Commission
policy for improvements to the stormwater drainage system within the City; assets remaining at
September 30, 2003:
Due From Other Funds
Total restricted assets - Stormwater Utility Fund
5. Parking System Fund
Assets in the Parking System restricted under the provisions of the ordinance authorizing the
issuance of the Public Service Tax and Bridge Revenue Bonds as of September 30,2003:
Equity in Pooled Cash and Investments
Investments
Assets in the Parking System restricted under the provisions of a development agreement between
Clearwater Seashell Resort LC and the City of Clearwater as of September 30, 2003:
Due From Other Funds
Contributions from the Special Development Fund include proceeds restricted by City Commission
policy for improvements to the stormwater drainage system within the City; assets remaining at
September 30, 2003:
Due From Other Funds
Total restricted assets - Parking System Fund
Note IV - Other Information
$ 280,627
1,721,433
849,565
11,123,297
1.020
$13.975.942
$ 16,817
9,530
6,000,000
1.500.000
$ 7.526.347
A. Risk management
The City is self-insured within certain parameters for losses arising from claims for general liability, auto liability, police
professional liability, public official's liability, property damage, and workers' compensation. Insurance coverage has
been maintained by the City to pay for or indemnify the City for losses in excess of certain specific retentions and up to
specified maximum limits in the case of claims for liability, property damage, and workers' compensation. The liability
and workers compensation excess coverage is $7,000,000 per occurrence ($14,000,000 aggregate) with self-insured
retention of $500,000. The property damage excess coverage is $287,000,000 with a $500,000 self-insured retention.
Settled claims have not exceeded excess coverage in any of the past three years.
The transactions relating to the self-insurance program are accounted for in the Central Insurance Fund, an Internal
Service Fund. The billings by the Central Insurance Fund to the various operating funds (the interfund premiums) are
based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability reported
at September 30, 2003, is based on the requirements of Governmental Accounting Standards Board Statement No. 10,
which requires that a liability for claims be reported if information prior to the issuance of the financial statements
indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the
loss can be reasonably estimated.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Changes in the claims liability amounts in fiscal years 2002 and 2003 were:
Self
Insurance
$ 9,337,296
Balance at October 1, 2001
Current year claims and changes
in estimates
Claim payments
Balance at September 30, 2002
Current year claims and changes
in estimates
Claim payments
Balance at September 30, 2003
6,464,068
(4,361,086)
11 ,440,278
B. Statements of cash flows
For purposes of the statements of cash flows, investments with original maturities of three months or less are considered to
meet the definition of cash equivalents. The majority of the investments in which the City's proprietary funds have equity
are held by the 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.
C. Capitalization of Interest
Interest costs incurred in enterprise funds during construction are capitalized, net of interest income from the proceeds
of related tax-exempt debt if applicable, as part of the cost of the related assets of the respective enterprise funds.
Interest costs on long-term debt incurred and capitalized during the year ended September 30, were as follows:
Total Interest Interest Costs Net Interest
Business-type activities: Costs Incurred Capitalized Expense
Water & Sewer Utility Fund $ 5,506,416 $ (660,128) $ 6,166,544
Gas Utility Fund 1,500,423 87,065 1 ,413,358
Solid Waste Utility Fund 54,180 54,180
Stormwater Utility Fund 1,138,221 (89,306) 1 ,227,527
Non-major Enterprise Funds 162,176 162,176
Total business-type activities $ 8,361,416 $ (662,369) $ 9,023,785
D. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
E. Employee retirement systems and pension plans
1. Defined benefit pension plans
The City contributes to two separate single-employer, self-administered defined benefit pension plans covering
approximately three-fourths of all City employees. The Employees' Pension Plan covers all permanent, full-time City
employees who successfully pass the required physical examination, except for firefighters employed prior to July 1, 1963,
and certain nonclassified (primarily managerial) employees. The Firemen's Relief and Pension Plan covered eligible
firefighters hired prior to July 1, 1963, and is closed to new entrants. Neither of these plans issues a stand-alone financial
report. As indicated, both plans are self-administered, and the costs of administering the plans are paid from the respective
plan assets.
The Employees' Pension Plan is authorized by and operates under the provisions of Sections 2.391 through 2.411 of the
Municipal Code of the City of Clearwater. Plan provisions have been duly approved as required by the voters in
referendums. There were no changes in plan provisions for the current year. The normal retirement benefit is a monthly
benefit equal to 2-3/4% of average monthly compensation for the final 5 years of service multiplied by the number of years
of service to date of retirement. The minimum benefit under the plan is $300 per month. Eligibility for normal retirement
occurs upon completion of at least 10 years of service and the attainment of age 65, or completion of at least 20 years of
service and the attainment of age 55, or completion of 30 years of service, for employees engaged in non-hazardous duty.
For those engaged in hazardous duty, eligibility occurs upon completion of 20 years of service. The normal monthly
benefits are payable for the life of the participant and continue, after the participant's death, to be paid at the same amount
for 5 years to eligible surviving beneficiaries; after 5 years, the survivor annuity is reduced to fifty percent (50%) of the
original amount. The plan provides for an annual cost of living increase of up to one and one-half percent (1-1/2%). The
plan also provides for disability and death benefits, vesting after completion of 10 years of service and the refund of
employee contributions in case of a non-vested termination. There are seven other benefit payment options that are
computed to be the actuarial equivalent of the normal 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.
The Firemen's Relief and Pension Plan is authorized and operated under the provisions of Subpart B, Article I (Laws of
Florida, Chapter 30658, 1955 and amendments), Sections 1 through 27 of the Municipal Charter and Related Law of
the City of Clearwater and Chapter 26, Article III, Sections 26.50 through 26.52 of the Municipal Code of the City of
Clearwater. The normal retirement benefit is a monthly benefit in the amount of 50% of the prevailing wage at the date
of retirement of the lowest rank held by the participant during the three years immediately preceding retirement plus 2%
of such prevailing wage for each year of service in excess of 20 years up to a maximum of 60%. Participants retiring at
the age of 65 years are entitled to a benefit of 60% of the prevailing wage of the lowest rank held by the participant
during the three years immediately preceding retirement. The ending rate of pay specified above may not exceed the
highest rate of pay for the rank of Captain. Eligibility for normal retirement occurs upon completion of 20 years of
service or attainment of age 65. The monthly benefits are payable for the life of the participant and continue, after the
participant's death, to be paid to certain eligible surviving beneficiaries at an amount that is one-half of the amount
received by the participant. Benefits are also provided for children of the deceased participant who are less than 18
years of age subject to certain limitations as to amount. The plan also provides for disability and death benefits and for
vesting upon completion of at least 12 years of service. The plan provides for post retirement cost of living increases
equal to the increase in the prevailing wage for the rank at which the participant retired with a limitation for those retiring
on or after January 1, 1972, of 100% of the initial pension benefit for total cost of living increases. Participating
employees are required to contribute 6% of their salaries up to the equivalent of the salary of a fireman holding the rank
of Captain. The City is required to contribute a sufficient additional amount to maintain the actuarial soundness of the
plan for a period of 35 years commencing January 1, 1972. This contribution is based upon, but not limited to, the
amount of property tax that a levy of 0.6 mills would produce.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30,2003
Employees'
Pension Plan
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As of the January 1, 2002, actuary valuation date (upon which the current fiscal year funding is based), the membership
of the plans:
Retirees and beneficiaries currently receiving benefits
Terminated employees entitled to benefits but not yet receiving them
Active employees:
Fully vested
Nonvested
Total number of participants
Firemen's Relief
Pension Plan
48
793
799
2,205
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For the fiscal year ended September 30, 2003, the covered payroll for the Employees' Pension Fund is $66,478,229. The
City's total payroll for the same period is $75,580,718. Annual pension cost and contributions information for the last three
fiscal years follows:
Employees' Pension Fund
Year
Ended
Sept 30
2001
2002
2003
Annual (a)
Required
Contribution
$ 174,377
$ 0
$ 0
Employer
Contributions
$ 4,255,484
$ 4,439,829
$ 4,649,642 (b)
Percent
Contributed
2440%
n/a
nfa
Net
Pension
Asset
$ 15,845,929
$ 21,445,982
$ 25,832,535
(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30,2003, are based
on actuarial valuations as of January 1, 2002. Since the City's contributions are made during its fiscal year (which
commences nine months after the date of the actuarial valuation), the City, with approval of State regulatory
authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on
investments for a period of one year.
(b) Actual contributions for fiscal 2003 totaled $4,649,642, as required by the ordinance governing the pension plan.
Firemen's Relief Pension Fund
Year
Ended
Sept 30
2001
2002
2003
Annual (a)
Required
Contribution
$ 1,098,990
$ 1,153,732
$ 1,211,210
Employer
Contributions
$ 1,098,990
$ 1,153,732
$ 1,211,210
Percent
Contributed
100%
100%
100%
a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2003, are based
on actuarial valuations as of January 1, 2002. Since the City's contributions are made during its fiscal year (which
commences nine months after the date of the actuarial valuation), the City, with approval of State regulatory
authorities, is following the practice of adding interest to its required contributions at the assumed rate of return on
investments for a period of one year.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
The Employees' Pension Fund net pension asset at September 30, 2003 totaled $25,832,535. It was comprised of the
following components:
Annual required contributions (ARC)
Interest on the net pension asset
Adjustment to annual contribution
Annual pension cost
Fiscal 2003 employer contributions
Increase in net pension asset
Net pension asset beginning of year
Net pension asset end of year
$ (514,517)
(1,502,968)
2,280,574
263,089
4,649,642
4,386,553
21 ,445,982
$ 25,832,535
The net pension asset at transition (October 1, 1997) was determined in accordance with GASB Statement No. 27,
"Accounting for Pensions by State and Local Governmental Employees". The amount of the pension asset at transition
was $3,503,365.
The net pension asset for the Employees' Pension Plan, representing excess contributions as calculated per GASB 27
requirements, is identical in amount to the plan "credit balance" as disclosed in prior years. A total of $17,731,175 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
$8,101 ,360 attributable to proprietary funds is reflected in the proprietary fund financial statements on the accrual basis
of accounting.
Each pension fund is accounted for as a pension trust fund; therefore each is accounted for in substantially the same
manner as proprietary funds with a "capital maintenance" measurement focus and the accrual basis of accounting. Fund
assets, primarily investments, are valued at fair value for balance sheet purposes, in accordance with GASB No. 25.
Investment values are determined using the estimated fair value determined by averaging estimated fair values
obtained from three or more nationally recognized brokers.
As of September 30, 2003, neither the Employees' Pension Fund nor the Firemen's Relief and Pension fund held
investments (other than U.S. Government or U.S. Government guaranteed obligations) in anyone organization
comprising 5% or more of the net assets available for benefits.
Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2002, 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 both cost-of-living adjustments of 3% and merit
or seniority increases at 3%.
(3) Mortality based on the 1994 Group Annuity Reserving Table for males with female ages set back five years.
(4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates for male,
female, and 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.
Firemen's Relief and Pension Plan
(1) Assumed rate of return on investments of 5.5% compounded annually.
(2) Assumed benefits grow at an annually compounded rate of 2%. There are no longer any active members in
this plan.
(3) Mortality based on the 1983 Group Annuity Mortality Table for retired participants; assumed disabled
participants will experience mortality according to PBGC Tables 3 and 4 for males and females, respectively.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
The actuarial valuation of the Employees' Pension Fund as of January 1, 2002 reflected several changes in actuarial
assumptions, as follows: An investment yield of 7.5% assumed whereas the prior valuation assumed 7.0%. Salaries
were projected to increase at 6% versus the prior valuation assumption of 5%. Employee turnover rates were revised
for male and female employees and separate rates were adopted for hazardous duty employees. The mortality table
was changed from the 1983 Group Annuity Mortality Table to the 1994 Group Annuity Reserving Table. And finally, the
retirement age assumption was changed from 100% retirement at first eligibility for unreduced benefits to a table of
decrements at different ages. The impact of these changes decreased the unfunded actuarial accrued liability from
$72,178,974 to $41,332,472.
It is the City's policy to fund pension costs accrued as determined on an actuarial basis. Annual required contributions
(ARC) for the Employees' Pension Fund 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 (ARC) for the Firemen's Relief and Pension Fund are based on a variation of the
aggregate actuarial cost method, under which the unfunded portion of the present value of the projected benefits is
allocated over the present value of a 6.0% per year increasing annuity for the remaining years in the 35-year funding
period which began January 1, 1972, pursuant to an agreement between the City and the Plan participants. For this
purpose, the unfunded actuarial liability is determined after consideration of the available assets at the valuation date.
The increasing fixed schedule produced by this method was established in 1988 and will be modified in the future only
to the extent that a current valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a
mill in a current year. Under the non-standard cost method used for this plan (due to the fact that there are no longer
any active employees), all liabilities are unfunded actuarial liabilities and are being amortized according to the closed
cost method.
Governmental Accounting Standards Board Statement Nos. 25 and 27 require the presentation, as supplementary
information, of certain 6-year historical trend information. The disclosures follow these Notes to the Financial Statements.
2. Police Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible policemen which is funded by earmarked
revenues received from the State and is administered by the City. The revenues received from the State are allocated
among eligible police officers on the basis of days employed as Clearwater Police Officers. These revenues, which
comprise the plan contributions, amount to $809,271 in the year ended September 30, 2003, and are obtained from an
eighty-five one hundredths of one percent (.85)% excise tax on the gross receipts from premiums collected on casualty
insurance policies covering property within the City's corporate limits. The current year contributions represent 5.2% of
current year covered payroll. The fair value of investments at September 30, 2003, totaled $9,881,078.
The Police Supplemental Pension Fund is authorized by and operates under the provisions of Sections 2.471 through
2.480 of the Municipal Code of the City of Clearwater and Chapter 185 of Florida Statutes. Under the plan provisions, the
total monies received during each fiscal year, after payment or provision for all costs and expenses of management and
operation of the plan, are allocated to participants on the basis of the total number of shares to which each participant is
entitled. Each participant is entitled to one share in the fund for each day of service as a police officer of the City.
All police officers, as defined in Section 26.70(g) of the Code of Ordinances of the City of Clearwater, who are elected,
appointed, or employed full-time by the City are eligible to participate in the plan. There are no employee contributions
to the supplemental plan. Benefits are fully vested for a lump sum distribution after twenty years from the date of hire,
with provision for partial vesting after ten or more years under the plan. Accumulated benefits are payable in full in case
of death while employed by the City or in case of total and permanent job-related disability. Non-vested participants'
account values upon termination of employment during any fiscal year are added to the monies received during that
fiscal year for allocation to the remaining participants in the plan on the basis of total days worked.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
For the fiscal year ended September 30, 2003, the payroll of the covered officers' was $15,538,166; the City's total payroll
for the same period was $75.580,718.
Since the entitlement to benefits is based entirely upon the allocation of monies received by the plan to the participants'
share accounts, there is no actuarial liability on the part of either the State or the City.
3. Firefighters Supplemental Pension Fund
A supplemental defined contribution pension plan exists for all eligible firemen, which is funded by earmarked. revenues
received from the State and is administered by the City. The revenues received from the State are allocated among
eligible firemen on the basis of days worked during the previous year. These revenues, which comprise the plan
contributions, amounted to $654,462 in the year ended September 30, 2003, and are obtained from a one and eighty-five
one hundredths percent (1.85%) excise tax on the gross receipts from premiums collected on property insurance policies
covering property within the City's corporate limits. The contributions represent 6.86% of current year covered payroll. The
fair value of investments at September 30,2003, totaled $8,257,623.
As the plan is described as a money purchase pension plan, whereby contributions are allocated based on the number
of days worked during the fiscal year ended September 30, and interest earnings allocated based on the beginning
balances in each participant's account, there is no actuarial liability on the part of the State or 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.
For the fiscal year ended September 30, 2003, the covered payroll was $9,543,405 the City's total payroll for the same
period was $75,580,718.
4. 401 (a) defined contribution plan
For all management employees not covered under either of the defined benefit pension plans, the City provides pension
benefits through a 401 (a) defined contribution plan. In a defined contribution plan, benefits depend solely on amounts
contributed to the plan plus investment earnings. Employees are participants from the date of employment and are fully
vested upon enrollment. The plan is totally contributory on the part of the City in an amount equal to 15% of
compensation on behalf of the City Manager and the City Attorney; 14% of compensation on behalf of the Chief of
Police; and 8% of compensation on behalf of all other management contract employees and assistant city attorneys.
The City makes bi-weekly contributions to the Trust throughout the plan year to meet its funding obligations under the
plan.
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, 2003. was $75.580,718. The Plan members' payroll for
the same period totaled $4,370,690. The City's contribution, per the above contribution rates, totaled $370,480. The
assets of the trust, at market value, totaled $1.562.848 at September 30, 2003.
5. Deferred compensation plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The plan, available to all City employees, permits them to defer a portion of their salary until future years.
Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement,
death, or unforeseeable emergency.
Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from City assets to
employee assets. As a result of these changes, plan assets are no longer subject to the claims of the City's general
creditors.
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$
$
2,776,207 $
2,830,496
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
The City has previously reported the assets and associated liabilities of the deferred compensation plan in the City's
financial statements as an agency fund. Effective with the change in legislation these assets are no longer City assets and
the fiduciary responsibility has been transferred to the third party plan administrator. Consequently, effective with fiscal
1997, these assets are no longer reported in the accompanying financial statements, in compliance with Governmental
Accounting Standards Board Statement No. 32.
F. Securities lending transactions
The City of Clearwater Employees' Pension Plan participates in securities lending transactions 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% fo the market value plus any accrued interest.
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, 2003 was 41
days.
Cash "open" collateral is invested in a short term investment pool, the Core USA Collateral Section, which had an average
weighted maturity of 30 days as of September 30, 2003. 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.
There were no significant violations of legal or contractual provisions, nor any borrower or lending agent defaults known to
the securities lending agent. The City did not impose any restrictions on the amount of loans made by Northern Trust
during fiscal year 2003.
Northern Trust indemnified the City for losses attributable to violations by the entity of the Standard of Care set out in the
Agreement. Northern Trust has also indemnified the City for all losses as a result of borrower default and for any losses
resulting from insufficient collateral. There were no losses during fiscal year 2003.
As of September 30, 2003, the City had no credit risk exposure to borrowers. The following is a summary of securities on
loan and their collateral:
Security Type
U.S. Agency
U.S. Corporate Fixed
U.S. Equity
U.S. Government Fixed
Total
Securities Collateralized by Cash
Market Value Cash Collateral
$ $
4,842,113
11 ,152,373
8,298,725
24,293,211 $
4,928,302
11,441,217
8,427,302
24,796,821
Securities Collateralized by Non-Cash
Market Value Non-Cash Collateral
$ 2,050,950 $ 2,092,721
725,257 737,775
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.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Loan Guarantee - Chi Chi Rodriquez Youth Foundation. Inc.
On March 30, 1992, the City Commission 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. At the present time, management expects the foundation to meet all debt service payments and does not
consider it likely that the City's guarantee will be invoked.
Soil and groundwater contamination site
The City owns a property, currently used by the City Gas Division as its administrative offices and operating facility, that
has been identified as having soil and groundwater impacts in a June 1990 report prepared by a United States
Environmental Protection Agency contractor. The contamination allegedly resulted from the prior operation of a
manufactured gas plant (MGP). Contamination assessment activities by the City were initiated during 1995 and a draft
Contamination Assessment Report was submitted to the Florida Department of Environmental Protection (FDEP) on
December 29,1999. On March 20, 2000, FDEP requested further assessment be undertaken. On July 25, 2000, FDEP
approved the City's proposed scope of work for additional on and off-site assessment activities. Additional field
activities were initiated in December 2000. The supplemental contamination assessment results were submitted to
FDEP as part of the May 2001 and July 2001 site status reports. The cost of this additional work, including preparation
and submittal of the May and July 2001 site status reports, was approximately $39,462.
On May 16, 2002, the City received a letter from FDEP requiring additional fieldwork to better define the soil and
groundwater contamination on the site. In September 2002, Clearwater Gas met with FDEP to discuss their May 16th
letter and the future of the gas plant site. In that meeting, it was agreed the City would install seven (7) new monitoring
wells and drill twelve (12) soil samples around the perimeter of the MGP site. This additional work was performed in
early 2003 and the results were submitted to FDEP in June 2003. FDEP has not made any comments on this June
2003 report.
Since 1993, the City has spent $447,107 on the MGP assessment activities, which includes both environmental
consultant and outside attorney fees. Approximately $487,500 has been recovered from City insurance policies to be
applied to any required remediation.
Letter of Credit Guarantee - soil contamination sites
The City has provided a standby letter of credit in the amount of $463,040 to the Florida Department of Environmental
Protection (FDEP). The Letter of Credit is required by FDEP for the City's approximate 41 % share of the remediation
costs for three City-owned petroleum contamination sites under FDEP's "Pre-approved Advance Cleanup" (PAC)
program. The PAC program awards state funds to assist with remediation of petroleum contaminated sites. The City
has available funds set aside to fully fund the City's commitment of $463,040 under the PAC agreements.
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,
2005, the City is required to purchase a minimum of 4 million gallons of water per day on an annual average basis from
the County within each calendar year, with a maximum amount of water available to the City of 10 million gallons per
day on an annual average basis. Effective October 1, 1995, the rate, which is set by the Pinellas County Board of
County Commissioners (BOCC), was $1.7902 per 1,000 gallons, including a $.60 per 1,000 gallon surcharge for
funding capital projects. On November 19, 2002, the BOCC approved the following rate increases: $1.9334 effective
January 1, 2003; $2.0881 effective October 1, 2003; $2.2969 effective October 1, 2004; $2.5266 effective October 1,
2005; and $2.7792 effective October 1, 2006. The cost of water purchased from the County during fiscal years 2002
and 2003 was $7,516,678 and $6,103, 150, respectively.
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I. Conduit debt
The City has one issue of conduit debt outstanding as follows:
Original
Issue
Description / Purpose Amount
Amount
Outstanding
at 9/30/02
Amount
Outstanding
at 9/30/03
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
Potential Claim - Gas System
As a member of the Florida Gas Utility (FGU), Clearwater Gas System is a party to gas supply contracts that FGU
enters into on behalf of the members. In November 2002, FGU received a verbal claim from representatives of Enron
North America Corporation, or one of its affiliated companies (Enron), claiming that unspecified amounts were due and
owing to FGU to Enron as a result of certain favorable pricing for gas received by FGU in the open market, but for which
confirmations had been placed with Enron under an earlier contract. FGU has since received a letter dated December
12, 2003, from Enron asserting a claim, demanding payment, and threatening action in the Bankruptcy Court for the
Southern District of New York or other forum. Enron failed to make deliveries of gas in December 2001 and FGU
accordingly terminated all confirmations and any existing contract with Enron. FGU disclaims any obligation that may
be claimed by Enron pursuant to any gas confirmation or any contract with Enron. FGU plans to vigorously contest the
claim by Enron. Due to the early nature of these proceedings, FGU indicates that they are unable to make an informed
judgment concerning FGU's ultimate liability, nor Clearwater Gas System's member share of any ultimate liability, and
the extent of any unfavorable outcome cannot be ascertained at this time. With such uncertainties, the City is unable to
determine the potential impact on the financial statements as of September 30, 2003.
Contractual Commitment - Parking System
Under the terms of a development agreement, the City has committed to repurchase a beach land parcel at the
appraised amount not to exceed $6,000,000, if the developer is unable to proceed with the development project by
March 2006. A contingency reserve was established in the Parking System fund in the amount of $6,000,000 during
fiscal year 2002.
Grant Revenues
During fiscal year 2003 and prior fiscal years, the City received revenues and contributions related to grants from the
Southwest Water Management District, the State of Florida, the federal government, and other grantors. These grants are
for specific purposes and are subject to review and audit by the grantor agencies. Such audits could result in requests for
reimbursement for expenditures disallowed under the terms of the grants. Based upon prior experience, City management
believes such disallowances, if any, will not be significant.
H. 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.
Drew Gardens Refunding Bonds / residential rental facility $ 3,425,000 $ 3,040,000
$ 2,985,000
The bonds do not constitute a debt, liability, or obligation of the City of Clearwater, the State of Florida, or any political
subdivision thereof and accordingly have not been reported in the accompanying financial statements.
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City of Clearwater, Florida
Notes to the Financial Statements
September 30, 2003
J. Subsequent events
Water and Sewer Revenue Refunding Bonds. Series 2003
On October 1, 2003, the City issued Water and Sewer Revenue Refunding Bonds, Series 2003, in the amount of $8.41
million, with an average interest rate of 3.14%, to advance refund $8.29 million of outstanding Water and Sewer Refunding
Revenue Bonds, Series 1993, with an average interest rate of 5.49%. The net proceeds of $8.58 million (after payment of
$111,000 in underwriting fees, insurance, and other issuance costs and $7,800 deposited to the Debt Service Fund),
including $182,000 of transfers from the refunded issue debt service fund and $44,000 released debt service reserve
escrow, were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the
refunded bonds.
The City completed the advance refunding to reduce its total debt service payments over the next 15 years by $874,000
and to obtain an economic gain (difference between the present values of the old and new debt service payments) of
$528,000.
Gas System Revenue Refunding Bonds. Series 2004
On January 15, 2004, the City issued Gas System Revenue Refunding Bonds, Series 2004, in the amount of $8.89 million,
with an average interest rate of 4.07%, to advance refund $8.18 million of outstanding Gas System Revenue Bonds, Series
1996A, with an average interest rate of 5.77%. The net proceeds of $8.76 million (after payment of $191,000 in
underwriting fees, insurance, and other issuance costs and $24,000 deposited to the Debt Service Fund), including
$195,000 of transfers from the refunded issue debt service fund, were deposited into an irrevocable trust with an escrow
agent to provide for all future debt service payments on the refunded bonds.
The City completed the advance refunding to reduce its total debt service payments over the next 23 years by $1.67 million
and to obtain an economic gain (difference between the present values of the old and new debt service payments) of
$970,000.
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Page 1 of 3
City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
Schedules of Funding Progress:
Employees Pension Fund
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) Ic)
1/1/1998 $ 308,596,133 $ 333,250,492 $24,654,359 93% $47,281,198 52%
1/1/1999 $ 354,088,751 $ 377,788,731 $23,699,980 94% $49,666,523 48%
1/1/2000 $ 414,826,422 $ 490,426,940 $75,600,518 85% $50,937,403 148%
1/1/2001 $ 461 ,724,610 $ 535,672,208 $73,947,598 86% $54,864,584 135%
1/1/2002 $ 491 ,859,015 $ 533,191,487 $41,332,472 92% $58,929,582 70%
1/1/2003 $ 477,541 ,459 $ 517,933,495 $40,392,036 92% $65,150,820 62%
Firefighters Relief and Pension Fund
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) (aIb) (c) ((b-a) Ic)
1/1/1998 $ 3,626,850 $ 10,565,127 $ 6,938,277 34% $ 50,573 13719%
1/1/1999 $ 3,963,395 $ 10,473,888 $ 6,510,493 38% $ 15,605 41721 %
1/1/2000 $ 4,092,298 $ 9,746,671 $ 5,654,373 42% $ nla
1/1/2001 $ 4,668,572 $ 9,527,303 $ 4,858,731 49% $ nla
1/1/2002 $ 5,213,993 $ 8,907,427 $ 3,693,434 59% $ nla
1/1 12003 $ 5,741,450 $ 10,483,967 $ 4,742,517 55% $ nla
* Covered payroll is for the calendar year period used for the actuarial valuation.
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City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information. Unaudited
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Schedules of Employer Contributions:
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Employees' Pension Fund
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Year
Ended
Sept. 30,
1998
1999
2000
2001
2002
2003
Annual (a)
Required
Contribution
$ 3,080,802
$ 840,558
$
$ 174,377
$
$
Percent
Contributed
119%
464%
N/A
2440%
n/a
n/a
(b)
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(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2003
are based on actuarial valuations as of January 1, 2002. Since the City's contributions are made during its
fiscal year, which commences nine months atter 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.
(b) Actual contribution for fiscal 2003 was $4,649,642, as required by City pension ordinance.
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Firemen's Relief Pension Fund
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Year
Ended
Sept. 30,
1998
1999
2000
2001
2002
2003
$
$
$
$
$
$
Annual (a)
Required
Contribution
955,920
1,003,758
1 ,046,856
1,098,990
1,153,732
1,211,210
Percent
Contributed
1 00%
1 00%
1 00%
1 00%
1 00%
1 00%
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(a) The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2003
are based on actuarial valuations as of January 1, 2002. Since the City's contributions are made during its
fiscal year, which commences nine months atter 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 nine months.
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City of Clearwater, Florida
Defined Benefit Pension Plans
Required Supplementary Information - Unaudited
I
Notes To Schedules Of Required Pension Supplementary Information
Annual required contributions for the Employees' Pension Fund are calculated using the Entry Age Normal with Frozen
Initial Uability 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 Firemen's Relief and Pension Fund are based on the aggregate actuarial cost
method, under which the unfunded portion of the present value of the projected benefits is allocated over the present
value of a 6.0% per year increasing annuity for the remaining years in the 35-year funding period which begin January 1,
1972, pursuant to an agreement between the City and the Plan participants. For this purpose, the unfunded actuarial
liability is determined after consideration of the available assets at the valuation date. The increasing fixed schedule
produced by this method was established in 1988 and will be modified in the future only to the extent that a current
valuation indicates a higher required cost level, or if the resulting cost level exceeds 60% of a mill in a current year. The
amortization method for the Firemen's Relief and Pension Fund is a non-standard (no active employees) closed cost
method.
The actuarially determined contribution requirements for the City's fiscal year ended September 30, 2003, are based on
actuarial valuations as of January 1, 2002. 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 retum on investments for a
period of one year in the case of the Employees' Pension Fund and for nine months in the case of the Firemen's Relief
and Pension Fund.
Significant actuarial assumptions utilized in the actuarial valuations as of January 1, 2002, in the determination of the
annual required contribution are as follows:
Employees' Pension Fund
(1) Assumed rate of retum on investments of 7.5% per annum.
(2) Projected salary increase at a rate of 6% per year, including cost-of-Iiving adjustments of 3% and merit or
seniority increases at 3%.
(3) Mortality based on the 1994 Group Annuity Reserving Table for Males with female ages set back five years.
(4) Pre-retirement withdrawals assumed to occur in accordance with a table of declining withdrawal rates for male,
female, and 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%
Firemen's Relief and Pension Fund
(1) Assumed rate of return on investments of 5.5% compounded annually.
(2) Assumed benefits grow at annually compounded rate of 2% related to cost of living adjustments only.
(3) Mortality based on the 1983 Group Annuity Mortality Table (no active); assumed disabled participants will
experience mortality according to PBGC Tables 3 & 4 for males and females, respectively.
(4) Assumed no withdrawals will occur.
(5) Assumed probability of an active participant becoming disabled is zero (no active participants).
(6) Assumed value of one mill of ad valorem tax will increase at rate of 5% per year.
(7) Assumed inflation rate of 3%
Significant changes affecting the presented 6-year trend information include:
The actuarial valuation of the Employees' Pension Fund as of January 1, 2002 reflected several changes in actuarial
assumptions, as follows: An investment yield of 7.5% assumed whereas the prior valuation assumed 7.0%. Salaries
were projected to increase at 6% versus the prior valuation assumption of 5%. Employee turnover rates were revised
for male and female employees and separate rates were adopted for hazardous duty employees. The mortality table
was changed from the 1983 Group Annuity Mortality Table to the 1994 Group Annuity Reserving Table. And finally, the
retirement age assumption was changed from 100% retirement at first eligibility for unreduced benefits to a table of
decrements at different ages. The impact of these changes decreased the unfunded actuarial accrued liability from
$72,178,974 to $41,332,472.
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Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for
particular purposes.
Special Programs Fund - to account for grants and contributions, the use of which is restricted for certain
programs.
Community Redevelopment Agency Fund - to account for receipt, custody, and expenditure of property tax
increment funds associated with related redevelopment projects.
Local Housing Assistance Trust Fund - to account for monies allocated to the City under the 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
each fiscal year.
Infrastructure Sales Tax Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of sales tax revenues from the Special Development Special
Revenue Fund and the payment of currently maturing installments of principal and interest during each
fiscal year.
Notes and Mortgages Debt Service Fund - to account for the advance monthly accumulation of resources by
transfer of General Revenues from the General and Special Revenue Funds and the payment of currently
maturing installments of principal and interest on the various note and mortgage obligations of the
governmental funds during each fiscal year.
Spring Training Facility Revenue Bonds Debt Service Fund - to account for the advance monthly
accumulation of resources by transfer of sales tax revenues from the Special Development Special Revenue
Fund and the payment of currently maturing installments of principal and interest during each fiscal year.
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Capital Projects Funds
Capital projects funds are used to account for resources to be used for the acquisition or construction of
major capital improvement projects, other than those financed by proprietary funds. A major capital
improvement project is a property acquisition, a major construction undertaking, or a major improvement to
an existing facility or property, with a cost greater than $25,000 and a minimum useful life of at least five
years.
Sales Tax Revenue Construction Fund - to provide separate accounting records for the financing and
construction of the entryway and roundabout at Clearwater Beach, a new Main Library, and a new Memorial
Causeway Bridge.
Community Sports Complex Construction Fund - to provide separate accounting records for the financing
and construction of a new community sports complex including a new spring training facility to be used by the
Philadelphia Phillies major league baseball organization.
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City of Clearwater, Florida I
Combining Balance Sheet
Nonmajor Governmental Funds I
September 30, 2003
Special Revenue Funds I
Community local Housing I
Special Redevelopment Assistance
Programs Agency Trust Total
ASSETS I
Cash on hand and in banks $ $ 100 $ $ 100
Equity in pooled cash and investments 7,021,580 502,375 7,523,955
Receivables: I
Mortgage notes 4,434,843 5,261,311 9,696,154
Rehab advances 38,767 30,247 69,014
Other 14,961 86,459 101,420
Investments I
Due from other governments - grants 258,071 161,141 419,212
Land held for resale 84,701 913,641 998,342
Total assets $ 11,852,923 $ 1,000,200 $ 5,955,074 $ 18,808,197 1
LIABilITIES
Accounts and contracts payable $ $ $ $
Accrued payroll 15,421 15,421 I
Due to other governmental entities 215 215
Construction escrows 205,875 304,497 510,372
Due to other funds 120,402 120,402 I
Due to other funds (deficit in pooled cash) 419,695 419,695
Advances from other funds 361,204 361,204
Deferred revenue 958 86,331 87,289
T otalliabilities 222,469 987,632 304,497 1 ,514,598 I
FUND BALANCES
Reserved for:
Encumbrances 12,568 12,568 I
Advances and notes 4,244,946 5,261,311 9,506,257
Grant programs 3,030,431 3,030,431
Debt service: I
Current requirements - principal
Current requirements - interest
Future requirements I
Unreserved, reported in:
Special revenue funds 4,355,077 389,266 4,744,343
Debt service funds
Capital projects funds I
Total fund balances 11,630,454 12,568 5,650,577 17,293,599
Total liabilities and fund balances $ 11,852,923 $ 1,000,200 $ 5,955,074 $ 18,808,197
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The notes to the financial statements are an integral part of this statement.
76 I
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I Debt Service Funds Capital Project Funds
Spring
Improvement Infrastructure Training Total
I Revenue Sales Tax Facility Community NonmaJor
Refunding Revenue Revenue Sales Tax Sports Governmental
Bonds Bonds Bonds Total Revenue Complex Total Funds
I $ $ $ $ $ $ $ $ 100
297,296 4,984,896 5,282,192 4,152,454 2,178,751 6,331,205 19,137,352
I 9,696,154
69,014
158,308 158,308 259,728
I 865,185 610,450 1,475,635 1,475,635
419,212
998,342
I $ 1,162,481 $ 4,984,896 $ 610,450 $ 6,757,827 $ 4,310,762 $ 2,178,751 $ 6,489,513 $ 32,055,537
$ $ $ $ $ 1,922,173 $ 308,723 $ 2,230,896 $ 2,230,896
I 15,421
215
510,372
I 120,402
259,397 259,397 679,092
361,204
87,289
I 259,397 259,397 1,922,173 308,723 2,230,896 4,004,891
I 611,245 1,397,779 2,009,024 2,021,592
9,506,257
3,030,431
, I
I 223,452 4,391,667 268,333 4,883,452 4,883,452
83,113 593,229 52,286 728,628 728,628
i 855,916 855,916 855,916
4,744,343
30,434 30,434 30,434
I 1,777,344 472,249 2,249,593 2,249,593
1,162,481 4,984,896 351,053 6,498,430 2,388,589 1,870,028 4,258,617 28,050,646
$ 1,162,481 $ 4,984,896 $ 610,450 $ 6,757,827 $ 4,310,762 $ 2,178,751 $ 6,489,513 $ 32,055,537
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City of Clearwater, Florida I
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2003 I
Special Revenue Funds I
Improvement
Community Local Housing Revenue
Special Redevelopment Assistance Refunding
Programs Agency Trust Total Bonds I
REVENUES
Intergovernmental $ 3,662,056 $ 465,516 $ 921,989 $ 5,049,561 $
Charges for services 471,755 471,755 I
Fines and forfeitures 584,405 584,405
Interest income 112,916 23,520 41,069 177,505 56,067
Miscellaneous 1,971,609 73,035 2,044,644 I
Total revenues: 6,802,741 562,071 963,058 8,327,870 56,067
EXPENDITURES
Current: I
General government 45,833 45,833
Public safety 1,988,784 1,988,784
Physical environment 143,317 143,317 I
Economic environment 1,830,983 223,015 439,396 2,493,394
Human services 127,128 127,128
Culture and recreation 1,771,484 1,771,484
Debt service: I
Principal 331,132
Interest & fiscal charges 503,644
Bond issuance costs I
Capital outlay 715,080 715,080
Total expenditures 6,622,609 223,015 439,396 7,285,020 834,776
Excess (deficiency) of revenues I
over I (under) expenditures 180,132 339,056 523,662 1,042,850 (778,709)
OTHER FINANCING SOURCES (USES)
Transfers in 1,190,462 375,033 1,565,495 778,315 I
Transfers out (356,073) (723,258) (143,727) (1,223,058)
Sale of capital assets 925,000 925,000
Total other financing sources (uses) 1,759,389 (348,225) (143,727) 1,267,437 778,315
Net change in fund balances 1,939,521 (9,169) 379,935 2,310,287 (394) i
Fund balances - beginning 9,690,933 21,737 5,270,642 14,983,312 1,162,875
Fund balances - ending $ 11,630,454 $ 12,568 $ 5,650,577 $ 17,293,599 $ 1,162,481 I
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The notes to the financial statements are an integral part of this statement. I
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I Debt Service Funds Capital Project Funds
Infrastructure Spring Total
Sales Tax Notes Training Community NonmaJor
Revenue and Facility Sales Tax Sports Governmental
I Bonds Mortgages Revenue Bonds Total Revenue Complex Total Funds
$ 3,000,000 $ $ 1,087,654 $ 4,087,654 $ $ $ $ 9,137,215
I 471,755
584,405
138,989 27,027 222,083 250,421 303,548 553,969 953,557
I 2,044,644
3,138,989 1,114,681 4,309,737 250,421 303,548 553,969 13,191,576
I 45,833
1,988,784
I 143,317
2,493,394
127,128
1,n1,484
I 5,100,000 1,325,173 165,000 6,921,305 6,921,305
1,881,688 155,804 601 ,048 3,142,184 3,142,184
I 6,755 (2,420) 4,335 4,335
9,697,170 9,428,254 19,125,424 19,840,504
6,988,443 1,480,9n 763,628 10,067,824 9,697,170 9,428,254 19,125,424 36,478,268
I (3,849,454) (1,480,9n) 351,053 (5,758,087) (9,446,749) (9,124,706) (18,571,455) (23,286,692)
I 3,923,121 1,480,9n 6,182,413 6,692 6,692 7,754,600
(1,802,529) (1,802,529) (3,025,587)
925,000
3,923,121 1,480,9n (1,802,529) 4,379,884 6,692 6,692 5,654,013
I 73,667 (1,451,476) (1,378,203) (9,446,749) (9,118,Q14) (18,564,763) (17,632,679)
4,911,229 1,802,529 7,876,633 11,835,338 10,988,042 22,823,380 45,683,325
I $ 4,984,896 $ $ 351,053 $ 6,498,430 $ 2,388,589 $ 1,870,028 $ 4,258,617 $ 28,050,646
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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, 2003
REVENUES
Intergovernmental
Interest income
Miscellaneous
Total revenues
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 459,562 $ 465,516 $ 465,516 $
15,000 15,000 23,520 8,520
63,275 63,275 73,035 9,760
537,837 543,791 562,071 18,280
413,755 405,655 223,015 182,640
413,755 405,655 223,015 182,640
124,082 138,136 339,056 200,920
EXPENDITURES
Current - Economic environment
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
354,160
(478,242)
(124,082)
375,033
(513,169)
(138,136)
21,737
21,737
375,033
(723,258)
(348,225)
(9,169)
21,737
12,568 $
(9,169)
(210,089)
(210,089)
Excess of revenues and other sources
over expenditures and other uses
(9,169)
Fund balances - beginning
Fund balances - ending
$
21,737 $
21,737 $
The 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.
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 & Aviation Fund - to account for the financing, operation and maintenance of the City marina and
associated real property on Clearwater Beach from rents collected from users; and to account for the City's
airpark operations.
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.
83
I
City of Clearwater, Florida
Combining Statement of Net Assets I
Nonmajor Enterprise Funds
September 30, 2003
Recycling Marine & Parking Harborvlew I
Utility Aviation System Center Total
ASSETS
Current assets: I
Cash on hand and in banks $ $ 817 $ 22,050 $ 200 $ 23,067
Equity in pooled cash and investments 1,585,485 253,342 1,844,689 3,683,516
Accounts and contracts receivable:
Billed 72,864 26,750 247,006 346,620
Unbilled charges estimated 119,823 119,823 I
192,687 26,750 247,006 466,443
Less: Allowance for uncollectable accounts (2,863) (2,863)
Total receivables, net 189,824 26,750 247,006 463,580
Due from other funds 1,087,539 1,143,773 3,153,239 25,409 5,409,960 I
Inventories, at cost 19,018 19,018
Total current assets - unrestricted 2,862,848 1,443,700 5,019,978 272,615 9,599,141
Current assets - restricted:
Restricted equity in pooled cash 16,817 16,817 'I
Investments 136 136
Total current assets - restricted 16,953 16,953
Total current assets 2,862,848 1,443,700 5,036,931 272,615 9,616,094
Noncurrent assets: I
Restricted:
Investments 9,394 9,394
Due from other funds 7,500,000 7,500,000
Deferred charges 483 483 I
Net pension asset 266,097 178,997 172,476 617,570
Capital assets:
Land and other nondepreciable assets 1,120,656 926,000 2,046,656
Capital assets, net of accumulated depreciation 1 ,503,733 2,239,619 2,219,860 9,303,148 15,266,360
Total noncurrent assets 1,769,830 2,418,616 11,022,869 10,229,148 25,440,463 I
Total assets 4,632,678 3,862,316 16,059,800 10,501,763 35,056,557
LIABILITIES
Current liabilities:
Accounts and contracts payable 16,606 32,063 18,846 197,995 265,510 1
Accrued payroll 20,054 21,859 26,690 68,603
Due to other funds 59,602 59,602
Due to other funds - deficit in pooled cash 71 ,583 71,583
Deposits 20,583 1,963 111,986 134,532 I
Deferred revenue and liens 4,194 4,194
Current portion of long-term liabilities:
Compensated absences 3,574 5,677 3,825 13,076
Revenue bonds 8,274 8,274 I
Notes, loan pool agreement and acquisition contracts 50,910 161 ,433 212,343
Total current liabilities (payable from current assets) 91,144 139,784 225,225 381,564 837,717
Current liabilities (payable from restricted assets):
Accrued interest payable 406 406 I
Current portion of long-term liabilities, revenue bonds 16,547 16,547
Total current liabilities payable from restricted assets 16,953 16,953
Total current liabilities 91,144 139,784 242,178 381,564 854,670
Noncurrent liabilities: j
Compensated absences 32,523 51,663 34,809 118,995
Revenue bonds (net of unamortized discounts and
deferred amount on refunding) 53,773 53,773
Notes, loan pool agreement and acquisition contracts 292,351 265,302 557,653
Advances from other funds 59,602 4,000,000 4,059,602 I
Total non-current liabilities 324,874 111,265 4,353,884 4,790,023
Total liabilities 416,018 251,049 4,596,062 381,564 5,644,693
Net assets:
Invested in capital assets, net of related debt 1,160,472 2,120,415 2,835,670 10,229,148 16,345,705 I
Restricted for:
Revenue bond debt service and sinking fund requirements 9,394 9,394
Employees' pension benefits 266,097 178,997 172,476 617,570
Unrestricted 2,790,091 1,311,855 8,446,198 (108,949) 12,439,195 I
Total net assets $ 4,216,660 $ 3,611,267 $ 11,463,738 $ 10,120,199 $ 29,411 ,864
The notes to the financial statements are an integral part of this statement. I
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City of Clearwater, Florida
I Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Year Ended September 30, 2003
I Recycling Marine & Parking Harborvlew
Utility Aviation System Center Totals
Operating revenues:
I Sales to customers $ 940,935 $ 1,676,543 $ $ $ 2,617,478
Service charges to customers 8,862 182,300 191,162
User charges to customers 1,477,390 79,937 3,788,296 5,345,623
I Rentals 1,236,541 4,525 1,602,708 2,843,774
Total operating revenues 2,427,187 2,993,021 3,975,121 1,602,708 10,998,037
Operating expenses:
I Personal services 831,665 892,777 910,174 2,634,616
Purchases for resale 259,908 1,321,020 842,896 2,423,824
Operating materials and supplies 72,554 118,449 103,427 18,744 313,174
Transportation 252,158 6,222 50,373 5,607 314,360
I Utility service 6,622 141,682 38,283 148,224 334,811
Depreciation 186,000 278,872 226,443 553,930 1,245,245
Interfund administrative charges 441,900 217,660 616,590 8,760 1,284,910
I Other current charges:
Professional fees 3,750 45,288 897,285 742,704 1,689,027
Advertising 8,484 9,926 1,082 8,297 27,789
I Communications 5,698 24,112 12,406 22,780 64,996
Printing and binding 2,251 4,717 2,073 9,041
Insurance 41,380 58,000 32,040 23,555 154,975
Repairs and maintenance 16,873 52,480 20,367 64,798 154,518
I Rentals 852 2,665 170,075 4,180 177,772
Miscellaneous 13,783 47,229 403 16,315 77,730
Data processing charges 29,500 30,540 29,960 23,750 113,750
I Taxes 125 15,813 15,938
Provision for estimated uncollectable accounts 2,314 15,000 17,314
Total other current charges 122,634 272,616 1,168,335 939,265 2,502,850
Total operating expenses 2,173,441 3,249,298 3,113,625 2,517,426 11,053,790
I I Operating income (loss) 253,746 (256,277) 861,496 (914,718) (55,753)
Nonoperating revenues (expenses):
I Eamings on investments 56,354 25,555 306,918 1,674 390,501
Interest expense (523) (5,822) (155,831 ) (162,176)
Amortization of bond discount and issue costs (991 ) (991)
Gain (loss) on exchange of assets (9,708) (9,708)
I Other 131,523 27,677 57,918 217,118
Total nonoperating revenue (expenses) 55,831 151,256 177,773 49,884 434,744
Income (loss) before transfers 309,577 (105,021) 1,039,269 (864,834) 378,991
I Capital grants and contributions 568,196 568,196
Transfers in 625,050 625,050
Transfers out (99,830) (176,590) (119,927) (396,347)
I Changes in net assets 209,747 286,585 919,342 (239,784) 1,175,890
Total net assets - beginning 4,006,913 3,324,682 10,544,396 10,359,983 28,235,974
Total net assets - ending $ 4,216,660 $ 3,611,267 $ 11,463,738 $ 10,120,199 $ 29,411,864
I
I The notes to the financial statements are an integral part of this statement.
I 85
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City of Clearwater, Florida I
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2003 I
Recycling Marine & Parking Harborview
Utility Aviation System Center Totals
CASH FLOWS FROM OPERATING I
ACTIVITIES
Cash received from customers $ 2,434,247 $ 2,994,792 $ 3,976,323 $ 1 ,546,282 $ 10,951,644 I
Cash payments to suppliers (414,555) (1,986,089) (1,165,993) (2,307,682) (5,874,319)
Cash payments to employees (890,933) (907,437) (927,264) (2,725,634)
Cash payments to other funds (741,136) (121,125) (725,381 ) (77 ,380) (1,665,022)
Other revenues 131,523 27,677 57,918 217,118 I
Net cash provided (used) by operating activities 387,623 111,664 1,185,362 (780,862) 903,787
CASH FLOWS FROM NONCAPITAL I
FINANCING ACTIVITIES
Transfers in from other funds 625,050 625,050
Transfers out to other funds (99,830) (176,590) (119,927) (396,347) I
Receipt of cash on loans to/from other funds 71,583 71 ,583
Payment of cash on loans to/from other funds (19,867) (214,301 ) (1,539,073) (25,409) (1,798,650)
Net cash provided (used) by I
noncapital financing activities (119,697) (390,891 ) (1,659,000) 671,224 (1,498,364)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES I
Principal payments on debt (3,637) (160,618) (164,255)
Interest paid (523) (5,822) (155,950) (162,295)
Acquisition of fixed assets (507,702) (521,447) (14,173) (1,043,322) I
Proceeds from issuance of debt 333,456 333,456
Capital contributed by other governmental entities 562,796 562,796
Net cash provided (used) by capital and I
related financing activities (178,406) 35,527 (330,741) (473,620)
CASH FLOWS FROM INVESTING
ACTIVITIES I
Interest on investments 56,354 25,555 306,918 1,674 390,501
Net cash provided by investing activities 56,354 25,555 306,918 1,674 390,501
Net increase (decrease) in cash and cash equivalents 145,874 (218,145) (497,461 ) (107,964) (677,696) I
Cash and cash equivalents at beginning of year 1,439,611 472,304 2,380,573 108,164 4,400,652 I
Cash and cash equivalents at end of year $ 1,585,485 $ 254,159 $ 1,883,112 $ 200 $ 3,722,956
Cash and cash equivalents classified as: I
Cash on hand and in banks $ $ 817 $ 22,050 $ 200 $ 23,067
Equity in pooled cash and investments 1 ,585,485 253,342 1,844,689 3,683,516 I
Restricted equity in pooled cash and investments 16,373 16,373
Total cash and cash equivalents $ 1 ,585,485 $ 254,159 $ 1 ,883,112 $ 200 $ 3,722,956
I
The notes to the financial statements are an integral part of this statement. I
86
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City of Clearwater, Florida
I Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2003
I Recycling Marine & Parking Harborview
Utility Aviation System Center Totals
I
I Reconciliation of operating Income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 253,746 $ (256,277) $ 861 ,496 $ (914,718) $ (55,753)
I Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
I Other revenue from nonoperating
section of income statement 131,523 27,677 57,918 217,118
Depreciation 186,000 278,872 226,443 553,930 1,245,245
I Non-cash land rental expense 103,498 103,498
Provision for uncollectible accounts (917) (917)
Change in assets and liabilities:
I Decrease (Increase) in accounts receivable 10,291 (50,749) (40,458)
Decrease in inventory 7,390 7,390
(Decrease) in accounts and contracts payable (2,229) (36,954) (17,864) (421,566) (478,613)
Increase (decrease) in deposits 1,770 (100) 6,823 8,493
I Increase (decrease) in deferred revenue 1,302 (12,500) (11,198)
(Increase) in net pension asset (44,743) (32,022) (29,390) (106,155)
Increase (decrease) in accrued payroll (14,525) 17,362 12,300 15,137
I Total adjustments 133,877 367,941 323,866 133,856 959,540
Net cash provided (used) by operating activities $ 387,623 $ 111 ,664 $ 1,185,362 $ (780,862) $ 903,787
I
Noncash Investing, capital and financing activities:
I Loss on exchange of assets $ $ $ $ (9,708) $ (9,708)
Asset contributions from general government $ $ 5,400 $ $ $ 5,400
Amortization of bond issue costs $ $ $ (257) $ $ (257)
I Amortization of discount on bond issuance $ $ $ (728) $ $ (728)
Amortization of deferred loss on defeasance of debt $ $ $ (965) $ $ (965)
Increase in net pension asset $ 44,743 $ 32,022 $ 29,390 $ $ 106,155
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Internal Service Funds
Internal service funds are used to account for services and commodities furnished by a designated
department to other departments within the City or to other governments on a cost reimbursement basis.
Garage Fund - to account for the cost of automotive and other motorized equipment of the City. The
acquisition cost of new or upgraded equipment is financed through user departments and the asset value is
simultaneously contributed to the Garage Fund. The cost of replacement of existing equipment is financed by
the Garage Fund.
Administrative Services Fund - to account for various support activities including information technology,
printing, mailing, and telephone services. The cost for these services is charged to user departments based
on the cost of providing units of service.
General Services Fund - to account for various support activities including building maintenance and custodial
services for all City departments and facilities. The cost for these services is charged to user departments
based on the cost of providing units of service.
Central Insurance Fund - to account for the City's limited self-insurance program wherein all funds are
assessed charges based on damage claims incurred and on management's assessment of individual funds'
risk exposure. All claims and premiums are paid out of this fund, together with other costs necessary to
administer the program. Medical insurance premiums are also paid from this fund.
89
I
City of Clearwater, Florida
Combining Statement of Net Assets I
Internal Service Funds
September 30, 2003
Garage Administrative General Central I
Fund Services Services Insurance Totai
ASSETS I
Current assets:
Cash on hand and in banks $ $ 1,900 $ $ $ 1,900 I
Equity in pooled cash and investments 4,081,388 1 ,243,155 491,704 21,505,812 27,322,059
Due from other funds 1,050,696 194,980 650,127 1,895,803
Inventories, at cost 220,491 220,491 I
Prepaid expenses and other assets 618,058 618,058
Total current assets 4,301,879 2,295,751 686,684 22,773,997 30,058,311
Noncurrent assets: I'
interest receivable 5,793 5,793
Advances to other funds 4,012,876 4,012,876
Net pension asset 566,548 1,050,405 376,608 99,331 2,092,892
Capital assets: I
Land and other nondepreciable assets 696,681 696,681
Capital assets, net of accumulated depreciation 13,868,106 2,583,256 141,688 34,554 16,627,604
Total noncurrent assets 15,137,128 3,633,661 518,296 4,146,761 23,435,846 I
Total assets 19,439,007 5,929,412 1,204,980 26,920,758 53,494,157
LIABILITIES
Current liabilities: I
Accounts' and contracts payable 5,000 6,250 5,000 233,845 250,095
Accrued payroll 47,709 86,856 32,730 9,413 176,708
Due to other funds 2,088 362,724 364,812 I
Deferred revenue 1,212,306 1,212,306
Current portion of long-term liabilities:
Compensated absences 10,105 29,146 7,531 2,817 49,599 I
Notes, loan pool agreement and acquisition contracts 2,446,495 252,692 4,759 2,703,946
Claims payable 3,678,100 3,678,100
Total current liabilities (payable from current assets) 3,723,703 737,668 50,020 3,924,175 8,435,566
Noncurrent liabilities: I
Compensated absences 91,968 265,263 68,541 25,635 451,407
Notes, loan pool agreement and acquisition contracts 5,388,354 322,945 16,413 5,727,712 I
Advances from other funds 824,882 824,882
Claims payable 9,278,382 9,278,382
Total noncurrent liabilities 5,480,322 1,413,090 84,954 9,304,017 16,282,383 I
Total liabilities 9,204,025 2,150,758 134,974 13,228,192 24,717,949
NET ASSETS I
Invested in capital assets, net of related debt 6,729,938 2,007,619 120,516 34,554 8,892,627
Restricted for employees' pension benefits 566,548 1,050,405 376,608 99,331 2,092,892
Unrestricted 2,938,496 720,630 572,882 13,558,681 17,790,689
Total net assets $ 10,234,982 $ 3,778,654 $ 1,070,006 $ 13,692,566 $ 28,776,208 I
I
The notes to the financial statements are an integral part of this statement.
90 I
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II
I City of Clearwater, Florida
I Combining Statement of Revenue, Expenses, and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended September 30, 2003
I Garage Administrative General Central
Fund Services Services Insurance Total
I Operating revenues
Billings to departments $ 8,633,526 $ 8,025,826 $ 2,994,265 $ 13,071 ,556 $ 32,725,173
Operating expenses:
I Personal services 1,791,982 3,576,373 1 ,465,770 390,953 7,225,078
Purchases for resale 2,025,601 2,025,601
Operating materials and supplies 280,350 196,452 229,328 4,170 710,300
I Transportation 7,200 83,403 80,611 4,571 175,785
Utility service 86,946 4,887 348,307 440,140
Depreciation 3,087,902 537,343 12,551 6,569 3,644,365
Interfund administrative charges 174,810 50,780 225,590
I Other current charges:
Professional fees 292,539 147,085 17,000 72,632 529,256
Advertising 100 100
Communications 25,335 1,222,636 43,453 14,212 1,305,636
,I Printing and binding 246 49,216 49,462
Insurance
Premiums 283,980 61 ,340 39,130 10,378,941 10,763,391
I Claims incurred 629,014 3,528,861 4,157,875
Repairs and maintenance 570,668 906,459 9,435 1 ,486,562
Rentals 2,776 303,709 10,358 1,934 318,777
I Miscellaneous 32,950 100,142 30,918 29,332 193,342
Data processing charges 128,360 264,720 43,940 18,830 455,850
Taxes 5,707 5,707
Total other current charges 1,400,907 2,719,516 1,091,258 14,054,277 19,265,958
I Total operating expenses 8,855,698 7,168,754 3,227,825 14,460,540 33,712,817
Operating income (loss) (222,172) 857,072 (233,560) (1,388,984) (987,644)
I Nonoperating revenues (expenses)
Earnings on investments 84,347 46,848 23,396 690,461 845,052
Interest expense (270,346) (43,184) (634) (314,164)
I Gain (loss) on exchange of assets 234,329 (150,671 ) (4,080) 79,578
Other 231,132 7,467 238,599
Total nonoperating revenue (expenses) 279,462 (139,540) 18,682 690,461 849,065
I Income (loss) before transfers 57,290 717,532 (214,878) (698,523) (138,579)
Capital grants and contributions 7,722 60,000 67,722
Transfers in 549,577 238,477 788,054
557,299 60,000 238,477 855,776
I Change in net assets 614,589 777,532 (214,878) (460,046) 717,197
Total net assets - beginning 9,620,393 3,001 ,122 1,284,884 14,152,612 28,059,011
I Total net assets - ending $ 10,234,982 $ 3,778,654 $ 1,070,006 $ 13,692,566 $ 28,776,208
I
I 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 I
Internal Service Funds
For the Year Ended September 30, 2003
I
Garage Administrative General Central
Fund Services Services Insurance Total I
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from other funds $ 8,633,526 $ 8,025,826 $ 2,994,265 $ 13,071 ,556 $ 32,725,173
Cash payments to suppliers (3,924,369) (2,389,993) (1,515,825) (11,489,n9) (19,319,966) I
Cash payments to employees (1,8n.375) (3,722,861) (1,518,245) (406,243) (7,524,724)
Cash payments to other funds (198,807) (691,897) (229,019) (44,511 ) (1,164,234)
Other revenues 231,132 7,467 238,599 1
Net cash provided (used) by operating activities 2,864,107 1,228,542 (268,824) 1,131,023 4,954,848
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES 'I
Transfers in from other funds 549,5n 60,000 238,4n 848,054
Receipt of cash on loans to/from other funds 181,614 109,587 1,083,465 1,374,666
Payment of cash on loans to/from other funds (138,839) (1,361,488) (1,500,327) I
Net cash provided (used) by
noncapital financing activities 731,191 (78,839) 109,587 (39,546) 722,393
CASH FLOWS FROM CAPITAL AND I
RELATED FINANCING ACTIVITIES
Principal payments on debt (2,379,382) (241,910) {2,621 ,292)
Interest paid (270,346) (43,184) (634) (314,164) I
Acquisition of fixed assets (3,684,198) (712,On) (21,824) (4,418,099)
Sale of fixed assets 242,462 242,462
Proceeds from issuance of debt 2,618,833 112,905 (4,510) 2,727,228 I
Net cash (used) by capital and
related financing activities (3,472,631 ) (884,266) (26,968) (4,383,865)
CASH FLOWS FROM INVESTING I
ACTIVITIES
Interest on investments 84,347 46,848 23,396 690,461 845,052
Net cash provided by investing activities 84,347 46,848 23,396 690,461 845,052
Net increase (decrease) in cash and cash equivalents 207,014 312,285 (162,809) 1,781,938 2,138,428 I
Cash and cash equivalents at beginning of year 3,874,374 932,nO 654,513 19,723,874 25,185,531
Cash and cash equivalents at end of year $ 4,081,388 $ 1,245,055 $ 491,704 $ 21,505,812 $ 27,323,959 I
Cash and cash equivalents classified as: I
Cash on hand and in banks $ $ 1,900 $ $ $ 1,900
Equity in pooled cash and investments 4,081,388 1,243,155 491,704 21,505,812 27,322,059
Total cash and cash equivalents $ 4,081,388 $ 1,245,055 $ 491,704 $ 21,505,812 $ 27,323,959 1
I
The notes to the financial statements are an integral part of this statement. I
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City of Clearwater, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2003
Garage Administrative General Central
Fund Services Services Insurance Total
Reconciliation of operating Income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ (222,172) $ 857,072 $ (233,560) $ (1,388,984) $ (987,644)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Other revenue from nonoperating
section of income statement 231,132 7,467 238,599
Depreciation 3,087,902 537,343 12,551 6,569 3,644,365
Change in assets and liabilities:
(Increase) in inventory (34,916) (34,916)
Decrease in prepaid expenses 921,027 921 ,027
Increase (decrease) in accounts and contracts payable (112,446) (26,852) 4,660 1,607,701 1,473,063
(Increase) in net pension asset (91 ,240) (183,358) (61,849) (19,739) (356,186)
Increase in accrued payroll 5,847 36,870 9,374 4,449 56,540
Total adjustments 3,086,279 371,470 (35,264) 2,520,007 5,942,492
Net cash provided (used) by operating activities $ 2,864,107 $ 1 ,228,542 $ (268,824) $ 1,131,023 $ 4,954,848
Noncash Investing, capital and financing activities:
Gain (loss) on exchange of assets $ 234,329 $ (143,681 ) $ (4,080) $ $ 86,568
Asset contributions from general government $ 7,722 $ $ $ $ 7,722
Asset contributions to general government $ $ (6,990) $ $ $ (6,990)
Contributed assets per radio lease agreement $ 1 ,101 ,825 $ $ $ $ 1,101,825
Increase in net pension asset $ 91 ,240 183,358 $ 61,850 $ 19,738 $ 356,186
The notes to the financial statements are an integral part of this statement.
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Fiduciary Funds
Fiduciary Funds are used to account for resources that are managed in a trustee capacity or as an agent for
other parties or funds.
Employees' Pension Fund - to account for the financial operation and condition of the major employee
retirement system.
Firemen's Relief and Pension Fund - to account for the financial operation and condition of the Firemen's
Relief and Pension Fund, closed to new members in 1962, containing 48 retired members and no active
members.
Police Supplemental Pension Fund - to account for the financial operation and condition of a supplemental
pension plan funded by the State for sworn police officers.
Firefighters Supplemental Pension Fund - to account for the financial operation and condition of a
supplemental pension plan funded by the State for firefighters.
Treasurer's Escrow Agency Fund - to account for the receipt, custody, and expenditure of funds held
temporarily in trust for other parties.
95
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City of Clearwater, Florida
Combining Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2003
I
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Defined Benefit Defined Contribution
Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firemen's Supplemental Supplemental Totals
ASSETS
Cash on hand and in banks $ $ $ 18,084 $ $ 18,084
Equity in pooled cash and investments 3,837,486 5,112,002 8,949,488
Managed investment accounts, at fair value 433,005,555 9,881,078 8,257,623 451,144,256
Securities lending collateral 27,627,316 27,627,316
Receivables:
Interest and dividends 610,037 55,956 29,316 695,309
Securities lending eamings 4,312 4,312
Due from others 86,986 86,986
Total receivables 614,349 55,956 116,302 786,607
Total assets 465,084,706 5,112,002 9,955,118 8,373,925 488,525,751
LIABILITIES
Accounts payable 424,038 9,793 433,831
Obligations under securities lending 27,627,316 27,627,316
Total liabilities 28,051,354 9,793 28,061,147
NET ASSETS
Net assets held in trust for pension benefits $ 437,033,352 $ 5,112,002 $ 9,955,118 $ 8,364,132 $ 460,464,604
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The notes to the financial statements are an integral part of this statement
96
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I City of Clearwater, Florida
Combining Statement of Changes In Fiduciary Net Assets
Fiduciary Funds
For the Year Ended September 30, 2003
I
Defined Benefit Defined Contribution
I Pension Trust Funds Pension Trust Funds
Police Firefighters
Employees' Firemen's Supplemental Supplemental Totals
ADDITIONS
I Contributions:
Contributions from employer $ 4,649,642 $ 1,211,210 $ $ $ 5,860,852
Contributions from employees 5,310,610 5,310,610
I State of Florida 12,000 809,271 644,669 1,465,940
Total contributions 9,972,252 1,211,210 809,271 644,669 12,637,402
I Investment income:
Net appreciation (depreciation) in
fair value of investments 54,909,213 (19,256) 1,028,264 900,161 56,818,382
I Interest 6,246,339 1n ,933 193,374 148,345 6,765,991
Dividends 1,739,962 83,265 58,244 1,881,471
62,895,514 158,6n 1,304,903 1,106,750 65,465,844
Less investment expenses:
I Investment management I custodian fees 1,735,590 72,409 71,514 1,879,513
Net income from investing activities 61,159,924 158,6n 1,232,494 1,035,236 63,586,331
I Securities lending income:
Gross earnings 115,269 115,269
1 Rebate paid (78,898) (78,898)
Bank fee (12,729) (12,729)
Net Income from securities lending 23,642 23,642
I Total additions 71,155,818 1 ,369,887 2,041,765 1,679,905 76,247,375
DEDUCTIONS
I Benefits and withdrawal payments:
Benefits 13,419,237 930,315 1,446,748 1 ,852,694 17,648,994
I Withdrawal payments 581,818 581,818
Total benefits and withdrawal payments 14,001,055 930,315 1,446,748 1,852,694 18,230,812
Income (loss) before administrative expenses 57,154,763 439,572 595,017 (172,789) 58,016,563
I Administrative expenses 136,861 5,205 37,980 18,010 198,056
I Net Increase (decrease) 57,017,902 434,367 557,037 (190,799) 57,818,507
Net assets held In trust for pension benefits:
I Beginning of year 380,015,450 4,677,635 9,398,081 8,554,931 402,646,097
I' End of year $ 437,033,352 $ 5,112,002 $ 9,955,118 $ 8,364,132 $ 460,464,604
The notes to the financial statements are an integral part of this statement.
I 97
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I
City of Clearwater, Florida
Statement of Changes In Assets and Liabilities
Agency Fund
For the Year Ended September 30,2003
I
Balance
October 1,
2002
Additions
Deductions
Balance
September 30,
2003
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TREASURER'S ESCROW FUND
I
ASSETS
Equity in pooled cash and investments $ 284,162 176,679 241,065 $ 219,776
UABIUTIES
Deposits:
Property owners $ 21,944 $ 21,944
Developers 115,558 104,850 10,708
Other miscellaneous payables:
Special purpose funds 7,922 163 526 7,559
Other 138,738 176,516 135,689 179,565
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Total Liabilities
$
284,162
176,679
241,065 $
219,776
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The notes to the financial statements are an integral part of this statement.
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Capital Assets
Used in the Operation
of Governmental Funds
99
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City of Clearwater, Florida
Capital Assets Used In the Operation of Governmental Funds
Comparative Schedules by Source 1
September 30, 2003 and 2002
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2003
2002
Schedule of General Fixed Assets:
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Land $ 43,593,863 $ 39,914,725
Buildings 49,498,895 37,933,951
Improvements other than buildings 54,078,550 52,455,386
Equipment 35,917,695 33,070,403
Infrastructure 2,225,540 1,076,247
Construction in progress 30,440,628 11,550,775
$ 215,755,171 $ 176,001,487
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Sources of Investments In General Fixed Assets:
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General fund revenue $ 141,237,902 $ 124,200,861
General obligation bonds 6,297,870 6,297,870
Revenue bonds 31,705,092 13,111 ,869
Notes, mortgages, and other obligations 3,057,044 4,910,150
Special assessments 2,012,192 2,012,192
Federal and state grants 15,639,257 10,435,417
Gifts 7,187,208 6,414,522
Contributions from developers 7,539,144 7,539,144
Undetermined investments prior to July 1, 1954 1,079,462 1,079,462
$ 215,755,171 $ 176,001,487
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I This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets
reported in internal service funds are excluded from the above amounts.
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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 I
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity 1 I
September 30, 2003
Improvements Machinery I
Other Than and
Function and Activity Total Land Buildings Buildings Equipment Infrastructure
Fixed Assets Unallocated by Function $ 18,144,222 $ 9,958,088 $ 7,938,114 $ $ 248,020 $ ,I
General Government:
Legislative 3,531 3,531 I
Executive 457,680 1,528 456,152
Financial & Administrative 935,649 9,679 925,970
Legal 159,010 2,106 156,904
Planning 6,285 6,285 I
Comprehensive Planning 12,417 12,417
Other General Govemment 25,809,530 6,404,795 16,169,786 131,761 3,103,188
27,384,102 6,404,795 16,183,099 131,761 4,664,447
Public Safety: I
Law Enforcement 9,976,073 639,194 440,831 200,256 8,695,792
Fire Control 8,406,083 483,299 1,820,020 66,294 6,036,470
Protective Inspections 213,997 11 ,432 202,565
Emergency and Disaster Relief 403,868 88,482 315,386
Ambulance and Rescue Services 1,369,053 12,254 1,356,799 I
20,369,074 1 ,122,493 2,373,019 266,550 16,607,012
Physical Environment:
Solid Waste I Recycling 21,565 21,565
Conservation and Resource Management 90,541 76,210 14,331 I
Other Physical Environment 430,119 2,855 340,686 86,578
542,225 2,855 416,896 122,474
Transportation:
Road and Street Facilities 58,780,982 9,944,467 4,311,791 41,610,589 689,335 2,224,800 I
Parking 35,988 35,988
Other Transportation Services 528,111 1,200 171 ,262 148,000 206,909 740
59,345,081 9,981,655 4,483,053 41,758,589 896,244 2,225,540
Economic Environment: I
Industry Development 1 ,428,826 1,396,655 16,901 15,270
Housing and Urban Development 698,747 329.835 293.682 75.230
Other Economic Environment 71,093 71,093
2,198,666 1,797,583 310,583 90,500
Human Services: I
Other Human Services 23,377 23,377
Culture and Recreation:
Libraries 14,983,680 158,058 1,958,327 133,859 12,733,436 I
Parks & Recreation 36,537,273 10,120,317 15,574,159 10,364,760 478,037
Cultural Centers 28,508 993 27,515
Special Recreation Facilities 5,758,335 4,048,019 677 ,548 1,006,135 26,633
57,307,796 14,326,394 18,211,027 11,504,754 13,265,621 .1
Total Allocated to Functions 185,314,543 $ 43,593,863 $ 49,498,895 $ 54,078,550 $ 35,917,695 $ 2,225,540
Construction in Progress 30,440,628
Total General Fixed Assets $ 215,755,171 I
I This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service I
funds are excluded from the above amounts.
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The notes to the financial statements are an integral part of this statement.
102 I
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City of Clearwater, Florida
I Capital Assets Used In the Operation of Governmental Funds
Schedule of Changes by Function and Activity 1
For the Year Ended September 30, 2003
I
General General
I Fixed Assets Fixed Assets
10/01/02 Additions Deductions 09/30/03
Fixed Assets Un allocated by Function $ 18,144,222 $ 18,144,222
I General Government:
Legislative 3,531 3,531
Executive 481,500 7,078 (30,898) 457,680
Financial & Administrative 935,649 935,649
I Legal 144,794 14,216 159,010
Planning 6,285 6,285
Comprehensive Planning 4,165 8,252 12,417
Other General Government 25,556,599 268,370 (15,439) 25,809,530
I 27,132,523 297,916 (46,337) 27,384,102
Public Safety:
Law Enforcement 8,565,028 1,n2,846 (361,800) 9,976,074
Fire Control 4,956,823 3,449,259 8,406,082
I Protective Inspections 180,565 33,432 213,997
Emergency and Disaster Relief 403,868 403,868
Ambulance and Rescue Services 1,359,806 18,242 (8,995) 1,369,053
15,466,090 5,273, n9 (370,795) 20,369,074
I Physical Environment:
Solid Waste / Recycling 15,940 5,625 21 ,565
Conservation and Resource Management 90,541 90,541
Other Physical Environment 394,908 35,211 430,119
I 501,389 40,836 542,225
Transportation:
Road and Street Facilities 57,074,460 1,859,203 (152,681 ) 58,780,982
Parking 35,988 35,988
Other Transportation Services 502,091 51,474 (25,454) 528,111
I 57,612,539 1,910,6n (178,135) 59,345,081
Economic Environment:
Industry Development 1,428,826 1,428,826
Housing and Urban Development 698,747 698,747
I Other Economic Environment 33,125 37,968 71,093
2,160,698 37,968 2,198,666
Human Services:
Other Human Services 23,377 23,3n
I Culture and Recreation:
Libraries 13,556,327 1,822,432 (395,079) 14,983,680
Parks & Recreation 24,174,314 12,540,107 (177,148) 36,537,273
Cultural Centers 28,508 28,508
I Special Recreation Facilities 5,650,725 107,610 5,758,335
43,409,874 14,470,149 (572,227) 57,307,796
Total Allocated to Functions 164,450,712 22,031,325 (1,167,494) 185,314,543
I Construction in Progress 11,550,n5 25,031,143 (6,141 ,290) 30,440,628
Total General Fixed Assets $ 176,001,487 47,062,468 (7,308,784) $ 215,755,171
I I This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets
reported in internal service funds are excluded from the above amounts.
I
The notes to the financial statements are an integral part of this statement.
I 103
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I Supplementary
I Information
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Page 1 of 4
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 1996A, 1997 A&B, and 1998
Supplementary Information
The System:
Rates, Fees and Charges
The City Commission 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 Commission has authorized the City Manger 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, 2003, contract rates applied to 737 customer accounts and impacted 30.28% of total
revenues.
The rates charged by the System through September 30, 1996, were part of the Phase I Gas Rate Case
implemented October 1, 1995, which was based on a comprehensive cost of service study performed by
the Utility Advisory Services Group of the international accounting firm of Coopers & Lybrand, LLP (the
"Rate Study"). This Phase I implementation resulted in an extensive overhaul of the Gas System
customer rates, providing numerous classes of service and a modernized billing methodology.
The new rates, effective October 1, 1996, were designed to be industry-based and responsive to the
competitive energy challenges. The goal of the Rate Study was to establish rates which would be fair to
all classes of customers, provide funding to implement planned expansion in both existing northern
Pine lias 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 III) were
implemented effective October 1, 1997. The total projected impact of both new phases of the rate case is
$1.05 million or less than 7.9% of total gas sales revenues.
The rate ordinance containing the Phase II and Phase III rate changes was approved by the City
Commission on June 6, 1996.
106
--41
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I
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 1996A, 1997 A&B, and 1998
Supplementary Information
Page 2 of 4
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P.age 3 of 4
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 1996A, 1997A&B, and 1998
Supplementary Information
Service Area
The Clearwater Gas System (CGS) is owned and operated as an enterprise utility by the City of
Clearwater. CGS operates over 685 miles of underground gas main and handles the supply and
distribution of both natural and propane (LP) gas throughout northern Pinellas County and western Pasco
County. As a "full service" gas utility, CGS provides gas appliance sales, service and repair (both
commercial and residential), installation of customer gas piping, construction and maintenance of
underground gas mains and service lines, and 24 hour response to any gas emergency call within the
service area. CGS is regulated for safety by the Florida Public Service Commission and the Federal
Department of Transportation.
CGS has been serving customers in the Clearwater area for over 80 years (since 1923) when operations
were begun with a manufactured gas plant operation from coal and coke. In 1959, when natural gas
transmission lines were finally extended to the Florida peninsula, CGS discontinued manufacturing gas
and began receiving piped natural gas from Florida Gas Transmission.
Clearwater Gas System serves over 17,275 customers in a 298 square mile service territory, which
includes 17 municipalities as well as the unincorporated areas of northern Pinellas County and western
Pasco County. The Pinel/as County service territory is 181 square miles and extends general/y from
Ulmerton and Walsingham Roads on the South to the Pasco County line on the North and from the Gulf of
Mexico on the West to the Hillsborough County line on the East. This includes aI/ of the Pinel/as beach
communities south to Redington Beach. The Pasco County service territory is 117 square miles and
extends from the Gulf of Mexico on the West inland about 10 miles to just West of State Road 41 and Land
0' Lakes (generally along the right-of-way of the Suncoast Parkway) 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 southernmost to the northernmost points.
Clearwater Gas System prides itself in being a competitive and public service-minded utility, providing
safe, economical and environmentally-friendly gas, which is made in America, available in our communities
for all of the homes and businesses in our service area, with special focus on the residential customers
who make up over 87.5% of our customer base.
108
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Page 4 of 4
City of Clearwater, Florida
Continuing Disclosure - Gas System Revenue Bonds
Series 1996A, 1997 A&B, And 1998
Supplementary Information
As of September 30, 2003 the System's active natural gas customers were located as shown in the
following table:
Location
Meters
355
112
20
19
6,996
1,012
62
43
1,015
194
10
53
11
5
10
600
1,298
1,258
2,556
15,629
Belleair
Belleair Beach
Belleair Bluffs
Belleair Shores
Clearwater
Dunedin
Indian Rocks Beach
Indian Shores
Largo
New Port Richey
North Redington Beach
Oldsmar
Port Richey
Redington Beach
Redington Shores
Safety Harbor
Tarpon Springs
Unincorporated Areas Pasco
Unincorporated Areas Pinellas
Total
Percentage
2.27%
0.72%
0.13%
0.12%
44.76%
6.48%
0.40%
0.28%
6.49%
1.24%
0.06%
0.34%
0.07%
0.03%
0.06%
3.84%
8.31%
8.05%
16.35%
100.00%
The following table shows the five largest interruptible customers by peak monthly consumption anc
the percent of the System's revenues derived from such customers during the 12 months endin~
September 30, 2003:
Customer Name
Morton Plant Hospital
National Linen Services, Inc.
Metal Industries, Inc.
Mease Hospital
HCA Columbia Hospital
Peak Monthly
Therms
96,447
88,834
74,484
61,333
25,868
% of Gross
Revenues
2.05%
2.00%
1.74%
1.17%
0.92%
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 fiscal year ended September 30
2003:
Average No. Gas Gas
Customers Volume Sales
Interruptible 14 21.03% 10.79%
Residential 13,530 16.60% 25.27%
Commercial 2,085 62.37% 63.94%
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Page 1 of 3
Total
14.680
15.164
14.575
14.327
13.997
12.843
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City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 1993 and 1998; and Revenue Bonds Series 2002
Supplementary Information
Water System:
FY
1998
1999
2000
2001
2002
2003
Historical Financial Information
Source and Volume of Water Pumped
(in million gallons per day, averaged over the Fiscal Year)
Citv Wells Countv
3.140 11 .540
3.070 12.094
3.047 11.528
3.067 11.260
2.258 11.739
3.927 8.916
Historical Growth in Number of Water Customers
(all figures are as of September of the year indicated)
Year Water Customers
1998
1999
2000
2001
2002
2003
38,440
39,931
39,562
40,167
40,340
40,227
Ten Largest Water Customers
Fiscal Year Ending September 30,2003
Water Used
(in 100 Cubic Feet)
98,532
77,932
46,516
53,120
50,853
38,437
34,038
38,312
16,328
22.783
Name of User
1. Church of Scientology
2. Morton Plant Mease Hospital
3. Pinellas County Schools
4. Clearwater Housing Authority
5. United Dominion Realty Trust
6. Sheraton Sand Key
7. 880 Mandalay
8. AGH Leasing UP
9. City of Clearwater
10. Countryside Mall
Total
476.851
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Revenues
Produced
$ 286,028
269,031
250,442
158,058
131,561
104,322
99,174
98,034
88,672
84.166
S; 1.569.488
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Page 2 of 3
City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 1993 and 1998; and Revenue Bonds Series 2002
Supplementary Information
Sewer System:
Average Sewage Flow
Fiscal Annual Ave. Daily
Year Flow In MGD
1998 17.9
1999 16.5
2000 15.4
2001 14.4
2002 14.3
2003 16.2
Historical Growth in Number of Sewer Customers
(as of September of the year indicated)
Fiscal Sewer
Year Customers
1998
1999
2000
2001
2002
2003
Ten Largest Sewer Customers
Fiscal Year Ending September 30, 2003
Sewer Used
(in 100 Cubic Feet)
74,599
41,981
83,790
50,853
44,739
38,312
33,360
32,376
28,737
22.783
Name of User
1. Morton Plant Mease Hospital
2. Pinellas County Schools
3. Church of Scientology
4. United Dominion Realty Trust
5. Clearwater Housing Authority
6. AGH Leasing UP
7. Sheraton Sand Key
8. 880 Mandalay
9. King's Savannah Trace Assoc., UP
10. Lane Clearwater UP
Total
451 530
33,174
33,383
33,075
32,933
33,215
33,215
Revenues
Produced
$ 284,350
276,207
271,005
160,919
139,130
119,075
106,897
100,610
89,372
76.328
$1 623 893
Rates. Fees And CharQes
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 100 cubic feet 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 100 cubic feet of
water usage up to a designated level and a higher charge for usage over that amount. The sewer
base rate includes a minimum usage and a fixed charge per 100 cubic feet 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 2003 there were no changes to the three-tiered rate structure for water or
sewer usage. Effective October 1, 2000 the basis for billing was converted from cubic feet to
gallons.
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City of Clearwater, Florida
Continuing Disclosure - Water and Sewer Refunding Revenue Bonds
Series 1993 and 1998; and Revenue Bonds Series 2002
Supplementary Information
Residential and October 1 , October 1 , October 1, October 1, October 1,
Nonresidential Water Rates 1999 2000 2001 2002 2003
Size of Meter Cubic Feet Gallons
Minimum- Under 1 inch 7.08 7.53 8.07 8.64 9.90
1 inch 15.93 17.57 18.83 20.16 23.10
1.5 inch 237.39 251.00 269.00 288.00 330.00
2 inch 550.47 584.83 626.77 671.04 768.90
3 or 2 inch manifold 849.60 901.09 965.71 1 ,033.92 1,184.70
4 inch 1,635.48 1,734.41 1,858.79 1,990.08 2,280.30
6 inch 4,200.21 4,455.25 4,774.75 5,112.00 5,857.50
8 inch 7,080.00 7,530.00 8,070.00 8,640.00 9,900.00
Additional charges are assessed for cubic feet of usage in excess of designated minimums.
Rates for Irriaation (Lawn) Meters October 1 , October 1 , October 1 . October 1 , October 1,
1999 2000 2001 2002 ~
Size of Meter Cubic Feet Gallons
Minimum- Under 1 inch 2.52 2.69 2.88 3.08 3.53
1 inch 7.57 8.07 8.64 9.24 10.59
1.5 inch 37.85 40.35 43.20 46.20 52.95
2 inch 105.99 112.99 120.96 129.36 148.26
3 or 2 inch manifold 209.45 223.27 239.04 255.64 292.99
4 inch 403.76 430.41 460.80 492.80 564..80
6 inch 1,218.85 1,299.29 1,391.04 1,487.64 1,704.99
Sewer Rates October 1 , October 1 , October 1, October 1, October 1 .
1999 2000 2001 2002 2003
Size of Meter Cubic Feet Gallons
Minimum- Under 1 inch 9.72 10.38 11.10 11.88 13.62
1 inch 21.87 24.22 25.90 27.72 31.78
1.5 inch 325.62 346.00 370.00 396.00 454.00
2 inch 755.73 806.18 862.10 922.68 1,057.82
3 or 2 inch manifold 1,166.40 1,242.14 1 ,328.30 1,421.64 1,629.86
4 inch 2,245.32 2,239.86 2,556.70 2,736.36 3,137.14
6 inch 5,766.39 6,141.50 6,567.50 7,029.00 8,058.50
8 inch 9,720.00 10,380.00 11,100.00 11,880.00 13,620.00
Per 100 cubic feet of water used over 2.43 3.46 3.70 3.96 4.54
that allowed in minimum
Additional Indebtedness
Additional indebtedness incurred of $97,555 was for the lease purchase of capital equipment.
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City of Clearwater, Florida
Continuing Disclosure - Stormwater System Revenue Bonds
Series 1999 and 2002
Supplementary Information
Rates. Fees. and CharQes
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. The monthly rates at
inception and as adopted in 1998 and 2001 are:
Effective Date
January 1, 1991
October 1, 1998
October 1, 1999
October 1 , 2000
October 1, 2001
January 1, 2002
October 1 , 2002
October 1, 2003
October 1 , 2004
October 1 , 2005
Rate Per ERU
$3.00
$4.00
$4.17
$4.35
$4.54
$6.13
$7.16
$8.01
$8.65
$9.35
Single-family homes, multifamily units, condominium units, apartments and mobile homes are
rated as one ERU per dwelling unit. Nonresidential property is charged at the rate of 1,830
square feet of impervious area per ERU.
HISTORICAL NET REVENUES
Fiscal Years Ended Seotember 30.
1999 2000 2001 2002 2003
Net Operating Revenues (Excluding
Depreciation) $1,361,656 $1,622,157 $1 .433,541 $2,793,204 $3,726,983
Interest Income and other Non-
Operating Revenues (Expenses) 46,209 132,921 281,471 95,305 206,202
Total Net Revenues $1,407,865 $1,755,078 $1,715,012 $2,888,509 $3,933,185
Maximum Annual Debt Service $520,974 $520,974 $520,974 $2,052,538 $2,052,538
Coverage 2.71 3.37 3.29 1.41 1.92
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City of Clearwater, Florida
Continuing Disclosure - Infrastructure Sales Tax
Revenue Bonds, Series 2001
Supplementary Information
Historical Debt Service Coveraae
2001
2002
2003
Sales tax revenues (1)
$8,339,694
$8,457,553 $8,661,615
Debt service coverage
1.18
1.19
1.23
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Maximum annual debt service $7,083,688
$7,083,688 $7,049,688
(1) The Infrastructure Sales Tax Revenue Bonds, Series 2001, were issued June 1, 2001 in the amount of
$46,445,000. They are secured by a lien upon and a pledge of the City's share of the proceeds derived by
Pinellas County, Florida from the levy and collection of the one-cent discretionary infrastructure sales tax
pursuant to Section 212.055(2), Florida Statutes, as amended (sales tax revenues).
City of Clearwater, Florida
Continuing Disclosure -Improvement Revenue
Refunding Bonds, Series 2001
Supplementary Information
Historical Debt Service Coveraae
Debt service coverage
17.87
21.08
20.09
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2001
2002
2003
Pledged Revenues (1)
$ 15,486,388 $18,272,521
$ 17,381,418
Maximum annual debt service $ 866,760 $ 866,760 $
865,310
(1) The Improvement Revenue Refunding Bonds, Series 2001, were issued October 15, 2001 in the
amount of $11 ,470,000. They were secured by a lien upon and a pledge of the Public Service Tax pursuant
to Section 166.231, Florida Statutes as amended. Effective October 1, 2001, the Florida Legislature
repealed the public service tax on telecommunications created per Section 166.231 (9), Florida Statutes,
and created a simplified tax structure for communications services pursuant to Chapter 2000-260, Laws of
Florida. To the extent that the Public Service Tax receipts derived by the City pursuant to Section
166.231 (9), Florida Statutes, is eliminated as a result of this new tax, all of the revenues received by the
City pursuant to the new Communications Services Tax shall be deemed to replace the Public Service Tax
receipts so eliminated. Consequently the pledged revenues include both public service taxes and
communications services taxes effective October 1 , 2001.
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City of Clearwater, Florida
Fire Services Program
Supplementary Information
Pursuant to agreements between the City of Clearwater, the Pinellas County Fire Authority and the Pinellas
County Emergency Medical Services Authority, the City has provided fire and emergency medical services to
the respective authorities. With respect to fire services, the services are provided for the benefit of properties
located outside the corporate limits of the City, but within a designated service area. Emergency medical
services are provided for the benefit of persons residing both inside and outside the corporate limits of the
City, based on the Authority's nearest unit dispatch policy.
With respect to the Fire Services Program, a budget was prepared by Fire Department personnel covering
proposed expenditures for fiscal year ending September 30, 2003, 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, 2003 are
summarized below.
Total Revenue Received from Pinellas County Fire Protection Authority
$ 2,185,964
Total Fire Service Expenditures for Fiscal Year Ended September 30,2003
$ 15,786,226
The Fire Services Program does not currently utilize an equipment reserve.
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Statistical Section
117
General Debt
7"k
Transportation
5%
Economic
Environment
3%
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City of Clearwater, Florida
General Governmental Expenditures By Function (a)
Last Ten Fiscal Years
Fiscal General Public Physical Economic
Year Government Safety Environment Transportation Environment
1994 $ 6,944,313 $ 30,348,800 $ 1 ,461,345 $ 4,485,318 $ 944,189
1995 7,100,253 32,230,932 1,368,074 4,727,961 1,827,083
1996 8,422,146 32,473,158 1 ,448,830 4,935,058 1,931,839
1997 9,143,485 35,014,716 1,593,525 4,950,263 2,305,384
1998 10,149,047 36,269,061 1,926,168 5,017,921 2,918,024
1999 10,457,801 38,489,701 318,590 6,755,168 2,722,985
2000 9,126,217 41 ,362,225 2,245,047 5,091,703 2,177 ,534
2001 9,486,088 42,442,045 2,221,979 5,401,902 2,385,926
2002 10,545,629 45,920,782 2,839,608 8,940,748 3,268,188
2003 10,586,022 48,161,524 2,289,250 6,672,874 4,307,323
(a) Includes operating and capital outlay expenditures of all govemmental funds.
General Governmental Expenditures By Function (a)
Fiscal Year Ending September 30, 2003
Public Safety
35%
General
Government
8%
Physical Env.
1.5%
Capital Outlay
24%
Human Services
0.5%
Culture and
Recreation
16%
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I TABLE I
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I Culture Reporting
Human and Capital General Entity
Services Recreation Outlay Debt Totals
I $ 637,739 $12,190,549 $ 9,297,004 $ 1,556,939 $ 67,866,196
760,196 13,172,327 14,059,318 2,169,809 77,415,953
I 693,940 13,582,796 23,283,499 2,496,111 89,267,377
794,432 14,459,550 15,703,411 4,327,382 88,292,148
I 893,812 15,059,753 12,700,027 2,401,704 87,335,517
934,791 16,300,735 14,783,956 2,230,312 92,994,039
I 633,960 16,932,942 16,885,678 2,141,246 96,596,552
699,699 18,301,610 42,676,646 2,257,198 125,873,093
I 565,668 20,740,013 19,594,274 4,571,463 116,986,373
576,307 22,251,601 32,271,707 10,067,824 137,184,432
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I Millions Total General Governmental Expenditures
Last Ten Fiscal Years (a)
150
I 125
I 100
I 75
I 50
I 25
I 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
I Fiscal Years
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City of Clearwater, Florida
General Revenues By Source (a)
Last Ten Fiscal Years
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Fiscal Other Licenses Fines and
Year Property Taxes (b) and Permits Forfeitures
1994 $ 21,107,231 $ 17,350,297 $ 3,047,814 $ 1 ,822,424
1995 17,265,880 19,012,336 3,620,891 1,756,680
1996 21,060,994 20,434,460 2,937,586 1,736,731
1997 21,652,492 20,706,412 3,403,879 1,592,702
1998 22,242,072 22,081,683 3,406,987 1,598,936
1999 23,293,933 22,736,582 4,241,747 1,989,510
2000 26,087,648 22,985,603 5,432,799 1,921,448
2001 27,712,010 24,187,094 4,408,637 2,015,067
2002 30,322,411 17,489,020 3,987,963 2,264,041
2003 33,927,390 17,502,509 4,838,207 2,077,633
(a) Revenues are those of all governmental funds.
(b) Includes franchise, utility and communication services taxes.
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General Revenues by Source (a)
Fiscal Year Ending September 30, 2003
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Licenses and
Permits
4%
Other
Miscellaneous
3%
Investment
Earnings
2%
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Fines & Forfeitures
2%
Other Taxes
15%
Charges for
Services
9%
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Property Taxes
29%
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TABLE II
Inter- Charges
governmental for
Revenue Miscellaneous Services Total
$ 18,118,364 $ 3,153,097 $ 5,505,849 $ 70,105,076
19,814,366 3,627,036 5,523,544 70,620,733
20,617,058 3,835,839 5,695,288 76,317,956
23,744,019 4,427,296 6,289,164 81,815,964
24,615,308 4,581,291 7,564,833 86,091,110
26,551,416 5,518,920 7,677,873 92,009,981
26,073,855 3,253,487 8,127,038 93,881,878
33,1 05,406 7,011,060 9,378,667 107,817,941
44,208,496 8,775,946 10,428,964 117,476,841
41,600,441 5,406,400 10,471,361 115,823,941
Total General Revenues Last Ten Fiscal Years (a)
75
125
100
50
25
o
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Fiscal Years
121
122
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City of Clearwater, Florida
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Total Current Percent Delinquent
Year Tax Levy Collections (a) of Levy Collections
Collected
1994 $ 21,281,744 $ 21,154,946 99.40% $ 603,226
1995 21,458,160 21,388,692 99.68 159,918
1996 21,761,730 21,675,311 99.60 73,731
1997 22,410,181 22,281,502 99.43 80,253
1998 23,008,214 22,856,951 99.34 129,690
1999 23,951,878 23,854,396 99.59 226,812
2000 26,998,318 26,876,461 99.55 106,800
2001 28,664,112 28,567,429 99.66 77,716
2002 31,303,900 31,204,025 99.68 130,632
2003 35,153,114 35,038,555 99.67 91 ,548
(a) Collections are reported at the gross amount before any discount allowance
I TABLE III
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I Percent Percent of
of Total Delinquent
Total Collections Outstanding Taxes to
Collections to Current Delinquent Current
I Levy Taxes Levy
I $ 21,758,172 102.24% $ 946,874 4.45%
21,548,610 100.42 856,443 3.99
I 21,749,042 99.94 868,209 3.99
I 22,361,755 99.78 914,383 4.08
I 22,986,640 99.91 935,957 4.07
24,081,208 100.54 806,626 3.37
I 26,983,261 99.94 821,683 3.04
I 28,645,145 99.93 840,651 2.93
I 31,334,657 100.10 809,894 2.59
35,130,103 99.93 824,673 2.35
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City of Clearwater, Florida
Assessed and Estimated Actual Property Valuations
Last Ten Fiscal Years
Assessed Valuations (a)
Tax Collection Non-Exempt Personal Other Total
Year Year Real Estate Property Property(b) Taxable
1993 1994 $ 3,789,902,836 $ 390,841,880 $ 569,338 $ 4,181,314,054
1994 1995 3,782,134,930 403,392,150 580,731 4,186,107,811
1995 1996 3,820,217,710 431,622,230 592,909 4,252,432,849
1996 1997 3,918,747,480 457,182,870 628,698 4,376,559,048
1997 1998 3,999,483,300 493,752,640 1 ,026,819 4,494,262,759
1998 1999 4,153,719,690 537,808,800 870,404 4,692,398,894
1999 2000 4,353,493,520 549,051 ,160 934,183 4,903,478,863
2000 2001 4,657,074,110 550,845,380 867,947 5,208,787,437
2001 2002 5,130,069,970 557,588,870 767,087 5,688,425,927
2002 2003 5,580,157,650 524,125,950 794,789 6,105,078,389
(a) Pinellas County Properly Appraiser
(b) Railroad and Telegraph Companies
(c) Includes govemmental, educational, qualified religious, literary, scientific, and health care properties and
special exemptions for individual property owners. Qualified property owners are entitiled to a $25,000
Homestead Exemption based on residency requirement.
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TABLE IV
Percentages
Assessed
Total Total Values to Yearly Increases
Exempt(c) All Estimated
Market Taxable Total
$ 1,391,537,458 $ 5,572,851,512 100.0 % (0.2) % 1.2 %
1,455,095,094 5,641,202,905 100.0 0.1 1.2
1,480,760,538 5,733,193,387 100.0 1.6 1.6
1,508,032,959 5,884,592,007 100.0 2.9 2.6
1,555,308,467 6,049,571,226 100.0 2.7 2.8
1,657,162,640 6,349,561,534 100.0 4.4 5.0
1,751,871,312 6,655,350,175 100.0 4.5 4.8
1,899,322,835 7,108,110,272 100.0 6.2 6.8
2,170,560,750 7,858,986,677 100.0 9.2 10.6
2,451,056,137 8,556,134,526 100.0 7.3 8.9
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Fiscal Downtown
Year City Development (a) School
1994 5.1158 1.0000 9.0820
1995 5.1158 1.0000 9.3590
1996 5.1158 1.0000 9.3290
1997 5.1158 1.0000 9.1760
1998 5.1158 1.0000 9.1330
1999 5.1158 1.0000 9.1100
2000 5.5032 1.0000 8.6660
2001 5.5032 1.0000 8.4330
2002 5.5032 1.0000 8.4870
2003 5.7530 1.0000 8.4490
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City of Clearwater; Florida
Property Tax Rates All Direct and Overlapping Governments
Last Ten Fiscal Years
Property Tax Rates: Expressed as mills per $1 ,000 of taxable value.
Source: Pinellas County Property Appraiser
(a) A separate taxing district established by referendum which affects only downtown properties.
(b) "Other" includes Pinellas County Planning Council 0.0225; Juvenile Welfare Board 0.8117;
SW Florida Water Management District 0.4220; Pinellas Anclote River Basin 0.4000.
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TABLE V
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Emergency
I Transit Medical
County District Services Other Total
I 5.4290 0.6697 0.8500 1.1820 23.3285
5.5850 0.6697 0.8720 1.4221 24.0236
I 5.5140 0.6697 0.8060 1.6308 24.0653
I 5.5100 0.6697 0.7520 1.6561 23.8796
5.5380 0.6697 0.7410 1.6561 23.8536
I 5.5380 0.6501 0.7130 1.6561 23.7830
5.8540 0.6501 0.6470 1.6572 23.9775
I 6.0040 0.6501 0.7 470 1.6562 23.9935
I 6.1410 0.6501 0.6600 1.6562 24.0975
6.1410 0.6319 0.6600 1.6562 (b) 24.2911
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I 2003 2002
Operating 5.2169 4.9638
I Debt Service 0.1299 0.1383
Road Capital Improvements 0.3452 0.3452
Comm. Redevelopment Agency 0.0610 0.0559
I Total City Tax 5.7530 5.5032
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City of Clearwater, Florida
Principal Taxpayers
September 30, 2003
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TABLE VI
Percentage
Type of Assessed to Total
Taxpayer Business Value * Assessed Value
Bellwether Prop. LP Ltd. Shopping Center $ 91,974,300 1.65%
California State Teachers Apartment Complex 27,600,000 0.49%
Taylor, John S. III Landowner 27,401,700 0.49%
Weingarten Nostat Inc. Shopping Center 24,939,600 0.45%
Sand Key Association Ltd. Hotel 24,000,000 0.43%
Clearwater Land Co. Adult Congregate Facility 23,848,700 0.43%
St. Joe Co Office Building 23,549,300 0.42%
Northwood Plaza Shopping Center 22,309,100 0.40%
ZOM Bayside Arbors Ltd. Apartment Complex 19,268,000 0.35%
Furnary, Stephen J. Apartment Complex 19,200,000 0.34%
Sub-Total 304,090,700 5.45%
All Others 5,276,066,950 94.55%
Total $ 5,580,157,650 100.00%
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* Based on non-exempt real property assessed taxable values.
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Source: Pinellas County Property Appraiser, 2002 tax rolls for 2003 collections.
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TABLE VII
City of Clearwater, Florida
Ratio of Net General Bonded Debt to Taxable Assessed Value
And Net Bonded Debt Per Capita
Last Ten Fiscal Years
Ratio of Net Net
Taxable Gross Net General General
Fiscal Assessed General Less General Bonded Debt Bonded
Year Population Value (a) Bonded Sinking Bonded To Assessed Debt
(000) Debt Fund Debt Value Per Capita
1993 100,768 $4,188,105 $ 635,000 $ 286,522 $ 348,478 0.008% $ 3.46
1994 100,604 4,181,314 545,000 302,300 242,700 0.006% 2.41
1995 101,162 4,186,108 450,000 316,403 133,597 0.003% 1.32
1996 101,867 4,252,433 355,000 333,402 21,598 0.001 % 0.21
1997 102,472 4,376,559 255,000 90,000 165,000 0.004% 1.61
1998 102,874 4,494,262 135,000 101,250 33,750 0.001% 0.33
1999 104,281 4,692,398 (b) nfa 0.00
2000 104,454 4,903,478 nfa 0.00
2001 108,787 5,208,787 nfa 0.00
2002 109,231 5,688,426 nfa 0.00
2003 109,719 6,105,078 nfa 0.00
(a) Values listed are for year of collections.
(b) Final maturity of General Obligation Bonds, 1978 Series, was January 1, 1999, in the amount
of $135,000.
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Ratio of
Total Debt Service
Total General to General
Fiscal Debt Governmental Governmental
Year Principal Interest (b) Service Expenditures (a) Expenditures
1994 $ 90,000 $ 33,615 $ 123,615 $ 67,866,196 0.2%
1995 95,000 28,816 123,816 77,415,953 0.2%
1996 95,000 23,114 118,114 89,267,377 0.1%
1997 100,000 17,580 117,580 88,292,148 0.1%
1998 120,000 11,280 131,280 87,335,517 0.2%
1999 135,000 3,915 138,915 92,994,039 0.1%
2000 0 0 0 96,596,552 0.0%
2001 0 0 0 125,873,093 0.0%
2002 0 0 0 116,986,373 0.0%
2003 0 0 0 137,184,432 0.0%
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TABLE VIII
City of Clearwater, Florida
Ratio of Annual Debt Service Expenditures
For General Obligation Bonded Debt
To Total General Governmental Expenditures (a)
Last Ten Fiscal Years
(a) Includes operating and capital outlay expenditures of all governmental funds.
(b) Excludes bond issuance and other costs.
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City of Clearwater, Florida
Computation of Legal Debt Margin
September 30, 2003
Assessed Valuation of Non-Exempt Real Estate (a)
Times: Twenty Percent Limitation Per City Charter
Equals Legal Indebtedness Limitation
Debt Subject to Indebtedness Limitation'
Reven ue Bonds:
1996A Gas System Revenue Bonds
1997 Gas System Revenue Bonds
1998 Gas System Revenue Bonds
1993 Water and Sewer Revenue Bonds
1998 Water and Sewer Revenue Bonds
2002 Water and Sewer Revenue Bonds
1999 Stormwater system Revenue Bonds
2002 Stormwater system Revenue Bonds
2001 Infrastracture Sales Tax Revenue Bonds
2001 Improvement Revenue Refunding Bonds
2002 Spring Training Revenue Bonds
Notes, Mortgages and Contracts
Totals
Legal Indebtedness Margin
Gross
Debt
Less Sinking
Fund Assets
$ 8,270,000
11,870,000
7,860,000
14,005,000
51,924,771
58,680,000
7,150,000
24,685,000
41,345,000
11,005,000
14,645,000
13,746,259
265,186,030
7,917
43,750
2,917
9,496,000
1,561,045
4,268,135
119,167
403,333
4,391 ,667
1,105,310
268,333
21,667,574
(a) Valuation listed is from 2002 tax year for 2003 collections.
City of Clearwater, Florida
Computation of Direct and Overlapping Debt
September 30, 2003
TABLE IX
$ 5,580,157,650
x 20%
1,116,031,530
Net Debt
Subject to
Limitation
8,262,083
11,826,250
7,857,083
4,509,000
50,363,726
54,411,865
7,030,833
24,281,667
36,953,333
9,899,690
14,376,667
13,746,259
243,518,456
$ 872,513,074
TABLE X
Net General
Obligation Debt
Govemmental Unit Outstanding Percent Amount
City of Clearwater $ 100.0% $
Pinellas County School Board $ 66,895,235 13.6% (a) $ 9,097,752
(a) Applicable Net Debt Percentage is based on ratio of City to County Taxable values for 2003 collections
($5,580,157,650 I $41,167,093,480=13.6%).
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TABLE XI
City of Clearwater, Florida
Water and Sewer Revenue Bonds Coverage
Last Ten Fiscal Years
Net Reven ues
Available for
Debt Service
Fiscal
Year
Gross
Revenues (a)
$ 32,529,074
33,058,297
34,814,929
35,816,439
36,311,233
35,850,799
37,406,823
39,485,997
39,452,012
40,243,263
Expenses (b)
$ 17,824,720
18,495,960
22,311,433
23,417,605
24,608,494
24,806,085
25,882,873
27,336,550
28,551,889
29,610,534
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
$ 14,704,354
14,562,337
12,503,496
12,398,834
11,702,739
11,044,714
11,523,950
12,149,447
10,900,123
10,632,729
Debt Service Requirements
Fiscal PrinclpaVSln king Debt Service
Year Fund Interest Total Coverage
1994 $ 2,880,000 $ 3,916,263 $ 6,796,263 2.16
1995 3,760,000 3,380,470 7,140,470 2.04
1996 3,990,000 3,186,295 7,176,295 1.74
1997 4,140,000 3,038,845 7,178,845 1.73
1998 4,305,000 2,869,738 7,174,738 1.63
1999 4,500,000 2,083,179 6,583,179 1.68
2000 4,705,000 1 ,581 ,403 6,286,403 1.83
2001 4,920,000 1,358,690 6,278,690 1.94
2002 5,165,000 1,117,880 6,282,880 1.73
2003 5,430,000 3,334,202 8,764,202 1.21
(a) Includes interest earnings and gross revenues of Water and Sewer Divisions of Utility System.
Extraordinary gain and contributed revenues are excluded.
(b) Excludes depreciation (and similar noncash expenses), amortization of bond discount and issue
costs, bond interest, sinking fund and reserve requirements and extraordinary loss.
Note: In April, 1993, the City issued $53,445,000 Refunding Revenue Bonds to finance the cost of
refunding entirely the series 1988A and 1988B bonds. In November, 1998, the City issued
$43,642,690 Refunding Revenue Bonds to finance the cost of refunding entirely the series 1988
bonds. In July, 2002, the City issued $58,680,000 revenue bonds for the purpose of paying the
costs of capital improvements to the City's water, wastewater collection, water pollution control
and reclaimed water systems.
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Fiscal
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
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Fiscal
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
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(a)
(b)
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Note:
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Gross
Revenues (a)
$ 13,316,619
13,672,905
16,423,147
17,779,715
19,438,030
18,772,104
21,533,228
31,211,839
27,218,076
30,372,858
150,000
240,000
320,000
455,000
540,000
560,000
580,000
610,000
630,000
City of Clearwater, Florida
Gas Revenue Bonds Coverage
Last Ten Fiscal Years
Expenses (b)
$ 10,220,164
10,555,346
13,199,962
14,124,064
14,975,445
14,701,728
16,462,986
24,575,414
20,664,704
23,729,436
Net Reven ues
Available for
Debt Service
$ 3,096,455
3,117,559
3,223,185
3,655,651
4,462,585
4,070,376
5,070,242
6,636,425
6,553,372
6,643,422
TABLE XI
Maximum
Debt
Service
Coverage Coverage(c)
6.34 1.74
2.76 1.75
2.49 1.81
2.06 2.06
2.43 2.05
1.93 1.87
2.41 2.33
3.16 3.05
3.11 3.01
3.16 3.05
Debt Service Requirements
Interest Total
$ 488,020 $ 488,020
978,195 1,128,195
1,052,923 1,292,923
1,454,765 1,774,765
1,379,358 1,834,358
1,564,891 2,104,891
1,543,494
1,518,713
1 ,494,887
1,469,679
2,1 03,494
2,098,713
2,104,887
2,099,679
Includes interest earnings and gross revenues from Gas System.
Excludes depreciation (and similar noncash expenses), amortization of bond discount and issue costs,
bond interest, and reserve adjustments.
Maximum debt service coverage is presented for continuing disclosure on the Gas System Revenue
Bonds, and is based upon the maximum debt service for the outstanding bonds and parity bonds.
For fiscal 2003 the maximum debt service totals $ 2,176,810.
In September, 1994, the City issued $8,110,000 Gas System Revenue Bonds, Series 1994A, for additions,
extensions, supplements or replacements of the existing gas system in Pinellas County, Florida.
Approximately $1 ,340,000 was to be used to develop new gas markets.
In July, 1996, the City issued $8,815,000 Gas System Revenue Bonds, Series 1996A, for additions and
extensions to the gas system in Pinellas County and Pasco County, Florida, as well as supplements and
replacements of the existing gas system in Pinellas County, Florida.
During October 1997 the City issued $ 7,895,000 Gas System Revenue Bonds, Series 1997A, for additions
extensions, supplements, or replacements of the existing gas system within Pinellas and Pasco Counties.
Also during October 1997 the City issued $6,710,000 Gas System Revenue Refunding Bonds, Series 1997B,
to advance refund the Gas system Revenue Bonds, Series 1991.
During January 1998 the City issued $ 8,020,000 Gas System Revenue Bonds, Series 1998, to advance
refund the Gas System Revenue Bonds, Series 1994A.
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TABLE XI
Fiscal
Year
2000
2001
2002
2003
Fiscal
Year
2000
2001
2002
2003
City of Clearwater, Florida
Stormwater Revenue Bonds Coverage
Four Fiscal Years Since Issuance
Gross
Revenues (a)
$ 4,938,338
5,323,293
6,846,086
8,660,373
Net Reven ues
Available for
Debt Service
$ 1,755,078
1,715,012
2,888,509
3,933,186
Expenses (b)
$ 3,183,260
3,608,281
3,957,577
4,727,187
Debt Service Requirements
PrlnclpaVSlnklng
Fund
Debt Service
Coverage
9.48
3.40
5.61
3.20
Interest
Total
185,225
504,593
515,093
1,229,070
$
$
185,225
399,593
395,093
1,104,070
$
105,000
120,000
125,000
(a) Includes interest earnings and gross revenues of the Stormwater Utility System Fund.
Extraordinary gain and contributed revenues are excluded.
(b) Excludes depreciation (and similar noncash expenses), amortization of bond discount and
issue costs, bond interest, sinking fund and reserve requirements, and extraordinary loss.
Note: In November 1999 the City issued $7,500,000 Stormwater System Revenue Bonds for the
purpose of paying the costs of capital improvements to the City's stormwater management
system. In September 2002 the City issued $24,685,000 Stormwater Revenue Bonds for
the purpose of paying the costs of capital improvements to the City's stormwater
management system. Consequently only four years of data are available as of September
30, 2003.
TABLE XI
Fiscal
Year
2001
2002
2003
City of Clearwater, Florida
Infrastructure Sales Tax Revenue Bonds Coverage
Three Fiscal Years Since Issuance
Debt Service Requirements
Sales Tax PrincipaVSinklng Debt Service
Revenues (a) Fund Interest Total Coverage
$ 8,339,694 $ $ $ nfa
8,457,553 1,983,688 1 ,983,688 4.26
8,661,615 5,100,000 1,881,688 6,981,688 1.24
(a) City's share of the revenues derived by Pinellas County, Florida from the levy and
collection of a one-cent discretionary infrastructure sales surtax pursuant to Section
212.055(2), Florida Statutes, as amended.
Note: During June 2001 the City issued $46,445,000 Infrastructure Sales Tax Revenue Bonds,
Series 2001, for the purpose of paying the costs of certain capital improvements to the
City, including, but not limited to, costs relating to road and bridge projects and a new
main public library. Consequently only three years of data are available as of September
30,2003.
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TABLE XI
City of ClealWater, Florida
Spring Training Facility Revenue Bonds Coverage
Three Fiscal Years (a)
Fiscal
Year
Debt Service Requirements
Principal/Sinking
Fund (a) Interest
Pledged
Revenues (b)
Total
Debt Service
Coverage
nla
nfa
2001
2002
2003
$
$
647,912 $
1,147,925
1 ,114,681
$
165,000
629,080
794,080
1.40
(a) Though fiscal 2002 was the year of issuance, fiscal year 2001 is disclosed as the first year that pledged revenues
were received for debt service coverage.
(b) Includes interest earnings and payments received by the City from the State of Florida pursuant to Section 212.20,
Florida Statutes: and from Pinellas County, Florida, pursuant to an inter-local agreement dated December 1,2000.
Note: In September 2002 the City issued $14,810,000 Spring Training Facility Revenue Bonds for the purpose of building
a spring training facility for the Philadelphia Phillies. The City started receiving the money from both the State of
Florida and Pinellas County commencing March 2000; consequently only three years of data is available as of
September 30, 2003.
City of ClealWater, Florida
Improvement Revenue Refunding Bonds Coverage
Two Fiscal Years Since Issuance
Debt Service Requirements
Fiscal Pledged Principal/Sinking Debt Service
Year Revenues (a) Fund Interest Total Coverage
2002 $ 18,272,521 $ 110,000 $ 407,537 $ 517,537 35.31
2003 17,381,418 350,000 506,435 856,435 20.30
(a) The Improvement Revenue Refunding Bonds, Series 2001, were issued October 15, 2001 in the amount of
$11,470,000. They were secured by a lien upon and a pledge of the Public Service Tax pursuant to Section
166.231, Florida Statutes as amended. Effective October 1, 2001, the Florida Legislature repealed the public
service tax on telecommunications created per Section 166.231 (9), Florida Statutes, and created a simplified tax
structure for communications services pursuant to Chapter 2000-260, Laws of Florida. To the extent that the
Public Service Tax receipts derived by the City pursuant to Section 166.231 (9), Florida Statutes, is eliminated as a
result of this new tax, all of the revenues received by the City pursuant to the new Communications Services Tax
shall be deemed to replace the Public Service Tax receipts so eliminated. Consequently the pledged revenues
include both public service taxes and communications services taxes effective October 1, 2001.
Note: During October 2001 the City issued $11,470,000 Improvement Revenue Refunding Bonds, Series 2001, for the
purpose of providing a portion of the funds necessary to defease the City's outstanding Florida Public Service Tax
and Bridge Revenue Bonds, Series 1985, and Improvement Revenue Bonds, Series 1995.
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TABLE XII
City of Clearwater, Florida
Property Value and Construction
Last Ten Fiscal Years
Commercial Construction Residential Construction
Fiscal Number of Number of Total Assessed
Year Permits Value Permits Value Property Value (a)
1994 1,077 $ 66,558,783 4,662 $ 21,151,330 $ 5,572,851,512
1995 1,391 120,116,220 5,832 27,199,318 5,641,202,905
1996 1,860 43,299,453 6,527 32,039,292 5,733,193,387
1997 1,762 94,445,784 6,605 36,259,408 5,884,592,007
1998 1,392 52,983,592 7,253 50,906,470 6,049,571,226
1999 1,821 90,770,055 5,624 37,677,855 6,349,561,534
2000 2,667 177,569,812 5,485 30,376,636 6,555,350,175
2001 2,312 164,701,145 5,512 34,182,620 7,108,110,272
2002 2,196 108,939,096 5,448 37,498,719 7,858,986,677
2003 1,834 193,901,304 6,084 54,304,855 8,556,134,526
(a) Source: Pinellas County Property Appraiser, values listed are for year of collections.
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TABLE XIII
City of Clearwater, Florida
Demographic Statistics
Last Ten Fiscal Years
Per Capita Median School Unemployment
Year Population (a) Income (b) Age (c) Enrollment (d) Rate (e)
1994 100,604 $ 22,148 42.9 10,043 5.5 %
1995 101,162 23,412 42.2 10,284 4.8
1996 101,867 23,768 42.1 11,960 4.2
1997 102,472 25,111 43.3 15,264 3.7
1998 102,874 26,287 43.6 13,714 2.9
1999 104,281 27,704 43.9 14,551 3.0
2000 104,454 29,041 44.2 15,978 2.7
2001 108,787 29,818 43.0 16,293 2.7
2002 109,231 31,406 43.0 17,047 3.9
2003 109,719 32,408 43.9 16,295 4.9
(a) Source is the University of Florida, Bureau of Economic and Business Research,
Florida Statistical Abstract 2003.
(b) Data is for Pinellas County. Source is the University of Florida, Bureau of Economic
and Business Research, Florida Statistical Abstract 2003.
(c) Source is the University of Florida, Bureau of Economic and Business Research,
Florida Statistical Abstract 2003.
(d) Source of data is the Pinellas County School District.
(e) Source is the University of Florida, Bureau of Economic and Business Research,
Florida Statistical Abstract 2003, as of December 31 st of the current fiscal year.
Note: Data is the latest published annual data available for an unspecified point in each year,
not specifically September 30.
137
TABLE XIV
Date of Incorporation:
Town of Clearwater
Municipal Corporation
June 2, 1897
May 27,1915
Form of Government: Commission - Mayor
Fiscal Year: October 1 - September 30
Population: U.S. Bureau of the Census
Area:
Land
Water
1930
1940
1950
1960
1970
1980
1990
2000
Clearwater
7,607
10,136
15,581
34,653
52,074
85,170
98,784
108,787
25.4 Square Miles
8.6 Square Miles
Public Works:
Streets:
Paved
Unimproved
Sanitary Sewers:
Sanitary Sewer Mains
Storm Sewer Mains
Treatment Plants
Daily Capacity
Water:
Mains
Accounts
Fire Hydrants
Gas:
Mains
Accounts
304 Miles
10 Miles
City of Clearwater, Florida
Miscellaneous Facts
September 30, 2003
Tampa Bay
Metro Area
231,190
291,622
436,365
820,443
1,105,553
1,613,603
2,067,959
2,395,997
363 Miles
147 Miles
3
29 Million Gallons
559 Miles
40,227
4,042
686 Miles
17,275
Public Safety:
Police Protection:
Stations
Employees
Fire Protection:
Stations
Employees
Total Municipal Employees
Libraries:
Branches (including main library)
Co lIection
Marina
Airpark
Recreational Facilities:
Parks
Playgrounds
Golf Courses
Beach
Ballfields
Tennis
Basketball
Horseshoe
Soccer and Football
Handball
Swimming Pools
Stadium
Recreation Centers
Special Recreation Facilities
Recreational Paths
Lawn Bowling
Sh uffl eboard
Fitness Courses
Disc Golf Courses
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7
200
1,851
5
556,966
209 Boat Slips
177 Spaces
1 ,130 Acres
31
3 Courses
42 Acres
36 Diamonds
64 Courts
22 Courts
24 Courts
17 Fields
10 Courts
5 Pools
6,917 Seats
12
32
7.4 Miles
24 Rinks
62 Courts
8
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Single Audit I
Grants Compliance
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This Page Intentionally Left Blank
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I Accountants and Business Advisors
Grant Thornton &
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor - Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the City), as of and for the
year ended September 30,2003, which collectively comprise the City's basic financial statements. We have also
audited the financial statements of each of the City's nonmajor governmental, nonmajor enterprise, internal
service and fiduciary funds presented as supplementary information in the accompanying combining and
individual fund financial statements as of and for the year ended September 30, 2003, and have issued our
report thereon dated January 16, 2004. 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.
Compliance
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
grants, noncompliance with which could have a direct and material effect on the determination of the City's
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 that are required to be reported under Government Auditing Standards.
Internal Control Over Financial ReportinQ
In planning and performing our audit, we considered the City's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinions on the City's financial statements
and not to provide assurance on the internal control over financial reporting. Our consideration of the internal
control over financial reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over financial reporting and its operation that we
consider to be material weaknesses. However, we noted other matters involving the internal control over
financial reporting that we have reported to management in a separate letter dated January 16, 2004.
This report is intended solely for the information of the Mayor-Commissioner, City Commissioners, City Manager,
management, federal awarding agencies, pass-through entities, and State of Florida program officials and is not
intended to be, and should not be, used by anyone other than these specified parties.
~ ~ LLfJ
Tampa, Florida
January 16, 2004
Suite 3850
101 E. Kennedy Blvd
ITampa, FL 33602-5152
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
I Grant Thornton LLP
US Member of Grant Thornton International
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Grant Thornton ~
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO 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
Honorable Mayor - Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida
Compliance
We have audited the compliance of the City of Clearwater, Florida (the "City") with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement and the requirements described in the Executive Office of the Governor's State Project Compliance
Supplement that are applicable to each of its major federal programs and major state projects for the year ended
September 30, 2003. The City's major federal programs and major state projects are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal programs and
major state projects is the responsibility of the City's management. Our responsibility is to express an opinion on
the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. Those
standards, OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program or major
state project occurred. An audit includes examining, on a test basis, evidence about the City's compliance with
those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that are
applicable to each of its major federal programs and major state projects for the year ended September 30, 2003.
The results of our auditing procedures disclosed no instances of noncompliance that are required to be reported
in accordance with OMB Circular A-133 or Chapter 10.550, Rules of the Auditor General.
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal control over
compliance with requirements of laws, regulations, contracts and grants applicable to federal programs and state
projects. In planning and performing our audit, we considered the City's internal control over compliance with
requirements that could have a direct and material effect on a major federal program or major state 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.
Suite 3850
101 E. Kennedy Blvd
I Tampa, FL 33602-5152
T 813.229.7201
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W www.grantthornton.com
I Grant Thornton LLP
US Member of Grant Thornton International
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Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal
control that might be material weaknesses. A material weakness is a condition in which the design or operation
of one or more of the internal control components does not reduce to a relatively low level the risk that
noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in
relation to a major federal program or major state project being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information of the Honorable Mayor-Commissioner, City Commissioners,
City Manager, management, federal awarding agencies, pass-through entities and State of Florida program
officials and is not intended to be, and should not be, used by anyone other than these specified parties.
~ ~ LLfJ
Tampa, Florida
January 16, 2004
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20.205 Federal No. 9045-019C,Contract #AI 915 689,775 361,029
20.205 Federal No. 9045-018C,Contract #A916 400,000 193,200
20.600 Contract AN21 0 52,787 33,470
20.600 Project #AL-03-05-05 / DOT #AM668 36,000 36,000
1 ,178,562 623,699
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City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance - Continued
For the year ended September 30, 2003
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Federal Grantor /
Pass-through Grantor /
Program Title
CFDA/CSFA
Number
Grant I.D. Number
Program
or Award
Amount (a)
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u.s. Department of Transportation:
Passed thru Florida Dept of Transportation:
Clearwater Beach West Bridge Connector
McMullen Booth Road Overpass
Clearwater Pedestrian / Bicycle Coordinator
Clearwater DUI Enforcement
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Total U.S. Department of Transportation
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u.s. Environmental Protection Agency:
Passed thru Florida Dept of Environmental Protection:
Alligator's Creek
66.460 DEP Contract #WM781 242,000
66.811 BP-98405396-4 50,000
66.811 BP98405396-3 150,000
66.811 BP-98405396-2 100,000
66.811 BP98405396-1 100,000
66.811 V-98405396-0 100,000
66.811 BL984872-99-0 500,000
66.476 HS-82988401 115,000
1,357,000
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Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
Brownfield - Federal
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Vulnerability Assessment
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Total U.S. Environmental Protection Agency
$27,165,060 $ 3,199,732
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Total Federal Financial Assistance
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147
Federal
Share of
Expenditures
22,000
36,728
9,300
33,046
101,074
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City of Clearwater, Florida
Schedule of Expenditures of Federal Awards
and State Financial Assistance - Continued
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For the year ended September 30, 2003
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State Grantor /
Pass-through Grantor /
Program Title
CFDA/CSFA
Number
Grant I.D. Number
I Florida Department of Law Enforcement:
Violent Crime Investigative Emergencies
71.005
109701
I Total Aorida Department of Law Enforcement
Florida Department of Revenue:
Phillies Stadium
I Total Florida Department of Revenue
73.016
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Total State Financial Assistance
Total Expenditures of Federal Awards
and State Financial Assistance
I (a) Includes awards under prior year grants, which remain active.
(b) Funded with State grants and aids appropriations.
(c) State projects only.
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Program
or Award
Amount (a)
State
Share of Transfers to
Expenditures (b) Subrecipients (c:
45,000 14,158
45,000 14,158
15,000,000 795,285
15,000,000 795,285
$ 29,489,682 $ 6,322,590 $ 50,949
$ 9,522,322
City of Clearwater, Florida
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
Year ended September 30,2003
NOTE 1 - BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards and state financial assistance includes the
federal and state grant activity for City of Clearwater, Florida and is presented on the modified accrual basis of
accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or
used in the preparation of the financial statements.
NOTE 2 - CFDAlCSFA NUMBER
CFDA numbers represent Catalog of Federal Domestic Assistance and apply only to Federal Awards. CSFA
numbers represent Catalog of State Financial Assistance and apply only to State Financial Assistance.
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City of Clearwater, Florida
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended September 30, 2003
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued (unaualified, qualified, adverse, disclaimer).
Internal Control Over Financial Reportina:
Material weaknesses identified Yes 1- No
Reportable conditions identified that are not considered to be a material
weakness Yes 1- No
Noncompliance material to financial statements noted? Yes 1- No
Federal Awards
Internal control over major programs:
Material weaknesses identified? Yes 1- No
Reportable conditions identified that are not considered to be a material
weakness Yes 1- No
Type of auditor's report issued on compliance for major programs (unaualified,
qualified, adverse, disclaimer).
Any audit findings disclosed that are required to be reported in accordance
with Section 510(a) of Circular A-133? Yes 1- No
Identification of major programs:
Federal Programs
CFDA Numbers
14.218
16.710
20.205
Name of Federal Program or Cluster
Community Development.Block Grant
COPS Technology
Clearwater Beach West Bridge Connector
State Project
CSFA Numbers
37.039
52.002
52.901
55.004
Name of State Project
Town Pond
Historic Bayview Environmental Park
State Housing Initiative Partnership Program
Runway Overrun & BERM
Dollar threshold used to distinguish between type A and type B programs.
Auditee qualified as a low risk auditee for Federal single audit purposes?
$300 000
1- Yes
No
Auditee qualified as a low risk auditee for State single audit purposes?
1- Yes
No
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City of Clearwater, Florida
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended September 30,2003
SECTION 11- FINANCIAL STATEMENT FINDINGS
NONE
SECTION 111- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
NONE
SECTION IV - OTHER ISSUES
· No summary schedule of prior audit findings is required because there were no prior audit findings
related to Federal Programs or State Projects.
· No corrective action plan is required because there were no findings required to be reported under the
Federal or State single audit acts.
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I Accountants and Business Advisors
Grant Thornton &
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MANAGEMENT LETTER REQUIRED BY
SECTION 10.554(1)(g) OF THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
Honorable Mayor-Commissioner,
Commissioners and City Manager
City of Clearwater, Florida
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Clearwater, Florida (the City), as of and for the
year ended September 30,2003, which collectively comprise the City's basic financial statements. We have also
audited the financial statements of each of the City's nonmajor governmental, nonmajor enterprise, internal
service and fiduciary funds presented as supplementary information in the accompanying combining and
individual fund financial statements as of and for the year ended September 30, 2003, and have issued our
report thereon dated January 16, 2004.
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. We have issued our Report of Independent Certified Public
Accountants on Compliance and on Internal Control over Financial Reporting. Disclosures in that report, if any,
which is dated January 16, 2004 should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1 )(g)1.a.) require that we address in the management letter, if not already
addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned
costs, whether or not inaccuracies, shortages, defalcations, fraud and/or violations of laws, rules, regulations and
contractual provisions reported in the preceding annual financial audit report have been corrected. There were
no inaccuracies, irregularities, shortages, defalcations and/or violations of laws, rules, regulations and contractual
provisions disclosed in the preceding annual report.
The Rules of the Auditor General (Section 10.554(1)(g)1.b.) require that we address in the management letter, if
not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and
questioned costs, whether or not recommendations made in the preceding annual financial audit report have
been followed. The current status of the recommendations made in the preceding annual financial report are
included under the heading "Current Year Status of Prior Year Comments."
As required by the Rules of the Auditor General (Section 10.554(1)(g)2.), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, we determined that the City complied with Section 218.415, Florida Statutes.
The Rules of the Auditor General (Section 10.554 (1) (g) 3.) require disclosure in the management letter of any
recommendations to improve financial management, accounting procedures and internal controls.
Recommendations for improvement are noted beginning on page 155.
The Rules of the Auditor General (Section 10.554 (1) (g) 4.) require disclosure in the management letter of the
following matters if not already addressed in the auditor's reports on the internal control structure or compliance:
there were no violations of laws, rules, regulations and contractual provisions which mayor may not materially
affect the financial statements that were discovered during the audit; there were no illegal or improper
expenditures which mayor may not materially affect the financial statements that were discovered during the
audit; there were no improper or inadequate accounting procedures (e.g., the omission of required disclosures
from the financial statements) that were discovered during the audit; there were no failures to properly record
financial transactions, or other inaccuracies, irregularities, shortages, or defalcations discovered by the auditor.
Suite 3850
101 E. Kennedy Blvd
ITampa, FL 33602-5152
T 813.229.7201
F 813.223.3015
W www.grantlhornton.com
IGrant Thornton LLP
US Member of Grant Thornton International
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The Rules of the Auditor General (Section 10.554 (1) (g) 5.) also require 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. The City, located in
Pinellas County, Florida, was incorporated in June 1923. The legal authority by which the City was
created and is governed is its charter, which was derived from Chapter 9710 Special Laws of Florida, as
amended. The Clearwater Redevelopment Agency (CRA), a blended component unit of the City of
Clearwater, Florida, was created by authority of Florida Statute Chapter 163, Part III, and the City of
Clearwater Resolution 81.68. The Clearwater Downtown Development Board, a discretely presented
component unit of the City of Clearwater, Florida, was created by authority of Florida Statutes 70-635 and
77-637 and City Ordinance 5347-93.
As required by the Rules of the Auditor General (Section 10.554 (1) (g) 6a.), the scope of our audit
included a review of the provisions of Section 218.503 (1), Florida Statutes, Determination of Financial
Emergency. In connection with our audit, we determined that the City of Clearwater, Florida, is not in a
state of financial emergency as a consequence of the conditions described by Section 218.503(1), Florida
Statutes. The financial condition assessment procedures pursuant to Rule 10.556 (8) were applied in this
determination.
As required by the Rules of the Auditor General Section 10.554 (1 )(g) 6b.), we determined that the annual
financial report for the City of Clearwater, Florida for the fiscal year ended September 30,2003, that was
filed with the Department of Banking and Finance 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, 2003.
As required by the Rules of the Auditor General (Section 10.554(1)(g)6.c.1. and 6.c.2.), the auditor
applied financial condition assessment procedures pursuant to Rules of the Auditor General 10.566(8).
The City of Clearwater, Florida does not have deteriorating conditions as defined in Section 11.45(3)(a) 8,
Florida Statutes.
This management letter is intended solely for the information of the City of Clearwater, Florida and
management and the State of Florida Office of the Auditor General and is not intended to be, and should
not be, used by anyone other than these specified parties.
~ ~ ~Lf
Tampa, Florida
January 16, 2004
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155
CURRENT YEAR COMMENTS
WATER/SEWER RATE
Observation:
During our testing of the utility cash receipts, we noted that the rate charged for water/sewer was less then the
City Ordinances established rate on certain sampled items. Upon further review, it W(;iS discovered that this was
due to inconsistencies in customer account billing codes.
Recommendation:
We recommend that consideration be given to establishing an information technology control that allows only the
established City ordinance rates to be charged.
Management Response:
Management concurs and has created an exception report that identifies these billing inconsistencies on a
monthly basis for review and correction.
YEAR-END ADJUSTMENTS - GENERAL FIXED ASSET ACCOUNT GROUP
Observation:
During our testing of the General Capital Assets, we noted that additions related to certain capital improvement
funds were not accurately reflected. This was due to year-end adjustments within the capital improvement funds
that were not reflected within the General Capital Assets.
Recommendation:
We recommend that the City put into place procedures to reconcile the expenditures per the "Program/Project
Expenditures and Transfers" report to the General Capital Assets Additions/Deletions Totals for each respective
capital improvement fund. This would ensure that all adjustments to the capital improvement funds are also
adjusted within the General Capital Assets.
Management Response:
Management concurs and will add the recommended additional control procedure to ensure that all year-end
adjustments are included for all capital improvement funds.
CAPITAL ASSET INVENTORY
Observation:
During our testing of the COPS Technology Grant Revenue/expenditures, we noted a piece of equipment
purchased, was not tagged and recorded on the City's fixed asset listing.
Recommendation:
We recommend that the City implement procedures that require a fixed asset tag to be issued before an entry to
a capital code within the general ledger. This will alleviate the risk of the City purchasing fixed assets that are
then not recorded on the City's fixed asset inventory.
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Management Response:
Management concurs that this additional control would be desirable if practical, and will review in conjunction
with the implementation of a new financial system during fiscal 2004.
MAINTENANCE OF CONTRACT FILES
Observation:
During our testing of the Community Development Block Grant (CDBG), we noted several instances where the
construction contract files for contractors performing work under the program were not complete. In addition, we
noted that the contract files of the subrecipients for whom construction work was contracted were not complete.
Specifically, contract files were missing contracts, signatures executing contracts, certain certifications required
for Federal projects of this type, and other miscellaneous documentation.
Recommendation:
We recommend that the department consider implementing a procedure, such as a completeness checklist, to
ensure that contract files are complete. Additionally, we recommend that the department consider monitoring the
contract files of its subrecipients to ensure that contract files are complete.
Management Response:
Management concurs that there needs to be tighter administrative controls in place to assure compliance with all
federal labor standards, rules, and regulations associated with the Housing Division's use of U.S. Department of
Housing and Urban (HUD) funds. Management has implemented new policy whereby all disbursement requests
involving public facilities/improvements will need to be approved by both the Assistant Director and the Housing
Manager prior to expending federal funds. Additionally, management has developed a checklist that will be
placed in all new, and current ongoing, public facilities/improvements files that will be signed by each responsible
party. This will ensure that all required documentation is included in each file.
157
CURRENT YEAR STATUS OF PRIOR YEAR COMMENTS
MORTGAGE RECEIVABLES
Observation:
During our testing of the Local Housing Assistance Trust Fund (SHIP) and the Rehabilitation Loan Fund (HOME
Program), we noted a significant amount of deferred payment loans receivable. Based upon the nature of these
loans (repayment is not required for a specified period of time or until the property is no longer owned or used by
the borrower), there is the risk that the original mortgagee could have sold the property or could be renting the
property to another person and therefore repayment of the loan would be required.
Recommendation:
We recommend that the City consider performing periodic reviews of the deferred payment loans, including site
visits, if necessary, to ensure that the original mortagee is still listed as the property owner in the County tax
collector's records and still occupies the property in accordance with the loan documents and provisions of the
City's grant agreements. This will also help ensure the Federal and State funds are being used for allowable
costs and activities.
Management Response:
Management concurs that the monitoring of deferred loans is an important function and believes that it has
adequate controls currently in place, including required annual insurance certification of the properties by the
mortgagee. Additionally, the State of Florida and U.S. Department of Housing and Urban Development (HUD)
monitor the programs on a bi-annual basis, with both reviewing and issuing satisfactory reports on the Housing
Division and related loan programs during fiscal 2002. Management will review, on a cosUbenefit basis, the
recommendation to add a procedure for site visits and will implement site visits during fiscal 2003, if warranted.
Current Status:
The City stands behind its position that the annual insurance certification process is a reasonable and effective
mechanism to ensure that the properties are still inhabited by the appropriate parties.
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Grant Thornton ~
Accountants and Business Advisors
April 12, 2004
The City Commissioners
The City of Clearwater
Clearwater, Florida
Ladies and Gentlemen:
Professional standards require that we advise you of the following matters relating to our recently concluded audit.
The matters discussed herein are those that we have noted as of January 16, 2004, and we have not updated our
procedures regarding these matters since that date to the current date.
Our Responsibility Under Auditing Standards Generally Accepted in the United States of America and Government
Auditing Standards
As stated in our engagement letter dated May 17, 2001, our responsibility, as prescribed by professional standards, is
to plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement, whether caused by error or fraud. An audit in accordance with auditing standards generally
accepted in the United States of America (US GAAS) and Government Auditing Standards, issued by the Comptroller
General of the United States, does not provide absolute assurance or guarantee the accuracy of the financial
statements and is subject to the inherent risk that errors or fraud, if they exist, have not been detected. Such
standards also require that we obtain a sufficient understanding of the City's internal controls to plan the audit.
However, such understanding is required for the purpose of determining our audit procedures and not to provide
any assurance concerning such internal controls.
Our responsibility under US GAAS and Government Auditing Standards includes reporting to you fraud involving senior
management and fraud (whether caused by senior management or other employees) that causes a material
misstatement of the financial statements. We have previously agreed that immaterial misappropriations identified
during our audit that were perpetrated by lower-level employees need not be reported to you.
Our Responsibility for Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, the auditors' responsibility for other information in documents containing the
City's audited financial statements (for example, the introductory and statistical sections of the City's Comprehensive
Annual Financial Report) does not extend beyond the financial information identified in the auditors' report, and the
auditors are not required to perform procedures to corroborate such other information. However, in accordance
with such standards, we have read the introductory and statistical sections of the City's Comprehensive Annual
Financial Report and considered whether such information, or the manner of its presentation, was materially
inconsistent with its presentation in the financial statements. Our responsibility also includes calling to
management's attention any information that we believe is a material misstatement of fact. No such inconsistencies
or misstatements came to our attention.
Suite 3850
101 E. Kennedy Blvd
Tampa, FL 33602-5152
T 813.229.7201
F 813.223.3015
W www.grantthornton.com
Grant Thornton LLP
US Member of Grant Thornton International
The City Commissioners
The City of Clearwater
April 12, 2004
Page Two
Management Judgments and Accounting Estimates
Accounting estimates, based upon management's judgments, are an integral part of an entity's fmancial statements.
Those judgments are normally based on knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ markedly from
management's current judgments. We believe that the City's allowance for uncollectible accounts for taxes receivable
and other receivables, provisions for insurance claims payable, accumulated depreciation, and depreciation expense
represent such particularly sensitive accounting estimates. Management has informed us that in determining the
appropriateness of these allowances and provisions, they reviewed all significant facts and circumstances. We have
performed tests of these allowances and provisions to satisfy ourselves as to their reasonableness in relation to the
financial statements taken as a whole.
Significant Audit Adjustments
For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of
the financial statements that, in our judgment, may not have been detected except through our auditing procedures.
The definition includes adjustments that were not recorded by the City because they are not material to the current
financial statements but might be potentially material to future financial statements.
Management has represented to us that they believe uncorrected financial statement misstatements on the attached
schedule are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or
not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be
significant to the City's financial statements or the auditors' report. We are pleased to report that no such
disagreements arose during the course of our audit.
Consultation with Other Accountants
Management has informed us that they have not consulted with other accountants about auditing and accounting
matters subsequent to our appointment as auditors for the City.
Major Issues Discussed with Management Prior to Our Retention
Prior to our being retained as auditors for the current fiscal year, there were no major accounting and auditing issues
discussed with management.
Difficulties Encountered in Performing the Audit
We are pleased to inform you that we encountered no difficulties in performing the audit. The audit fieldwork was
completed on schedule and the City's CAFR was prepared in good form by the City and completed before its
statutory due date. Additionally, we received good cooperation from the entire City staff.
The City Commissioners
The City of Clearwater
April 12, 2004
Page Three
Should you desire further information concerning these matters, John Hangartner will be happy to meet with you at
your convenience.
This letter is intended solely for the information and use of the Mayor-Commissioner, Commissioners, and
management of the City and is not intended to be, and should not be, used by anyone other than these specified
parties.
Very truly yours,
~M
LLfJ
City of Clearwater
Summary of Uncorrected Financial Statement Misstatements
For the Year Ended September 30, 2003
(Revenue)
Asset Liability Equity Expense
No. Account Description Dr. (Cr.) Dr.(Cr.) Dr.(Cr.) Dr. (Cr.)
1 Bad Debt Expense Fund #421 $ $ $ $ 22,109
1 Allowance for Bad Debts (22,109)
To correct error in calculation of allowance.
2 Net Assets Fund #423 53,382
2 Depreciation Expense (53,382)
To correct PY depreciation expense, expensed in the CY.
3 Miscellaneous Expense Fund #462 85,415
3 Net Assets (85,415)
To adjust the CY expense and net assets for expense that was taken
in the PYs related to the Global Spectrum agreement.
4 Net Assets Fund #555 (114,224)
4 Depreciation Expense 114,224
To adjust net assets for PY loss and increase the CY expense related
to assets that were deleted in the PYas fully depreciated.
$~ $ - $(146257) $~
Ln
City Council
Cover Memorandum
Trackina Number: 498
Actual Date:
Subiect / Recommendation:
Appoint Commission members as representatives on the Regional and Miscellaneous Boards listed
below.
Summary:
City Council
Cover Memorandum
Current appointments:
Board (Date/Time of Meeting)
Delegate
Tampa Bay Regional Planning Council (TBRPC)
(2nd Mon. - 10:00 a.m.)
Hibbard
Suncoast League of Municipalities B.O.D.
(3rd Sat. - 11:00 a.m.)
Jonson
Performing Arts Center & Theater B.O.D. (PACT)
(3rd Mon. - 5:00 p.m.)
Aungst
Mayor's Council of Pinellas County
(1st Wed. - 11:30 a.m.)
Aungst
Chi Chi Rodriguez Youth Foundation B.O.D. Hamilton
(twice a year-Mar. & either Sept. or Oct.-time/location TBA)
Jolley Trolley Transportation of Clearwater,Inc.B.O.D. Hamilton
(Quarterly on 2nd Wed. - 5:30 p.m.)
C.H.I.P. Board of Directors Gray
(Last Wed. - 8:00 a.m. - Police Headquarters)
Clearwater Marina Aquarium Foundation
(as called)
Hibbard
Barrier Island Governmental Council Hamilton
(4th Wed. - 9:00 a.m. - location TBA for each meeting)
Tampa Bay Partnership Board of Governors Aungst
(as called)
Tampa Bay Partnership Policy Board Aungst
(bi-monthly - 9:00 a.m.)
Tampa Bay Estuary Policy Board Jonson
(Quaterly - 1:30 p.m.)
Commission member highly recommended
Sister Cities Committee
Hamilton
The following boards have the specific term expiration date noted:
Emergency Medical Services Advisory Council (EMS) Aungst
(Annually on 3rd Wed. in March - 3:00 p.m.) (term expires 5/2003)-2 yr term
(EMS Charter requires Mayor to serve as representative)
Pinellas WorkNet Board Gray
(3rd Wed.-8:30 a.m.-location TBA for each meeting) (term expires 9/30/2004)-2 yr term
St. Petersburg/Clearwater Area Economic Jonson
City Council
Cover Memorandum
Development Council (term expired 10/2003)-1 yr term
(Quarterly-time & location TBA for meeting)
Pinellas Planning Council (PPC)
(3rd Wed. - 9:00 a.m.)
Board (Date/Time of Meeting)
Hamilton
(term expires 12/31/2004)-2 yr term
Delegate
Pinellas Suncoast Transit Authority (PSTA) Jonson
(4th Wed. - 9:00 a.m.) (term expired 9/30/2003)-3 yr term
Metropolitan Planning Organization (MPO)
(2nd Wed. - 1 :00 p.m.)
Hibbard
(term expires 09/12/2005) - 4 yr term
Pension Advisory Committee (PAC)
(2nd Thurs. - 9:00 a.m.)
Jonson 4/4/2005 - 2 yr term
Hamilton 4/4/2004 - 2 yr term
Hibbard 4/4/2004 - 2 yr term
Long Center Board of Directors (LCBOD)
(4th Tues. - every other month - 7:30 a.m.)
Hibbard
(term expired 9/30/2003)-3 yr term
Originatina: Official Rec and Legislative Svc
Section: Other items on City Manager Reports
Categorv: Other
Number of electronic documents attached: 0
Public Hearing: No
Financial Information:
Tyoe: Other
Review Approval
Cvndie Goudeau
04-09-2004
14:27:51
Garrv Brumback
04-09-2004
13:26:13
Bill Horne
04-09-2004
13:31:16
Goudeau, Cyndie
From:
Sent:
To:
Cc:
Subject:
Brink, Carolyn
Wednesday, April 07, 2004 3:40 PM
Akin, Pam; Goudeau, Cyndie; Blunt, Betty
Reporter
FW: Designating Memorials on City Public Property
-----Original Message----
From: Horne, William
Sent: Wednesday, April 07, 20043:35 PM
To: Dunbar, Kevin E.
Cc: Brumback, Garry; City Council
Subject: RE: Designating Memorials on City Public Property
Kevin,
I am looking to have the most expansive discussion we can have on the subject of memorials so
the council can help frame the boundaries. The research on Largo offers some good insight on
what we may want to avoid. My sense is the council does not want to spend a lot of their time
approving memorials. I think they do want to approve memorials of close to extreme
significance. Things that don't happen everyday. Things that happen once in 50 years. Memorials
that fit tIus kind of criteria truly have long tenn significance and value to the community. I am
looking for general policy language for the COlIDCil that is supported by a slightly more detailed
framework that sets boundaries and helps the staffknow what to accept and reject. Thanks.
Bill Honle
-----Original Message-----
From: Dunbar, Kevin E.
Sent: Wednesday, April 07, 200412:34 PM
To: Horne, William
Cc: Brumback, Garry
Subject: Designating Memorials on City Public Property
BilL.for the council discussion on Monday afternoon. Our opinion is the best way to handle this (if this is something
we want to do) is to have one central location (Crest Lake Park?), where a memorial wall of some type could be
constructed, where people could purchase the right to have a plaque installed.....not individual trees or plantings. In
reviewing what other jurisdictions do, the city of Largo has a memorial tree program is rapidly growing (literally) and
currently do not have enough maintenance monies to track/inspect the numerous plaques and trees currently spread
out within their one Central Park feature. We have a copy of their one-page procedure for this program, where an
individual or family could purchase a tree + plaque for a one time fee of $100 or $250, depending on tree type.
Increasing costs are positioning the Largo at a crossroad where they may need to go back to the individual or family
and request an increase for maintenance impacts or eat the cost......we would want to keep the revenue piece in
mind for this type program (annual maintenance fee), we would recommend not doing trees but rather the wall. As
always we can do anything as long as we are resourced and as you can see from Largo's example this can quickly
become and difficult (an emotional) problem to handle. Let me know if you need anything further.
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